The COVID19 (Temporary Measures) Act 2020

The Singapore COVID19 (Temporary Measures) Act 2020 has been passed on 7 April 2020. The law will address issues from the coronavirus outbreak:

1. For obligations to be performed after 1 Feb, under contracts signed before 25 Mar (effective for 1 year):

A party (Party A) who cannot perform a qualifying contract due to Covid19 can issue a relief notification to its counterparty (Party B). Party B will be prohibited from court or insolvency proceedings, enforcing security, terminating contracts, etc. Disputes will be finally decided by govt-appointed assessors.

Qualifying contracts: non-residential leases, construction & supply, events, tourism, secured SME loans & certain hirepurchase agreements. Businesses must have revenue <S$100M & be at least 30% owned by Singapore citizens/ PRs.

2. New insolvency rules (effective for 1 year) - higher thresholds, longer time periods for statutory demands, & relief from personal liability for directors in certain circumstances.

3. Meetings (eg AGMs) may be convened by videoconferencing notwithstanding laws and constitutions.

4. Court proceedings may involve remote communication tech.

5. Property tax refunds/relief must be passed on to tenants.