Fair Tenancy Framework Industry Committee (FTFIC) recommends establishment of Fair Tenancy Legislation and Fair Tenancy Commission
Thursday, 21 May 2020 [Singapore] – The Fair Tenancy Framework Industry Committee (FTFIC) has been formed to address the growing imbalance in the relationship between institutional landlords and tenants which has resulted in the aggressive financial engineering and pricing behaviour of institutional landlords that goes against the grain of their tenants’ sustainability and incentive to value creation.
The advent of COVID-19 culminated in landlords taking advantage of the lack of legislation to avoid passing on government tax rebates that were given with the intent for these rebates to be passed on in full to tenants as a form of rental rebates. The gravity of the situation exacerbated the need for legislation to save businesses and the livelihood of the workforce. As such, FTFIC was formed to propose the adoption of landlord-tenant legislation in Singapore.
FTFIC was formed with representation from the Singapore Business Federation SME Committee (SBF SMEC), Association of Small & Medium Enterprises (ASME), Restaurant
Association of Singapore (RAS), Singapore Retailers Association (SRA), and Singapore Tenants United for Fairness (SGTUFF). The committee is chaired by Kurt Wee, President, ASME, Council Member, SBF and Chair, SBF SME Committee. And, co-chaired by Andrew Kwan, Vice President, RAS, and R. Dhinakaran President, SRA.
FTFIC has made a total of 15 key recommendations guided by five principles – incentivising value creation, transparency, protecting tenants from unfair tenancy practices, building a more sustainable ecosystem and instituting the concept of reciprocity. The fair tenancy framework outlines a three-pronged initiative of rental data transparency, education and awareness and a preferred dispute resolution channel.
FTFIC submitted its position paper and recommendation to the Ministry of Law and Ministry of Trade and Industry this morning.