Ali Babas are the "legal" loansharks that operates within the hearts of Singapore. These Indians (usually Indians) are ex-RSMs and ex-WOs who are retired and have nothing better to do to come up with this ingenius idea.

Ali Babas operated by offering you, one who needed a loan, to buy a piece of electronic at any high-end electronic stores under your name and pay them by installment. The Ali Babas will then take the electronic you bought, sell it at a lower price and give the money to you as your loan. He will off course charge a commission. You are then left to pay your debts off through the installment.

Example:
You need a loan of $1000. You approach Ali Babas (AB). AB ask you to buy the Sony 29inch TV at $1200 and pay them by installment. He takes your TV and sell it at $1100 to another consumer and give you $1000 (your loan). You are then left to pay the "debts" monthly (since YOU bought the TV rem?)

John Lee (2006), "Ali Babas and his wonders" in Social Policy and Social Justice 1, SSTI:Singapore.

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He is a good teacher lah, very knowledgable. But there he goes again! =D

Seriously, i think i earned quite a lot about Alternative Dispute Resolution today, stuffs about settling things out of court, negotiations, conciliation, mediation. I just don't remember how it led to the Ali Baba issue.