How the FTIC Supports Singapore Retailers Against Unfair Leases

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The Fair Tenancy Industry Committee (FTIC) plays a pivotal role in protecting Singapore’s retailers by addressing unfair leasing practices through structured guidelines and collaborative efforts. Established in 2021, the FTIC oversees the Code of Conduct for Leasing Retail Premises, ensuring balanced negotiations between landlords and tenants. This framework empowers SMEs and micro-SMEs to navigate lease agreements with greater transparency and equity.

Key Roles of the FTIC in Supporting Retailers

1. Enforcement of the Code of Conduct
   The FTIC acts as the custodian of the Code of Conduct, which mandates principles like transparency, reciprocity, and sustainability in lease negotiations. Key provisions include:
   • Disclosure Requirements: Landlords must share market rental data and clarify all fees upfront, reducing hidden charges.
   • Equitable Liability Terms: Renewal clauses cannot introduce new liabilities without prior agreement, shielding tenants from exploitative adjustments.
   • Checklist Templates: Standardized checklists guide tenants in evaluating lease terms, ensuring informed decisions.
     
2. Dispute Resolution and Compliance Monitoring
   The FTIC facilitates mediation services for non-contentious disputes, aiming to resolve conflicts amicably and reduce legal costs. While compliance with the Code remains voluntary, the FTIC tracks adherence and collaborates with trade associations to address gaps.
   
3. Industry Collaboration and Advocacy
   The FTIC comprises 17 members representing landlords, tenants, and neutral parties, fostering a balanced approach. It works closely with groups like SGTUFF (Singapore Tenants United for Fairness) to advocate for legislative reforms, such as mandatory compliance with the Code. During the COVID-19 pandemic, the FTIC supported SMEs through rental relief clinics, addressing lease disputes and financial strain.
   
4. Educational Outreach
   The FTIC organizes workshops and resources to educate stakeholders on the Code’s guidelines. Over 10 outreach events have been conducted since 2021, ensuring landlords and tenants understand their rights and obligations.

Challenges and Future Directions

While the FTIC has strengthened landlord-tenant relations, challenges persist:

• Voluntary Compliance: Non-compliance risks reputational damage but lacks legal consequences unless mandated.
• Landlord Flexibility: Deviations from the Code are permitted if mutually agreed, potentially undermining tenant protections.

The Ministry of Trade and Industry (MTI) continues to advocate for legislative backing to enforce the Code universally, ensuring long-term fairness in retail leases.

Conclusion

The FTIC’s work through the Code of Conduct and collaborative initiatives has empowered Singapore’s retailers to navigate unfair leases with confidence. By promoting transparency, dispute resolution, and industry-wide accountability, the FTIC remains a critical pillar in fostering a sustainable retail ecosystem.

For updates on the Code or to file feedback, visit the Fair Tenancy Industry Committee website or explore resources from the Singapore Retailers Association.

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.