Government Welcomes Committee Recommendations to Strengthen Singapore’s Moneylending Regulatory Regime
1. The Government welcomes the recommendations of the Advisory Committee on Moneylending, which aim to improve the balance between protecting borrowers and preserving their access to credit.
2. The Committee’s recommendations addressed two key areas:
(i) Interest rates, fees, as well as relevant caps on borrowing costs and loan quantum. The Government will adopt these recommendations. The development of the Moneylenders Credit Bureau should help lenders make better informed loan decisions, and competition will drive down moneylenders’ interest rates; and
(ii) The business practices of moneylenders, which the Government will review.
3. The Government accepts 12 of the 15 recommendations put forward by the Committee. In addition, two recommendations – to lift the moratorium on the granting of new licenses and to regulate debt collection behaviour – will be reviewed in time, as the industry adapts to the new regulatory changes.
4. With regard to the recommendation on advertising restriction, the Government’s view is that any form of advertising could lead to increased borrowing. This recommendation has therefore not been accepted.
5. The Government remains committed to improving the professionalism of the moneylending industry to ensure borrowers are able to access credit safely.