Lim Biow Chuan on Lease Agreements for Retail Premises Bill

There is a need for fair and more balanced lease negotiations between landlords and tenants of retail premises, and the Bill makes it mandatory for both parties to comply with a set of Code of Conduct for the leasing of retail premises which are defined as "qualifying leases", said MP Lim Biow Chuan. Speaking in Parliament on Thursday (Aug 3), he urged caution when Parliament is asked to legislate on matters which ought to be determined by market forces and stressed the need to allow free market principles to set tenancy terms as far as possible. He is also concerned that the Code is not drawn up by the Attorney-General's Chambers but by a Fair Tenancy Industry Committee (FTIC) which has the right to propose modifications. Mr Lim said although the members of the FTIC are appointed by the minister, in the event that more members of the FTIC are “pro-tenants”, then there is a risk that the recommendations in the Code may tilt too much towards protection of a tenant who is not the owner of the property. He urged the Government to review any request for amendments to the Code with caution so that a right balance of fairness can be considered for landlords and tenants. Mr Lim also sought clarifications on the Bill. On the advertising and promotion charge, he wanted to know why the amount is restricted. He said such a rule would cause a landlord to refuse to conduct any advertising or promotional activities for the building or the mall if the landlord is unable to raise the charges. He also wanted to know how the Government plans to assist smaller retail landlords like owners of HDB shops and small shops at malls like Lucky Plaza, City Plaza and Peninsula Plaza to ensure that they are aware of the need to comply with the Code.