Clifford Chance

Coronavirus: the "Legal Circuit Breaker" - Singapore amends legislation to provide additional relief for SMEs

16 June 2020

The COVID-19 (Temporary Measures) Act 2020 (the COTMA), Singapore's new legislation to give breathing space to certain businesses and individuals suffering financial distress because of the effects of COVID-19 (covered in our previous briefing here), has been amended to provide additional protection to small and medium enterprises (SMEs).

On 5 June 2020, following a consultation with relevant stakeholders, Parliament passed amendments which include a rental relief framework for eligible SMEs and a cap on late interest charges for specific contracts. The amendments demonstrate the Singapore Government's continued approach of actively legislating to mitigate the economic damage caused by the pandemic, which includes re-writing contractual obligations in certain limited circumstances.

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