Pawnbroking in Singapore

Pawnbroking in Singapore started in the 19th century.¹ In the past, pawnbrokers were regarded as the “poor man’s bankers”.² Now their customers include white-collar workers, gamblers and businessmen,³ and an increasing number of younger customers.⁴

Early History
After the founding of Singapore in 1819, Raffles articulated his views on pawnshops in 1823 that “… auctioneers and pawnbrokers should be placed under specific regulations, and none allowed to act as such without giving security for complying with the same and taking out a license for the purpose”.⁵ The earliest mention of the existence of pawnbrokers was in 1824 when the British colonial administration collected a sum of $480 from them.⁶

In 1830, pawnbroking was included in the Farming System where the rights to issue pawnbroking permits were transferred to a Pawnbroker Farmer.⁷ From 1850, the colonial government alternated between the two systems of issuing of licenses and Farming System.⁸

Establishment of Pawnshops
In the earliest recorded examples of pawnshops in China during the Spring and Autumn Period (770–476 BC), they played the role of a social-relief facility for the poor.⁹ In Singapore, the earliest known Chinese pawnshop Sheng He Dang (生和当) was opened by Lan Qiu Shan （蓝秋山）and a few partners in 1872.¹⁰ By 1886, there were 26 pawnshops.¹¹ In 1898, the Pawnbrokers Ordinance (forerunner of the Pawnbrokers Act) was passed to regulate the thriving industry.¹² The industry continued to prosper in the early 20th century. From 1920 to 1929, there were 25 pawnshops, out of which 22 were owned by the Hakkas.¹³ The pawnshops generated monthly turnover of over $2 million.¹⁴ However, the Great Depression in 1929 affected the local economy and some pawnshops were forced to close.¹⁵ The industry began to recover from 1935 until World War II.¹⁶ After the war, the industry regained its growth momentum and the number of pawnshops increased to 32 in 1955,¹⁷ and 44 in 1959.¹⁸ By 1978, there were 50 pawnshops in Singapore,¹⁹ and two decades later in 1998, there were 69 pawnshops.²⁰ Over the years, the Pawnbrokers Act had been revised in tandem with the societal changes. For example, the Act was amended in 1977 to prohibit pawnbrokers from accepting fixed deposits from the public.²¹ The change was introduced to protect the public from possible failures of the pawnbrokers to return them the deposits.²²

Later Developments
In the mid-1980s, pawnshops began to do away with the abacus and pawnshop tickets, and modernising their business through installing computer systems in order to streamline their operations.²³ In 2004, this traditional trade was challenged by Singapore Post’s entry into the business when it launched its first pawnbroking service, SpeedCash, at its branch in Bedok.²⁴ The service was subsequently extended to other branches, like Yishun Central²⁵ and Bukit Batok East.²⁶ Far from being obsolete, the total number of registered pawn shops in Singapore is 227 as at April 2016.²⁷



References
1. “Overlooked Services Are Financial Lifeline To Some,” Straits Times, 7 October 2002, 19. (From NewspaperSG)
2. Oh Boon Pin, “Jewellery Firm Aspial Goes Into Pawnbroking Business,” Business Times, 17 February 2009, 6. (From NewspaperSG)
3. Geraldine Yeo, “Pawnbroking Trade Sees Growth With More Shops Opening Here,” Straits Times, 15 June 1997, 21. (From NewspaperSG)
4. “Younger Customers,” New Paper, 7 July 2004, 9. (From NewspaperSG)
5. Charles Burton Buckley, An Anecdotal History of Old Times in Singapore (Singapore: Printed by Fraser & Neave, 1984), 114. (Call no. RSING 959.57 BUC-[HIS])
6. Buckley, An Anecdotal History of Old Times in Singapore, 156.
7. Ong Eng Chuan, “Moneylending: A Short History,” BiblioAsia 3, no. 1. (April 2007); 3(1), 25; Buckley, An Anecdotal History of Old Times in Singapore, 114, 156.
8. Ong, “Moneylending: A Short History.”
9. “Pawning To Get Rich in China,” Straits Times, 7 June 1993, 10. (From NewspaperSG)
10. He Qianxun何谦训, Xinjiapo dian dang ye zong heng tan新加坡典当业纵横谈 [A comprehensive discussion of Singapore's pawnshop industry] (新加坡: 新加坡茶阳(大埔)会馆, 新加坡当商工会, 2005), 40. (Call no. Chinese RSING 332.34095957 HQX)
11. He, Xinjiapo dian dang ye zong heng tan, 41.
12. “Legislative Council,” Singapore Free Press and Mercantile Advertiser (1884–1942), 14 September 1898, 3. (From NewspaperSG)
13. He, Xinjiapo dian dang ye zong heng tan, 41.
14. He, Xinjiapo dian dang ye zong heng tan, 41.
15. He, Xinjiapo dian dang ye zong heng tan, 42.
16. He, Xinjiapo dian dang ye zong heng tan, 43.
17. He, Xinjiapo dian dang ye zong heng tan, 43.
18. He, Xinjiapo dian dang ye zong heng tan, 47.
19. He, Xinjiapo dian dang ye zong heng tan, 70.
20. He, Xinjiapo dian dang ye zong heng tan, 76.
21. “Bill Will Give Pawnbrokers Powers of Arrest,” Straits Times, 4 June 1977, 11. (From NewspaperSG)
22. “Two Ways To Solve Pawnshop Fixed Deposit Problem,” Straits Times, 30 June 1977, 9. (From NewspaperSG)
23. Trudy Lim, “S'pore Pawnshops Plug Into the Electronic Age,” Straits Times, 29 November 1986, 25. (From NewspaperSG)
24. Ben Nadarajan, “It's a Sing Post Outlet — but Not a Post Office,” Straits Times, 28 May 2004, 3 (From NewspaperSG); Singapore Post, “Singapore Post Officially Launches SpeedCash,” press release, 30 June 2004. 
25. Audrey Tan, “Sing Post Will Open Two Pawnshops by June,” Straits Times, 5 May 2004, 10 (From NewspaperSG); Singapore Post, “Singapore Post Officially Launches SpeedCash.”
26. Singapore Post, “Singapore Post Opens Third SpeedCash Branch,” press release, 9 November 2005.
27. “List of Licensed Pawnbrokers,” Ministry of Law, 2016.



The information in this article is valid as at 2016 and correct as far as we are able to ascertain from our sources. It is not intended to be an exhaustive or complete history of the subject. Please contact the Library for further reading materials on the topic.