New Law Governing Terms of Lease of Retail Premises to be Introduced (Rajah & Tann Singapore) 14 July 2023
On 4 July 2023, the Lease Agreements for Retail Premises Bill ("Bill") had its first reading in Parliament. The Bill seeks to make it mandatory for retail lease contracts to comply with the Code of Conduct for Leasing of Retail Premises in Singapore ("Code").
The Code was issued by the Fair Tenancy Pro Tem Committee in 2021 and was last updated in 2022. It sets out guidelines and principles for landlords and tenants of qualifying retail premises to enable fair and balanced lease negotiations. The full Code is available here.
The Bill serves the following functions:
- Establishes the Fair Tenancy Industry Committee;
- Provides for the Code and the obligations of landlords and tenants in relation to the leasing principles contained therein; and
- Establishes a dispute resolution process in relation to complaints of non-compliance with the leasing principles or obligations.
The introduction of the Bill follows a public consultation on the proposed legislation held by the Ministry of Trade and Industry from 18 July 2022 to 5 August 2022.
While adoption of the Code has thus far been voluntary, the Bill – when passed – will require compliance with the Code's leasing principles. Landlords and tenants of retail premises should thus be aware of their obligations under the Code to ensure compliance.
This Update highlights the key features of the framework set out under the Bill and the Code.
Download the Report
