Coronavirus - Government measures in key jurisdictions - Flipbook - Page 70
Singapore
4
Contractual
Issues
The Singapore government has enacted legislation providing for temporary relief for the
inability to perform a scheduled contract. It provides temporary relief from legal action
over the following contracts:
What measures
have been taken
to reinforce
contracts?
•
secured loans from a bank or finance company that are (a) made to a local SME;
and (b) secured against non-residential property in Singapore, or against any plant,
machinery or fixed asset used for business purposes,
•
any hire purchase agreement for a commercial vehicle, or any plant, machinery or
fixed asset used for business purposes,
•
leases or licences for non-residential immovable property,
•
construction or supply contracts,
•
contracts for the provision of goods and services for events such as weddings and
conventions, and
•
tourism contracts such as cruises, hotel accommodation bookings.
6 month moratorium: A debtor under any of these contracts may issue a notification for
relief if he finds that an obligation due on or after 1 February 2020 cannot be carried out
due to the COVID-19 pandemic. Upon which creditors are prohibited from taking the
following actions for 6 months:
5
70
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
•
court, domestic arbitration, and insolvency proceedings, as well as execution
proceedings against the debtor’s property,
•
enforcement of security against immovable property or movable property used for
business purposes,
•
appointing a receiver and manager over the debtor’s property,
•
calling on a performance bond given for a construction or supply contract,
•
terminating a lease or license over immovable property due to non-payment of rent, and
•
exercising any right of re-entry or forfeiture under a lease or license over immovable
property.
•
The SG government has enacted legislation providing that terminating a lease or
license over immovable property or exercising any right of re-entry or forfeiture
under a lease or license over immovable property will be prohibited for 6 months if
the lessee issues a notification for relief.
•
Property tax rebate: The SG government has also introduced a property tax rebate
of up to 100% for non-residential businesses, which is intended to help businesses
deal with the impact of COVID-19.
Government measures in key jurisdictions
6