Mr Speaker Sir,

Thank you for allowing me to join this debate. 

Before us today is the Moneylenders Amendment Bill and first I would like to point out the unique role Money lenders play our economy. Outside of not meeting the strict criteria of traditional banks, people often seek licensed Moneylenders for

I would also avoid any knee jerk reactions to the tabling of this bill at this time and attempting to link the amendments and the debate to the recent episodes of money laundering and scams.

I believe tightening our laws for the betterment of society is an on-going commitment and these amendments serve to strengthen the role and the work of licensed Moneylenders and to further enhance Singapore's standing as a financial center.

Mr Speaker, the amendments to the Moneylenders Act will impact both businesses and borrowers. There are also some potential challenges which the industry players would have to face. Allow me to elaborate on these issues.

I would first like to address the Impact of this bill on businesses.

Business owners engaged in moneylending activities will face both challenges and opportunities.

Borrowing could be made easier as the Bill will bring changes to the Credit Reporting through which will allow moneylenders to request credit reports on sureties without explicit consent, potentially streamlining the loan approval process.

Borrowers with favourable credit histories may benefit from potentially expedited loan approval processes as moneylenders can assess creditworthiness more efficiently. 

These amendments also enhance transparency and foster an environment where borrowers can expect fair and accountable lending practices. This may lead to quicker assessments of borrowers' creditworthiness. It also contributes to a more regulated and accountable financial ecosystem. 

Also, with the Expanded Borrower Information Disclosure in Clause 16 Licensees will have the ability to request and disclose borrower information for specific purposes which might provide moneylenders with more comprehensive insights, potentially allowing for more informed lending decisions.

On the flipside, borrowing could be made harder. Through the enhanced security measures and access to credit reports businesses might benefit but compliance with the new regulations and potential operational adjustments will pose challenges. 

How will these amendments affect other players in the economy who make use of the services of Moneylenders?

We have the borrowers, especially those seeking loans with sureties. They will be directly affected. 

As the amendments introduce new requirements for information submission to designated credit bureaus and empower moneylenders to request credit reports on sureties without explicit consent, they could impact the loan application and approval process. 

For example, SMEs, already grappling with operational and labour costs, may find the stringent protocols introduced by the bill to be a hurdle. 

This Bill also introduces clauses on introducing Digital Statements and Record-Keeping.

While these options could enhance convenience, there might be challenges for borrowers if there is an eventual full transition to Digital methods and could deter non tech savvy borrowers.

Then, are the Designated credit bureaus who will see expanded functions, including the collection, use, and disclosure of borrower information. Their expanded authority and data sharing with public sector agencies may raise privacy concerns among borrowers and potentially deterring borrowing?  Balancing the need for information sharing with protecting borrower privacy becomes a delicate challenge.

Along these lines, Mr Speaker Sir, I have the following clarifications for the honourable Minister.

In empowering the Registrar to share borrower or loan information with public sector agencies raises questions about the safeguards in place to protect individuals' privacy. 

Notwithstanding my request for some clarifications, I stand in support of the bill.