The COVID-19 pandemic hit everyone hard. Micro and small companies (MSCs), in particular, faced severe financial difficulties.
In support of MSCs, the Singapore Government launched the Simplified Insolvency Programme (SIP 1.0) as a temporary measure to help smaller debtors navigate restructuring and winding up using a simpler, faster and lower-cost process. However, given tight financing and persistent supply-chain uncertainty, the temporary SIP 1.0 framework evolved into the SIP 2.0 framework (SIP 2.0), and was made a permanent feature of the Insolvency, Restructuring and Dissolution Act 2018 on 29 January 2026.
This update outlines the key differences between SIP 1.0 and SIP 2.0 and the implications for companies and creditors.
If you would like information or assistance on the above or any other area of law, you may wish to contact the Partner at WongPartnership whom you normally work with or any of the following Partners:
Joel CHNG
Partner – Restructuring & Insolvency and Special Situations Advisory
d +65 6517 8707
e joel.chng@wongpartnership.com
Click here to view Joel’s CV.
Eden LI
Partner – Restructuring & Insolvency and Special Situations Advisory
d +65 6517 3766
e eden.li@wongpartnership.com
Click here to view Eden’s CV.