SINGAPORE: The Ministry of Law has introduced a Moneylenders Bill to repeal and replace the current Moneylenders Act enacted in 1959.

The ministry said a major review of the Act was necessary to ensure that the laws governing moneylending are updated, relevant, and in line with changes in consumer credit, business financing and the moneylending industry as a whole.

The changes proposed under the Bill include allowing licensed moneylenders to advertise and conduct marketing activities, and removing the cap on the maximum interest rate for secured and unsecured loans.

The Law Ministry said moneylenders will have greater flexibility to determine interest charges based on market forces and their risk assessment.

The proposed bill will also enhance the regulatory and enforcement frameworks for moneylending.

Members of public can provide their feedback on the Moneylenders Bill 2008 online via the REACH website www.reach.gov.sg from August 20 till September 12. - CNA/vm