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Singapore police investigate Qoo10 amid payment delays to vendors

The Singapore Police Force is investigating Qoo10 following reports of significant payment delays affecting vendors. Frustrated businesses have turned to Small Claims Tribunals for relief, while some major brands have withdrawn their products from the platform amid ongoing issues.

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Singapore police investigate Qoo10 amid payment delays to vendors
(Photo: LinkedIn/Qoo10 Singapore)

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Well-known brands such as instant beverage retailer Gold Kili and local snack seller Fragrance have withdrawn their products from the platform, citing unresolved disputes.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

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Lee Hsien Loong warns of limited political space if election margins narrow

Senior Minister Lee Hsien Loong warned that shrinking electoral margins could limit the government’s ability to make long-term decisions, emphasizing the importance of collaboration between political leadership and the public service to maintain Singapore’s success.

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SINGAPORE: Senior Minister Lee Hsien Loong has warned that shrinking electoral margins may constrain the government’s ability to make long-term decisions.

Speaking at the Annual Public Service Leadership Ceremony, SM Lee Hsien Loong warned that if the People’s Action Party (PAP) continues to lose electoral support, the government will have “less political space to do the right things.” He explained that as electoral margins narrow, it becomes increasingly difficult to ignore short-term pressures, which could significantly change the political landscape.

“Singaporeans must understand the dangers this creates, and so must the public service,” SM Lee stressed. He pointed out that Singapore faces formidable internal and external challenges in the years ahead, with rising expectations and demands from citizens. As growth becomes harder to achieve and politics becomes more fiercely contested, he warned, “Things can go wrong for Singapore too.” He urged vigilance in preparing for an uncertain future, noting, “As the world changes, and as the generations change, we must do our best to renew our system – to ensure that it continues to work well for us, even as things change.”

The PAP saw a marked drop in its vote share in the 2020 General Election, securing 61.24% of the vote and 83 out of 93 seats, down from 69.9% in 2015. A significant loss was that of Sengkang GRC to the Workers’ Party (WP), where the PAP’s team, led by former Minister Ng Chee Meng, was defeated.

Fiscal Responsibility and Governance

Reflecting on Singapore’s governance, SM Lee credited its success over the past six decades to good policies, political leadership, and a strong public service. He emphasized the need for cooperation between the public service and ministers to maintain stability, noting, “This is how we have been able to maintain political stability and deliver good government.”

SM Lee contrasted Singapore’s approach with that of other countries, where politicians often avoid difficult decisions to retain support, leading to populism. “Thankfully, Singapore has been an exception to this rule,” he said.

He pointed to the government’s decision to raise the Goods and Services Tax (GST) as an example of responsible governance. While acknowledging that the two-stage increase—from 7% to 8% in 2023 and from 8% to 9% in 2024—would likely cost the ruling party votes, SM Lee explained that it was necessary to fund rising healthcare costs for an ageing population.

“It was a political decision to minimise the impact on the public, even though it created twice the administrative overheads. But doing it in two steps acknowledged the public’s concerns about the tax increase,” SM Lee said. However, public perception holds that the phased hike led to greater price inflation than if it had been implemented all at once.

Public Service and Leadership

In his speech, SM Lee also called on the public service to remain committed to its mission of serving Singaporeans. He urged public service leaders to lead by example, saying, “You have to set the tone and direction in your respective organisations.” He emphasized that the public service and political leadership must continue working together to address key challenges, including public transport, immigration, and income inequality.

SM Lee concluded by underscoring the importance of maintaining high-quality political leadership and a dedicated public service to ensure Singapore remains exceptional. “Together, the political leadership and the public service can come up with good policies, persuade Singaporeans to support them, and make the policies succeed,” he said.

Head of Civil Service Leo Yip echoed SM Lee’s concerns about shrinking political margins and praised his leadership in creating the political space necessary for difficult decisions. Yip stressed that the public service must support the government’s longer-term objectives, even amid increasing complexity.

“Senior Minister Lee led the way in convincing Singaporeans about the tough choices we had to make,” Yip said, emphasizing that it is the public service’s duty to think beyond their respective organisations and act in the national interest. “Our role is to steer and guide our colleagues to think and act as One Public Service,” he added.

Sengkang GRC and Political Opposition

The PAP’s defeat in the newly introduced Sengkang GRC marked a significant moment in the 2020 General Election, with Associate Professor Jamus Lim of the Workers’ Party winning a seat.

During a live debate, Assoc Prof Lim openly challenged SM Lee’s assertion that the election would give the PAP a mandate to lead the country through the crisis.

“The truth is, the PAP, in all likelihood, would have this mandate by the end of this election,” Assoc Prof Lim said, drawing laughter from those present.

He clarified that the WP was not trying to deny the PAP its mandate but rather prevent it from receiving “a blank cheque” in Parliament. “That is what I think this election is about,” he remarked.

Despite losing Sengkang GRC and securing 61.24% of the vote, the PAP continues to hold a super-majority in Parliament (over two-thirds of the seats), ensuring it cannot be blocked from amending the Constitution.

Assoc Prof Lim’s perspective may have contributed to WP’s success in Sengkang, as residents saw the election as an opportunity to ensure greater accountability from the ruling party. His team’s victory underscored the growing desire among voters for more balanced representation in Parliament.

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Power fault disrupts Circle Line train services, sparks public outcry over communication and delays

A power fault on the Circle Line caused widespread disruption on 17 September 2024, leading to stranded commuters and sparking public outcry over SMRT’s handling of the situation. Frustrated passengers criticized poor communication and linked the issue to dissatisfaction with recent fare hikes.

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Commuters faced major disruptions during the evening peak hour on Tuesday (17 Sep), when a power fault briefly halted train services on Singapore’s Circle Line. The fault, which occurred just before 6pm, led to train stoppages in both directions, affecting passengers across multiple stations.

SMRT reported that the fault was resolved within 15 minutes, stating in a 7.30pm update, “Fault cleared, train services are progressively returning to normal. Free regular buses are still available for all Circle Line stations.” However, passengers took to social media, criticizing the handling of the situation and the accuracy of updates provided by the transport operator.

Public Frustration Over Delays and Poor Communication

Many commuters who were stranded during the disruption shared their frustration on SMRT’s Facebook page.

Some accused the operator of providing inaccurate information regarding the resumption of train services.

A user at Paya Lebar station commented, “According to the staff, there is still no train service. Why can’t they stop people from tapping in? We only know about it when we reach the platform. AND WE NEED TO APPLY FOR OWN REFUND for tapping in.”

Others questioned the claims that services had resumed and that free bus services were available.

One passenger, who was stuck on a train between Tai Seng and Bartley from 5.45pm, wrote, “What free regular bus service? 15 minutes resolved? Some of us were stuck in the train… only reached Serangoon MRT at 6.45pm to find no free bus service.”

Further comments highlighted the ongoing delays and lack of communication, with a commuter noting at 6.50pm, “We are all still stuck in the train!! For 30 minutes!”

Another passenger reported a second stoppage, stating, “Got on Circle Line 15 minutes ago at Botanics after disruption, and it’s now at a standstill again. No one is communicating what’s happening or how long the delay might be. It’s a crowded train with young babies at risk.”

Growing Discontent Over Fare Increases and Service Reliability

In the midst of this disruption, SMRT faced a wave of public backlash over the recent public transport fare increases announced by the Public Transport Council (PTC).

Many passengers linked the service breakdown to broader dissatisfaction with the fare hikes.

One user commented, “SMRT still dare to ask PTC for a fare increase. Profits rather than commuters,” while another echoed the sentiment, “Increased fare should be given to reliable MRT or public transport. Just how appalling things are managed.”

Others questioned the adequacy of fare increases to maintain the rail infrastructure, with one user stating, “This shows that the price increase is not enough to sustain repair and maintenance. I suggest increasing prices by $1.”

Delayed Commuter Journeys and Stranded Passengers

Throughout the disruption, announcements were made advising commuters to alight from trains and seek alternative transportation, though some passengers reported confusion at several stations.

Commuters at Pasir Panjang station, for example, were told to disembark and find other means of transport, while passengers at Buona Vista were directed to the East-West Line.

Social media was flooded with accounts of passengers stuck in trains for extended periods.

One user described being stranded between Haw Par Villa and Kent Ridge for 20 minutes before another delay en route to Caldecott.

Passengers expressed frustration at the lack of clear communication and the difficulty in finding alternative routes. “Add 30 minutes? It’s a lie. Can add up to 1 hour and more depending on which station you’re going. Still wanna increase fare?” one commuter complained.

Commuter Experiences During the Breakdown

Despite SMRT’s reassurances that services were returning to normal, commuters reported longer-than-expected delays.

Quoted by Channel News Asia, Ms Felicia Ng, who experienced a 20-minute delay, boarded a train at Buona Vista station at 5.50pm, only for the lights to go out partially before passengers were instructed to alight at Pasir Panjang. After waiting for 15 minutes, she resumed her journey, finally reaching her destination at HarbourFront station at approximately 6.30pm.

Meanwhile, passengers on platforms like one-north and Payar Lebar reported large crowds and confusion as train services remained suspended for longer than initially announced. With social media platforms buzzing with complaints and calls for better management, the disruption has intensified calls for improved service reliability, especially in light of recent fare adjustments.

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