Singapore Announces 1 Type of Loan That Can Get Foreign Domestic Workers’ Work Permits Revoked

• Singapore's Ministry of Manpower announced a strict policy targeting foreign domestic workers who take loans from unlicensed moneylenders
• Workers found to have borrowed from illegal lenders face immediate revocation of their work permits in Singapore
• Beyond losing their jobs, affected domestic workers also face a permanent ban from future employment in Singapore

Singapore has drawn a clear line on the type of debt that can cost a foreign domestic worker both her job and any chance of returning to work in the country.

The Ministry of Manpower (MOM) confirmed that migrant domestic workers (MDWs) who borrow money from unlicensed moneylenders, commonly known as loan sharks, risk having their work permits cancelled on the spot.

Loans from unlicensed moneylenders

The ministry's position was made public in response to a parliamentary question asking what action the government takes against MDWs who borrow from illegal lenders, and whether those workers would be blocked from re-entering Singapore.

MOM stated:

"MOM takes a serious view of MDWs and other work pass holders borrowing from unlicensed moneylenders. If an MDW is found to have borrowed from unlicensed moneylenders, she is liable to have her work permit revoked. She will also be barred from future employment in Singapore."

The consequences are therefore twofold: immediate termination of the current work arrangement, followed by a permanent employment ban in the country.

What this means for migrant domestic workers

The ruling applies specifically to borrowing from unlicensed or illegal lenders. Singapore does permit licensed moneylending, and workers who borrow through legal channels are not subject to the same penalties.

For the tens of thousands of foreign domestic workers employed across Singapore, the policy serves as a firm warning that dealings with loan sharks carry consequences far beyond financial risk. A single instance of borrowing from an unlicensed source is enough to trigger both job loss and a lifetime bar from working in Singapore in any domestic capacity.

The Ministry of Manpower oversees the issuance and revocation of work passes for all foreign workers in Singapore, including the large population of MDWs who come primarily from countries such as the Philippines, Indonesia, and Myanmar.

Singapore releases visa rules for countries

Meanwhile, Legit.ng recently reported that Singapore had listed 35 countries whose citizens are required to obtain a visa before entering the city-state.

Nigeria was among the countries on the list, while nationals of some visa-required countries can still enter Singapore for up to 96 hours without a visa under the Visa-Free Transit Facility, subject to certain conditions.