Ravi Philemon
“Yes, I have borrowed from Ah Long”, admits Rezal (not his real name). “But I had no other choice! My wife lost her job in the factory and now earns about $400 as a part-time dish-washer; and we cannot survive just on my pay of $800.” Rezal, who has three school-going children and works as a Lashing Specialist, says. “There are really no containers coming in for me to have work everyday”.
Rezal, who lives in a three room HDB flat with his family, says that they managed to get by when he had a full days work; and the “$400 plus” his wife brought home every fortnight working as a factory worker, made sure that they had money for marketing, transportation, pocket-money for the children and themselves, etc. But now, he has to choose between paying his bills and putting food on the table for his children.
“My relatives helped out in the beginning, but they also have their own families. Finally last month I have to go to the Ah Long to borrow $200 to pay the bills”, says Rezal. “I have to pay the Ah Long $280 at the end of this month, but I think I can manage because I have started washing cars part-time now”, Rezal adds.
Should people like Rezal who are victims of circumstances and are already victims of sharks, loan-sharks that is, be further victimised by a new law that is under study to criminalise those that borrow from loan-sharks? Mr. Wong Kan Seng, Deputy Prime Minister and the Minister for Home Affairs, says that this new law being studied by the police is to “hold borrowers accountable” for “their reckless borrowing”. He says these “reckless borrowing” endanger the safety and security of the community; and justifies it further by saying that many borrowers end up working as syndicate runners to pay off their debts, extending the circle of crime even further.
What other recourse do people like Rezal have? There is no unemployment insurance to tide the retrenched over the downturn till they find another job in Singapore. If you suddenly fall on trying times, you cannot draw a “hardship loan” from your own Central Provident Fund (CPF). If you earn less than $20,000 annually, you cannot borrow from the banks. Information on loans provided by credit co-operatives is not easily available. Since life is not a constant, what other solutions do people like Rezal have, when they are suddenly faced with the struggle of daily life?
When reminded that under the law that is currently being studied, he may be criminalised if he borrows from the loan-shark, Rezal replies, “If I have to choose between putting food on the table for my children and committing an offence by borrowing from the Ah Long, I will choose to become a criminal.”
Lawyers like Luke Lee disagree with the intention of the possible law. He says, “They are already down and out, no further action should be taken against them. Even if these victims sue the borrowers and win the case, the borrowers may not have the money to pay, and the victims would still have pay for the law suit.”
And what is the real intention of the Ministry of Home Affairs studying the implementation of this law now? Has the current economic crisis caused more people to turn to loan sharks? Have the incidences of the loan-sharks pressing for payments increased dramatically that police are struggling to cope? A Straits Times Forum writer seems to suggest as much, when the writer said that the police did not seem to take any action against the harassers, despite numerous complaints being lodged.
Such a law if implemented will surely make the job easier for the police as well as for the loan-sharks, for those that borrow from the loan-sharks, will now not come forward to say that they are being harassed, for fear of being criminalised themselves. This in turn will create a thriving black market for personal loans.
Some debtors do indeed assist the unlicensed moneylenders by becoming their runners and by aiding them in their harassment activities. But what is the actual statistics for this? There are of course “reckless borrowers” who borrow to fuel their addiction to gambling, for example. But again what are the numbers for these? Without providing the appropriate numbers and statistics, what Mr. Wong Kan Seng has done is to paint those that borrow from loan-sharks as the bogeyman who borrow recklessly and endanger the safety and security of his neighbours and community.
Of course the police should not hesitate to take action against debtors who are found to be assisting unlicensed moneylenders in their illegal activities. But not all debtors must be considered as criminal elements. There are sufficient safeguards in the current law to deter those that assist illegal money-lending activities; for the current law specifies that those who harass or intimidate anyone in connection with loans by an unlicensed moneylender face a maximum fine of $40,000 or up to three years in jail, or both.
Enacting a law to criminalise without having effective safeguards against the hurdles that life throws at those that earn lower income is, to say the least, not thoughtful. The government should kick-start an initiative like “Match-Saving Scheme” to assist those that are least able to save before even considering a law which would criminalise those that borrow from the illegal money-lenders. The “Match-Saving Scheme” could be made available to those who earn $1500 or less and match 50 cents for every dollar saved. The “Match-Saving Scheme”, should also specify conditions as to when such savings could be drawn. Such a scheme will kick-start a saving habit among those who are often least likely and least able to save.
“Of course if given a choice, I don’t want to pay so much interest”, says Rezal. “But what choice do I have?” he asks.
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There are many avenues from government help schemes and even MUIS, Mendaki and AMP to seek assistance. He is earning $800 a month and needs to take care of 3 kids. He is already eligible for assistance. Why the need to go to a loan shark? The government wants to end illegal money lending. Both lenders and borrowers should be held accountable since they are both involved in the transaction. Just like drug pushers and drugs users are both held accountable. The punishment for borrowers should definitely be different than lenders taking their circumstances into consideration. The banks are not the only place to seek financial assistance. Poor people should not be made to borrow in the first place. Banks should instead refer these people to the government or self-help organisation. This is how a more empathic institution should operate.
Sad fact of life that it sucks to live in singapore when you are financially poor, in bad health, nonchristian, disabled, middleaged, old and non angmoh. Balakhristnan will say “How much do you want? Enough for restaurant meals?”.
Well Ravi, it all depends on which tree you are barking up on. This WKS chap has no sense of accountability, as is widely known beyond the Singapore shores, what makes you think he will place consideration on a group of people he considers hopelessly ill in the Singapore society?
It is clear that by considering the borrowing law that criminalizes the borrower, he is, like the same manner in which he handled the MSK situation, evading the source of the problem while attempting to solve the problem.
Take a step back and think over his actions after the escape of MSK. He mounted a manhunt to try and correct the situation, hoping hopelessly to recapture the limping fugitive. He painted a picture to Singaporeans that MSK was able to escape because of some lapses that was in no way detrimental to the safeguarding of security at the detention center, and Singapore. One year later, he was reported as singing praises to the officers at the detention center and to even compliment them for the hard and unglamorous works they are undertaking. No wonder people say he can’t sing.
Back to the topic. So, what is the source of the problem? Why do absolutely normal people end up borrowing from loan sharks. We are not talking about the hardcore gamblers and the likes. We are talking about normal people, responsible people, people who know where their responsibilities lie. What is the reason that make them go seek out the loan shark? Only when you are able to provide the answer to this question, that you can then proceed to find a solution.
The answer is plain and simple. It is the same reason why perfectly normal people could trip themselves while walking, and fall to the ground. These are people happily walking down the road when all of a sudden, when they least expect it, they trip over something, a banana skin perhaps, and topple over. The banana skin is the problem, some would say, but it is not. Is it the person who threw the banana skin there that is the problem? Perhaps. Now, go deeper, are the factors that moulded the person who throw banana skins all over the place is the problem? Perhaps. Who then created these factors that made the man who he is? That is the source of the problem!
So WKS, please go tackle the loan shark problem by centering on the source of the problem. Yes, WKS, you cannot pretend not to know the answer. Go ask the old man if you are still scratching your head. Give up already? Let me give you the answer.
The answer works along the same philosophy why LKY says there is a need to pay you clowns the exorbitant remunerations you are getting. Yes, pay the poor citizens of Singapore a minimum sum that is conducive to living in Singapore. For as long as you cannot do this, and for as long as Singaporeans are being paid peanuts, we will always have ‘monkeys’, the ‘socially ill’ people in the land. Did not the old man solved his own problem by paying you guys so much so that all of you would not turn into monkeys? Do the same for the people and we won’t be monkeys looking for peanuts from loan sharks.
People with their foots in their mouths and speaking out of their other orifice should not be allowed to judge or make decisions for an issue that they do not understand(are not in). These grey areas exists because the conventional methods and processes are not able to provide for. Fix the system to solve the vicious cycle rather than smacking it with a hammer where it’ll only burrow itself deeper. Are these really representatives of the people? or just living hot air.
aiyoyo
sad story..
why the banks dont loan to man on the streets? they need $$$ help.
pls la times are bad, do something helpful to society, elites.
and the cpf, not sure waiting for what, when currently people need $ help,
but cant take out, which lead to borrow from ah long.
oh nearly forget, ‘banks also ah long among ah long’
which heard many people say so.
aiyoyo
Isn’t Singpost under Speedpost a loanshark too? How does WKS square up to this?
[i]There are many avenues from government help schemes and even MUIS, Mendaki and AMP to seek assistance
The banks are not the only place to seek financial assistance. Poor people should not be made to borrow in the first place[/i]
i liked your song very very much
i also caan sing better than wongcansing rapped the mas sala sured captured theme
you want to hear bank story?
onced upon a time
there was a young lad from a poor amily in singapoor
who borrowed a study loan
unfortunately
he flaunt
he was enlisted to protect our soverign nation from aggressions and protect fellow foreigners
1 fined day
dbs inc says
young man
you still owed us your study loan
with immediate effect we WILL deduct your study loan of somethin liked $200/month from your National Service monthly EARNINs of $350 nia…..
anymore nice avenues to have a tee-loan?
It is indeed very sad that people have to resort to borrowing from loansharks just to survive. I do not want to go into the many other means that could still be a possiblity, but the fact that people have to even consider such a matter worries me.
The question is why are there so many people falling through the “many layers of safety net” that the govt has put up to help? The town councils, RCs, CCCs, Community Clubs and various self help groups, what have they been doing, are they still trying to get to know each other better? Or going out to help others?
Having been volunteering in govt organisations for awhile, it starts to totally fustrate me with the numerous RED TAPES and LAYERS that is stopping volunteers to go out to help others. And these Organisations that were started to help others, are now hampering themselves in the process of helping others now.
Are these organisations’ working procedures still relevant today?
Is it time to review them?
If you cannot survive on your reduced income, see your MPs, CDCs because they have stated that the increase in GST from 5% to 7% is to help the poor. Write to schools for free meals, NTUC for food vouchers.
Do not take no for an answer. They will try to brush you off. Be firm and persistence. Do not be shy because it is money promised by the government under “No one will be left behind”.
Ask them how to survive when taking loans from Ah Long will be considered a criminal offence.
#7, pls la, have you tried that before? Dont you know how our dear elite works? They alwalys paint a bright and promising picture via straits times and other controlled media. But when you go and apply for these aids, they will throw you 101 reasons why you are not qualified, and thus, no money for you.
so in the end, the money that was collected to aid others through GST increment has gone down somewhere…won’t it be surprising if they use the same justification for increment again
They just want to inculcate a culture where people pay and pay.
However, they never asked if they had rendered a good service or if they had paid up what they owe themselves.
Just look at the way they change the CPF schemes.
Hi Ravi,
Thank you so much for highlighting the plight of Rezal and other less fortunate Singaporeans.
It’s a crying shame that Mr Wong Kan Seng had the cheek to say: “Even though the times are not good, we should not just enjoy when we have good times but, I think, in bad times we must also hold up hope for a better future…. For Singaporeans here, some of them might be quite anxious about their jobs and anxious about their families back home because they might have members who lose their jobs. We want them to know that the government will put in place programmes to ensure that Singaporeans will be taken care of.” at the Singapore Day Bash in London last Saturday.
The millions of sterling pounds spent at Hampton Court in London on quitters, scholarship holders and Singaporeans working in foreign lands must have served a purpose that a lesser mortal like me cannot understand.
Can’t some of the millions spent in London be used to help people like Rezal? Yes, the filthy rich politicians (FRPs) keep harping about CDC’s and other avenues that help is available to the poor but they have forgotten about HUMAN DIGNITY!
It’s time that FRPs realised that some think Loan Sharks are easier to deal with than arrogant callous bureaucrats in CDCs (and what have you) dishing out selective assistance to the needy.
Then again, what value-add can people like Rezal do to benefit Singapore and its elites. Pardon my expression, but are Singaporeans like Rezal just a bleeding pain that “get off my elite uncaring faces” heartless millionaire political leaders try so hard to ignore? I’m sure you’ve read about MM’s and Kishore Mahbumani’s claim of beggarless Singapore!
And with 377a, they can also pride themselves that Singapore is also a buggerless nation!
Yes, by making criminals out of the “reckless borrowers”, they are killing 2 birds with one stone to reduce the workload of the police force. With more free time, they may visit London to hunt Mas Selamat down.
feedmetothefish
WKS will not want to see the grey area. Like the article I read….on borrowers fom loan sharks and drugs…how can anyone compare them togather.
This is a financial problem and drugs are an escape and a detriment to oneself and society, unless it is properly administered like in the Swiss.
How can some one compare them togather. I just don’t understand the rational of these guys. Like what a person said….
Find out who threw the banana skin. Are we still voting for these guys…Bring KJ on anytime…….
Support the facebook campaign for unemployment insurance: http://www.facebook.com/group.php?gid=64680475154
I read somewhere that BANKS themselves are legalised “Loan Sharks” so depositors get peanuts in savings and borrowers are slaughtered too ,so what difference …………all blood suckers in nature!
feedmetothefish,
yes, its unfortunate, but i think its those folks that Singapore are trying to woo back. I’ve heard that a more subtle plea is currently being made here in HK, trying to get many Singaporean lawyers to practice back home.
and yes, it is very sad to hear that millions are spent in London, but less is spent to help someone like Rezal. when in fact, when push comes to shove, its Rezal who’d probably defend Singapore if ever trouble looms.
Punishing borrowers. Like many other Home Affairs Ministry’s laws, they have taken the easy way out…by punishing the borrowers. They cant stop drug traffickers – they punish the addicts, when addicts are victims. they need help, counselling, not jail.
Too much contraband cigarettes in Singapore – they come up with this Sg Duty Paid on every stick of cigarette, and aim to punish smokers. When in fact, they should strengthen the borders to stop contraband coming in.
Punishing the victims and general citizens seem to be the easy way out for WKS and his well-paid scholars (who likely have never had money, drug problems in their family circles).
What we really need to do now is to do a lot more PUBLIC EDUCATION, that there are avenues for families and individuals to come for financial help, outside of banks.
and these organisations, should also do outreach and inform the public they can help. and they should also simplify their processes. And make it less of a humiliation during the interview process. etc etc.
$280 borrowed from Ahlong compared with Temasek ‘overnight’ losses.
…”The Singapore firm had invested US$5.9 billion for a 14 per cent stake in Merrill before it was taken over by Bank of America on January 1.”…….
…”The firm offloaded its 3.8 per cent stake for about US$1.3 billion at an average price of US$7 apiece, Dow Jones Newswires reported.”…
If u are used to good ministrial pay check, i wondered how u’re able to feel for those with daily issue of wondering when their next meal is!!
we should suggest the police to make an announcement to those who owe loan shark money to report their case to them so that debtors will not be force to become a runner. That will put a stop to those who scare that the ah longs will harr*** them and they agree to work for them to pay them in return. In future debtors will not be scared of the loan sharks and promise to work for them. Although will cause a lot of manpowers needed but i think is worth it.
No money to pay bills. No food on the table. And yet tens of thousands in CPF accounts. How ironic that CPF is supposed to help Singaporeans save and yet when money is really needed most for basic expenses, you can’t touch a single cent.
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I had never submitted a forum before as I had heard people getting into trouble for submitting forum. However, I believed I must do something as I am a recent victim of loanshark harrassment. And a lot of things fustrated me alot. So I hope the media could help pressure the government into putting out loanshark activities in Singapore.
I am a victim of loanshark harassment after we bought a resale flat from the outside market. Merely a month after we got the key to the flat, loanshark came and harrassed. We are surprised as we did consulted the neighbour before deciding to buy. Although the previous owner admitted to borrowing from loanshark and accompany us to the police station to make a report, but the action of the police seems to show me that the borrower is not committing a crime. I am surprise by this as the borrower is the whole cause of the episode. The borrower is the cause of us being the victim of loanshark harrassment, why is that not a crime? Further more, I understand that they still had not change their address and they can still borrow from loanshark using my new address. Which is very unfair to us. When would the nightmare ends.
I am not sure if it is feasible but I hope that in future, HDB would rule that sellers of resale HDB flats are to change their address (including all occupants) before the completion of the resale (before HDB second appointment). If they still could not find a fix address, they may change their address to a post office, police station, shelter, home or community centre (I dont think anyone is so daring to harrassed such places as there will have people there almost 24 hrs a day). Alternatively, the police may grant HDB permission to cancel the sellers and previous occupant’s address in their NRIC using permanent markers upon completion of the resale. At least by doing so, they could not continue to use our address to borrow from loanshark. I believed that I spend so much to buy a property, the address also belongs to me. They are not supposed to use my address anymore.
I believed that the cause of loanshark surging is because borrowers are seems to be protected by the law. So people would not hesitate to borrow from loanshark as they would not be prosecuted. When borrowers increase, so would loanshark activities (demand up, supply up, demand down, supply down). If the borrowers are considered criminals, then the borrowers would not be so daring to borrow from loanshark and push the future harrassment to innocent victims as they will be in trouble then.
I believed that by making it illegal to borrow from loanshark, innocent victims might be spared as borrower himself would want to keep a low profile and would try not to victimise other innocent people (in my case). As for the loanshark, they might not want to harrass innocent neighbours as they would report it to the police and when the borrower is arrested and put behind bars, there would have noone to pay the loan. This may be my wishful thinking but I really hope Singapore can one day be free from loanshark harassment (especially to innocent victim like me).
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