Singapore — FOCUS Adventure, a social enterprise that had converted its Sembawang campsite into a workers dormitory to house Malaysian workers who had nowhere else to go, was asked to leave the site because it was three months behind on its rent.
The company runs corporate training programmes that apply adventure learning outdoors to make such activities as team building more fun and effective.
Following a long back-and-forth, the Singapore Land Authority which is in charge of the site, agreed to let them stay and withdraw its Letter of Termination. That happened after Law and Home Affairs Minister K Shanmugam intervened on behalf of FOCUS Adventure.
FOCUS Adventure director Andrew Chua said: “We truly appreciate the understanding and compassion from MinLaw and especially Minister K Shanmugam in assisting us in the darkest moment in our 25-year history.”
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Arguing its case against eviction, the social enterprise said it had not missed a single rent payment over the past 13 years. It also asked for the site’s rent to be reduced because the pandemic had hit the company hard.
FOCUS Adventure earns its keep through corporate and school camps usually held at its sites. The pandemic and the social curbs imposed had all but cut off its activities and hit its earnings hard.
Mr Chua told The Independent Singapore (TISG) in an interview that SLA tried to raise their rent in October 2020, but Sembawang GRC MP Ong Ye Kung, who was then Transport Minister, had appealed on their behalf and the rent reverted to the original $35,000”.
Mr Chua explained that when the pandemic hit, these Malaysian workers – men and women who mainly worked as cleaners – were not allowed to return to Malaysia and had to stay in Singapore. In order to help, and because their campsite was underutilised, the group pivoted its operations and turned their campsite into a workers’ dormitory.
Mr Chua said that after some exchanges, this change of use was accepted in October 2020, but at that point, SLA decided to raise the rent from $35,000 to $40,000. FOCUS Adventure asked Mr Ong to help as the site in Admiralty Road is in his constituency, and succeeded in their appeal.
“You’re looking at economic devastation. Businesses destroyed, people’s lives ruined, and in such a situation, you don’t talk contract. You talk equity, you talk justice, you talk about what is the right thing to do.”
– Minister for Law K Shanmugam SC, Interview with CNBC, April 7, 2020
Then in December 2020, when FOCUS Adventure (FA) asked for the lease to be extended and the rent to be reduced, they got an extension for another six months, but no rent cut.
In email exchanges between SLA and Mr Chua that TISG has seen, SLA said: “Please note that when FA filed the Notice of Negotiation (NON) under the Re-Align Framework, to initiate the process to renegotiate a contract and appeal for tenancy extension for the first time, we had explained that the current rental of $35,060/-per month had already taken into consideration of the COVID-19 situation, reflecting a 12.4% reduction from the offered rental of $40,000 per month based on the current use and size of the premises.”
The SLA said the existing rental of $35,060 per month was the same as charged since October 2020, not the $40,000 per month as FOCUS Adventure had stated in past emails.
It added: “We wish to highlight that while FA would not have been eligible for further rental assistance, we had worked with FA for the required supporting documents and helped FA obtain approval for an additional one-off rental waiver in Jun 2021. This was conveyed on 10 May 2021, along with our response to your appeal for tenancy extension”.
SLA added: “We had also, in recognising the financial difficulties faced by FA, allowed FA to offset Jul 2021’s rental from your cash security deposit (SD) amounting to three (3) months’ rental. For the record, we are only holding cash SD of two (2) months.”
When they had not paid rent for three months, and owed S$113,294.43 – by Oct 19, SLA terminated their contact and told them to vacate by Nov 2.
Mr Chua said that if they moved, the 140 or so male and female workers would have nowhere to go until they could find alternative accommodation. While the men may be re-housed in existing migrant worker dormitories, the women would be stranded as females are not allowed in these dormitories.
Desperate, he appealed to Mr Shanmugam. “There seems to be no compromise on our position from SLA . SLA’s actions has (sic) pushed us to the brink of bankruptcy and despair. After many many frustrating incidences from last year, I have no choice but to escalate this entire matter to yourself and MinLaw.”
He added: “After two years on very little revenue, we are on the verge of collapse. We hope to seek redress on some of the matters”.
SLA agreed to withdraw the Letter of Termination after an appeal to Minister K Shanmugam. On Oct 29, Mr Chua said that the monthly rent was deducted.
SLA said: “With reference to our email dated 29 Oct 2021, we would like to inform that the GIRO deduction of $37,514.20 (Rental of $35,060 + GST of $2,454.20) on 29 Oct 2021 is successful, see attached receipt.
With the partial settlement, we are withdrawing the termination notice. Please find attached the withdrawal of termination notice, a copy of which will be mailed via post. We seek your cooperation to settle the remaining arrears of $76,068.52 (as at 3 Nov 2021) to avoid incurring further late payment interest”.
TISG has reached out to SLA for comment and clarification. /TISG