Written reply to PQ on Prepayment business service termination statistics over past three years, mandatory insurance requirements and executive director liability for consumer refund protection

Question:

Dr Neo Kok Beng: To ask the Minister for Energy, Trade and Industry (Energy and Industry) due to recent service terminations by certain service providers that operate on a prepayment business model, whether the Ministry can (i) provide the number of consumers and monetary amounts affected over the last three years (ii) consider mandatory insurance requirements for companies providing such prepaid services and (iii) consider regulations to make companies' executive directors liable for prepayment refunds.

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

1.       Based on available data from the Consumer Association of Singapore (CASE), the prepayment losses in 2023, 2024 and 2025 amounted to $476,000, $1,930,000 and $2,710,000 respectively. Across 2024 and 2025, more than 2,500 consumers were affected.

2.       The Consumer Protection Review Panel has studied the key concerns raised by consumers, including the adequacy of prepayment protection in certain high risk sectors, and intends to publish its findings and recommendations later this year. The Government will consider the Panel’s recommendations and other potential measures, including the Member’s suggestions on mandatory insurance requirements for prepaid services and regulations to make companies' executive directors liable for prepayment refunds.