On 28 January 2026, the Ministry of Law (“MinLaw“) announced the launch of the revamped Simplified Insolvency Programme (“SIP 2.0“). SIP 2.0 has commenced on 29 January 2026, replacing the Simplified Insolvency Programme that was introduced in January 2021 (“2021 SIP“).
SIP 2.0 enhances the following two programmes originally introduced by the 2021 SIP:
- Simplified Debt Restructuring Programme (“SDRP”): For the restructuring of debts and potential rehabilitation of viable businesses; and
- Simplified Winding Up Programme (“SWUP”): For the orderly winding-up of non-viable businesses and eligible dormant companies.
SIP 2.0 will be a permanent feature of the Insolvency, Restructuring and Dissolution Act 2018, be administered by licensed Insolvency Practitioners and have a simpler general entry criteria to benefit more companies. Companies must meet the following requirements for entry into SIP 2.0:
- total company liabilities (including contingent and prospective liabilities) do not exceed $$2 million; and
- no circumstances making the company unsuitable for the programme exist (such as the company having commenced or being in other insolvency proceedings).
The key amendments to the SDRP and SWUP under SIP 2.0 include the following:
- Simpler eligibility criteria: Other than the criteria above, previous limits to annual sales revenue, employees and creditors have been removed.
- Simpler processes: The relevant restructuring and winding up processes take place out-of-court, and required notices are to be published on MinLaw’s website only.
- 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.
- Strengthened creditor protection: 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. Companies that fail to successfully complete the programme cannot enter again within 60 months.
Click on the following link for more information:
- MinLaw Press Release titled “Launch of the Revamped Simplified Insolvency Programme (SIP 2.0)” (available on the MinLaw website at mlaw.gov.sg)
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