Singapore announces measures to support landlords facing cash flow constraints

A view of an empty street during the coronavirus outbreak in Singapore April 27, 2020. — Reuters pic
A view of an empty street during the coronavirus outbreak in Singapore April 27, 2020. — Reuters pic

SINGAPORE, June 3 — Singapore authorities announced today a package of measures to support landlords that may face cash flow constraints as a result of providing relief to tenants as proposed under the Covid-19 (Temporary Measures) (Amendment) Bill.

The authorities involved are the republic’s Ministry of Finance (MOF), the Inland Revenue Authority of Singapore, Enterprise Singapore and the Monetary Authority of Singapore (MAS).

“This package of measures will help landlords with their existing loan commitments, and ease their cashflow needs,” the authorities said in a joint statement here.

The statement noted that the new measures complement relief measures announced by MOF, MAS and the financial industry earlier.

MAS has worked with the banks and finance companies to enhance the current relief measures for landlords affected by the COVID Amendment Bill.

“This follows the announcement by the Ministry of Law on rental relief measures that will be tabled in Parliament under the Bill,” it said.

For instance, individual landlords who are currently in their loan repayments as at Feb 1, 2020, can defer both principal and interest repayment up to Dec 31, 2020, if they are required under the COVID-19 Amendment Bill to provide their tenants rental waivers or payment rescheduling.

Individual landlords who successfully apply for a reduction in rental waivers on the grounds of financial hardship are also eligible for this relief measure.

Interest will accrue only on the principal amount deferred and no interest will be charged on the deferred interest payments, said the authorities.

The statement said that there will be arrangements for small and medium enterprise (SME) landlords and the larger corporate landlords as well, including real estate investment trusts listed on the Singapore Exchange.

Meanwhile, in a separate statement, the Association of Banks in Singapore said banks in the republic stand ready to support affected landlords in these difficult times.

“The additional relief measures demonstrate banks’ support for individual landlords who face temporary cash flow constraints as they accommodate their tenants with rental relief,” said its director, Ong-Ang Ai Boon. — Bernama

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