Simplified Insolvency Programme 2.0

Singapore's Simplified Insolvency Programme 2.0 (SIP 2.0) commenced on 29 January 2026 and replaced the temporary COVID-era SIP. It is a permanent feature of the Insolvency, Restructuring and Dissolution Act 2018 (IRDA), intended to make selected restructuring and winding-up routes more accessible to companies in financial distress. SIP 2.0 is a legal process, not a general government grant or automatic debt-relief payment (MinLaw, 28 January 2026; IRDA 2018, Singapore Statutes Online).

The two routes

SIP 2.0 contains two programmes. The Simplified Debt Restructuring Programme (SDRP) is for restructuring debts and potentially rehabilitating viable businesses. The Simplified Winding Up Programme (SWUP) is for the orderly winding up of non-viable businesses and eligible dormant companies. Both routes are administered by licensed insolvency practitioners: an SDRP uses a restructuring adviser, while a SWUP uses a liquidator (MinLaw SIP 2.0 FAQ, accessed 20 August 2026).

Entry threshold and simpler process

The general entry criterion is that the company's total liabilities, including contingent and prospective liabilities, do not exceed S$2 million. Earlier SIP limits on annual sales revenue, employee numbers and creditor numbers were removed, although circumstances can still make a company unsuitable—for example, if it has already commenced another insolvency proceeding. SIP 2.0 processes take place out of court, with required notices published on MinLaw's website rather than in an English local daily newspaper and the Government E-Gazette (MinLaw, 28 January 2026).

SDRP safeguards and transition

Under the SDRP, the default moratorium period is 30 days. The Official Receiver may grant one final 30-day extension when creditors owed at least two-thirds in value of the company's debts support the extension, giving a possible 60-day maximum under the announced rule. A company that fails to complete the SDRP cannot re-enter it within 60 months. Companies found unsuitable after entering SIP 2.0 can transition to other liquidation processes through the statutory conversion procedures; SIP 2.0 therefore offers a simplified route without making the company immune from ordinary insolvency consequences (MinLaw, 28 January 2026; MinLaw SIP 2.0 FAQ, accessed 20 August 2026).

Administration and cost boundary

Licensed insolvency practitioners administer SIP 2.0 rather than MinLaw acting as the company's restructuring adviser or liquidator. MinLaw provides the statutory and administrative infrastructure, but the programme's professional fees are borne by user companies and are privately negotiated; there is no prescribed fee range in the June 2026 MinLaw webinar FAQ. Companies should consult a licensed practitioner about eligibility and route selection because this article describes the public framework, not a determination of whether a particular company qualifies (MinLaw, 28 January 2026; MinLaw SIP 2.0 webinar FAQ, accessed 20 August 2026).