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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