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Twelve people are being investigated for allegedly not complying with safe distancing measures.
The police said in a statement that they conducted a raid on a shophouse along Joo Chiat Road and found seven men and five women, aged between 20 and 44, who were allegedly consuming alcohol, singing karaoke and socialising in the unit.
A 27-year-old man, who is believed to be the operator of the unit will be investigated for offences under the Public Entertainment Act and Liquor Control (Supply and Consumption) Act 2015.
The unit did not have a public entertainment licence or liquor licence.
Karaoke equipment found at the unit was seized as a case exhibit.
The offences of providing public entertainment and supplying liquor without a valid licence each carry a fine of up to $20,000.
The police advised members of the public to take the prevailing safe distancing measures seriously.
The statement added that the police will continue to take tough enforcement action against illicit activities.
Those found engaging in illicit activities, or in breach of safe distancing measures, will be dealt with sternly in accordance with the law.
For non-compliance with safe distancing measures under the Covid-19 (Temporary Measures) (Control Order) Regulations 2020, offenders may be jailed for up to six months, fined up to $10,000, or both.