The Need for Reform in Hong Kong’s Money Lending Sector
The issue of licensed moneylenders in Hong Kong engaging in illegal practices has become a pressing concern. While some lenders operate within the law, others take advantage of borrowers by charging extortionate interest rates and using coercive collection methods. This situation is alarming as it appears that both society and authorities have become too accepting of these practices, resembling a form of Stockholm syndrome.
What is particularly concerning is that even when lenders are not overtly harsh, their actions are often considered acceptable, as if civility excuses illegality. This mindset needs to change because what is wrong remains wrong, regardless of how polite a lender may be.
The current Money Lenders Ordinance is outdated and insufficient to address the predatory practices seen today. Interest rates, which can effectively exceed 48 per cent, trap borrowers in cycles of debt, especially those who are vulnerable and unfamiliar with local lending practices. Many borrowers are willing to repay their loans if the terms are fair and the collection methods are lawful. However, the lack of stringent caps on interest rates and weak enforcement against illegal practices allow exploitation to thrive.
Legislation must be reformed to impose reasonable limits on interest rates and stricter oversight of collection practices. Hong Kong should look to jurisdictions like Singapore and the United Kingdom, where consumer protection is more robust.
Public education is also crucial. Many borrowers hesitate to report illegal practices due to a misconception that doing so equates to evading repayment or abusing the law. This perception undermines the rule of law. Reporting illegal acts is not about dodging responsibility but upholding justice. The authorities must encourage such reports and treat them seriously, instead of dismissing them as mere debtor complaints. Public awareness campaigns can clarify that seeking help against predatory lenders is a right, not a stigma.
The normalisation of exploitative moneylending erodes trust in our financial and legal systems. It is not enough for lenders to be polite while charging usurious rates or employing intimidation tactics that psychologically torment the borrower and their family members. Hong Kong must confront this issue head-on with tougher laws, proactive enforcement, and public education to empower citizens. Only then can we break the cycle of acceptance and ensure justice for borrowers. Why have laws if they fail to protect the vulnerable from exploitation?
Malaysia’s New Chief Justice: A Misplaced Concern
Concerns over Malaysia’s new chief justice are misplaced. The appointment of Wan Ahmad Farid Wan Salleh as chief justice has raised concerns among critics and legal observers due to his past political ties, including to former prime minister Najib Razak. However, the Malaysian Bar has praised the appointment, citing his 2022 decision to recuse himself from a high-profile hearing concerning King’s Counsel Jonathan Laidlaw’s application to represent Najib. This action demonstrated his profound understanding of judicial independence.
Another misplaced concern is the lack of seniority of Wan Ahmad Farid. It is important to note that Malaysia’s Federal Constitution does not specify that only a superior court judge can become chief justice. Article 123 of the constitution states that to serve as a judge of the superior courts, a person must be a Malaysian citizen with at least 10 years of experience as a lawyer or lower court judge. Seniority is also not a requirement under the Basic Principles on the Independence of the Judiciary adopted by the Seventh UN Congress on the Prevention of Crime and the Treatment of Offenders held at Milan in 1985.
Wan Ahmad Farid’s appointment should be welcomed following months of uncertainty and speculation. Malaysians should express confidence that the judiciary, under new leadership, could reach greater heights.
China and India: A Path Toward Peace
We are living in the age of rapid industrialisation. The hydropower dam in Tibet is a Chinese matter. However, a river flows through, with different names, and connects the two most populated nations, India and China. People on either side depend on this water.
In the aftermath of the Galwan conflicts, India and China held multiple military talks, a mature move appreciated around the world. Such talks build confidence, hope, and faith in each other. As the two neighbors celebrate the 75th anniversary of the establishment of diplomatic relations this year, China could host a meeting to clear the doubts of Indian and Bangladeshi leadership regarding the mega dam in Tibet.
If China and India could continue talks on long-term border issues regarding Aksai Chin and Arunachal Pradesh, future generations would be proud when they one day read about past leaders’ desire for peace in history books.