Fortitude Budget: New law to mandate landlords grant temporary rental waiver to SME tenants

THE Singapore government will introduce a new bill to mandate landlords grant a rental waiver to small- and medium-sized enterprise (SME) tenants that have suffered a significant revenue drop in the past few months, Deputy Prime Minister and Finance Minister Heng Swee Keat said on Tuesday.

"We deliberated on this matter very carefully. The government does not ordinarily intervene in contracts after they have been entered into," Mr Heng told Parliament as he delivered his Fortitude Budget, the government's fourth economic rescume package amid the Covid-19 pandemic.

This is, however, an exceptional situation that requires the government to intervene through legislation, Mr Heng said.

He said these temporary targeted steps are needed to safeguard Singapore's economic structure for the common good.

The new bill will also cover provisions on temporary relief from onerous contractual terms such as excessive late payment interest or charges. It will also allow tenants to repay their arrears through installments, he said.

"If the bill is passed by Parliament, SME tenants in commercial properties who have suffered a significant revenue drop will benefit from a total of four months' of rental relief - shared equally between the government and landlords," Mr Heng said.

Meanwhile, other SME tenants in industrial and office properties will also be given some relief, he said. They also already benefit from temporary relief from rental payment obligations until October.

"Together, these (measures) will provide substantial support on rental costs for our SMEs," Mr Heng said.