Written reply to Parliamentary Question on breach of motor vehicle financing rules

Date: For Parliament Sitting on 10 September 2024

Name and Constituency of Member of Parliament

Mr Melvin Yong Yik Chye, MP, Radin Mas SMC

Question:

To ask the Prime Minister and Minister for Finance (a) in the past five years, how many enforcement actions has MAS taken against financial institutions that breach the rules for motor vehicle loans; and (b) what is MAS' stance on social media advertisements that tout zero downpayment for purchase of premium luxury vehicles that are targeted at consumers.

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

1. In the past five years, no financial institution has been found to have breached the motor vehicle financing rules. Accordingly, MAS has not had to take any regulatory actions in this respect.

2. The motor vehicle financing limits were put in place principally to encourage financial prudence on the part of consumers. Consumers should be cautious of arrangements which purport to require zero downpayment for the purchase of motor vehicles as these are unregulated.

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