SINGAPORE: The Singapore Police Force is investigating local e-commerce platform Qoo10 following reports of significant payment delays affecting multiple businesses.

Frustrated vendors, unable to receive their due payments, have sought relief through the Small Claims Tribunals.

The issues with Qoo10 became apparent in July when two South Korean platforms affiliated with Qoo10—TMON and WeMakePrice—failed to pay their merchants.

Both platforms have since filed for corporate rehabilitation in the Seoul Bankruptcy Court, prompting an investigation by South Korean financial authorities.

In response to queries from Channel News Asia, the Singapore Police Force confirmed on 12 September that reports have been lodged against Qoo10, and investigations are ongoing.

Among those affected is Mr Liu Wei Guo, a vendor who has been using Qoo10 since 2014 to sell baby and maternity products.

Mr Liu reported payment delays and has filed a police report after nearly two months of waiting for a payment of approximately S$21,000 (US$16,107) requested in July.

In addition, over S$11,000 (US$8,437) of his sales proceeds remain in escrow and are unavailable for withdrawal.

Other vendors have similarly experienced delays, with some still waiting for payments totaling thousands of dollars.

While one vendor received their payment earlier this week, many others continue to face financial uncertainty, with owed amounts ranging from a few hundred to several thousand dollars.

Vendors pull products and file claims amid Qoo10 payment delays

As payment delays worsen, several businesses have stopped selling on Qoo10.

Well-known brands such as instant beverage retailer Gold Kili and local snack seller Fragrance have withdrawn their products from the platform, citing unresolved disputes.

Fragrance stated it is waiting for further information before deciding on the next steps.

Smaller vendors, particularly affected by the delays, have turned to the State Courts to file claims.

Concerns have been heightened by reports that Qoo10 account managers have left the company, making it difficult for vendors to resolve payment issues.

Many sellers, who had previously relied on their account managers for assistance, now feel abandoned after learning that their contacts have resigned.

Further doubts about the platform’s stability emerged when Qoo10 reportedly laid off 80% of its employees in mid-August.

As the platform’s troubles continue, some vendors have formed a WhatsApp group to discuss possible solutions to the payment delays. However, many feel their options are limited.

Vendors are divided on whether they will continue using Qoo10 if the payment issues are resolved.

While some are hesitant without assurances of financial stability, others, like Wistech Singapore’s operations manager, are open to staying if improvements are made.

Long-time sellers expressed that Qoo10 had served them well until the recent problems but remain uncertain about the platform’s future.

Government addresses Qoo10 payment delays

The ongoing payment delays at Qoo10 have drawn political attention, with Workers’ Party MP Louis Chua raising the issue in Parliament on 10 September.

Chua highlighted the difficulties faced by Singapore-based merchants who are still waiting for payments from the e-commerce platform.

In a written response, Deputy Prime Minister and Minister for Trade and Industry Gan Kim Yong confirmed that the government had received feedback from affected merchants.

He stated that authorities have informed Qoo10 of these cases and urged the platform to take prompt action to resolve the payment delays.

The government is also monitoring developments in South Korea concerning Qoo10’s subsidiaries and is in communication with the company to evaluate any potential impact on its Singapore operations.

Minister Gan advised merchants to escalate unresolved payment disputes with Qoo10 and utilise established channels, such as filing civil claims through the courts.

He further noted that businesses experiencing cash flow difficulties due to the delays can seek assistance by applying for the Enterprise Financing Scheme (Working Capital Loan) through participating financial institutions.

SINGAPORE: Associate Professor Jamus Lim, Workers’ Party Member of Parliament for Sengkang GRC, has offered his take on the SkillsFuture Jobseeker Support Scheme (JSS), which he describes as the People’s Action Party’s (PAP) equivalent of unemployment insurance.

The JSS, unveiled with more details during Prime Minister Lawrence Wong’s National Day Rally speech on 18 August, has sparked comparisons with the Workers’ Party’s own long-standing proposal for redundancy insurance (RI), first introduced in its 2006 manifesto.

In a 12 September Facebook post, Assoc Prof Lim emphasised that the WP had been advocating for a redundancy insurance scheme for almost two decades, providing substantial details on it in their 2016 policy paper.

“We’ve been thinking about the issue for a while now,” Lim stated, adding that the WP’s proposal has been part of global best practices for advanced economies for nearly a century.

Assoc Prof Lim dismissed the PAP’s argument that the JSS is not unemployment insurance.

He pointed out that the differences the PAP cites—such as JSS being tied to job-seeking conditions and funded from general revenue rather than payroll taxes—are inconsequential.

“Tax revenue is fungible, so it all comes from the people anyway,” Assoc Prof Lim explained.

He argued that funding the scheme from general revenue might even make it less equitable, as it could potentially shift the burden onto non-workers to subsidise workers.

The Workers’ Party’s version of redundancy insurance, Assoc Prof Lim highlighted, envisioned a shared responsibility between employers, employees, and the government to ensure fairness and sustainability.

“We do believe in tripartism,” he remarked, underscoring that society should bear the responsibility for protecting its workers.

One of the central points in Assoc Prof Lim’s critique was that tying financial support to job-seeking efforts is standard in unemployment schemes globally, including in Singapore.

Assoc Prof Lim Addresses Concerns of Dependency, Calling Them Overblown

He acknowledged concerns that such a scheme might lead to dependency, but deemed these fears exaggerated.

“Most people, even in the West, do find value and meaning in some form of work,” he noted.

In discussing the design of unemployment insurance systems, Assoc Prof Lim pointed to the importance of balancing the duration of support with the amount provided.

While too long a tenure or too large a payout could discourage a return to the workforce and allow skills to erode, too little would leave workers struggling to cover household expenses during critical periods.

The WP’s redundancy insurance proposal included a payout of 40% of the last drawn income for up to six months, which Lim described as a “solid-but-not-excessively-generous” sum.

Although this amount is lower than what is typically found in advanced economies, and the duration is shorter than the OECD average of one year, he highlighted that it reflects Singapore’s shorter unemployment spells of around two months.

Assoc Prof Lim also suggested the introduction of greater flexibility in accessing redundancy insurance funds.

By allowing the unemployed to “front-load” their payouts, households would have more breathing room to adjust their expenses during difficult transitions.

With the JSS set to be debated in Parliament, Assoc Prof Lim reaffirmed the Workers’ Party’s commitment to advocating for expanded safety nets for Singapore’s workers.

“Whether you call it JSS or RI or something else, expanding the safety net for our workers is something that the Workers’ Party will always be fighting for,” he concluded.