SGX SBL program enquiry?

In normal situation when we did not choose to participate our stock in the SBL programme, can the SGX still lend it out on our behalf?

If you sign up for SBL, and indicate the scope, you are essentially saying to sgx that you can lend your shares to anyone who wants to short and needs to cover. Only applies if you have at least sgd 10,000 for a counter, and the lending rates are based on volume of float in market.

shorting is sell first, and then buy back, hoping to make money from a drop in price

Example: Gary wants to short DBS. current price is 20, and he thinks it could drop to 17 or lower. Gary doesn't own DBS shares. When he sets up the short contract, he wants to borrow the 500 dbs shares you have to sell first. DBS price drops to 18, Gary unwinds the position and buys back 1000 DBS shares at 18 to pay you back. For the 1 week that he borrowed your DBS shares, he will pay you something 0.25% per year x value borrowed x time borrowed.

Is there risk? Generally for blue chips where there is plenty of free float in market, it is easy for shorter to buy back the shares, but risk low, borrowing rate also low. For small cap, and certain family controlled business, the amount of float in market is limited. Because it is a lot harder to find willing buyers / sellers, the risk of shorter not being able to buy back the shares from market to pay you back is a lot higher. For those, I think the lending rate is like up to 3%

But end of day, the sbl only looks at shares you own of a counter with at least sgd 10,000 in value (that's like 500 dbs shares, 5000 cmt shares etc).