Enforcement Actions for Motor Vehicle Loan Breaches and MAS' Stance on Social Media Advertisements for Luxury Vehicles

2 Mr Melvin Yong Yik Chye asked 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.

Mr Gan Kim Yong (for the Prime Minister): In the past five years, no financial institution has been found to have breached the motor vehicle financing rules. Accordingly, the Monetary Authority of Singapore has not had to take any regulatory actions in this respect.

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.