Date: For Parliament Sitting on 5 November 2025

Name and Constituency of Member of Parliament

Mr Melvin Yong Yik Chye, Radin Mas GRC

Question

To ask the Prime Minister and Minister for Finance (a) in the past five years, how many consumers have lodged a complaint with MAS over disputes related to in-house car financing schemes offered by car dealers; and (b) whether MAS plans to expand motor vehicle financing rules to cover these in-house car loans.

Answer by Mr Gan Kim Yong, Deputy Prime Minister and Minister for Trade and Industry, and Chairman of MAS:

1. Over the past five years, the Monetary Authority of Singapore (MAS) has received about 5 complaints a year on average over disputes related to in-house car financing schemes offered by car dealers.

2. Car dealers are not financial institutions (FIs) and are not regulated by MAS. MAS’ motor vehicle financing rules apply to FIs, and are overall generally effective because the vast majority of borrowers take out motor vehicle loans from FIs. Other than FIs, entities which are licensed or exempt moneylenders (regulated under the Moneylenders Act 2008) or which offer financing in the form of hire-purchase arrangements (regulated under the Hire-Purchase Act 1969) are also required to comply with the same motor vehicle financing restrictions under the respective legislation or regulations.

3. Buyers are strongly advised to obtain loans through regulated arrangements, as unregulated schemes can carry higher risks such as hidden charges and greater losses for the borrower if they default.

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