Written reply to PQ on commercial landlords imposing utilities surcharges on tenants beyond base rent and gross turnover rent

Question:

Mr Kenneth Tiong Boon Kiat: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) whether the Ministry is aware of commercial landlords imposing surcharges on utilities passed through to tenants beyond base rent and Gross Turnover (GTO) rent; (b) what is the estimated prevalence of such surcharges in Food and Beverage (F&B); and (c) whether the Ministry will consider requiring landlords to pass through utilities at cost. 

Written Answer by Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong

1.           Lease agreements are private contractual arrangements between landlords and tenants. The Government does not have data on the prevalence of commercial landlords imposing surcharges on utilities passed on to tenants. 

2.           The Code of Conduct for Leasing of Retail Premises in Singapore, administered by the Fair Tenancy Industry Committee (FTIC), requires commercial landlords to pass through electricity costs without mark-up or price discrimination. The FTIC has not received any feedback of landlords imposing surcharges on other utilities such as water and gas. 

3.           If the Member has encountered such cases, he may wish to share the details with us for our follow up with the FTIC. Businesses may also provide their feedback directly to the FTIC online at https://www.ftic.org.sg/enquiry-form/.