The Singapore government might be given powers to dam takeovers of key entities, including people who act against national security interests and alter ownership or control inside two years before the proposed recent law comes into force.
A proposed Significant Investment Review Act, expected to be passed next 12 months, would require buyers to hunt approval before holdings in “designated entities” reach significant thresholds, including 25 or 50 percent, the Ministry of Trade and Industry said on Friday.
Under the brand new law, “where an entity has acted against Singapore’s national security interests, any change in ownership or control of the entity within the two years preceding the relevant act could also be considered,” the ministry said on Saturday in response to queries. “The review process applies to every entity, not just designated entities.”
Singapore’s DBS has been banned from recent acquisitions for six months attributable to “unacceptable” downtime
Singapore’s DBS has been banned from recent acquisitions for six months attributable to “unacceptable” downtime
The Asian financial hub, which has long attracted investment for its ease of doing business, is teetering on maintaining cordial relations with each China and the United States amid rising tensions between the world’s superpowers.
The city-state already relies on a variety of laws to watch and manage entities in sectors resembling telecommunications, banking and utilities. The recent law, if passed, might be implemented in 2024 and goals to increase its scope to any entity registered, carrying on business or supplying goods or services in Singapore.
“In an increasingly competitive world, there is a growing number of actors, both state and non-state, who will seek to pursue their own interests and influence the interests of other countries,” said Nicholas Fang, director of security and global affairs on the Singapore Institute of International Affairs. These tools may include armed conflict or economic leverage, he added.
Australia, China, Japan, the UK and the US have similar investment regimes to guard strategic sectors including artificial intelligence, semiconductor manufacturing, cybersecurity, aviation and energy.
It is crucial for Singapore to stay open and connected to the world, which is why we must proceed to strengthen our position as a trusted hub where firms can invest safely
While Singapore has not identified sectors, Trade and Industry Minister Gan Kim Yong said he expected only just a few key entities to be designated under the law. The Ministry informed that the list of indicated entities might be published after the act enters into force.
Under the brand new law, designated entities might be subject to controls, including approval of ownership changes and the appointment of key officials, MTI reported.
“It is critical for Singapore to remain open and connected to the world, and we must continue to strengthen our position as a trusted hub where companies can invest safely,” Gan said.
