LAWS to give the authorities more bite when it comes to loan sharks and their accomplices came into effect yesterday, ahead of the opening of Singapore's first casino, in a move lauded by MPs and counsellors as timely.

The changes to the Moneylenders Act also come in the wake of a rising tide of illegal moneylending activities in recent years.

Latest figures released by the police showed that there were 18,600 cases of unlicensed moneylending last year, a 58 per cent rise from the 11,800 cases in 2008.

The amendments to the Act, passed in Parliament last month, aim to ta-ckle loan sharks at every level.

At the top, assets of suspected kingpins can be frozen, and the courts can punish loan sharks and their associates even if they operate from overseas.

At the lower rungs, those who help loan sharks as runners or by harassing borrowers face harsher penalties, including mandatory jail and possible caning.

Adults who use teens under 16 for loan shark activities will face mandatory jail, as well as possible fines and caning.

To curb people from deliberately giving false addresses and contact numbers to loan sharks, those who do so can be jailed.

When contacted yesterday, MPs and counsellors welcomed the tougher penalties.

Mr Alvin Yeo, who chairs the Government Parliamentary Committee on Law and Home Affairs, said that the changes are timely as he expects illegal moneylending activities to rise with the opening of the integrated resorts. 'We don't want organised crime to move in, and the tighter regulations would deter people from carrying out unlicensed moneylending,' he said.

Christian Care Services Singapore centre director Dick Lum, who works with loan shark borrowers, said that the harsher laws will prevent the problems that come with more teens being recruited.

'Loan sharks who hire youths are abusing the young people and this leads to another generation of people who will engage in such illegal activities,' he said.

Already, Reverend Tan Lye Keng of volunteer group One Hope Centre said those who have been arrested for helping loan sharks, but have yet to be charged, are worried about the tougher penalties.

The pastor, who helps troubled gamblers and their families, believes the changes to the laws will deter more people from joining loan sharks.

Housewife Joyce Chua, 62, whose flat in Serangoon was splashed with paint by loan sharks twice, is glad that those who give false addresses are not forgotten in the amendments. She and her neighbours have been harassed by loan sharks since last June even though they have not borrowed money illegally.

'Hopefully, the new Act will deter irresponsible borrowers from giving fake details, so that innocent home owners like us won't have to suffer,' she said.

But those interviewed were also quick to point out that illegal moneylending is a longstanding social problem that will not be eradicated overnight.

'This is not a magic bullet,' said Mr Yeo. 'We have penalties, greater powers and enforcement, but it'll still be difficult to completely stamp out the problem.'

mavistoh@sph.com.sg