Singapore's MOM Bans Foreign Workers for Loan Shark Borrowing

The Ministry of Manpower (MOM) in Singapore has established a strict policy regarding foreign domestic workers (MDWs) who borrow from unlicensed moneylenders, commonly referred to as loan sharks. The ministry confirmed that such borrowing can lead to the immediate cancellation of the worker's employment and a permanent ban on re-entering Singapore for domestic work.

This ruling was clarified in response to a parliamentary inquiry about the government's actions against MDWs who engage with illegal lenders. MOM stated that the consequences are severe: not only does borrowing from unlicensed sources result in job loss, but it also imposes a lifetime prohibition on working in Singapore in any domestic capacity.

Conversely, MDWs who borrow from licensed moneylenders are not subjected to these penalties. This policy serves as a significant warning to the tens of thousands of foreign domestic workers in Singapore, emphasizing that dealings with loan sharks carry risks that extend beyond financial implications.