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.
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For further information, please contact:
Liew Kai Zee, Partner, Shooklin & Bok