Singapore’s first microloan scheme, supported by a Practice of Firsts

Microfinancing has been launched for the first time in Singapore. POSB, in collaboration with Tote Board and SE Hub Ltd, has on 16 November announced a pilot programme, the MicroCredit Business Scheme (MCBS), designed to provide business loans to low income individuals. The Scheme is expected to help Singaporeans become more self-reliant by starting up or expanding their micro-businesses. This initiative will start off with a $5 million seed funding from Tote Board. Funds collected from loan repayments will be injected back into the MCBS to help new loan applicants. The MCBS will be managed by MCBS Programme Office and will be overseen by a Loan Management Committee with representatives from POSB, Tote Board, SE Hub and other private or public sectors. Harry Elias Partnership LLP was tasked with preparing the documents and advising on legal issues arising from MCBS. We are humbled to have played the role as legal advisor in this unprecedented scheme helmed by POSB, Tote Board and SE Hub Ltd.

“The common objective of the three organisations involved in the MicroCredit Business Scheme is to improve the lives of Singaporeans within the community. This resonates strongly with our culture and values at Harry Elias Partnership LLP,” says Managing Partner Philip Fong. “Again this underscores our commitment to promoting the understanding the law, raising general awareness of how legal issues can impact on everyday lives. We believe in being, not only professional but also responsible and ethical. Microcredit is the best investment for a community; in playing a role here we hope to encourage our lawyers to answer the noble calling of the law."