
The suspects had been held for investigations under Sections 377 and 372 of the Penal Code, for unnatural sexual intercourse, and exploitation of a person for prostitution, respectively, but none admitted to being a victim.
Kuala Lumpur police chief Fadil Marsus said since none confessed to being a victim, the case could not continue, Bernama reported.
The 171 were among 208 people arrested by the police during the raid on the health club. Police said they confiscated condoms and other items believed to have been used for immoral purposes.
Kuala Lumpur deputy police chief Azani Omar had been reported as saying earlier that the joint operation was carried out following two weeks of surveillance and intelligence gathering.
Among those arrested were 17 civil servants and seven employees aged between 19 and 60. The rest were believed to be patrons, including 24 foreigners.
Separately, religious affairs minister Na’im Mokhtar said the federal territories Islamic religious department (Jawi) was still investigating the incident.
Na’im said the investigation is being carried out under Section 25 of the Syariah Criminal Offences (Federal Territories) Act 1997 for sodomy, and Section 47 of the same law for an attempt to commit any offence under the Act.