Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 78
Singapore
3
Insolvency
Has the
government
made any
changes to
insolvency
legislation?
The SG government has introduced temporary relief for individuals and businesses who
are facing financial difficulties.
Individuals
•
The monetary threshold for bankruptcy has increased from SSGD15,000 to
SSGD60,000.
•
The statutory period to respond to demands from creditors has been lengthened from
21 days to 6 months.
•
The monetary threshold for the Debt Repayment Scheme has been increased from
SSGD100,000 to SSGD250,000.
Businesses
•
The monetary threshold for insolvency has increased from SSGD10,000 to
SSGD100,000.
•
The statutory period to respond to demands from creditors has increased from 21 days
to 6 months.
The Act also provides relief for directors from insolvent trading, as long as the debts are
incurred in the ordinary course of business.
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Contractual
Issues
What measures
have been taken
to reinforce
contracts?
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 (entered into before 25 March 2020 with contractual
performance due on or after 1 February 2020):
•
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.
As of 13 May 2020, two new contracts will also be included. These are (i) options to
purchase and (ii) sale and purchase agreements or agreements for lease of residential
property, between housing developers (both private housing developers and the Housing
& Development Board) and buyers. Property purchasers can only obtain relief upon the
satisfaction of certain criteria.
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Government measures in key jurisdictions
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