MinLaw makes SIP 2.0 permanent with $2m threshold for simpler insolvency

Revamped programme reduces the complexity for companies.

The Ministry of Law (MinLaw) launched the revamped Simplified Insolvency Programme (SIP 2.0), effective 29 January 2026, the agency announced.

It replaces the existing programme, introduced in January 2021, which supported eligible micro and small companies facing financial difficulties during the COVID-19 pandemic.

SIP 2.0 becomes a permanent feature of the city-state’s legal framework under the Insolvency, Restructuring and Dissolution Act.

It will be administered by licensed Insolvency Practitioners (IPs), streamlining eligibility and reducing administrative costs.

The programme also retains two of its core components: the Simplified Debt Restructuring Programme (SDRP) and the Simplified Winding-Up Programme (SWUP).

Eligibility now only requires that company liabilities do not exceed $2m, with previous restrictions on annual revenue, employee count, and number of creditors removed.

Companies must also not be in a state or circumstance that renders them unsuitable, such as current involvement in other insolvency proceedings.

Restructuring processes under the SDRP and winding-up processes under the SWUP take place out of court to expedite timelines.

Required notices are now to be published on MinLaw’s website only, instead of in the English-language local daily newspaper and the Government’s E-Gazette, the announcement said.

A default 30-day moratorium is established under the SDRP, with a one-time extension of 30 days possible if supported by creditors holding at least two-thirds of the debt value.

Ineligible companies can transition to other liquidation processes through conversion procedures, whilst companies that fail to complete the programme are barred from re-entering for 60 months.

IPs can also liquidate and dissolve a company if no funding is provided, the press release stated.