A Complete Guide to the Fair Tenancy Industry Committee (FTIC)

The Fair Tenancy Industry Committee (FTIC) is a critical body in Singapore’s retail sector, established to promote equitable landlord-tenant relationships through the Code of Conduct for Leasing Retail Premises. Since its formation in 2021, the FTIC has worked to ensure transparency, accountability, and compliance with fair leasing practices, particularly for SMEs. Below, we explore its structure, functions, and impact.

1. Formation and Structure of the FTIC

The FTIC was established on 3 May 2021 as the successor to the Fair Tenancy Pro Tem Committee, which drafted the Code of Conduct in 2020. Its composition includes 14 members representing:

Landlords: Major developers and REITs (e.g., CapitaLand, Frasers Property).
Tenants: SMEs, micro-SMEs, and trade associations (e.g., SGTUFF, Singapore Retailers Association).
Neutral Parties: Legal experts, academics, and government representatives.

The FTIC’s first term under the Lease Agreements for Retail Premises Act began on 1 February 2024 and runs until 31 January 2026.
Source: SBF Press Release, SBF Advocacy.

2. Key Functions of the FTIC

2.1 Custodian of the Code of Conduct

The FTIC oversees the Code of Conduct, which mandates 11 key tenancy terms for retail leases, including:

Rent Structure Transparency: Landlords must disclose fixed and variable rent components upfront.
Security Deposit Limits: Capped at three months’ gross rent for standard leases.
Exclusivity Clauses: Prohibited unless mutually agreed and declared to the FTIC.
Early Termination Rights: Tenants may exit leases due to material adverse changes (e.g., government regulations).
Source: SGTUFF Guide, SBF Advocacy.

2.2 Compliance Monitoring

The FTIC ensures adherence to the Code by:

Tracking Deviations: Landlords must submit declarations for permitted deviations (e.g., exclusivity clauses) within 14 days of signing a lease.
Public Accountability: Non-compliance risks reputational damage, as the FTIC may “name and shame” violators.

2.3 Dispute Resolution

The FTIC collaborates with the Singapore Mediation Centre to resolve disputes via mandatory mediation under the Lease Agreements Act. For example:

Rent Hikes: Tenants can escalate disputes over arbitrary rent increases to mediation.
Maintenance Delays: Landlords must address issues promptly or face mediation.
Source: SGTUFF Guide, FTIC Website.

2.4 Industry Collaboration

The FTIC partners with trade associations (e.g., SGTUFF, Singapore Retailers Association) to:

Educate Stakeholders: Conduct workshops and outreach events to clarify Code provisions.
Update the Code: Review and revise guidelines to align with market trends.

3. The Code of Conduct: Key Provisions

3.1 Mandatory Terms

Term	Guideline
Rent Structure	Landlords must disclose fixed and variable rent components upfront.
Security Deposits	Capped at three months’ gross rent for standard leases.
Exclusivity Clauses	Prohibited unless mutually agreed and declared to the FTIC.
Early Termination	Tenants may exit leases due to material adverse changes (e.g., regulatory bans).

3.2 Permitted Deviations

Four terms allow deviations if mutually agreed:

Exclusivity Clauses
Sales Performance
Material Adverse Change
Rental Formula
Landlords must submit a declaration to the FTIC within 14 days of signing the lease.

4. Impact of the FTIC

4.1 Strengthening SME Protections

The FTIC’s work has:

Reduced Unfair Practices: Mandatory compliance under the Lease Agreements Act (effective February 2024) limits exploitative clauses like arbitrary rent hikes.
Improved Transparency: Standardized checklists and workshops empower SMEs to negotiate equitable terms.
Dispute Resolution: Mediation reduces legal costs and fosters amicable resolutions.

4.2 Challenges

Voluntary Compliance: While the Code is now mandatory under the Act, deviations are permitted if mutually agreed, risking uneven enforcement.
Source: Parliament Bill, MTI Consultation.

5. Case Study: FTIC’s Role in Mediation

A retail SME disputed a landlord’s refusal to repair a leaky roof. By escalating the issue to the FTIC and Singapore Mediation Centre, the tenant:

Avoided Legal Costs: Resolved the dispute through mediation instead of litigation.
Secured Repairs: The landlord addressed the issue within 7 days to comply with the Code.
Source: SGTUFF Guide.

6. Future Outlook

The FTIC continues to advocate for mandatory compliance across all retail leases, ensuring uniform adherence to the Code. Its collaboration with trade associations like SGTUFF also drives legislative reforms, such as stricter penalties for non-compliance.

Conclusion

The FTIC is a cornerstone of Singapore’s retail sector, ensuring fair leasing practices through the Code of Conduct and dispute resolution. By balancing landlord-tenant interests, it fosters a sustainable ecosystem for SMEs. For updates, visit the FTIC website or consult resources like SGTUFF’s Fair Tenancy Guide.

Learn more:

FTIC Code of Conduct: FTIC Website
Lease Agreements Act: Ministry of Trade and Industry
Dispute Resolution: Singapore Mediation Centre

Empowering Businesses with SGTUFF

At SGTUFF, we believe in creating a level playing field for businesses in Singapore. Whether you’re a tenant navigating leasing challenges or an SME striving for growth, we provide resources and insights to help you succeed.

Here’s how you can get started:

Become a Member: Unlock exclusive tools and networking opportunities with our Membership Plans.
Learn More: Gain practical insights into fair tenancy practices with our guide: Master the Code of Conduct for Retail Leasing.