Revamped Simplified Insolvency Programme (SIP 2.0) launched

26 February 2026

On 28 January 2026, the Ministry of Law (“MinLaw”) announced that the revamped Simplified Insolvency Programme (“SIP 2.0”) would commence on 29 January 2026. To give effect to this, the Insolvency, Restructuring and Dissolution Act 2018 (“IRDA”) was amended with effect from the same date. 

SIP 2.0 replaces the previous Simplified Insolvency Programme (“SIP”), which was introduced in January 2021 as a temporary measure to support eligible micro and small companies facing financial difficulties during the Covid-19 pandemic. The SIP was extended thrice and ended on 28 January 2026. 

SIP 2.0 is now a permanent feature of the IRDA and expands the suite of options available under Singapore’s insolvency framework to make winding up and restructuring processes more accessible to companies in financial distress. This aims to facilitate the orderly winding up of non-viable or dormant businesses and achieve better recovery outcomes for viable ones. 

SIP 2.0 will be administered by licensed insolvency practitioners (“IPs”) in the private sector and have simpler general entry criteria to benefit more companies. The processes under SIP 2.0 have also been further simplified to reduce administrative cost for users. 

SIP 2.0 enhances the following two programmes originally introduced by the SIP: 

  • Simplified Debt Restructuring Programme (“SDRP”) for the restructuring of debts and potential rehabilitation of viable businesses; and 
  • Simplified Winding Up Programme (“SWUP”) for the orderly winding up of non-viable businesses and eligible dormant companies. 

Key amendments 

The key amendments to the SDRP and SWUP under SIP 2.0 are as follows: 

  • Simpler eligibility criteria: There is only one general eligibility criterion (i.e. the company’s liabilities do not exceed S$2 million). Previous limits to annual sales revenue, employees, and creditors have been removed. 
  • Simpler processes with fewer administrative formalities: Restructuring processes under the SDRP and winding up processes under the SWUP take place out-of-court. Required notices are to be published on MinLaw’s website only, instead of in the English local daily newspaper and the Government’s eGazette. 
  • More effective administration: Companies that are found unsuitable for the simplified processes after entering SIP 2.0 can transit to other liquidation processes through conversion procedures. For potential claims requiring further investigative work, IPs are to notify creditors of the funding needed to pursue the claims and can proceed with the liquidation and dissolution of the company if no funding is provided. 
  • Strengthened creditor protection in SDRP: The default moratorium period in the SDRP is 30 days, with a one-time final extension of 30 days granted by the Official Receiver if creditors owed at least two-thirds in value of the company’s debts support the extension. In addition, companies that fail to successfully complete the programme cannot enter again within 60 months. 

Requirements for entry into SIP 2.0 

Companies must meet the following requirements for entry into SIP 2.0: 

  • Total company liabilities (including contingent and prospective liabilities) do not exceed S$2 million; and 
  • There are no circumstances making the company unsuitable for SIP 2.0. These circumstances include but are not limited to the company having commenced or being in other insolvency proceedings. 

As SIP 2.0 is administered by IPs, MinLaw encourages companies to consult IPs to assess their eligibility and determine the most appropriate course of action for their specific circumstances. 

Reference materials 

The following materials are available on the MinLaw website www.mlaw.gov.sg and the Government Gazette website www.egazette.gov.sg: