Sim Lim Square management says no power to change by-laws for fairer practices

SINGAPORE — The management team of Sim Lim Square has responded to the consumer watchdog saying it “does not possess the power” to pass by-laws for the purpose of managing the business practices of the mall’s retailers, or to compel subsidiary proprietors to manage the business practices carried out by their tenants.

This is unless such by-laws also relate to the control and management of the use or enjoyment of the building and common property, as stated under the Building Maintenance and Strata Management Act.

“While the Council of the MCST (Management Corporation Strata Title ) may persuade, and use its best endeavours to persuade subsidiary proprietors to include in their tenancy agreements, clauses which require the tenants to conduct their businesses in accordance with the fair trade practices set out under the Consumer Protection (Fair Trading) Act (CPFTA), the MCST does not have the power to amend the by-laws so as to compel the subsidiary proprietors to do so,” added Management Council Chairman Raymond Chua in a letter to the Consumer’s Association of Singapore (CASE).

Earlier this month, CASE asked the management teams of Sim Lim Square and People’s Park Complex, which were in the news recently because of the unscrupulous sales tactics of some of their tenants, to change their rules and by-laws to make it mandatory for all landlords to ensure retailers run their businesses fairly.

Mr Chua noted that under the Building Maintenance and Strata Management Act, the MCST may apply to the Court to enforce the performance of or restrain the breach of any by-law, but does not appear to have the power to impose fines on offenders or compel a subsidiary proprietor to terminate the tenancy or to sell the unit.

He also raised concern that enacting a by-law allowing the MCST to impose penalties against retailers who have engaged in unfair practices would be contrary to Parliament’s intention in enacting the CPFTA, under which, specified bodies can apply to Court for an injunction restraining an errant retailer from engaging in unfair practices.

“We note that there is no easy solution to the problem of errant retailers and we hope to work closely with your Association to devise ways to alleviate the problem,” he said.