Late payments and financial penalties squeeze security firms, raising risk of wage delays, say industry players

Singapore's security industry is warning of a growing crisis, as practices like late client payments and hefty financial penalties are squeezing companies' cash flow. This financial strain significantly raises the risk of delayed salaries for security officers, according to industry players.

The issue gained prominence following the closure of security agency TwinRock last October. Several TwinRock officers, who spoke anonymously, reported not receiving salaries for up to four months. Central Provident Fund (CPF) contribution records, seen by CNA, showed periods where payments were not made, indicating a lapse in contributions.

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The security industry is warning that business practices such as late client payments and financial penalties are putting pressure on companies' cash flow, raising the risk of salary delays for security officers.

The Union of Security Employees (USE) stated that many affected workers initially delayed reporting the problem, hoping the situation would improve due to their long tenure with the company. "The union first learnt of the salary issue in October 2025 after a security officer approached its mediation service for help over outstanding wages," said USE general secretary Raymond Chin.

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The union first learnt of the salary issue in October 2025 after a security officer approached its mediation service for help over outstanding wages.

USE engaged with TwinRock and affected workers, helping to recover unpaid wages. Eleven union members were affected, and USE facilitated settlement agreements after three mediation sessions between November 2025 and February 2026. The union also provided relief vouchers and assisted officers in finding new employment. Since January, USE has handled approximately 352 cases related to salary and benefits disputes, dismissals, contract breaches, and workplace conflicts, though salary disputes are not the most common issue.

TwinRock, in a statement on Wednesday, confirmed it ceased business with clients in October 2025 and would be liquidated. The company cited late payments from clients and "crushing liquidated damages" as primary reasons for its closure, describing the situation as "a crisis in the industry" that impacts agencies' ability to pay staff on time. Liquidated damages are contractual financial penalties for failing to meet agreed obligations.

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Late payments by clients and 'crushing liquidated damages' were among the reasons for its closure, calling the situation 'a crisis in the industry' that affects agencies' ability to pay officers on time.

The Association of Certified Security Agencies noted that these penalties can severely impact an agency's cash flow. Its president, V W Nathan, explained that agencies are sometimes notified of contract breaches late in the month, leaving little time to rectify issues before deductions are made. For instance, a breach related to a patrol route might only be discovered at the month's end.

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For example, like a patrol route, where the office