To: Prime Minister Wong and Minister for Trade and Industry Mr. Gan Kim Yong,

We propose the following measures to ensure a more equitable rental environment in Singapore:

Mandate the inclusion of pre-termination clauses: Require all commercial lease agreements to include provisions allowing tenants to terminate their leases under extraordinary circumstances, such as economic downturns or significant business disruptions.
Strengthen tenant protection laws: Extend the current Code of Conduct for Leasing of Retail Premises to encompass industrial and office leases, ensuring that tenants across all sectors are protected by fair and transparent lease terms.
Establish a mandatory mediation framework: Implement a government-backed mediation system for resolving landlord-tenant disputes, providing an accessible and neutral platform for fair negotiations.
Background

Tenants in Singapore often face significant challenges due to inflexible lease terms and a lack of protective mechanisms in their agreements. For example, many contracts lack pre-termination clauses, leaving tenants unable to adjust their commitments in response to unforeseen circumstances such as economic crises or force majeure events. This disproportionately burdens tenants, especially small businesses, which may not have the financial resources to sustain such obligations.

During the recent pandemic, many tenants of non-essential businesses were forced to suspend operations for months, during which they had no revenue, while rental obligations continued to accumulate. Although temporary relief measures were introduced, landlords were not required to share the financial burden, and disputes over late interest payments and exorbitant rental fees remained unresolved.

Our Proposals

Mandate Pre-Termination Clauses: All lease agreements should include a standardized pre-termination clause specifying the conditions under which tenants may terminate leases without excessive penalties. This measure will provide tenants with necessary flexibility and safeguard their ability to adapt to changing circumstances.
Strengthen Tenant Protection Laws: Expand the scope of existing regulations to ensure that tenants in office and industrial premises enjoy the same rights and protections as retail tenants. This will create a more level playing field and encourage fair practices across all sectors.
Establish a Mandatory Mediation Framework: Introduce a compulsory mediation process facilitated by a neutral government body to resolve landlord-tenant disputes. This will promote equitable outcomes and reduce the financial and emotional strain of prolonged conflicts.
Call for Action

In the spirit of equity and shared responsibility, we urge the government to take decisive steps to address these systemic issues. Landlords and tenants must work together to build a resilient and sustainable business ecosystem during periods of economic uncertainty.

As a government official once stated, “In such a situation, you don't just talk about contracts. You talk about equity, you talk about justice, and you talk about doing what is right... The state will consider who is better able to bear the pain, and it’s also about sharing that pain. If you insist on every minor contractual right at this point, it will suck the life out of the economy.”

Another government official also emphasized, “In times of crisis, we must come together as a nation to support one another. Only by working together can we overcome challenges and emerge stronger.”

We believe that by implementing these measures, Singapore can continue to uphold its reputation as a global hub for business excellence, fairness, and innovation.

Sincerely,
A Concerned Citizen