Speech by Senior Minister of State for Law and Transport, Mr Murali Pillai SC, at the Credit Association of Singapore 20th Anniversary Celebration

From Last Resort to Trusted Partner

Mr Nathan Renganathan, President of the Credit Association of Singapore (“CAS”),

Mr Kenny Ng, Vice President of CAS,

CAS members,

Distinguished Guests,

Ladies and gentlemen,

Introduction

1. I would like to start off conveying my heartiest congratulations to all CAS members on occasion of its 20th Anniversary.

2. This significant milestone marks two decades of efforts to uphold high ethical standards in the licensed moneylending industry and protect borrowers.

3. I wanted to say, Mr Nathan, it was such a pleasure to listen to you just now. You delivered a very substantive speech on what CAS stands for, what CAS does, and how CAS can benefit your members in the years to come. No wonder the Registrar and his colleagues hold CAS as a trusted partner, so well done.

History of Moneylending in Singapore

4. While CAS is relatively young, the business of providing credit in Singapore stretches back nearly two centuries.

5. From as early as the 1820s, the Chettiars were among Singapore’s earliest moneylenders, extending credit to merchants, small businesses and ordinary working people. Their real capital was not just the cash in their safes, it included, most importantly, trust. Decades later when large banks came in and catered mostly to commercial trading houses, moneylenders provided an important source of capital for local businessmen. This helped to support Singapore’s early growth as a trading port.

6. As the industry developed, so too did the need for regulation and borrower protection. A key milestone was the Straits Settlements Moneylenders Ordinance 1935, which came into effect in 1936. It was the predecessor to the current legislation. Hence, this year, alongside CAS’ 20th anniversary, we also mark 90 years of regulation of the moneylending business here in Singapore.

7. While the landscape has evolved considerably since then, moneylenders continue to perform an important role today. Moneylenders fill a gap for borrowers who may be underserved by financial institutions, including young firms and SMEs. For example, those who may need short-term credit urgently, but cannot obtain a loan from financial institutions because of their lack of income or credit history.

8. Like in the past, trust continues to be a quintessential element in the framework of relationship between borrowers and licenced moneylenders as our society evolves. We also see more opportunities for the industry. More Singaporeans are working flexibly; freelancers, platform workers and those between jobs. More will be older and live longer. Their needs do not always fit neatly into a bank’s form. And our small businesses, the hawker, the contractor, the provision shop owner, will still need working capital that they might not be able to access through banks. These people and businesses will continue to need you.

9. To respond to these needs, we must maintain a balance in allowing individual borrowers reasonable access to credit from licensed sources, while ensuring that borrowers, particularly vulnerable ones, are adequately protected.

The MinLaw-CAS Partnership

10. Over the past 20 years, CAS has grown alongside the industry. The name change from the previous “Moneylenders Association of Singapore” to “Credit Association of Singapore” reflects how it has evolved and its commitment to staying relevant. Today, CAS represents more than 85% of all licensed moneylenders in Singapore.

11. Through regular engagements and annual dialogues with the CAS, MinLaw receives valuable operational perspectives on issues facing the industry, and Mr Nathan made mention of that. These insights help us develop a balanced and effective regulatory approach. One that strengthens protection for borrowers and raises standards – industry standards, while giving consideration to the operational realities of licensed moneylenders.

12. We have seen the value of this partnership in concrete ways. One example, as was mentioned by Mr Nathan, was the mandatory cooling-off period for loans taken from licensed moneylenders, which was implemented on 15 September 2026. This was developed in consultation with CAS, and we were able to do so because CAS understood the importance of borrower protection. This reflects the balanced approach to regulation I spoke about – borrowers are afforded an opportunity to reconsider their need for credit, while licensed moneylenders are still compensated for the work done when granting a loan.

13. We have also listened and acted when the industry identified concerns. For example, there had been cases where borrowers took loans from licensed moneylenders just prior to applying for bankruptcy. These borrowers apparently did so under the advice of so-called debt consultancy firms which were looking to exploit the Debt Repayment Scheme, with no intention to fully repay their loans.

14. In response, CAS and MinLaw jointly developed an advisory to educate borrowers against such behaviour. Following a public consultation in June 2025, MinLaw will be proposing legislative amendments to stem such abuse.

15. We will also continually review our requirements and processes to streamline administrative processes for the industry. For instance, earlier this year, we launched “myPal”, the Anti-Money Laundering / Countering the Financing of Terrorism / Countering the Proliferation of Financing screening platform, which assists licensed moneylenders in screening borrowers more effectively or efficiently.

Important Role of Social Service Agencies

16. A strong licensed moneylending industry also requires a shared commitment to responsible lending. Our partners in the social service sector have played an important part in this. The representatives of several of them – Credit Counselling Singapore, Adullam Life Counselling and Blessed Grace Social Services, are here today. I wish to acknowledge their important contributions in helping borrowers deal with their debt issues responsibly.

17. I am pleased to note that CAS works closely with these partners to identify borrowers facing financial difficulties early and potentially prevent their debt problems from escalating. One example is the Moneylender Debt Management Programme, jointly established by CAS and Credit Counselling Singapore, to assist borrowers in restructuring their debts.

18. This is also why we updated the Professional Service Handbook earlier this year to encourage licensed moneylenders to proactively assist distressed borrowers by restructuring loan repayments and referring them to social service agencies where needed. I encourage all licensed moneylenders to adopt these best practices.

Technology, AI and Cybersecurity

19. As we look ahead to the next twenty years, technology, data and artificial intelligence will increasingly impact the industry. All of us need to evolve and adapt alongside these changes. I am glad to learn that licensed moneylenders are already embracing digital tools in the loan application process — from data-driven credit assessments to AI tools that help borrowers better understand their loan obligations.

20. As we embrace digitalisation to leverage its benefits, we also need to be mindful about the associated risks. Licensed moneylenders hold sensitive information of borrowers, and cybersecurity threats are becoming increasingly sophisticated.

21. The 2024 data breach incident involving a third-party IT vendor of several licensed moneylenders was a timely reminder of the importance of strong data protection and cybersecurity measures.

22. CAS has displayed strong leadership in responding to this, facilitating a Cybersecurity Health Clinic conducted by the Cyber Security Agency of Singapore (“CSA”) and providing training materials through CAS’s learning platform to help members.

23. We have seen encouraging progress, with more than 30 licensed moneylenders certified with the Cyber Essentials Mark. CAS member, Alles Autos Credit Pte Ltd, was highlighted at the recent Singapore International Cyber Week 2026 as the first licensed moneylender to attain its certification. It also received a commendation for its proactive efforts to strengthen cybersecurity protection.

24. Cybersecurity is not just about customer data protection, it is also good for business continuity. Recognising its importance, the Government is supporting businesses in this journey. Eligible businesses can tap on CSA’s funding support for payment of certification fees and engaging cybersecurity consultants. CSA is piloting ‘Cyber Essentials in a Day’ workshops with these consultants to fast-track implementation and prepare businesses for Cyber Essentials certification. I encourage all licensed moneylenders to make full use of these funding arrangements and resources.

Closing

25. Looking back to where I began this evening, the tools of the trade have changed enormously over a span of about 200 years– from the kittangi of Market Street and handwritten ledgers, to credit bureaus and increasingly sophisticated uses of data and technology.

26. Even as the industry evolves, the fundamental role of licensed moneylenders will endure. Borrowers will continue to have diverse credit needs and circumstances that financial institutions may not always meet, and licensed moneylenders will continue to fill that gap. Pertinently, trust continues to be as important for this industry as it was about 200 years ago. Fairness, transparency and care continue to be the hallmarks of the trust relationship with the borrower.

27. CAS plays an important role to uphold the good reputation of licensed moneylenders through its members’ adherence to high ethical standards.

28. With the groundwork laid by CAS and strengthening of the trust relationship, the industry has the opportunity to be seen, not as a lender of last resort, but as a trusted partner.

29. In that paradigm, the borrower will walk into your office, with confidence that he is engaging a trusted professional. He leaves not just with a loan, but with a clearer pathway for his finances, thanks to the professional who served him, wearing a badge of honour.

30. I wish all CAS members every success in the years ahead.

31. Thank you very much.