It is usual for Singapore Government contracts to contain prohibitions against the assignment of receivable. Accordingly, the consent of the Singapore Government is required on an ad-hoc basis before the receivable can be assigned in a factoring or loan arrangement. An assignment of receivable without such consent is void against the Singapore Government and may also have other legal consequences such as a breach of contract.
In 2022, as COVID-19 disruptions worsened the cashflow of businesses, the Government announced it was looking into the automatic approval of factoring to support businesses.
Click here to read the newsflash.
For further information, please contact:
Liew Kai Zee, Partner, Shooklin & Bok
kaizee.liew@shooklin.com
