In the past four decades, Singapore has made impressive progress in all aspects of development. There has been a dramatic improvement in the living standard of Singaporeans. Today, Singapore’s per capita income is one of the highest in the world. However, in the midst of such prosperity, there are still many low-income people, for whom life is a struggle. One of their deprivations is access to credit. Due to consolidation and commercial interests, all small banks of Singapore have either merged and acquired or went out of business. The “Big 3” banks do not give micro-loans. With nowhere to turn to, many poor and needy people turn to the pawnshops and loan sharks. There is thus an important need to focus minds and thinking on how to extend assistance to such poorer citizens to have access to credit.
Inspired by the success of the Grameen Bank model, initiated by Dr Muhammad Yunus, in Bangladesh, many have wondered whether such a model of providing miniscule loans to the needy is applicable in Singapore. Dr Yunus’ solution to alleviate poverty is founded on the belief that credit is a fundamental element that paves the way to financial and social independence: lend the needy money on terms that are suitable to them, teach them sound financial principles, and they will help themselves. Today, more than 250 institutions in about 100 countries operate micro-credit programmes based on the Grameen Bank principles.
The presenters will share their experiences of and insights into these challenges and examine the feasibility of small-loan facilities/institutions in Singapore. The Roundtable hopes to arrive at tentative conclusions on whether is there a need in Singapore for small-loan/micro-finance facilities, and more essentially, the most feasible models of such facilities, given Singapore’s specific circumstances.
Downloads