Can't hack it anymore? Smaller players can break contracts if renegotiation fails

Singapore

SMALL and micro enterprises hit by Covid-19 will have a six-week window in which to renegotiate certain contracts, with no penalties for early termination if negotiations fail, under the new Re-Align Framework proposed in a Bill introduced in Parliament on Monday.

Policymakers are perhaps seeing it as "better to give some leeway to small firms to exit contracts under the current economic circumstances rather than drive more small firms - and consequently workers - out of business", said OCBC head of treasury research and strategy Selena Ling.