Legislation to Detect and Act Against Fraud in Renovation Disputes

Ms Carrie Tan asked the Minister for Home Affairs (a) whether he can provide an update on the Ministry's study on whether there is scope to amend the law to make it easier to establish fraud in renovation disputes; and (b) what is the outcome of the study.

Ms He Ting Ru asked the Minister for Home Affairs whether the Ministry can provide an update on the plans to introduce legislation making it easier to establish whether renovation fraud has occurred.

The Ministry has studied the question of the legal position on establishing fraud in renovation disputes and whether any amendments are needed.

Today, renovation fraud can be prosecuted as cheating offences under section 420 of the Penal Code. The Attorney-General Chambers' (AGC's) assessment is that there is no need to amend the law further. The Prosecution is able to secure convictions against fraudulent renovation contractors using evidence, such as financial records and digital evidence, uncovered during investigations.

AGC's and the Police's observation is that many cases of non-fulfilment of contracts are not the result of fraud, but rather, business distress. The right course is in civil remedies, which have been made easier to access over the years. For example, in 2019, the Government raised the ceiling for claims that can be brought in the Small Claims Tribunal to $20,000 (or $30,000, if all parties consent).

Home owners intending to carry out renovation works should also consider engaging contractors accredited by the Consumers Association of Singapore (CASE), which have consumer-friendly policies including dispute resolution facilitated by CASE.