Government measures in key jurisdictions 3rd edition final - Flipbook - Page 105
Singapore
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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 nonperforming party.
Requiring any part of a security deposit given pursuant to the contract to be replaced by the nonperforming party except with the further agreement of the non-performing party.
The aforementioned actions cannot be taken until after the earliest of:
• The expiry of the 6-month moratorium period from 20 April 2020 to 19 October 2020,
• The withdrawal of the notification for relief, or
• A determination by an assessor that the case is not one eligible for the moratorium (note: under the
new legislation, if a party is not able to come to an agreement with the other party or parties to the
contract for a compromise in relation to his/her obligations covered under the notification for
relief, he/she may apply for an assessor’s determination of the issues involved.
Temporary relief for contracts affected by delay in performance or breach of construction contracts or
supply contracts: Temporary relief measures will be available for parties to a contract that is, on or
after 1 February 2020 and before 19 October 2020, affected by a delay in performance by a party to a
construction (or construction-related) contract or supply (or supply-related) contract, or a breach of
such contract, where such breach or delay:
• Occurs on or after 1 February 2020 and before 19 October 2020, and
• Is to a material extent caused by a Covid-19 event
The contract must be in force from 20 April 2020 to 19 October 2020 (or any part thereof).
A party to the contract may apply for the appointment of an assessor to make a determination whether
the contract is eligible for the temporary relies, and if so, whether it is just and equitable in the
circumstances of the case for any prescribed obligation or prescribed right under the contract to be
performed or exercised in a manner other than in accordance with the terms of the contract; and for
any prescribed term in the affected contract to be varied, released or discharged.
Property
Have any changes
been made to
the laws around
property, rent and
enforcement?
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.
: 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.
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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.
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Property owners must not subject the passing of the rebate to any conditions – any such conditions
will be void.
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Property owners must also retain records to prove that the rebates were passed on for a period
of 3 years.
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If property owners fail to pass the rebates to their tenants/licensees or fail to comply with the
record keeping obligations, the property owner will be guilty of an offence and liable on conviction
to a fine not exceeding SSGD5,000.
Government measures in key jurisdictions
105