Jessica Tan on Lease Agreements for Retail Premises Bill

While we recognise the benefits and should go ahead with legislation, we should not expect legislation to be the “panacea for all issues”, said MP Jessica Tan. Speaking in Parliament on Thursday (Aug 3), she pointed out that lease agreements are between two parties - landlord and tenants. “Ultimately, as in every good relationship, we must adopt a win-win approach,” she said. This means one that is fair and predictable for the tenant so that he or she can focus on growing the business, while aligned to market conditions so that landlords can continue to make investments to maintain the property and promote vibrancy. She also stressed the need to continually review and engage landlords and tenants to obtain feedback and update the Code of Conduct for Leasing of Retail Premises to ensure that it is relevant. She said it is timely to move ahead with legislation as the Code enables a fair and balanced lease negotiation process benefiting both landlords and tenants. It also provides clarity on the terms in the lease agreement, easing the leasing negotiation process for landlords. For tenants, the Code addresses key concerns over an "imbalance in bargaining power", she said. Ms Tan noted that over the last two years, major industry landlords and all Government landlords have voluntarily adopted the Code.