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Singapore Law Watch
15 hours ago
- Business
- Singapore Law Watch
MinLaw to propose laws targeting debt consultancy firms exploiting debt repayment scheme
MinLaw to propose laws targeting debt consultancy firms exploiting debt repayment scheme Source: Straits Times Article Date: 10 Jun 2025 Author: David Sun MinLaw said there has been an increasing number of debtors engaging the services of consultancy firms, which encourage debtors to self-petition for bankruptcy with the objective of being placed on the Debt Repayment Scheme. Laws around a scheme to help individuals avoid insolvency may be tightened, with the authorities targeting firms that encourage individuals to borrow money and file for bankruptcy to get a discount off their debts. These consultancy firms are looking to abuse the Debt Repayment Scheme (DRS), a pre-bankruptcy scheme administered by the Ministry of Law (MinLaw). On June 9, MinLaw said there has been an increasing number of debtors engaging the services of consultancy firms, which encourage debtors to self-petition for bankruptcy with the objective of being placed on the DRS. 'This is done not with the intention of being adjudged a bankrupt, but with the intention of abusing the DRS to obtain a discount off their debts,' the ministry said. A debtor can avoid being made bankrupt if he is put on the DRS, but he must file for bankruptcy first before being considered for the scheme. MinLaw said that the consultancy firms are charging debtors sizeable fees and encouraging them to borrow money from creditors to pay for their services. 'Due in part to this trend, there has been an increase in the number of debtor-initiated bankruptcy applications, where debtors borrow irresponsibly to pay for such consultancy firms' services in helping them apply for bankruptcy,' MinLaw said. The Straits Times reported in March that more than half of the bankruptcy applications in 2024 were made by the debtors themselves – the fifth consecutive year since 2020 that the number of self-filed applications was higher than applications by creditors. MinLaw data showed that 2,928 bankruptcy applications were filed by debtors in 2024. That represents 59 per cent of all applications made that year. The DRS is a voluntary, debtor-driven scheme intended to help wage-earning debtors with relatively small debts avoid bankruptcy while helping creditors receive higher repayments than they would otherwise receive in the event of insolvency. Under the DRS, debtors with unsecured debts not exceeding $150,000 can enter a debt repayment plan over a fixed period of not more than five years with their creditors and avoid bankruptcy. When the debtor meets his financial obligations under the DRS, he will be released from his debts. MinLaw said it noticed an increasing number of debtors engaging the services of consultancy firms that encourage debtors to self-petition for bankruptcy with the objective of being placed on the DRS. To address the issue, the ministry is proposing a new law that will make it a crime for businesses to solicit and canvass any person to make a bankruptcy application. Regulated professionals, in particular lawyers, accountants and financial advisers, as well as charitable entities that are institutions of a public character, will be exempted. The offence will be punishable with a $10,000 fine or three years' jail, or both. The DRS was introduced in 2009 as people grappled with the 2008 financial crisis and the Great Recession, which caused many to lose their jobs and take pay cuts. It began with a debt threshold of $100,000, but this was increased to the current $150,000 in 2020 following a review in 2016. Under the scheme, debtors make repayments of their debt by following a structured repayment plan under the supervision of the Official Assignee (OA), an officer of the court appointed by the Law Minister. MinLaw said that as part of a review of the scheme, it is also looking to add two new grounds of unsuitability for the DRS. They include the failure to pay the preliminary fees and incurring of debts with no reasonable ground of expectation of being able to pay. Debtors who are referred to the OA to be assessed for their suitability for the DRS are required to pay preliminary fees totalling $600. In addition, MinLaw is also looking to add as a new ground of failure individuals who incur debts with no reasonable ground of expectation of being able to pay, and imposing a four-week time limit for creditors to file their proofs of debt under the DRS. Members of the public are invited to provide their feedback on the proposed key amendments after viewing the full consultation paper at Those who wish to submit their views and feedback may do so by June 27 at Source: The Straits Times © SPH Media Limited. Permission required for reproduction. Print
Straits Times
a day ago
- Business
- Straits Times
MinLaw to propose laws targeting debt consultancy firms exploiting debt repayment scheme
Ministry of Law data showed that 2,928 bankruptcy applications were filed by debtors in 2024. PHOTO: ST FILE SINGAPORE – Laws around a scheme to help individuals avoid insolvency may be tightened, with the authorities targeting firms that encourage individuals to borrow money and file for bankruptcy to get a discount off their debts. These consultancy firms are looking to abuse the Debt Repayment Scheme (DRS), a pre-bankruptcy scheme administered by the Ministry of Law (MinLaw). On June 9, MinLaw said there has been an increasing number of debtors engaging the services of consultancy firms, which encourage debtors to self-petition for bankruptcy with the objective of being placed on the DRS. 'This is done not with the intention of being adjudged a bankrupt, but with the intention of abusing the DRS to obtain a discount off their debts,' the ministry said. A debtor can avoid being made bankrupt if he is put on the DRS, but he must file for bankruptcy first before being considered for the scheme. MinLaw said that the consultancy firms are charging debtors sizeable fees and encouraging them to borrow money from creditors to pay for their services. 'Due in part to this trend, there has been an increase in the number of debtor-initiated bankruptcy applications, where debtors borrow irresponsibly to pay for such consultancy firms' services in helping them apply for bankruptcy,' MinLaw said. The Straits Times reported in March that more than half of the bankruptcy applications in 2024 were made by the debtors themselves – the fifth consecutive year since 2020 that the number of self-filed applications was higher than applications by creditors. MinLaw data showed that 2,928 bankruptcy applications were filed by debtors in 2024. That represents 59 per cent of all applications made that year. The DRS is a voluntary, debtor-driven scheme intended to help wage-earning debtors with relatively small debts avoid bankruptcy while helping creditors receive higher repayments than they would otherwise receive in the event of insolvency. Under the DRS, debtors with unsecured debts not exceeding $150,000 can enter a debt repayment plan over a fixed period of not more than five years with their creditors and avoid bankruptcy. When the debtor meets his financial obligations under the DRS, he will be released from his debts. MinLaw said it noticed an increasing number of debtors engaging the services of consultancy firms that encourage debtors to self-petition for bankruptcy with the objective of being placed on the DRS. To address the issue, the ministry is proposing a new law that will make it a crime for businesses to solicit and canvass any person to make a bankruptcy application. Regulated professionals, in particular lawyers, accountants and financial advisers, as well as charitable entities that are institutions of a public character, will be exempted. The offence will be punishable with a $10,000 fine or three years' jail, or both. The DRS was first introduced in 2009 as people grappled with the 2008 financial crisis and the Great Recession, which caused many to lose their jobs and take pay cuts. It began with a debt threshold of $100,000, but this was increased to the current $150,000 in 2020 following a review in 2016. Under the scheme, debtors make repayments of their debt by following a structured repayment plan under the supervision of the Official Assignee (OA), an officer of the court appointed by the Law Minister. MinLaw said that as part of a review of the scheme, it is also looking to add two new grounds of unsuitability for the DRS. They include the failure to pay the preliminary fees and incurring of debts with no reasonable ground of expectation of being able to pay. Debtors who are referred to the OA to be assessed for their suitability for the DRS are required to pay preliminary fees totalling $600 . In addition, MinLaw is also looking to add as a new ground of failure individuals who incur debts with no reasonable ground of expectation of being able to pay, and imposing a four-week time limit for creditors to file their proofs of debt under the DRS. Members of the public are invited to provide their feedback on the proposed key amendments after viewing the full consultation paper at Those who wish to submit their views and feedback may do so by June 27 at Join ST's WhatsApp Channel and get the latest news and must-reads.
Singapore Law Watch
27-05-2025
- Singapore Law Watch
Phase 4 Commencement of the Criminal Procedure (Miscellaneous Amendments) Act 2024
Phase 4 Commencement of the Criminal Procedure (Miscellaneous Amendments) Act 2024 Source: MinLaw Article Date: 27 May 2025 The Criminal Procedure (Miscellaneous Amendments) Act 2024 was passed in Parliament on 5 February 2024, and the amendments have been rolling out in phases. The fourth phase of amendments, which comprises the amendments relating to investigation powers, comes into effect on 26 May 2025. The Criminal Procedure (Miscellaneous Amendments) Act 2024 was passed in Parliament on 5 February 2024, and is being rolled out in phases. The Act advances our criminal justice system and contains amendments aimed at: protecting the public by strengthening our levers to tackle crime, including serious sexual crime, and enhancing transparency, fairness and coherence in our criminal court processes. The following amendments will come into effect on 26 May 2025: Empowering prescribed non-Police law enforcement agencies to investigate bail and absconding offences arising from the predicate offences under their purview; and Setting out a legislative framework on the conduct of forensic medical examinations to provide clarity and to allow more effective criminal investigations. Click here for more details on these amendments. © 2025 Ministry of Law Singapore | All Rights Reserved Print
Singapore Law Watch
23-04-2025
- Politics
- Singapore Law Watch
Indonesian fugitive flip-flops in Singapore Court on agreement to extradition
Indonesian fugitive flip-flops in Singapore Court on agreement to extradition Source: Straits Times Article Date: 23 Apr 2025 Author: Christine Tan Indonesia had put in a formal extradition request for Paulus Tannos on Feb 24. An Indonesian businessman, who was arrested in Singapore over corruption allegations, has changed his mind after earlier indicating his willingness to be extradited to Indonesia in a letter to President Prabowo Subianto. Paulus Tannos, who appeared in the State Courts on April 22 via video link, said he is not consenting to his extradition after all. 'At this moment, I do not want to go to Indonesia. 'I will voluntarily go to Indonesia provided the Indonesian court will be fair, with the judge that is not corrupt,' he said. Tannos, who is in his 60s, had reportedly written a letter from Changi Prison to Indonesian President Prabowo and several Indonesian media outlets on April 17, indicating his willingness to return to the country. He said he was willing to face charges filed against him by the Indonesian Corruption Eradication Commission, 'as long as the legal process is fair and conducted by judges with high integrity and free from corruption'. Indonesian media outlet Tempo, which reported on the letter on April 20, said Tannos claimed in his correspondence that the extradition process he was facing was not in accordance with the agreement between Indonesia and Singapore. In response to queries from The Straits Times, a Singapore Ministry of Law (MinLaw) spokeswoman said on April 22: 'Since it appears from Paulus Tannos' letter to the President of Indonesia that he is willing to be extradited, we will ask the court for an immediate hearing to facilitate his request and arrange for the extradition immediately.' Indonesia had put in a formal extradition request for Tannos on Feb 24. The MinLaw spokeswoman said that the extradition request by Indonesia was thoroughly reviewed by Singapore's law enforcement agencies, who have ensured that the requirements of the extradition treaty and Singapore's Extradition Act have been adhered to. The extradition treaty between Singapore and Indonesia took effect on March 21, 2024. It grants extradition for a list of offences, including corruption, money laundering and bribery, and can be retrospectively applied to crimes committed up to 18 years ago. Under the Extradition Act, a fugitive can give consent to his extradition and waive full extradition proceedings. Tannos, also known as Tjhin Thian Po, was president and director of Sandipala Arthaputra, a technology company awarded a contract to produce part of the Indonesian government's electronic ID card or e-KTP project. The graft scandal caused state losses of about 2.3 trillion rupiah (S$180 million). Tannos has reportedly been on Indonesia's fugitive list since Oct 19, 2021, and is believed to have been living in Singapore since 2012. He was arrested on Jan 17 by Singapore's Corrupt Practices Investigation Bureau, after the Indonesian government made a provisional arrest request against him. He was in court on April 22 for a bail hearing, where his lawyer Bachoo Mohan Singh argued that his client should be released on bail because he was sick and infirm. Mr Singh said the court can impose conditions upon his client, including restricting Tannos to specific locations, imposing a curfew that stops him from leaving his home after 6pm, and obliging him to contact his investigation officer every day. The lawyer noted that Tannos had 'many interviews' with Indonesia's Corruption Eradication Commission from 2014 to 2024, adding: 'If he had wanted to run, he would have run the first time they came round and talked to him.' Mr Singh argued that the Indonesian authorities did not substantiate their case against Tannos, and that multiple witnesses for the case have already died. Deputy Senior State Counsel Sivakumar Ramasamy disagreed that Tannos' medical conditions were severe enough to warrant bail. He said bail should be considered only if he has a serious illness or physical weakness which cannot be reasonably managed in prison. Mr Sivakumar also countered that at this stage of the proceedings, the court does not need to evaluate the merits of the evidence presented against Tannos. Instead, it would only be applicable for his committal hearing in June, where the court has to determine whether he should be extradited to Indonesia. The bail hearing was eventually adjourned after the defence requested for more time to acquire a medical report. Tannos' case will be heard again on April 28. Christine Tan is a journalist at The Straits Times reporting on crime, justice and social issues in Singapore. Source: The Straits Times © SPH Media Limited. Permission required for reproduction. Print
The Star
22-04-2025
- Politics
- The Star
Indonesian fugitive flip-flops in Singapore Court on agreement to extradition
SINGAPORE: An Indonesian businessman, who was arrested in Singapore over corruption allegations, has changed his mind after earlier indicating his willingness to be extradited to Indonesia in a letter to President Prabowo Subianto. Paulus Tannos (pic), who appeared in the State Courts on Tuesday (April 22) via video link, said he is not consenting to his extradition after all. 'At this moment, I do not want to go to Indonesia. 'I will voluntarily go to Indonesia provided the Indonesian court will be fair, with the judge that is not corrupt,' he said. Tannos, who is in his 60s, had reportedly written a letter from Changi Prison to Indonesian President Prabowo and several Indonesian media outlets on April 17, indicating his willingness to return to the country. He said he was willing to face charges filed against him by the Indonesian Corruption Eradication Commission, 'as long as the legal process is fair and conducted by judges with high integrity and free from corruption'. Indonesian media outlet Tempo, which reported on the letter on April 20, said Tannos claimed in his correspondence that the extradition process he was facing was not in accordance with the agreement between Indonesia and Singapore. In response to queries from The Straits Times, a Singapore Ministry of Law (MinLaw) spokeswoman said on April 22: 'Since it appears from Paulus Tannos' letter to the President of Indonesia that he is willing to be extradited, we will ask the court for an immediate hearing to facilitate his request and arrange for the extradition immediately.' Indonesia had put in a formal extradition request for Tannos on Feb 24. The MinLaw spokeswoman said that the extradition request by Indonesia was thoroughly reviewed by Singapore's law enforcement agencies, who have ensured that the requirements of the extradition treaty and Singapore's Extradition Act have been adhered to. The extradition treaty between Singapore and Indonesia took effect on March 21, 2024. It grants extradition for a list of offences, including corruption, money laundering and bribery, and can be retrospectively applied to crimes committed up to 18 years ago. Under the Extradition Act, a fugitive can give consent to his extradition and waive full extradition proceedings. Tannos, also known as Tjhin Thian Po, was president and director of Sandipala Arthaputra, a technology company awarded a contract to produce part of the Indonesian government's electronic ID card or e-KTP project. The graft scandal caused state losses of about 2.3 trillion rupiah (S$180 million). Tannos has reportedly been on Indonesia's fugitive list since Oct 19, 2021, and is believed to have been living in Singapore since 2012. He was arrested on Jan 17 by Singapore's Corrupt Practices Investigation Bureau, after the Indonesian government made a provisional arrest request against him. He was in court on April 22 for a bail hearing, where his lawyer Bachoo Mohan Singh argued that his client should be released on bail because he was sick and infirm. Singh said the court can impose conditions upon his client, including restricting Tannos to specific locations, imposing a curfew that stops him from leaving his home after 6pm, and obliging him to contact his investigation officer every day. The lawyer noted that Tannos had 'many interviews' with Indonesia's Corruption Eradication Commission from 2014 to 2024, adding: 'If he had wanted to run, he would have run the first time they came round and talked to him.' Singh argued that the Indonesian authorities did not substantiate their case against Tannos, and that multiple witnesses for the case have already died. Deputy Senior State Counsel Sivakumar Ramasamy disagreed that Tannos' medical conditions were severe enough to warrant bail. He said bail should be considered only if he has a serious illness or physical weakness which cannot be reasonably managed in prison. Sivakumar also countered that at this stage of the proceedings, the court does not need to evaluate the merits of the evidence presented against Tannos. Instead, it would only be applicable for his committal hearing in June, where the court has to determine whether he should be extradited to Indonesia. The bail hearing was eventually adjourned after the defence requested for more time to acquire a medical report. Tannos' case will be heard again on April 28. - The Straits Times/ANN
