A New South Wales Liberal MP has spoken out about what he says is the vilification of entire communities through the ethnic branding of crime squads.

Upper House member John Ajaka says the Middle Eastern and Asian organised crime squads send the wrong message to people from those backgrounds that they commit the vast majority of crime.

He says he has spoken to a number of his Liberal colleagues, as well as Labor MPs, who have privately agreed with him that the issue needs to be addressed.

Mr Ajaka says while he agrees organised crime squads are necessary, they should not be ethnically linked.

"Simply labelling crime squads with either Middle Eastern crime squad or Asian crime squad is seriously not appropriate in today's society," he said.

"All you're doing is you're basically vilifying entire communities. You're sending the wrong message to young people that there's a problem with one specific community and that's clearly not the case."

"I do not agree that the answer is just simply [to] label one community. That's not an answer. That doesn't solve crime."

A statement from New South Wales Police says the crime squads do not target ethnic communities but instead the criminals living within them.

They say specialised squads are able to work closely with the communities to target those involved in organised crime.