The Ministry of Law (MinLaw) said today (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 the 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 as well as 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 next Wednesday, and aims to complete consultations and submit its recommendations to MinLaw later this year.