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Singapore: Proposed Revisions to the Cleaning Business Licence Regulatory Framework

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In brief

The Environmental Public Health Amendment Bill, introduced in Parliament on 9 January 2023, has proposed revisions to the cleaning business licence regulatory framework in a bid to drive capabilities and raise public health standards of cleaning businesses.

The existing framework, which was introduced in September 2014, only provides for one type of cleaning business licence. However, the revised framework, which is intended to come into force from 1 January 2024, will provide for three different classes of cleaning business licenses.

In depth

Several industry consultations on the proposed revised framework have been conducted by the National Environment Agency in a bid to raise overall baseline standards for cleaning businesses. The COVID-19 pandemic accelerated and highlighted the need for quality cleaning services and the digitalisation of cleaning businesses through the increase adoption of technology.

This revised framework is therefore intended to facilitate the transformation of the cleaning sector, to increase competencies, foster a proactive productivity culture, develop a skilled and resilient workforce, and create better employment opportunities.

The revised framework will consist of the following three classes of licenses, which will be valid for two years: 

  • Class 1 Licence. The requirements to hold this licence include ensuring that the cleaning workforce is trained in at least 3 Singapore Workforce Skills Qualifications training modules and the business having a paid-up capital of SGD 250,000.
  • Class 2 Licence. The requirements to hold this licence include satisfying bizSAFE certification requirements on workplace safety and the business having a paid-up capital of SGD 25,000.
  • Class 3 Licence. This class of licence is available to new businesses and existing cleaning business licensees as of 31 December 2023, including licensees that are unable to immediately meet the requirements under Class 1 or Class 2 as described above. It is non-renewable and meant to serve as a transitional licensing arrangement.

The rationale for introducing the requirements are as follows:

  • Training requirement for the Class 1 Licence. This is to highlight to buyers of cleaning services, the licensees’ commitment to invest in training their workforce to increase cleaning competencies and their capabilities to undertake cleaning projects on a larger scale.
  • Paid-up capital requirement for Class 1 and Class 2 Licences. This is to facilitate the growth of their businesses and support higher wages for their workers.

Further details on the revised framework will be published in the coming months.

At this juncture, you may wish to start considering what this development might mean for you. For example, businesses engaging cleaning businesses may wish to consider how the revised framework will affect its engagement with its cleaning business service providers (e.g., whether there is a preference to obtain services from services providers that obtain a particular class of licence). Cleaning business service providers may also wish to start considering the requirements under each class of licence, and the commercial feasibility and viability of meeting the requirements of the class of licence they would like to be licensed under.

For further information and to discuss what this development might mean for you, please get in touch with your usual Baker McKenzie contact.

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Author

Andy Leck is the head of the Intellectual Property and Technology (IPTech) Practice Group and a member of the Dispute Resolution Practice Group in Singapore. He is a core member of Baker McKenzie's regional IP practice and also leads the Myanmar IP Practice Group. Andy is recognised by reputable global industry and legal publications as a leader in his field. He was named on "The A-List: Singapore's Top 100 lawyers" by Asia Business Law Journal 2018. In addition, Chambers Asia Pacific notes that Andy is "a well-known IP practitioner who is highlighted for his record of handling major trade mark litigation, as well as commercial exploitation of IP rights in the media and technology sectors. He's been in the industry for a long time and has always been held in high regard. He is known to be very fair and is someone you would like to be in the trenches with you during negotiations." Furthermore, Asian Legal Business acknowledges Andy as a leading practitioner in his field and notes that he “always gives good, quick advice, [is] client-focused and has strong technical knowledge for his areas of practice.” Andy was appointed by the Intellectual Property Office of Singapore (IPOS) as an IP Adjudicator to hear disputes at IPOS for a two-year term from April 2021. He has been an appointed member of the Singapore Copyright Tribunal since May 2010 and a mediator with the WIPO Arbitration and Mediation Center. He is also appointed as a Notary Public & Commissioner for Oaths in Singapore. He previously served on the International Trademark Association’s Board of Directors and was a member of the executive committee.

Author

Ren Jun Lim is a principal with Baker McKenzie Wong & Leow. He represents local and international clients in both contentious and non-contentious intellectual property matters. He also advises on a full range of healthcare, as well as consumer goods-related legal and regulatory issues. Ren Jun co-leads Baker McKenzie Wong & Leow's Healthcare as well as Consumer Goods & Retail industry groups. He sits on the Law Society of Singapore IP Committee and on the Executive Committee of the Association of Information Security Professionals. He is also a member of the Vaccines Working Group, Singapore Association of Pharmaceutical Industries, a member of the International Trademark Association, as well as a member of the Regulatory Affairs Professionals Association. Ren Jun is ranked in the Silver tier for Individuals: Enforcement and Litigation and Individuals: Prosecution and Strategy, and a recommended lawyer for Individuals: Transactions by WTR 1000, 2020. He is also listed in Asia IP's Best 50 IP Expert, 2020, recognised as a Rising Star by Managing IP: IP Stars, 2019 and one of Singapore's 70 most influential lawyers aged 40 and under by Singapore Business Review, 2016. Ren Jun was acknowledged by WTR 1000 as a "trademark connoisseur who boasts supplementary knowledge of regulatory issues in the consumer products industry." He was also commended by clients for being "very responsive to enquiries and with a keen eye for detail, he is extremely hands-on. His meticulous and in-depth approach to strategising is key to the excellent outcomes we enjoy."

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Ken Chia is a member of the Firm’s IP Tech, International Commercial & Trade and Competition Practice Groups. He is regularly ranked as a leading TMT and competition lawyer by top legal directories, including Chambers Asia Pacific and Legal 500 Asia Pacific. Ken is an IAPP Certified International Privacy Professional (FIP, CIPP(A), CIPT, CIPM) and a fellow of the Chartered Institute of Arbitrators and the Singapore Institute of Arbitrators.

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