Penang deputy police chief Alwi Zainal Abidin said the men, both in their 20s, were detained by the state commercial crime investigation department in two separate raids in Penang on July 3.

They are also suspected of being involved in a paint vandalism incident at a house in Tanjung Tokong on June 30.

“The raids led to the seizure of several items, including a motorcycle, a pair of sport rims, a helmet, mobile phones, a sling bag and clothing belonging to the suspects.

“During interrogation, both suspects admitted to their involvement in the case of arson that destroyed three double-storey terrace houses,” Bernama reported him as saying.

He said investigations also revealed the suspects’ involvement in five other paint-splashing cases currently being investigated.

The fire on June 24 broke out at about 4.50am at Taman Tasek Gelugor Utama, causing losses estimated at RM300,000. Five cars and four motorcycles were also damaged.

One of the victims later claimed on Facebook that the fire was related to loan shark activities and was possibly meant to target another house in the area.

A homeowner had reportedly received a warning letter demanding repayment of a debt, but was not residing in any of the three houses that were set on fire.