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Covid-19: Some pawnshops resume business during circuit breaker period after government exemption

SINGAPORE — Some pawnshops in Singapore received permission from the authorities to resume business last Saturday (April 11), after customers raised concerns that their closure would remove an avenue for urgent access to cash during the Covid-19 pandemic.

A view of a ValueMax pawnshop in Pasir Ris on April 15, 2020.

A view of a ValueMax pawnshop in Pasir Ris on April 15, 2020.

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SINGAPORE — Some pawnshops in Singapore received permission from the authorities to resume business last Saturday (April 11), after customers raised concerns that their closure would remove an avenue for urgent access to cash during the Covid-19 pandemic. 

Singapore’s circuit breaker restrictions to slow the spread of the disease mean that non-essential workplaces must close from April 7 to May 4.

Speaking to TODAY on Wednesday, Mr Ivan Ho, president of the Singapore Pawnbrokers’ Association, said that the authorities agreed to grant the pawnbroking industry an exemption from the rules.

This came after the association received calls from pawners who were concerned that they would not have access to urgent financial help during this period.  

Last week, to appeal for an exemption, representatives from the association met officials from the Ministry of Trade and Industry (MTI) and the Registry of Pawnbrokers, a department under the Law Ministry that regulates pawnbrokers.

Mr Ho said: “With all this hardship, many people or families may need some financial assistance. (Pawnshops) are the right place to fulfil their desires and needs.” 

While the exemption allows pawnbrokers to operate, individual business owners must apply for an exemption before they can restart operations.

Of the association’s 215 members, about two-thirds are open for business, Mr Ho said. He himself owns Heng Seng Pawnshop in Toa Payoh. The rest decided against reopening because they did not have the manpower to continue operations or anticipated that customer traffic would be low.

When contacted, MTI said that it had been receiving applications from firms asking to be exempted from the suspension of non-essential business activities since the circuit breaker measures were announced on April 3

The ministry did not respond to TODAY’s questions on whether pawn services were considered essential and why it had granted an exemption to pawnshops.

SHORTER OPERATING HOURS 

On Wednesday afternoon, TODAY observed at least three major pawnbrokers — ValueMax, Maxi-Cash and MoneyMax — in operation.

A day before the circuit breaker measures kicked in last week, ValueMax announced that it would close all its 34 stores until May 4. 

But on Sunday, it reopened 20 outlets with shortened operating hours.

Its executive director Yeah Lee Ching said that the chain received many enquiries from customers in the first few days of the circuit breaker period. They were concerned that they could not pawn their items or that their pledges would expire.

“We have chosen to operate because we would like to ensure that persons in need of funds urgently will have access to them,” Ms Yeah said.

Maxi-Cash also put up the shutters initially, but reopened 24 of its 38 stores on Sunday. It declined comment.

MoneyMax reopened 23 of its 40 outlets last Saturday, based on information from its website. It similarly declined to respond to queries and directed TODAY to the Singapore Pawnbrokers’ Association. 

INTEREST WAIVER TO HELP THOSE IN DISTRESS

Mr Ho, the association’s president, said that to help customers in financial distress, pawnbrokers that are members of the association would waive the one-month interest of up to 1 per cent on all pledges pawned on or before April 6 upon their redemption or renewal, if the pawn period exceeds a month.

Pawn tickets expiring on or before May 4 will be automatically granted a month’s extension from their expiry. Redemption or renewal of these pledges will also be given a one-month interest waiver.

Pawners interviewed by TODAY on Wednesday said that pawnshops should stay open during this crisis because many people could be facing a cash crunch.

Administrative executive Asmath Banu, 35, who visited the Maxi-Cash outlet at Northpoint City shopping centre in Yishun, said she was initially worried that pawnshops would be shut until May 4. 

Her husband, who is employed by a department store that sells food, now works alternate days instead of five days a week owing to a reduction in business at the store. As a result, the family’s income has gone down by S$1,800 a month, Ms Banu said. She is concerned that she might lose her job if the circuit breaker period is extended.

“The expenses are rising at home for groceries and electricity, as my son is doing home-based learning now. During this period, the pawnshop is definitely essential and it gives us a helping hand if we need some cash,” she said.

Ms Porchelvi, another patron who goes by a single name, agreed. The 55-year-old administrator said that with pawnshops resuming operations, patrons need not turn to moneylenders if they were in urgent need of cash.

On the other hand, keeping such services open would encourage people to leave their homes. This was the view of self-employed worker Shanthini, who was at the same Maxi-Cash store to pay off her elderly mother’s pledge. 

The 55-year-old, who goes by one name, said: “The Government is already giving Singaporeans money to cope with the situation. Going out will only mean you spend more.

“Such businesses should remain closed.” 

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pawnbrokers business Covid-19 coronavirus circuit breaker pawn shop

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