Madam Speaker, I support the Bill. I am concerned though about the rise in the number of pawnshops and in the total value of pawnbroking loans in recent years. The number of pawnshops has grown from 114 in 2008 to 217 as at June 2014. The value of pawnbroking loans rose more than three times from S$2 billion in 2009 to a peak of S$7.1 billion in 2012. Many of the pawnshops are in the HDB heartlands. In an earlier parliament reply, we are told that HDB does not generally limit the number of shops for each trade and leaves it to market forces to determine the trade mix of shops. Market forces have indeed led to the rise of the pawnbroking industry. In our geographically small island state, with some 217 outlets, access to pawnshops for a quick loan is easy. This has prompted some journalists to cast the spotlight on our pawnbrokering industry which now has three publicly listed pawnbrokers as key players in the market. A Bloomberg report in June last year titled “Rolex for Casino Cash Fuels Singapore Pawnshop Growth” highlighted stories and statements by industry players about the rise in pawnbrokering activities being driven by gambling. The report, as well as other reports, also pointed to soaring living costs as another reason for Singaporeans to turn to easy credit sources such as pawnbrokers to cover their living expenses. - NCMP Yee Jenn Jong
Posted on: Mon, 19 Jan 2015 08:29:14 +0000
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