LICENSED CHIT FUND COMPANIES (Publication of names)

Mr Cheong Yuen Chee asked the Minister for Finance if he will, in the interest of chit fund subscribers in particular and the public in general, request the Commissioner of Chit Funds to publish at regular intervals the names of companies that have been granted licences, including temporary ones, under the Chit Funds Act,

The Minister for Finance (Mr Hon Sui Sen): Mr Speaker, Sir, the answer is yes.

A full list of all licensed chit fund companies will be published in the Government Gazette annually in the month of April. In between, my Ministry will make periodic announcements of newly-licensed chit fund companies.

For the present, let me say that when the Chit Funds Act came into force on 14th January, 1972, the Commissioner of Chit Funds received 89 applications from companies carrying on chit fund business on 1st October, 1971, for licences to conduct chit fund business under the new Act. The Commissioner issued provisional licences to 84 of these companies. Of the remaining five applications, three were rejected because they were not carrying on chit fund business on 1st October, 1971, and the other two withdrew their applications. The names of companies which were granted provisional licences were gazetted on 28th April, 1972.

On 30th March, 1972, the Commissioner directed all chit fund companies to comply with the minimum capital requirements of the Chit Funds Act. This requires a chit fund company to have a paid-up capital of not less than 5200,000, half of which must be deposited with the Monetary Authority of Singapore. Of the 84 companies issued with provisional licences, 49 companies which have a paid-up capital of not less than S200,000 have deposited half of their paid-up capital with the Monetary Authority of Singapore. The names of these are as follows:

1. Aik Poh Company (Private) Limited

2. Ann Lee Trading Company Limited

3. Asia Trust Company (Private) Limited

4. Billion Chit-Fund Limited

5. Bodmah Chit-Fund Corporation Limited

6. Central Asia Syndicate (Private) Limited

7. Central Tontine Fund Corporation Limited

8. Ch'ng Fatt Enterprises (Private) Limited

9. Chong Lien Trading Company (Private) Limited

10. Commons Enterprises (Private) Limited

11. Fong Tat (Private) Limited

12. Gemini Chit-Fund Corporation Limited

13. Great Union Company (Private) Limited

14. Guan Hong Hung Limited

15.Hwee Lian Trading Company Limited

16.Ideal Benefit Fund Corporation (S) Limited

17.Kiaw Lee Credit (Private) Limited

18. Kim Hong Corporation Limited

19. Leta Limited

20. Lethong Chit-Fund Limited

21. Lian Seng Chit Fund Corporation Limited

22. Libra Chit-Fund Corporation Limited

23. Luck Seng Trading (Private) Limited

24. Maximum Enterprises (Private) Limited

25. Minerva Chit Fund Company Limited

26. New Era Travel & Tour Services (Private) Limited

27. Pan Malayan Underwriters (Private) Limited

28. Poh Hong Company Limited

29. Poh Thye (Private) Limited

30. Public Chit Fund Corporation Limited

31. Safety Chit Fund Limited

32. Sah Lee Credit Corporation (Private) Limited

33. Security Chit Fund Limited

34. Sentosa Corporation (Private) Limited

35. Service Centre Limited

36. Soon Lee Tontine Fund Corporation Limited

37. Southeast Asia Tontine Corporation Limited

38. South Valley Enterprise Limited

39. Stallion Corporation Limited

40. Tai Heng Lee Tontine Fund Corporation Limited

41. Taikent (Private) Limited

42. Tai Tat Trading Company Limiter!

43. The Tenth Mile Chit Fund Corporation Limited

44. Tolley Corporation (Private) Limited

45. Trusted International Corporation Private Limited

46. Unica Corporation Limited

47. Yak Hong Hung Trading Limited

48. Yee Soon Corporation Limited

49. Yue Hong (Private) Limited When the provisional licences issued to these companies expire on 30th June, 1972, they will be issued licences to carry on chit fund business provided they have satisfied the Commissioner under Section 7 (2) of the Act that they have fulfilled all the requirements of the law.

In addition to the above companies, the following companies which although they have yet to increase their capital to the minimum amount of S200,000 have each paid $100,000 deposit to the Monetary Authority of Singapore:

1. Bee Loon Tontine Corporation Limited

2. Ching Dtien Credit (Private) Limited

3. Jamonic Corporation (Private) Limited

4. Regal Chit Fund Limited

5. Rolling Enterprises Limited

6. Soon Tack Trading (Private) Limited

7. Tajong Trading Corporation (Private) Limited

These companies, provided they meet the requirement under the law to raise their paid-up capital to not less than $200,000 and also that they have satisfied the Commissioner under Section 7 (2) of the Act that they have fulfilled all the requirements of the law, will be granted chit fund licences when their provisional licences expire on 30th June, 1972.

Finally, the following companies have a minimum paid-up capital of $200,000:

1. Capital Credit (Private) Limited

2. Great Central Company (Private) Limited

3. Kian Beng Hang Trading Company (Private) Limited

4. Liang Siah Enterprise (Private) Limited

5. Poh Aik Enterprise (Private) Limited

6. Unit (Private) Limited

7. Yew Sing (Private) Limited

These companies have to take action to comply with the $100,000 deposit requirement before their applications for Chit Fund licences will be considered when their present provisional licences lapse on 30th June, 1972.

There remain 21 companies which do not meet the minimum capital and deposit requirements of the law. While these companies will not be issued with new chit fund licences on 1st July, 1972, it is the intention to permit the following 11 companies sufficient time after that date to conclude their chit fund business:

1. Circular Credit (Private) Limited

2. Gainway Credit Corporation (Private) Limited

3. Goodness Enterprises (Private) Limited

4. Great Asia Credit (Private) Limited

5. Hong Hong (Private) Limited

6. Kely (Private) Limited

7. Lian Hin Enterprises Private Limited

8. Sinhin Hang (Private) Limited

9. Tat Yong Enterprise (Private) Limited

10. Tenly Corporation Limited

11. Torundo Enterprises Private Limited

In the case of the remaining 10 companies, apart from not meeting the capital and deposit requirements of the law, they have conducted their business in a manner that is below the minimum standard required of chit fund companies under the Act and will, therefore, be asked to cease business as soon as possible. These companies are:

1. Ban Seng Credit (Private) Limited

2. Buan Yak Thai (Private)

3. Business Associates and Chit-Fund Corporation Limited

4. Evermore International Corporation (Private) Limited

5. Hock Lee Credit Corporation Limited

6. Li Ming Enterprise (Private) Limited

7. National Chit Fund Limited

8. Steady Company (Private) Limited

9. United Chinese Credit Corporation (Private) Limited

10. Wind-ward Enterprise (Private) Limited

Mr Hwang Soo Jin: Sir, will the Minister inform the House whether surprise checks and inspections of the books of chit fund companies are being carried out by the Commissioner of Chit Funds office?

Mr Hon Sui Sen: Of course, these inspections are being carried out. I thought I have made it clear from the very detailed breakdown of the companies that we have made investigations into the nature of the activities of these companies and have categorised them, so that we can tell which companies are likely to be given licences and those which we have decided may be below the minimum standard.

Mr Hwang Soo Jin: Sir, my point is this: is it the standing practice to send out people every now and then to carry out surprise checks even on those companies which have been fully licensed?

Mr Hon Sui Sen: Yes, Sir. The idea is that we shall inspect all these companies from time to time, as we do at times banks and insurance companies, and try and get them to regularise their activities in accordance with the law. I think the standards which we have encountered in inspections of these companies are very much below the standards we expect of the other older finance companies.