Launch of the Revamped Simplified Insolvency Programme (SIP 2.0)
28 January 2026 Posted in Press releases
1. The Ministry of Law (“MinLaw”) announced today that the revamped Simplified Insolvency Programme (“SIP 2.0”) 1 will commence on 29 January 2026. It replaces the existing Simplified Insolvency Programme, which was introduced in January 2021 to support eligible micro and small companies facing financial difficulties during the COVID-19 pandemic.
2. SIP 2.0 will be a permanent feature of the Insolvency, Restructuring and Dissolution Act 2018 (“IRDA”). It expands the suite of options available under Singapore’s insolvency framework to make winding up and restructuring processes more accessible to companies in financial distress. This aims to facilitate the orderly winding up of non-viable or dormant businesses and to have better recovery outcomes for viable ones.
3. Unlike its predecessor, SIP 2.0 will be administered by licensed Insolvency Practitioners 2 (“IPs”) and have simpler general entry criteria to benefit more companies. The processes under SIP 2.0 have also been further simplified to reduce administrative cost for users.
4. SIP 2.0 enhances the following two programmes originally introduced by the existing Simplified Insolvency Programme:
a) Simplified Debt Restructuring Programme ("SDRP") – For the restructuring of debts and potential rehabilitation of viable businesses; and
b) Simplified Winding Up Programme ("SWUP") – For the orderly winding up of non-viable businesses and eligible dormant companies.
Key Amendments
5. The key amendments to the SDRP and SWUP under SIP 2.0 are as follows:
a) Simpler eligibility criteria: There is only one general eligibility criterion (i.e. the company’s liabilities do not exceed $2 million). Previous limits to annual sales revenue, employees and creditors have been removed.
b) Simpler processes with fewer administrative formalities: Restructuring processes under the SDRP and winding up processes under the SWUP take place out-of-court. Required notices are to be published on MinLaw’s website only, instead of in the English local daily newspaper and the Government’s E-Gazette.
c) More effective administration: Companies that are found unsuitable for the simplified processes after entering the SIP 2.0 can transit to other liquidation processes through conversion procedures. For potential claims requiring further investigative work, IPs are to notify creditors of the funding needed to pursue the claims, and can proceed with the liquidation and dissolution of the company if no funding is provided.
d) Strengthened creditor protection in the SDRP: The default moratorium period in the SDRP is 30 days, with a one-time final extension of 30 days granted by the Official Receiver if creditors owed at least two-thirds in value of the company’s debts support the extension. In addition, companies that fail to successfully complete the programme cannot enter again within 60 months.
Requirements for Entry into SIP 2.0
6. Companies must meet the following requirements for entry into SIP 2.0:
a) Total company liabilities (including contingent and prospective liabilities) do not exceed $2 million; and
b) No circumstances making the company unsuitable for the programme 3 exist. These circumstances include but are not limited to the company having commenced or being in other insolvency proceedings.
7. Those interested in learning more about SIP 2.0 may visit go.gov.sg/sip-faq. As SIP 2.0 is administered by IPs, companies are encouraged to consult IPs to assess their eligibility and determine the most appropriate course of action for their specific circumstances.
8. MinLaw will continue monitoring SIP 2.0’s effectiveness and accessibility to ensure it meets the evolving needs of Singapore’s business community.
MINISTRY OF LAW
28 JANUARY 2026
1. SIP 2.0 was introduced in the Insolvency, Restructuring and Dissolution (Amendment) Act 2025 (“IRD(A)A 2025”), which was passed in Parliament on 7 January 2025.↩
2. The list of licensed insolvency practitioners in Singapore can be found here: https://lripd.mlaw.gov.sg/information-for-public/register-of-insolvency-practitioners/ ↩
3. Please refer to the newly amended sections 72F(3) and 250F(3) of the IRDA, which will take effect upon the commencement of SIP 2.0 on 29 January 2026. ↩
Last updated on 28 January 2026