Loans Disbursed by Pawnshops

The following question stood in the name of Mrs Lina Chiam –

To ask the Minister for Law (a) how many pawnshops have been established from 2011 to 2013; (b) what is the total amount disbursed by these pawnshops; and (c) how many defaulters could not redeem their items as they could not meet the repayment of their loans.

Mdm Speaker, 43 new pawnshops were established from 2011 to 2013. Of these 43 pawnshops, 38 were set up by existing operators: 36 were from chains, while two were from businesses with two outlets. The remaining five were set up by new entrants into the industry. The industry grew from 163 pawnshops in 2010 to 204 in 2013.

The total amount of pawnbroking loans granted per year was $4.9 billion in 2011, $7.1 billion in 2012 and $5.5 billion in 2013. Such loans included loans which were refinanced using the same collateral.

Over the same period, around 95% of pledges were redeemed by pawners. Pawners may choose not to redeem their pledges for a variety of reasons. For instance, the pawner may simply wish to monetise an item that he owns. The Registry of Pawnbrokers does not track the reasons for the non-redemption of pledges.