Government measures in key jurisdictions 3rd edition final - Flipbook - Page 104
Singapore
Insolvency
The SG government has introduced temporary relief for individuals and businesses who are facing
financial difficulties.
Has the
government
made any
changes to
insolvency
legislation?
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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.
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.
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):
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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.
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 Covid19 pandemic. Upon which creditors are prohibited from taking the following actions for 6 months (20 April
2020 to 19 October 2020):
• 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.
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Government measures in key jurisdictions