Government rolls out additional support for landlords and businesses

The package will help landlords with existing loan commitments and ease cash flow needs.

The Ministry of Finance (MOF), the Inland Revenue Authority of Singapore (IRAS), Enterprise Singapore (ESG), and the Monetary Authority of Singapore (MAS) have launched a series of measures to support landlords that may face cash flow constraints after providing relief to tenants as proposed under the COVID-19 (Temporary Measures) Amendment Bill, according to an announcement.

Also read: How the Temporary Measures Act provides a lifeline for hard-hit contracts

This package of measures will help landlords with their existing loan commitments, ease their cash flow needs and will complement relief measures announced by MOF, MAS, and the financial industry earlier.

Individual landlords who are currently in their loan repayments as at 1 February can defer both principal and interest repayment up to 31 December. Those who successfully apply for a reduction in rental waivers on the grounds of financial hardship are also eligible for this relief measure.

In addition, they can opt to extend the loan tenure up to the corresponding deferment period to ease monthly instalments when they resume regular repayments. Their credit scores will not be affected when they take up payment deferments.

Individual landlords may apply for the new relief measure once IRAS begins issuing the notice of cash grant in July and should submit to their bank and finance company a copy of IRAS’ notice of cash grant, relevant tenancy/lease agreements, and declaration of the relief to be provided to their tenants.

Meanwhile, small and medium enterprises (SME) landlords can already apply to defer principal payments on their commercial and industrial property loans. Landlords who need additional credit to meet their immediate cash flow needs can apply for loans under ESG’s Temporary Bridging Loan Programme or Working Capital Loan Scheme through their banks and finance companies.

Further, larger corporate landlords, including real estate investment trusts listed on the Singapore Exchange (S-REITs), are encouraged to approach their banks or finance companies to explore funding solutions to meet their cash flow needs.

Banks assured that there will be no automatic enforcement of loan covenant breaches and will work closely with landlords to address them if there is any.

On another note, MOF and IRAS extended the timelines for S-REITs to distribute their taxable income derived in FY2020 and FY2021. The extension is said to give S-REITs more flexibility to manage their cash flows.

For taxable income derived in the financial year ending in 2020, S-REITs will have until 31 December 2021 to distribute them, whilst they will have until 31 December 2021 or 3 months after the end of FY2021, whichever is later, for taxable income derived in the financial year ending in 2021.