The only penalty here is to not legally own the property under your name. This might affect you if you're planning to sell your property.
That is because, to sell, Form 14A in the Malaysian National Land Code is needed. As for the legal charge of the property with Individual Title by the owner to his/ her financier, Form 16A is applicable.
Both the transfer and the charge will involve the land office and the instruments must be presented to the land office for registration.
Read more about it here: https://www.propertyguru.com.my/property-guides/guide-legal-documents-memorandum-of-transfer-mot-15910
Hope this clarifies!