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SINGAPORE: Amendments to the COVID-19 (Temporary Measures) Act were passed on Friday (September 4) to update the implementation of rent relief measures and extend the arrangements for remote meetings during the COVID-19 crisis.
The bill also introduced temporary powers for the Minister of Justice to extend certain collective sale deadlines on a case-by-case basis.
This update comes approximately four months after the enactment of the Law in April to provide legal mechanisms and measures to support businesses and individuals amid the pandemic. In June, it was amended to provide a rental relief framework for small and medium-sized businesses and improve relief for those affected by COVID-19.
Since April, more than 6,800 parties have sought temporary relief for their inability to meet contractual obligations, the Ministry of Law (MinLaw) said.
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“Today’s bill builds on the reliefs we have already put in place, by ensuring that they can be implemented more seamlessly and efficiently, and to make sure the relays get to the ground in the best possible way,” said Segundo Minister. for Law Edwin Tong in Parliament on Friday.
The current rent relief framework requires an equitable sharing of rental obligations between the government, landlords, and tenants, and provides additional rent relief for tenants substantially affected by COVID-19.
A landlord who is unable to reach an agreement with his tenant may request that an independent rental relief assessor determine the tenant’s eligibility for rent exemptions and the landlord’s eligibility to provide a reduced number of rent exemptions, based on financial difficulties.
As of Sept. 1, more than 7,000 relief notifications have been delivered through MinLaw’s electronic system, Tong said. A total of 1,272 requests for evaluator determination have been submitted, and nearly 60 percent of these requests have been processed in about four months.
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“The relief measures have been a lifesaver for many Singaporeans and local businesses,” said Mr Tong, adding that the amendments are being made after feedback from the field.
The amendments to the Act will expand the powers of rent compensation consultants to make decisions on unresolved disputes about the amount of rent to waive.For example, it will address cases where service or maintenance charges, which are not covered by exemptions, are not itemized in the lease.
A second amendment to the law expands the orders allowing alternative virtual arrangements for meetings that require personal assistance, which were due to expire at the end of September. Examples of such meetings are annual general meetings, union meetings, and city council meetings.
“Some entities gave their opinion that they would like to have more certainty about the duration of the alternative meeting arrangements, since they must plan their meetings months in advance.
“Amendments to the Act will allow alternative meeting arrangements to remain in effect, if necessary or convenient to prevent the spread of COVID-19, regardless of whether the safe distancing regulations change or cease,” MinLaw said.
Amendments were also made to ensure that the different dispute resolution mechanisms interact smoothly. This applies to Part 8 of the Act, which has not yet entered into force, which gives parties to some types of contracts a mechanism to obtain redress if they are affected by non-compliance or delays in construction, supply or delivery. related contracts.
“This was introduced in light of the severe impact that COVID-19 had on the construction industry,” said Mr. Tong.
He gave the example of a contractor who had rented equipment from a supplier but was unable to use it because the job site was closed during the breaker period.
“This is where Part 8 can come into play to resolve the matter in a fair and equitable manner between the parties,” he said.
On the block deals, Mr. Tong said that the collective selling committees have given their opinion that their ability to complete the collective selling process has been “genuinely impacted” by COVID-19.
MinLaw said more details of the amendments are being worked out and will be announced separately. The ministry aims for the amendments, along with necessary changes to the subsidiaries’ legislation, to take effect before the end of September.
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