Tuesday, 16 June 2026 — SG Law Cookies

01⬡ JUDGMENT

High Court in Equation Recycling Pte Ltd v Leading Bio-Energy (S) Pte Ltd [2026] SGHC 126 reaffirms that a clause is only a penalty if it is 'extravagant and unconscionable' relative to a legitimate interest.

The Court set aside the District Judge's finding that a forfeiture clause was a penalty, ruling that the judge erred by applying a

Why it mattersLawyers should focus on demonstrating a legitimate commercial interest to defend against penalty claims, rather than merely arguing the sum is disproportionate to the breach.

JUDICIARY READ JUDGMENT ↗

02⬡ JUDGMENT

High Court in Lateral Solutions Pte Ltd (in liquidation) v Low Tuck Lo . Low Raymond [2026] SGHCR 18 holds that a breach of trust is 'fraudulent' under s 22(1)(a) of the Limitation Act if the trustee's conduct was contrary to the interests of the beneficiaries and the trustee was dishonest by being aware of this or recklessly indifferent to it.

The court addressed whether the advancement of loans with no intention of repayment constituted a fraudulent breach of trust. It held that such conduct meets the standard of dishonesty if the trustee knew, by the standards of an honest and reasonable person in a director's position, that the conduct was contrary to the company's interests.

Why it mattersPractitioners should note that pleading 'fraud' is not strictly necessary to invoke the limitation period exception, provided the conduct is shown to be contrary to the principal's interests and meets the established standard of dishonesty.

JUDICIARY READ JUDGMENT ↗

03○ NEWS

The Matched MediSave Scheme (MMSS) has launched as a five-year pilot program.

Commencing 1 January 2026, the MMSS provides a dollar-for-dollar government match for cash top-ups made to the MediSave Account (MA) of eligible Singapore Citizens aged 55 to 70. The scheme is capped at $1,000 per year and will run as a pilot until 2030 for those with MA savings below half of the current Basic Healthcare Sum.

Why it mattersClients managing healthcare budgets for seniors should be aware of this new incentive, noting that top-ups receiving these grants are ineligible for personal income tax relief.

MOM READ SOURCE ↗

04○ NEWS

Workforce Singapore (WSG) and SkillsFuture Singapore (SSG) to merge into a single statutory board.

Announced during Budget 2026, the Ministry of Manpower (MOM) and Ministry of Education (MOE) will merge WSG and SSG into a new joint agency. The merger aims to integrate Singapore's jobs-skills ecosystem and streamline career and employment services.

Why it mattersLawyers advising clients in the HR, education, or manpower sectors should monitor the transition for changes in regulatory oversight and employment-related services.

MOM READ SOURCE ↗

05○ NEWS

New three-year wage increase schedule approved for Food Services Progressive Wage Model (PWM).

The Government has accepted recommendations to implement a phased increase in baseline monthly gross wages for over 53,000 food services workers. The new schedule runs from 1 July 2026 to 30 June 2029, raising the entry-level requirement from $2,080 to $2,220 in July 2026, with subsequent annual increases reaching $2,500 by 2028.

Why it mattersEmployers in the food services sector must adjust payroll and budgeting to comply with the new mandatory wage floors effective 1 July 2026.

MOM READ SOURCE ↗

06○ NEWS

New statutory protections for platform workers under the Platform Workers Act are now reflected in national safety statistics.

Following the commencement of the Platform Workers Act on 1 January 2025, the Ministry of Manpower has begun including non-fatal injury data for platform workers in its annual reports. This allows for the monitoring of injury rates specifically for this group, which recorded a high rate of 84.6 per 100,000 workers in 2025.

Why it mattersLawyers handling personal injury or employment matters should note the expanded scope of injury reporting and the specific statutory protections now applicable to platform workers.

MOM READ SOURCE ↗

07○ NEWS

Platform workers are now covered by the Work Injury Compensation Act and the Workplace Safety and Health Act.

Since 1 January 2025, platform workers are entitled to injury compensation under WICA and safety protections under WSHA. This regulatory framework requires all work-related injuries involving platform workers to be reported to the Ministry of Manpower.

Why it mattersPractitioners must account for these specific statutory entitlements when advising clients on work-related injury claims involving platform-based delivery or service roles.

MOM READ SOURCE ↗

08○ NEWS

Criminal penalties and sanctions apply for making false declarations under the EFMA.

Under the Employment of Foreign Manpower Act 1990, individuals convicted of making false declarations in work pass applications face fines up to $20,000, imprisonment for up to two years, or both. Convicted parties may also face suspension of work pass privileges and being barred from working in Singapore.

Why it mattersCompliance officers and directors must verify the accuracy of all information submitted in work pass applications to prevent severe personal and corporate sanctions.

MOM READ SOURCE ↗

09○ NEWS

Singapore to establish new Skills and Workforce Development Agency through merger of WSG and SSG.

The government will merge Workforce Singapore (WSG) and SkillsFuture Singapore (SSG) into a single statutory board known as the Skills and Workforce Development Agency. This new entity aims to provide a single touchpoint for training, career guidance, and job opportunities by integrating career and skills data.

Why it mattersLawyers involved in regulatory or administrative law should note this structural change in the agencies governing national workforce development and training subsidies.

MOM READ SOURCE ↗

10○ NEWS

The Workplace Fairness Act has been enacted to strengthen protections against workplace discrimination.

Following its passage last year, the Workplace Fairness Act is now in effect to ensure merit-based treatment and prevent discrimination in the Singaporean workforce. This represents a significant milestone in the nation's regulatory framework for workplace equality.

Why it mattersEmployers must ensure their HR policies and practices are compliant with the new anti-discrimination standards under the Act.

MOM READ SOURCE ↗

11○ NEWS

Introduction of the Skills and Workforce Development Agency Bill to merge SSG and WSG.

The Ministry of Manpower has introduced a Bill to establish the Skills and Workforce Development Agency (SWDA), a new statutory board created by merging SkillsFuture Singapore (SSG) and Workforce Singapore (WSG). The agency will operate under the joint oversight of MOM and MOE to provide integrated career guidance, skills training, and job matching services.

Why it mattersLawyers advising clients in HR, talent management, or corporate training should note the upcoming structural change in the primary regulatory and support bodies governing Singapore's workforce development.

MOM READ SOURCE ↗

12○ NEWS

Regulators initiate prosecutions and warnings following Tanjong Katong Road South sinkhole incident.

Following an investigation into a July 2025 sinkhole, the BCA, MOM, and LTA are pursuing enforcement actions against seven parties, including a builder, directors, and qualified persons. Allegations include conducting unauthorised works, performing specialist building works without licences, failing to conduct mandatory tests, and making false declarations regarding site supervision.

Why it mattersConstruction professionals and directors should note the heightened regulatory scrutiny and the personal liability being pursued against individuals for supervisory and compliance failures.

MOM READ SOURCE ↗

13○ NEWS

Introduction of the SkillsFuture Workforce Development Grant (Job Redesign+) for enterprise transformation.

The government has launched the SkillsFuture Workforce Development Grant (Job Redesign+), offering up to 70% funding for workforce transformation and job redesign projects. The grant is capped at $150,000 per enterprise, with enhanced support tiers available for Small and Medium Enterprises (SMEs).

Why it mattersEmployers should review their workforce restructuring and job redesign plans to leverage this new funding for cost mitigation.

MOM READ SOURCE ↗

14○ NEWS

Thai authorities are intensifying enforcement against nominee shareholding structures used to bypass foreign ownership restrictions.

The Thai Department of Business Development (DBD) is conducting large-scale investigations into 'Alibaba' structures, where locals hold shares for foreign investors. Recent operations in Pattaya and Koh Phangan have flagged numerous companies and led to multiple arrest warrants, signaling a shift toward a 'substance over form' regulatory approach.

Why it mattersLawyers advising on cross-border M&A in Thailand must move away from informal nominee arrangements and instead utilize legitimate joint ventures or treaty-based exemptions to avoid criminal liability and transaction voidance.

SLW READ SOURCE ↗

15○ NEWS

Violations of the Foreign Business Act (FBA) carry significant criminal and financial penalties in Thailand.

Under the FBA, individuals facilitating the circumvention of foreign ownership rules face up to 3 years imprisonment and fines between THB 100,000 and THB 1,000,000, plus daily penalties. A company is deemed 'foreign' if 50% or more of its shares are held by foreigners.

Why it mattersClients must ensure that shareholding structures are compliant with the FBA thresholds to avoid severe personal and corporate criminal sanctions.

SLW READ SOURCE ↗

16○ NEWS

Lawyers face personal liability and costs orders for presenting AI-generated fictitious authorities to the court.

Recent Singapore case law, including *Tan Hai Peng Micheal v Tan Cheong Joo* [2026] SGHC 49, demonstrates that courts are imposing personal costs orders against lawyers who submit AI-generated fictitious cases. The court holds that the duty to verify authorities is non-delegable, meaning lawyers cannot escape liability by blaming junior staff, paralegals, or the use of AI tools.

Why it mattersPractitioners must independently verify every legal authority and citation produced by generative AI to avoid personal financial sanctions and potential disciplinary action.

SLW READ SOURCE ↗

17○ NEWS

Singapore to adopt UNCITRAL Model Law on Enterprise Group Insolvency.

The Ministry of Law intends to adopt the UNCITRAL Model Law on Enterprise Group Insolvency to improve the framework for managing insolvency within corporate groups. This is part of a broader effort to refine tools for efficient debt restructuring.

Why it mattersLawyers handling multi-entity corporate restructurings will need to navigate new rules regarding the coordination of insolvency proceedings across group companies.

SLW READ SOURCE ↗

18○ NEWS

Singapore to adopt UNCITRAL Model Law on Recognition and Enforcement of Insolvency-Related Judgments.

The Ministry of Law plans to implement the UNCITRAL Model Law on Recognition and Enforcement of Insolvency-Related Judgments. This move is designed to enhance the efficiency of the insolvency regime and the enforcement of related judicial decisions.

Why it mattersThis adoption will change the procedural landscape for recognizing and enforcing insolvency-related court orders in a cross-border context.

SLW READ SOURCE ↗

19○ NEWS

The Online Safety (Relief and Accountability) Act 2025 introduces new regulatory oversight and statutory torts to combat online harms.

Effective 29 June 2026, the Act establishes the Online Safety Commission and introduces specific statutory torts to provide victims with dedicated avenues for relief. The framework imposes new legal responsibilities on content posters, online space operators, and platform providers to mitigate online harms.

Why it mattersPractitioners must advise clients in the tech and media sectors on new compliance obligations and potential liability under the newly created statutory torts.

SLW READ SOURCE ↗

20○ NEWS

The Ministry of Transport is proposing a new legislative framework to regulate autonomous vehicles in Singapore.

The Ministry of Transport has launched a consultation on a proposed statutory framework intended to provide holistic governance for autonomous vehicles on Singapore roads. The government aims to table the relevant legislation in Parliament by 2027.

Why it mattersPractitioners in the automotive, technology, and transport sectors should monitor this consultation to prepare for upcoming regulatory compliance and liability shifts.

SLW READ SOURCE ↗

21○ NEWS

The High Court affirms the irrevocability of wakaf assets in Singapore regardless of Hanafi school minority views.

In a dispute over income from a century-old Islamic charitable trust, the High Court ruled that a wakaf cannot be varied or revoked. Even if the donor were a follower of the Hanafi sect, the court held that the majority view applies in Singapore, precluding the possibility of altering a previously dedicated wakaf.

Why it mattersPractitioners dealing with Islamic trusts should note that the court will prioritise the majority Hanafi view and the principle of irrevocability over minority jurisprudence to maintain legal certainty.

SLW READ SOURCE ↗

22○ NEWS

Singapore unveils the world's first Model AI Governance Framework for Agentic AI.

Unveiled by the Minister for Digital Development and Information, this framework establishes rules for autonomous AI agents. It mandates human accountability, requires transparency regarding agent capabilities and data access, and advocates for a risk-based, graduated deployment approach.

Why it mattersThis framework sets a new global standard for the deployment of autonomous systems, necessitating that companies review their AI deployment protocols to ensure human oversight and transparency.

SLW READ SOURCE ↗

23○ NEWS

Construction firm and six individuals charged with statutory offences following Tanjong Katong sinkhole incident.

Ohin Construction and six personnel, including directors and qualified persons, face charges under the Workplace Safety and Health Act and Building Control Act following a 2025 sinkhole. The allegations include failure to adhere to approved structural plans, unauthorised modifications to caisson rings, and failure to notify authorities of preceding ground depressions.

Why it mattersConstruction practitioners must ensure strict adherence to approved structural plans and immediate reporting of ground instabilities to avoid criminal liability under safety and building control statutes.

SLW READ SOURCE ↗

24○ NEWS

Singapore High Court issues seizure notice against Capital A subsidiaries to enforce US$14.7 million arbitration award.

The Sheriff of the Supreme Court of Singapore has issued a notice of seizure or attachment against Move Digital, a subsidiary of Capital A. The action targets a 99.56% stake in BigPay and an 11.45% stake in Teleport to satisfy a US$14.74 million partial arbitration award and related costs.

Why it mattersLawyers should note the active enforcement of foreign-seated arbitration awards against corporate assets in Singapore, even while set-aside applications are pending.

SLW READ SOURCE ↗

25○ NEWS

Singapore regulators are establishing specific governance frameworks for the deployment of Agentic AI in the financial sector.

The Infocomm Media Development Authority (IMDA) has launched the world's first Model AI Governance Framework for Agentic AI. Additionally, the Monetary Authority of Singapore (MAS) has introduced an AI Risk Management Toolkit via Project MindForge to manage risks associated with autonomous AI agents.

Why it mattersFinancial institutions must align their AI deployment architectures with these emerging regulatory frameworks to ensure compliance and auditability.

SLW READ SOURCE ↗

26○ NEWS

Singapore and Tanzania have signed a Double Taxation Avoidance Agreement.

A new agreement between Singapore and Tanzania aims to prevent double taxation on cross-border business activities. The treaty will enter into force once it has been ratified by both nations.

Why it mattersTax practitioners should track the ratification status to advise clients on the reduced tax burdens for Singaporean investments in Tanzania.

SLW READ SOURCE ↗

27○ NEWS

The ILO is negotiating a new international standard for the governance of platform work and algorithmic systems.

Member states of the International Labour Organization (ILO) are conducting final talks in Geneva to establish a Convention and Recommendation on Decent Work in the Platform Economy. If adopted, this would represent the first international labour law specifically targeting work managed via digital platforms and algorithms.

Why it mattersLawyers advising multinational platforms or labour unions should monitor the outcome for potential shifts in global standards regarding algorithmic transparency and cross-border accountability.

SLW READ SOURCE ↗

28○ NEWS

Singapore's Platform Workers Act establishes a unique intermediate legal category for gig workers.

Effective from January 2025, the Act creates a distinct legal status for platform workers that sits between 'employee' and 'self-employed'. The framework mandates work injury insurance, pension and housing contributions, and provides for worker representation through specific associations without requiring employment reclassification.

Why it mattersPractitioners must understand this specific statutory category when advising on employment status, social security obligations, and dispute resolution for platform-based engagements in Singapore.

SLW READ SOURCE ↗

29○ NEWS

The emergence of 'inference protection' as a necessary expansion of data protection law for AI systems.

Current privacy frameworks focus on the collection and retention of personal data, but AI companions increasingly derive value from inferring sensitive user traits (e.g., emotional state, mental health) from conversational patterns. There is a growing regulatory need to govern how sensitive inferences are drawn, whether they are necessary, and if they are used for behavioral manipulation.

Why it mattersLawyers advising on data privacy must prepare for a shift from regulating data collection to regulating the outputs and logical inferences derived from user interactions.

SLW READ SOURCE ↗

30○ NEWS

MAS to lift the 5 per cent cap on physical investment precious metals for tax-incentivised funds.

MAS will remove the existing 5 per cent limit on physical investment in precious metals under tax incentive schemes for funds. Further implementation details are expected to be released by September 2026.

Why it mattersFund managers and family offices should review their investment mandates and portfolio allocations in light of increased flexibility for physical gold holdings.

SLW READ SOURCE ↗

31○ NEWS

The US administration has issued an export control directive restricting access to advanced AI models for foreign nationals.

The Trump administration has ordered Anthropic to disable access to its Claude Fable 5 and Mythos 5 models for all non-US citizens. The directive cites significant national security and cybersecurity vulnerabilities as the justification for this restriction.

Why it mattersLawyers advising tech firms on cross-border data flows and product distribution must monitor these expanding US export controls for compliance risks.

SLW READ SOURCE ↗

32○ NEWS

The EU AI Act establishes a comprehensive regulatory framework with significant financial penalties for non-compliance.

The European Union's AI Act prohibits AI systems that threaten human safety, dignity, or civil liberties, such as intrusive facial recognition or social scoring. Violations can result in fines of up to €35 million or 7% of a company's total global annual turnover.

Why it mattersCompanies operating globally must ensure their AI deployment strategies align with these strict EU prohibitions to avoid massive turnover-based penalties.

SLW READ SOURCE ↗

baked fresh
that morning

★ THE DAILY BAKE ★

Today's Specials

High Court in Equation Recycling Pte Ltd v Leading Bio-Energy (S) Pte Ltd [2026] SGHC 126 reaffirms that a clause is only a penalty if it is 'extravagant and unconscionable' relative to a legitimate interest.

The Matched MediSave Scheme (MMSS) has launched as a five-year pilot program.

Workforce Singapore (WSG) and SkillsFuture Singapore (SSG) to merge into a single statutory board.

New three-year wage increase schedule approved for Food Services Progressive Wage Model (PWM).

New statutory protections for platform workers under the Platform Workers Act are now reflected in national safety statistics.

Platform workers are now covered by the Work Injury Compensation Act and the Workplace Safety and Health Act.

Criminal penalties and sanctions apply for making false declarations under the EFMA.

Singapore to establish new Skills and Workforce Development Agency through merger of WSG and SSG.

The Workplace Fairness Act has been enacted to strengthen protections against workplace discrimination.

Introduction of the Skills and Workforce Development Agency Bill to merge SSG and WSG.

Regulators initiate prosecutions and warnings following Tanjong Katong Road South sinkhole incident.

Introduction of the SkillsFuture Workforce Development Grant (Job Redesign+) for enterprise transformation.

Thai authorities are intensifying enforcement against nominee shareholding structures used to bypass foreign ownership restrictions.

Violations of the Foreign Business Act (FBA) carry significant criminal and financial penalties in Thailand.

Lawyers face personal liability and costs orders for presenting AI-generated fictitious authorities to the court.

Singapore to adopt UNCITRAL Model Law on Enterprise Group Insolvency.

Singapore to adopt UNCITRAL Model Law on Recognition and Enforcement of Insolvency-Related Judgments.

The Online Safety (Relief and Accountability) Act 2025 introduces new regulatory oversight and statutory torts to combat online harms.

The Ministry of Transport is proposing a new legislative framework to regulate autonomous vehicles in Singapore.

The High Court affirms the irrevocability of wakaf assets in Singapore regardless of Hanafi school minority views.

Singapore unveils the world's first Model AI Governance Framework for Agentic AI.

Construction firm and six individuals charged with statutory offences following Tanjong Katong sinkhole incident.

Singapore High Court issues seizure notice against Capital A subsidiaries to enforce US$14.7 million arbitration award.

Singapore regulators are establishing specific governance frameworks for the deployment of Agentic AI in the financial sector.

Singapore and Tanzania have signed a Double Taxation Avoidance Agreement.

The ILO is negotiating a new international standard for the governance of platform work and algorithmic systems.

Singapore's Platform Workers Act establishes a unique intermediate legal category for gig workers.

The emergence of 'inference protection' as a necessary expansion of data protection law for AI systems.

MAS to lift the 5 per cent cap on physical investment precious metals for tax-incentivised funds.

The US administration has issued an export control directive restricting access to advanced AI models for foreign nationals.

The EU AI Act establishes a comprehensive regulatory framework with significant financial penalties for non-compliance.

The Rest of the Menu

baked freshthat morning

★ THE DAILY BAKE ★

Today's Specials

High Court in Equation Recycling Pte Ltd v Leading Bio-Energy (S) Pte Ltd [2026] SGHC 126 reaffirms that a clause is only a penalty if it is 'extravagant and unconscionable' relative to a legitimate interest.

The Matched MediSave Scheme (MMSS) has launched as a five-year pilot program.

Workforce Singapore (WSG) and SkillsFuture Singapore (SSG) to merge into a single statutory board.

New three-year wage increase schedule approved for Food Services Progressive Wage Model (PWM).

New statutory protections for platform workers under the Platform Workers Act are now reflected in national safety statistics.

Platform workers are now covered by the Work Injury Compensation Act and the Workplace Safety and Health Act.

Criminal penalties and sanctions apply for making false declarations under the EFMA.

Singapore to establish new Skills and Workforce Development Agency through merger of WSG and SSG.

The Workplace Fairness Act has been enacted to strengthen protections against workplace discrimination.

Introduction of the Skills and Workforce Development Agency Bill to merge SSG and WSG.

Regulators initiate prosecutions and warnings following Tanjong Katong Road South sinkhole incident.

Introduction of the SkillsFuture Workforce Development Grant (Job Redesign+) for enterprise transformation.

Thai authorities are intensifying enforcement against nominee shareholding structures used to bypass foreign ownership restrictions.

Violations of the Foreign Business Act (FBA) carry significant criminal and financial penalties in Thailand.

Lawyers face personal liability and costs orders for presenting AI-generated fictitious authorities to the court.

Singapore to adopt UNCITRAL Model Law on Enterprise Group Insolvency.

Singapore to adopt UNCITRAL Model Law on Recognition and Enforcement of Insolvency-Related Judgments.

The Online Safety (Relief and Accountability) Act 2025 introduces new regulatory oversight and statutory torts to combat online harms.

The Ministry of Transport is proposing a new legislative framework to regulate autonomous vehicles in Singapore.

The High Court affirms the irrevocability of wakaf assets in Singapore regardless of Hanafi school minority views.

Singapore unveils the world's first Model AI Governance Framework for Agentic AI.

Construction firm and six individuals charged with statutory offences following Tanjong Katong sinkhole incident.

Singapore High Court issues seizure notice against Capital A subsidiaries to enforce US$14.7 million arbitration award.

Singapore regulators are establishing specific governance frameworks for the deployment of Agentic AI in the financial sector.

Singapore and Tanzania have signed a Double Taxation Avoidance Agreement.

The ILO is negotiating a new international standard for the governance of platform work and algorithmic systems.

Singapore's Platform Workers Act establishes a unique intermediate legal category for gig workers.

The emergence of 'inference protection' as a necessary expansion of data protection law for AI systems.

MAS to lift the 5 per cent cap on physical investment precious metals for tax-incentivised funds.

The US administration has issued an export control directive restricting access to advanced AI models for foreign nationals.

The EU AI Act establishes a comprehensive regulatory framework with significant financial penalties for non-compliance.

The Rest of the Menu

baked fresh
that morning