Application Period for Simplified Insolvency Programme Extended to 28 January 2026

22 January 2024

On 22 January 2024, the Ministry of Law (“MinLaw“) announced that it will extend the application period for the Simplified Insolvency Programme (“SIP“) by 24 months, from 29 January 2024 to 28 January 2026.

The SIP was introduced on 29 January 2021 for the benefit of eligible micro and small companies (“MSCs“) facing financial difficulties. For the purposes of the SIP, MSCs are defined as micro and small companies with an annual sales turnover not exceeding S$1 million and S$10 million, respectively.

The SIP is administered by the Official Receiver and comprises of two separate processes:

(a) The Simplified Debt Restructuring Programme assists viable but distressed MSCs to restructure their debts with their creditors, so that MSCs may rehabilitate their business.

(b) The Simplified Winding Up Programme assists unviable MSCs to wind up via a simpler, faster and lower cost insolvency process.

Our Legal Update titled “Simplified Insolvency Programme in Effect from 29 January 2021” provides more details regarding the SIP.

Initially, the SIP application period 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 you may learn more regarding this in our Legal Update titled “Application Period for Simplified Insolvency Programme Extended to 28 July 2022“. The SIP application period was then extended by 18 months from 29 July 2022 to 28 January 2024. Now, the SIP application period has been extended to 28 January 2026.

In its press release, MinLaw stated that it plans to make the simplified insolvency processes a permanent feature of Singapore’s insolvency framework. In the interim, extending the SIP application period aims to provide continued support for financially distressed MSCs. Any MSCs that wish to apply for the SIP may visit www.go.gov.sg/sip.

Click on the following link for more information: