The Ministry of Law has introduced on 5 June the COVID-19 (Temporary Measures) (Amendment) Bill in Parliament. The amendments seek to provide a rental relief framework for Small and Medium Enterprises (SMEs) and to enhance the relief available for businesses, organisations and individuals who are unable to fulfil their contractual obligations because of COVID-19.
The COVID-19 (Temporary Measures) Act (the “Act”), which took effect from 20 April, provides temporary relief from certain types of legal action in relation to the inability to perform certain contracts because of COVID-19. However, businesses are facing financial concerns and uncertainties arising from the unprecedented spread and severity of COVID-19, which has been especially tough on SMEs.
The Government recognises that there is a need, in these exceptional circumstances, to take targeted steps to intervene, to help SMEs. Hence, MinLaw will be introducing the following measures, which were formulated in consultation with the relevant agencies and stakeholders from the private sector:
(A) New rental relief framework for eligible SMEs
(B) Relief for tenants unable to vacate business premises due to COVID-19
(C) Cap on late payment interest or charges for specific contracts
To read more on the key amendments and the accompanying annexes, click here
Watch Minister K Shanmugam share more in this short video
on the COVID-19 (Temporary Measures) (Amendments Bill)