Banks’ contractual right to charge fees and interest for non-payment or late payment of loan obligations due is unaffected by the latest piece of legislation in the Far East to deal with the Coronavirus pandemic.

The one exception to this is the fact that the Bill, if enacted, will put the right of a bank to take legal action for a default on a certain type of loan on hold during the prescribed six-month period.

According to the Monetary Authority of Singapore, the island-state's financial regulator, financial promotional agency and central bank all rolled into one, the Bill contains a package of relief measures and bailouts for various businesses during the 'lockdown' phase of the plague. It also covers financing provided under hire-purchase agreements where goods are used for commercial purposes.

The MAS is affirming that financial services will remain open and available to all customers and counterparties of Singaporean financial institutions, both in Singapore and all over the globe. All financial markets in Singapore remain open and payment services are unaffected. Financial services are one of the "essential services" that the Government has exempted from its drive to close down workplaces in line with the Ministry of Health's "elevated safe distancing measures," which were publicised today.

All financial institutions will continue to operate, although with fewer staff on the premises because the Ministry of Health is encouraging "telecommuting," a possible reference to working at home. Banking services will continue to be available through online channels, ATMs and bank branches. Insurance, broking, custody, asset management and financial advisory services will also be available. Some branches of banks and finance companies and customer service centres of insurance companies may close temporarily, but only because customers are staying away in their droves.