Pawnshop loans rise to a record S$884 million as gold prices soar and economic stress deepens

The total value of loans disbursed by Singapore pawnshops reached a record S$884 million in June 2025—a 29 per cent increase compared with the S$686.4 million recorded in June 2024. This figure, published by the Singapore Department of Statistics, is nearly double the S$467 million issued in June 2020 during the Covid-19 pandemic. The number of pledges received rose in tandem, from 316,916 in June 2024 to 341,490 in June 2025, reflecting an 8 per cent year-on-year increase. This marks a significant shift from June 2020, when pledges stood at 323,549. These figures point to troubling signals within the broader economy. While the volume of loans has grown nearly 90 per cent since 2020, the number of pledges has increased by just over 5 per cent. This suggests that individual loan amounts have increased substantially—driven likely by surging gold prices—implying heavier reliance on asset-backed short-term credit. According to The Straits Times, Lim Chun Seng, Group General Manager of MoneyMax Financial Services, said: “The rising price of gold is one key factor driving the increase in pawnshop loans,” noting that spot gold prices rose from over US$2,300 per ounce on 30 June 2024 to more than US$3,200 on 30 June 2025. On 2 September 2025, spot gold prices reached a high of over US$3,500 per ounce. As reported by The Straits Times, this surge is attributed to gold’s traditional role as a safe-haven asset during economic uncertainty. Pawnshop operators confirmed that as gold prices rise, customers are able to obtain larger loans using the same items as collateral, especially gold jewellery. The Straits Times cited Brian Lan, spokesperson for Fund Express, who said: “They tell us that the business environment is tough now, with high rentals and more businesses shutting down. The market sentiment is quite bad.” Fund Express, which operates six pawnshops in Singapore, serves a clientele of small business operators, including hawkers, shop owners and contractors. Lan added: “They may need cash flow to tide them over, but they find it hard to get loans from banks.” He shared that a client operating a mini-mart recently pawned around S$40,000 worth of gold jewellery to support business needs. Retail chains such as ValueMax and MoneyMax, each operating over 50 outlets locally, are among the largest players in the industry. As of 1 September 2025, there were 241 registered pawnshops in Singapore, according to the Registry of Pawnbrokers. Yeah Lee Ching, Managing Director of Retail and Trading at ValueMax Group, told The Straits Times: “When the economy weakens, the number of pawners tends to rise slightly as many rely on pawning to ease temporary cash flow shortages.” Yeah further observed a rise in pledges of luxury items, stating: “We have seen a steady increase in the number of clients pawning luxury watches from brands such as Rolex, Patek Philippe and Audemars Piguet.” She added that ValueMax also accepts silver bars, old currency notes, and luxury handbags from brands like Hermès and Chanel in near-new condition. Yeah noted: “Pawnbroking offers a quick and hassle-free way to obtain cash using one’s personal assets. Unlike other forms of borrowing, pawn loans come with no late fees or administrative charges, making them cost-effective for smaller sums.” For example, a S$1,000 pawn loan typically incurs a maximum monthly interest of S$15. The Pawnbrokers Act 2015 caps monthly interest rates at 1.5 per cent. The Straits Times also spoke to clients from varying backgrounds. A 35-year-old Indonesian domestic helper shared that she needed urgent funds and turned to pawning. Another client, a 65-year-old retired worker known only as Mr Chong, said: “It is not easy to borrow money from your own family, much less your friends… So when my finances are very tight, I would go to the pawnshop to pawn my gold jewellery.”

📊 Pawnshop loan disbursements: 2022 to mid-2025

📊 Singapore pawnshop loan disbursements, Jan–June 2025

Financial stress rising amid job insecurity and rising consumer debt Rising pawnshop activity appears closely linked to growing financial pressures across the workforce and household sectors. According to the Singapore Department of Statistics, pawnshop loans rose 29 per cent year-on-year to reach S$884 million in June 2025, while the number of pledges grew by just 8 per cent. This mismatch points to higher average borrowing per transaction—rising from S$2,165 per pledge in June 2024 to S$2,589 in June 2025—suggesting individuals are leveraging more value per item amid heightened financial need. At the same time, recent labour market indicators point to persistent job insecurity. The Ministry of Manpower reported that the resident unemployment rate inched up to 2.9 per cent in March 2025, with long-term unemployment also rising from 0.8 to 0.9 per cent. Older workers aged 50 and above experienced the largest increases in long-term joblessness. While these levels remain within non-recessionary norms, cautious hiring sentiment across many sectors underscores a fragile employment landscape, potentially pushing more individuals to seek alternative liquidity through pawning. While overall unemployment remains relatively low, concerns over job displacement and limited job opportunities for Singaporeans persist. Government data shows that 91.1 per cent of total employment growth between 2022 and Q1 2025 went to non-residents, accounting for 322,080 out of 353,500 new jobs. The remaining 8.9 per cent—approximately 30,700 roles—went to residents, a category that includes both Singapore citizens and permanent residents. During the same period, 103,984 new permanent residency statuses were granted, raising questions about how many of these non-residents were subsequently reclassified as resident employment growth. The estimated resident workforce stood at 2.37 million in June 2025, down from 2.46 million in March 2025, suggesting recent contraction or reclassification. These dynamics may be contributing to a perception of job fragility and a lack of stable opportunities—factors that could be pushing more citizens towards short-term financial solutions such as pawn loans or revolving debt. Further signs of strain emerge in consumer debt patterns. According to Monetary Authority of Singapore figures, credit card rollover balances—debt not repaid in full each month—climbed from S$5.91 billion in June 2024 to S$6.49 billion in June 2025, marking a 9.8 per cent increase. With overall card spending stable over the same period, the growth in outstanding debt indicates that more consumers are increasingly reliant on high-interest revolving credit. This reliance, coupled with rising pawn loan values, reflects a broader trend of deepening cash flow stress. As interviews reported by The Straits Times show, many borrowers are not financing discretionary purchases but turning to pawnshops to bridge daily living expenses or address urgent financial needs—particularly when access to traditional bank credit is limited.