Written reply to PQ on Assessing effectiveness of existing prepayment protection measures, sectors at highest risks of prepayment losses and introducing mandatory prepayment protection regulations

Question: 

Mr Melvin Yong Yik Chye: To ask the Minister for Energy, Trade and Industry (Energy and Industry) given that only three percent of prepayment losses in the first half of 2026 involved CaseTrust-accredited businesses with prepayment protection (a) how effective are existing prepayment protection measures; (b) which sectors face the highest risks of significant prepayment losses; and (c) whether the Government will consider introducing regulations for mandatory prepayment protection for these sectors.  

Written Answer by Minister for Energy, Trade and Industry (Energy and Industry) Dr Tan See Leng 

1.       The Government works closely with the Consumers Association of Singapore (CASE) to promote fair trading practices and help consumers make informed purchasing decisions, including those that involve prepayment. For example, we encourage consumers to patronise CaseTrust accredited businesses where applicable, as they provide prepayment protection for consumers to claim a refund of the unused portion of their prepayments in the event of business cessation. 

2.       Based on the feedback and complaints CASE received, the beauty and wellness, as well as the fitness sectors face the highest risks of significant prepayment losses. The Consumer Protection Review Panel has studied the key concerns raised by consumers, including the adequacy of prepayment protection in these sectors, and intends to publish its findings and recommendations later this year. The Government will consider the Panel’s recommendations and follow up with the necessary measures.