SINGAPORE - The application period for a programme offering a simplified process to help micro and small companies here restructure their debts or wind up their business has been extended by two years.

The Simplified Insolvency Programme (SIP) will be open for application until Jan 28, 2026.

The extension comes after two previous ones in 2021 and 2022, said the Ministry of Law (MinLaw) on Jan 22.

The programme was introduced on Jan 29, 2021, to help eligible micro and small companies facing financial difficulties restructure their debts to rehabilitate their business, or wind up via a simpler, faster and lower-cost insolvency process.

These are companies with an annual sales turnover not exceeding $1 million for micro companies, and $10 million for small companies.

MinLaw plans to make the simplified insolvency processes a permanent feature of its insolvency framework, said the ministry in a statement.

“Extending the SIP application period will provide continued support for financially distressed micro and small companies in the interim,” it added.

The initial application period for the SIP was for six months, from Jan 29 to July 28 in 2021.

This was subsequently extended by 12 months from July 29, 2021, to July 28, 2022, and further extended by 18 months from July 29, 2022, to Jan 28, 2024.

The SIP is administered by the official receiver, or the liquidator. It comprises two separate processes.

The first is assisting viable but distressed micro and small companies restructure their debts with their creditors via the simplified debt restructuring programme. The second is helping unviable micro and small companies wind up via the simplified winding-up programme.

Micro and small companies that wish to apply for the SIP may visit www.go.gov.sg/sip