Debt traps ensnaring domestic workers in Singapore
Domestic workers in Singapore are increasingly falling into debt traps involving predatory moneylenders and 'buy-now-pay-later' retail schemes. These debts often involve harassment of employers, prompting calls for better regulation and support systems.
Why it matters
The issue highlights the vulnerability of migrant labor populations and the need for stronger consumer protection and financial literacy.
A shop advertising Hulugan – a buy-now-pay-later retail service – in Lucky Plaza.
Listen Summarise Domestic workers can fall into debt through loansharks, instalment shops and pawned goods. Small loans grow fast, and workers often hide the problem from employers. Mary was threatened after her helper Lucy was linked to a $180 loan that became $1,040. The lenders used her work permit details and scared her into paying for peace. Experts say the problem is widespread but under-reported. They want better data, stronger checks on “hulugan” shops, and more help for workers and employers. AI generated
It was National Day evening. Retired kindergarten operator Mary (not her real name) and her husband were watching the parade on TV when her phone started ringing incessantly.
She ignored the first few calls from the unfamiliar Malaysian number, but they kept coming. Assuming it was urgent, she finally answered.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in