Recourse Available and Payment Protection Measures for Unpaid Subcontractors upon Insolvency, and Data on Reported Cases in Past Three Years

Mr Abdul Muhaimin Abdul Malik asked the Minister for National Development (a) what assistance and recourse can be provided to a subcontractor left unpaid when engaged by another subcontractor which went under liquidation; (b) whether the Ministry will consider measures to protect such parties who fall outside the Building and Construction Industry Security of Payment Act upon the paying party's insolvency; and (c) how many such cases were reported in the past three years.

Mr Chee Hong Tat: Once a firm enters liquidation, the insolvency framework under the Insolvency, Restructuring and Dissolution Act applies. An unpaid subcontractor can submit its claim to the appointed liquidator, who will distribute the firm's available assets among its creditors in accordance with the insolvency framework.