Part of a comprehensive analysis of the COVID-19 (Temporary Measures) Act 2020
All Parts in This Series
- PART 1
- PART 2
- PART 2
- PART 3
- PART 4
- PART 5
- PART 6
- PART 7
- PART 8
- PART 8
- PART 8 (this article)
- PART 8
- PART 9
- PART 10
- PART 10
- Part 10
- Part 10
Temporary Relief Under the COVID-19 (Temporary Measures) Act 2020: Key Provisions and Their Purpose
The COVID-19 (Temporary Measures) Act 2020 was enacted to provide urgent and temporary relief to parties affected by the COVID-19 pandemic, particularly in the context of contractual obligations. The Act recognises that the pandemic has caused widespread disruptions, making it difficult or impossible for parties to perform contractual duties or exercise contractual rights. To address these challenges, the Act introduces a series of provisions designed to temporarily suspend or modify legal consequences arising from such non-performance or inability to exercise rights.
Central to the Act are the provisions in Part 2, which set out the framework for relief relating to scheduled contracts. These provisions include:
- Section 5: Provides temporary relief from actions for inability to perform scheduled contract obligations caused by COVID-19 events.
- Section 5A: Extends relief to situations where a party is unable to exercise a right under a scheduled contract.
- Section 6: Offers additional relief specifically for construction or supply contracts, recognising the unique challenges in these sectors.
- Section 7: Provides further relief for event or tourism-related contracts, sectors heavily impacted by the pandemic.
- Section 7A: Addresses relief from late payment interest or other charges, easing financial burdens.
- Section 7B: Allows holding over after termination or expiry of leases or licences of non-residential immovable property, providing tenants with temporary security of tenure.
- Section 8: Sets out penalties and consequences for contravening the relief provisions.
- Sections 9 to 17: Detail procedural requirements for notifications, assessor determinations, confidentiality, and protection of officials involved in administering relief.
- Section 19: Empowers the Minister to make regulations to effectively implement this Part.
"This Part does not apply to — (a) a lease or licence of non-residential immovable property entered into or renewed ... on or after 25 March 2020; or (b) any other scheduled contract entered into or renewed ... on or after 25 March 2020." — Section 4, COVID-19 (Temporary Measures) Act 2020
Verify Section 4 in source document →
This exclusion in Section 4 ensures that the relief measures apply only to contracts entered into before the pandemic's impact was fully realised, preventing parties from entering into contracts with the expectation of relief provisions applying.
"This section applies to a case where — (a) a party to a scheduled contract ... is or will be unable to perform an obligation ... (b) the inability is to a material extent caused by a COVID‑19 event; and (c) A has served a notification for relief ..." — Section 5(1), COVID-19 (Temporary Measures) Act 2020
Verify Section 5 in source document →
Section 5(1) sets the threshold for relief: the inability to perform must be materially caused by a COVID-19 event, and the affected party (referred to as "A") must notify the other party ("B") to trigger relief mechanisms. This ensures that relief is targeted and procedurally fair.
"Despite any law or anything in the contract, another party ... may not take any action described in subsection (3) in relation to the subject inability until after the earliest of the following: (a) the expiry of the prescribed period; (b) the withdrawal by A of A’s notification for relief; (c) ... the assessor makes a determination ..." — Section 5(2), COVID-19 (Temporary Measures) Act 2020
Verify Section 5 in source document →
This provision effectively stays legal or contractual actions against the party unable to perform, preventing enforcement or termination during the relief period. It recognises the extraordinary circumstances and provides breathing space for affected parties.
"Any person who, without reasonable excuse, contravenes section 5(2), 5A(2), 6(2), 7(2) or (3) or 7A(5) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000." — Section 8(1), COVID-19 (Temporary Measures) Act 2020
Verify Section 8 in source document →
Section 8(1) enforces compliance with the relief provisions by imposing penalties for contraventions, underscoring the seriousness of adhering to the Act’s temporary measures.
"The Minister may make regulations for or with respect to any matter ... for carrying out or giving effect to this Part." — Section 19(1), COVID-19 (Temporary Measures) Act 2020
Verify Section 19 in source document →
Section 19(1) grants the Minister regulatory powers to ensure the effective implementation and administration of the relief framework, allowing flexibility to respond to evolving circumstances.
Definitions Critical to Understanding Relief Under the Act
The Act defines key terms to clarify its scope and application, ensuring precise interpretation and implementation:
- Scheduled contract: Includes contracts to which the Government is a party, broadening the Act’s reach beyond private contracts. (Section 4(2))
- A: The party to a scheduled contract who is or will be unable to perform an obligation or exercise a right due to COVID-19.
- B: The other party or parties to the contract.
- Subject inability: The inability to perform an obligation or exercise a right on or after 1 February 2020, materially caused by a COVID-19 event.
- Notification for relief: The formal notification served by A to B to invoke relief under the Act.
"A reference to a scheduled contract in this Act includes one to which the Government is a party." — Section 4(2), COVID-19 (Temporary Measures) Act 2020
Verify Section 4 in source document →
This inclusion recognises the Government’s role as a contracting party and ensures that relief provisions apply uniformly across public and private sectors.
"This section applies to a case where — (a) a party to a scheduled contract (called in this Division A) is or will be unable to perform an obligation in the contract (called in this Division the subject inability) ..." — Section 5(1), COVID-19 (Temporary Measures) Act 2020
Verify Section 5 in source document →
By defining "A" and "subject inability," the Act delineates the parties entitled to relief and the conditions under which relief applies, providing clarity and procedural certainty.
"Despite any law or anything in the contract, another party to the contract (called in this Division B) may not take any action described in subsection (3) ..." — Section 5(2), COVID-19 (Temporary Measures) Act 2020
Verify Section 5 in source document →
This provision protects "A" from adverse actions by "B" during the relief period, overriding conflicting contractual or legal provisions to ensure the relief’s effectiveness.
"If a party to a scheduled contract (called in this section A) intends to seek relief under section 5, 5A or 7, A must ... serve a notification for relief ..." — Section 9(1), COVID-19 (Temporary Measures) Act 2020
Verify Section 9 in source document →
The requirement for a notification for relief formalises the process and provides "B" with timely information, enabling procedural fairness and transparency.
Penalties for Non-Compliance: Ensuring Adherence to Temporary Relief Measures
The Act imposes penalties to enforce compliance with its relief provisions, reflecting the importance of maintaining the integrity of the temporary measures:
- Contravention of relief provisions under Sections 5(2), 5A(2), 6(2), 7(2) or (3), and 7A(5) attracts a fine of up to $1,000. (Section 8(1))
- Failure to comply with further determinations made by an assessor, such as restoring deposits or complying with dispute resolutions, is also punishable by a fine not exceeding $1,000. (Section 13(11) and 13(12))
- Breach of confidentiality obligations related to assessor proceedings carries similar penalties. (Section 15A(3))
"Any person who, without reasonable excuse, contravenes section 5(2), 5A(2), 6(2), 7(2) or (3) or 7A(5) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000." — Section 8(1), COVID-19 (Temporary Measures) Act 2020
Verify Section 8 in source document →
This penalty provision deters parties from circumventing the relief measures, ensuring that the temporary protections are respected and effective.
"A person who, without reasonable excuse, fails to comply with a further determination made by an assessor under subsection (3) or (6) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000." — Section 13(11), COVID-19 (Temporary Measures) Act 2020
Verify Section 13 in source document →
Assessor determinations are central to resolving disputes under the Act. This penalty ensures parties comply with such determinations, facilitating fair and efficient dispute resolution.
"A person who, without reasonable excuse, fails to restore an amount of a deposit determined by an assessor to be restored shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000." — Section 13(12), COVID-19 (Temporary Measures) Act 2020
Verify Section 13 in source document →
This provision protects the financial interests of parties entitled to deposits, preventing unjust enrichment or withholding of funds during the relief period.
"A person who contravenes subsection (2) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1,000." — Section 15A(3), COVID-19 (Temporary Measures) Act 2020
Verify Section 15A in source document →
Confidentiality is critical to maintaining trust in the assessor process. This penalty provision safeguards sensitive information disclosed during proceedings.
Cross-References to Other Legislation: Integrating the Relief Framework
The Act carefully integrates with existing Singapore legislation to ensure coherence and avoid conflicts. It cross-references several key statutes, reflecting the multifaceted impact of COVID-19 on contractual and insolvency matters:
- Arbitration Act (Cap. 10): Relief provisions stay arbitral proceedings against affected parties. (Section 5(3)(b))
- Companies Act (Cap. 50): Stays applications for creditor meetings and other insolvency-related actions. (Section 5(3)(e))
- Bankruptcy Act (Cap. 20): Extends limitation periods relevant to bankruptcy proceedings. (Section 5(9)(a))
- Insolvency, Restructuring and Dissolution Act 2018: Applies similar extensions and stays to insolvency processes. (Section 5(9)(c))
- Building and Construction Industry Security of Payment Act: Stays enforcement of adjudicator determinations. (Section 5(3)(n))
- Penal Code (Cap. 224): Treats assessors and registrars as public servants when exercising powers under the Act. (Section 16)
- Frustrated Contracts Act (Cap. 115): The Act does not affect actions pursuant to this Act or force majeure clauses, preserving existing legal remedies. (Section 5(13))
"(3)(b) The commencement or continuation of arbitral proceedings under the Arbitration Act (Cap. 10) against A or A’s guarantor or surety;" — Section 5(3)(b), COVID-19 (Temporary Measures) Act 2020
Verify Section 5 in source document →
This provision prevents arbitral tribunals from proceeding against parties unable to perform due to COVID-19, providing temporary protection from enforcement actions.
"(3)(e) the making of an application under section 210(1) of the Companies Act (Cap. 50) for a meeting of creditors ..." — Section 5(3)(e), COVID-19 (Temporary Measures) Act 2020
Verify Section 5 in source document →
By staying creditor meetings, the Act helps companies avoid insolvency proceedings triggered by temporary financial difficulties caused by the pandemic.
"(9)(a) each period mentioned in sections 100(1)(a), (b) and (c) and 103(2) of the Bankruptcy Act (Cap. 20) (as applied by section 329 of the Companies Act, or section 329 of the Companies Act as applied by section 130 of the Variable Capital Companies Act 2018 (Act 44 of 2018));" — Section 5(9)(a), COVID-19 (Temporary Measures) Act 2020
Verify Section 5 in source document →
This extension of limitation periods prevents parties from losing rights or remedies due to delays caused by the pandemic.
"(9)(c) each period mentioned in section 226(1)(a), (b) and (c) of the Insolvency, Restructuring and Dissolution Act 2018 (Act 40 of 2018) ..." — Section 5(9)(c), COVID-19 (Temporary Measures) Act 2020
Verify Section 5 in source document →
Similar to the Bankruptcy Act, this provision ensures insolvency-related timelines are extended to accommodate pandemic-related disruptions.
"(3)(n) the enforcement against A or A’s guarantor or surety of a judgment of a court, an award made by an arbitral tribunal in arbitral proceedings conducted under the Arbitration Act, or a determination by an adjudicator under the Building and Construction Industry Security of Payment Act;" — Section 5(3)(n), COVID-19 (Temporary Measures) Act 2020
Verify Section 5 in source document →
This provision protects parties from enforcement actions on judgments or awards during the relief period, providing comprehensive protection across dispute resolution mechanisms.
"Registrar or an assessor ... is treated as a public servant for the purposes of the Penal Code (Cap. 224) when exercising such power." — Section 16, COVID-19 (Temporary Measures) Act 2020
Verify Section 16 in source document →
This designation ensures assessors and registrars are subject to the same legal standards and protections as public officials, reinforcing accountability and integrity.
"This section does not affect the taking of any other action in relation to the subject inability, including an action pursuant to the Frustrated Contracts Act (Cap. 115) or a force majeure clause in the contract where applicable." — Section 5(13), COVID-19 (Temporary Measures) Act 2020
Verify Section 5 in source document →
This clause preserves existing legal remedies outside the Act’s relief framework, allowing parties to pursue other avenues if appropriate.
Conclusion
The COVID-19 (Temporary Measures) Act 2020 provides a comprehensive and balanced framework to address contractual difficulties arising from the pandemic. By temporarily suspending enforcement actions, extending limitation periods, and establishing procedures for relief notifications and assessor determinations, the Act mitigates the economic and legal impact on affected parties. The inclusion of penalties ensures compliance, while cross-references to other legislation maintain legal coherence. These provisions collectively support Singapore’s efforts to manage the unprecedented challenges posed by COVID-19 in the contractual landscape.
Sections Covered in This Analysis
- Section 4 – Application and Definitions
- Section 5 – Temporary Relief for Inability to Perform Scheduled Contracts
- Section 5A – Relief for Inability to Exercise Rights
- Section 6 – Additional Relief for Construction or Supply Contracts
- Section 7 – Additional Relief for Event or Tourism-Related Contracts
- Section 7A – Relief from Late Payment Interest or Charges
- Section 7B – Holding Over After Lease or Licence Expiry
- Section 8 – Penalties for Contravention of Relief Provisions
- Sections 9 to 17 – Procedures, Notifications, Assessor Determinations, Confidentiality, and Protection of Officials
- Section 16 – Designation of Assessors and Registrars as Public Servants
- Section 19 – Ministerial Regulations
Source Documents
For the authoritative text, consult SSO.