Government measures in key jurisdictions 2nd edition final pages - Flipbook - Page 79
Singapore
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:
•
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.
As of 13 May 2020, subsidiary legislation has been implemented to prohibit certain
actions:
5
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
•
Increase of any charges or interest rate payable under the contract unless such
increase in charges or interest is specified in the contract and the increase in charges
or interest rate is calculated by reference to a formula in the contract (any additional
increases will not be allowed without further agreement of the non-performing party).
•
Imposition of new charges under the contract without the further agreement of the
non-performing party.
•
Requiring any part of a security deposit given pursuant to the contract to be
replaced by the non-performing party except with the further agreement of the nonperforming party.
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.
The SG government has also enacted legislation to make property owners to pass on the
tax rebate to their tenants.
•
The passing on of the rebates by the property owner to their tenants/licensees may
be by way of cash payment (lump sum or instalment) or by way of an off-set against
the rent/licence fee payable by the tenant/licensee or a combination of both.
•
Property owners must not subject the passing of the rebate to any conditions – any
such conditions will be void.
•
Property owners must also retain records to prove that the rebates were passed on
for a period of 3 years.
Government measures in key jurisdictions
79