MSE Insolvencies in Singapore

This episode features a conversation with Daniel Liu, III Member and Partner in the Restructuring & Insolvency and Special Situations Advisory Practices of Wong Partnership.

Singapore’s simplified insolvency programme for micro and small enterprises (MSEs), introduced in the wake of the COVID‑19 pandemic, aims to facilitate the restructuring of liabilities and business operations through a cost‑effective and streamlined process. Court involvement is intentionally minimal, with insolvency practitioners expected to work for very modest fees, and the procedure focuses on negotiations with a specific group of creditors—mainly suppliers and financial institutions, with tax authorities rarely part of these discussions. In practice, the process often leads to schemes of arrangement or operational turnarounds that provide additional time for debt repayment, although banks have generally been reluctant to cooperate. The regime also presents practical challenges where businesses are owned by foreign entrepreneurs with limited English proficiency, as language barriers can hinder engagement with the process. Since its introduction, the rules have been amended several times, and further reforms are anticipated, including a likely increase to the eligibility thresholds for companies seeking to participate.

The podcast is introduced by NextGen’s co-chair, Gemma Bellfield of Ogier, and moderated by Dr. Eugenio Vaccari of Royal Holloway, University of London. It was recorded in early February 2026, with information accurate at the time of recording.