Singapore to overhaul insolvency laws, strengthening business restructuring options

Speaking at the Singapore Insolvency Conference, Edwin Tong warned that premature liquidation destroys value and that financial distress does not always mean a company is beyond rescue. He outlined three key reforms: revising the Insolvency, Restructuring and Dissolution Act so judicial management must show a concrete rehabilitation plan; making cross-class cramdown procedures more accessible by easing the high creditor-approval thresholds; and adopting UNCITRAL’s model laws on Enterprise Group Insolvency and on Recognition and Enforcement of Insolvency-Related Judgments.

These changes aim to position Singapore as a regional restructuring hub and to better handle the growing number of foreign enterprises and assets under management in the city-state. The bill’s first parliamentary reading is slated for later in 2026 or early 2027.