- POSTED: 18 Jun 2014 10:50
- UPDATED: 18 Jun 2014 23:06
The 15-member committee includes representatives from the moneylending industry as well as voluntary welfare organisations.
SINGAPORE: The Ministry of Law (MinLaw) said on Wednesday (June 18) it has formed an advisory committee to review regulations for the licensed moneylending industry.
The committee will review existing regulations and make recommendations on measures for:
- Capping of interest rates for moneylending loans;
- Restricting the charging of fees by moneylenders;
- Capping the aggregate amount of moneylending loans taken out by each borrower; and
- Other policy parameters which could strengthen the moneylending regulatory regime
The 15-member committee is chaired by Mr Manu Bhaskaran, Director of Centennial Group International and Vice-President of the Economics Society of Singapore, and includes representatives from the moneylending industry as well as voluntary welfare organisations which help distressed borrowers.
“We hope that, with the diversity of representation in the committee, we can provide a holistic perspective on the measures necessary to strengthen the moneylending regulatory regime. We look forward to discussions with representatives from relevant groups in the coming meetings,” Mr Bhaskaran said.
The committee will begin work on June 25, and aims to complete consultations and submit its recommendations to MinLaw later this year.
David Poh, President of the Moneylenders Association, said the new rules may have the unintended effect of pushing desperate borrowers to loansharks.
Mr Poh said: "Borrowing will be capped. That means we cannot borrow from too many moneylenders and this might end up - they may go to the loan shark and my challenge is how to protect my members from losing their business."