Rahayu Mahzam on Moneylenders (Amendment) Bill
The Government is moving to further professionalise the moneylending industry to ensure that it keeps up with changes in the operating environment. Firstly, it will improve data sharing and usage policies. Currently, there are restrictions on data that can be shared. For example, the Registrar is only able to share data with other public agencies for public policy formulation or review, and not for other purposes such as improving operational processes. The Bill aims to align the moneylending data sharing framework with the Whole-of-Government data sharing approach, with the relevant safeguards in place. Licensed moneylenders can share borrowers’ data with public sector agencies and disclose borrowers’ data to ensure the welfare and protection of applicants, borrowers and sureties. Another set of amendments will allow licensed moneylenders to disclose borrower information to more third parties, such as a prescribed list of credit bureaus. Moneylenders are currently unable to share their borrowers’ credit application and repayment information with other credit bureaus which offer credit-related information. This has hampered comprehensive credit checks on borrowers. With the change, credit bureaus will be able to provide additional information on the borrowers’ credit worthiness and indebtedness, leading to more informed and responsible lending. Licensed moneylenders will also be able to conduct more comprehensive credit checks before granting a loan, thereby helping them manage their credit risk. To facilitate digitalisation in the industry, the Bill allows licensed moneylenders to provide borrowers with statements of accounts through modes of communication other than mail and email. For example, they can use their own website or business WhatsApp accounts but both sides must agree in writing on using these new modes of communication. Senior Parliamentary Secretary for Law Rahayu Mahzam, who outlined the key amendments in Parliament on Wednesday (Nov 22), said that over the past decade, the Government’s regulatory reforms have raised industry standards and provided better protection for borrowers. The amendments seek to do the same, she said. She stressed that the Bill will allow data to be used in meaningful ways that are aligned with the Whole-of-Government standards and will facilitate better business practices by licensed moneylenders.
The Government is moving to further professionalise the moneylending industry to ensure that it keeps up with changes in the operating environment. Firstly, it will improve data sharing and usage policies. Currently, there are restrictions on data that can be shared. For example, the Registrar is only able to share data with other public agencies for public policy formulation or review, and not for other purposes such as improving operational processes. The Bill aims to align the moneylending data sharing framework with the Whole-of-Government data sharing approach, with the relevant safeguards in place. Licensed moneylenders can share borrowers’ data with public sector agencies and disclose borrowers’ data to ensure the welfare and protection of applicants, borrowers and sureties. Another set of amendments will allow licensed moneylenders to disclose borrower information to more third parties, such as a prescribed list of credit bureaus. Moneylenders are currently unable to share their borrowers’ credit application and repayment information with other credit bureaus which offer credit-related information. This has hampered comprehensive credit checks on borrowers. With the change, credit bureaus will be able to provide additional information on the borrowers’ credit worthiness and indebtedness, leading to more informed and responsible lending. Licensed moneylenders will also be able to conduct more comprehensive credit checks before granting a loan, thereby helping them manage their credit risk. To facilitate digitalisation in the industry, the Bill allows licensed moneylenders to provide borrowers with statements of accounts through modes of communication other than mail and email. For example, they can use their own website or business WhatsApp accounts but both sides must agree in writing on using these new modes of communication. Senior Parliamentary Secretary for Law Rahayu Mahzam, who outlined the key amendments in Parliament on Wednesday (Nov 22), said that over the past decade, the Government’s regulatory reforms have raised industry standards and provided better protection for borrowers. The amendments seek to do the same, she said. She stressed that the Bill will allow data to be used in meaningful ways that are aligned with the Whole-of-Government standards and will facilitate better business practices by licensed moneylenders.
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