Effectiveness of Small Claims Tribunal in Resolving Contractual Disputes and Plans to Raise Claim Limits and Reduce Cost

Mr Liang Eng Hwa asked the Minister for Law (a) whether the Ministry has data on how effective the Small Claims Tribunal (SCT) has been in resolving contractual disputes between suppliers and consumers in the past three years and, if so, what is the data; (b) whether there are plans to further increase the current limit of $20,000 (or $30,000 with consent) for claims that can be brought in the SCT; and (c) whether additional legal support can be provided to reduce the overall cost of seeking such claims.

In the past three years, the Small Claims Tribunals (SCT) has issued about 12,200 money orders and work orders that relate to a contractual dispute for the sale of goods or the provision of services. There are currently no plans to increase the current claim limit of the SCT.

The SCT is designed as a quick and inexpensive forum for the resolution of small claims. In this regard, parties are required to present their own case. Legal representation is not allowed. The SCT also adopts a Judge-led approach, that is, the SCT magistrate will take the lead to identify the relevant issues in the claim and ensure that parties adduce relevant evidence. This reduces the need for parties to seek legal advice on their claims.

Filing fees for individuals are relatively low, at $10 for claims up to $5000; and $20 for claims between $5000 to $10,000. Claimants with financial difficulties may apply to the Registrar for a waiver or deferment of the filing fees.