Almost 9,000 notifications for contractual relief submitted: Edwin Tong

FIRMS and individuals have submitted 8,655 online notifications for relief (NFRs) as at Feb 23, with the majority (66 per cent) relating to hire-purchase agreements for commercial equipment or vehicles, and leases or licences of non-residential property.

This figure, shared by Second Minister for Law Edwin Tong on Tuesday, excludes NFRs served by individuals and businesses via other modes of service. Mr Tong was giving an update on the series of measures rolled out by the Ministry of Law last year to help businesses and individuals impacted by Covid-19. Reliefs were introduced through the Covid-19 (Temporary Measures) Act.

Under the Act, which kicked in last April, businesses and individuals are able to get legal reprieve from their contracts for six months. The temporary relief period was subsequently extended in October.

Meanwhile, 116,946 notices of cash grants totalling S$947 million have been disbursed to property owners with tenants who were eligible for rental relief as at Feb 23.

Separately, 493 notices of negotiation were served using the Law Ministry's online electronic system (this excludes notices served in hard copy) under the Re-Align Framework.

The framework helps small and micro businesses that have been significantly impacted by Covid-19 to renegotiate selected types of contracts, so as to realign their contracts with the post-Covid-19 business environment.

It commenced on Jan 15 of this year and affected businesses had until Feb 26 to submit a notice of negotiation to seek relief under the Framework.

The majority of the notices (372) related to leases or licences for commercial and industrial property which have a term of five years or less.

The framework also allows hirers and renters of commercial equipment or vehicles to take up a repayment scheme which allows them to pay outstanding arrears in instalments over a maximum period of 18 months.

As at Feb 26, 126 notices of revision have been served using the online electronic system.

Asked by Member of Parliament Murali Pillai (Bukit Batok) if the ministry will introduce more measures or if it will consider having a framework legislation that can be used quickly in the next crisis, Mr Tong said the ministry will monitor the situation and make adjustments to existing measures if necessary.

But he added that having a framework legislation would not be suitable given that each crisis is different and requires different responses.

"A framework legislation, while well-intentioned, may not be sufficiently nuanced and targeted to meet the unique challenges of the next crisis," he said.