Extension of Application Period for Simplified Insolvency Programme

22 JAN 2024

22 Jan 2024 Posted in Press releases

  1. The Ministry of Law (“MinLaw”) will extend the application period for the Simplified Insolvency Programme (“SIP”)1 by 24 months, from 29 January 2024 to 28 January 2026.
  1. The SIP was introduced on 29 January 2021 for the benefit of eligible micro and small companies (“MSCs”)2 facing financial difficulties, by helping them restructure their debts to rehabilitate their business, or wind up via a simpler, faster and lower cost insolvency process.
  1. The SIP is administered by the Official Receiver and comprises two separate processes that:

a) assist viable but distressed MSCs to restructure their debts with their creditors via the Simplified Debt Restructuring Programme (“SDRP”); and 

b) assist unviable MSCs to wind up via the Simplified Winding Up Programme (“SWUP”).

  1. The initial application period for the SIP was for six months, from 29 January 2021 to 28 July 2021. This was subsequently extended by 12 months from 29 July 2021 to 28 July 2022, and further extended by 18 months from 29 July 2022 to 28 January 20243.
  1. MinLaw plans to make the simplified insolvency processes a permanent feature of our insolvency framework. Extending4 the SIP application period will provide continued support for financially distressed MSCs in the interim.
  1. MSCs that wish to apply for the SIP may visit www.go.gov.sg/sip.

1. For more information on the SIP, refer to MinLaw’s press releases on 5 October 2020, 28 January 2021, 26 July 2021, and 28 July 2022.↩

2. For the purposes of the SIP, MSCs are defined as micro and small companies with an annual sales turnover not exceeding $1 million and $10 million, respectively.↩

3. The Insolvency, Restructuring and Dissolution (Further Extension of Prescribed Periods for Parts 5A and 10A) Order 2023 provides that for the purposes of Parts 5A and 10A of the IRDA, the prescribed period is further extended for 24 months starting on 29 January 2024 and ending on 28 January 2026. Refer to Insolvency, Restructuring and Dissolution (Extension of Prescribed Periods for Parts 5A and 10A) Order 2024 - S 631/2022.↩

4. Under s. 72B(3) and s. 250B(3) of the IRDA, which relate to the SDRP and SWUP respectively,  the Minister “may, by order in the Gazette, extend or shorten the prescribed period for or by a period determined by the Minister, and the period may be extended or shortened more than once”. The extension of the prescribed application period for the SIP is subject to s. 72B(1) and 250B(1) of the IRDA, which provides that the SIP provisions in the IRDA continues in force for a period of 5 years beginning on 29 January 2021.↩

MINISTRY OF LAW
22 JANUARY 2024

Last updated on 22 Jan 2024