In Parliament: Sylvia Lim Advocates for a Less Painful Bankruptcy Experience in Singapore

SINGAPORE — Workers’ Party MP Sylvia Lim (Aljunied GRC) highlighted in a speech in Parliament on Monday (Jan 9) that there are various reasons why individuals end up in bankruptcy, including misfortune, bad timing, and being guarantors for others’ debts. She emphasized that bankruptcy can be a debilitating and disempowering experience, leading to stigmatisation and disqualification from public office and certain professions.

“I do hope that as we move towards a system of having Private Trustees in Bankruptcy (PTIBs) as the default, the bankruptcy experience can be a less painful one,” she added.

Ms. Lim, who also serves as the Workers’ Party chair, spoke during the debate on the Insolvency, Restructuring, and Dissolution (Amendment) Bill. She raised concerns about what has been observed since PTIBs were introduced in cases involving institutional creditors over the past five years.

The proposed amendment seeks to extend the use of PTIBs to non-institutional creditors and voluntary bankruptcies. Ms. Lim questioned whether there have been any complaints from creditors or debtors regarding the handling of cases by PTIBs, particularly about efficiency or fairness.

She also inquired about the resources available to assist non-institutional creditors and debtors in selecting an insolvency practitioner as a PTIB. “Bankruptcy cases are now being handled not by a public officer from the Official Assignee’s (OA) office, but by a PTIB chosen by the creditor, whose fees are also underwritten by the creditor. It is sometimes said that he who pays the piper calls the tune. Have there been any complaints from debtors that the PTIBs have been unfair to them?” she asked.

Ms. Lim’s full speech can be viewed here.

chingshijie@asiaone.com