Singapore has enacted the Significant Investments Review Bill to tighten scrutiny on major investments and changes in control of entities critical to national security. Legal experts suggest that this will impact how companies strategise fundraising and manage leadership changes, adding layers of complexity to the appointment of key personnel and the exit strategies of large shareholders. The law could reshape the landscape for businesses in sectors like critical infrastructure, sensitive technologies, and essential services, as they must now navigate stricter regulatory hurdles before making significant corporate decisions.
The Significant Investments Review Bill requires “designated entities” or companies identified as crucial to Singapore’s national security to perform enhanced due diligence on potential investors, particularly for those acquiring a stake of 12% or more, said Bird&Bird counsel Jolie Giouw in an interview with Singapore Business Review.
“[They may need to] adjust their fundraising strategies if certain investors are unable to obtain the requisite approvals to hold interests in such designated entities,” Giouw said.
“[This] may have far-reaching implications when the investor is part of a large group or conglomerate,” Giouw said.
“For individuals, in addition to family members, two individuals are also associates of each other if they are employees of the same employer, which means that individual investors may potentially have to undertake such checks on all their colleagues employed by the same company,” the law expert from Bird&Bird explained.
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
Smile API Eases Loan Process
Financial institutions and lenders rely on credit worthiness to grant loans, but assessing it can be challenging with only employment and payroll information. Smile API addresses this challenge by transforming employment data into credit data.
Industry Concerns Rise As Accountant Numbers Decline
Accounting firms and universities strive to boost the sector's appeal with new roles and education programmes.
New Rule Curbs Biases Against Flexi Work
Employers who oppose remote work solely because it deviates from traditional office norms can no longer deny this option to employees and may face consequences for doing so.
Trials Target Better Management Of Treatment-Resistant Depression
Managing treatment-resistant depression (TRD) can take months to years, but Singapore is accelerating the process by embarking on trials of personalised transcranial magnetic stimulation (TMS) specifically tailored for Asian brains.
Singapore's tech powerhouses triumph at SBR Technology Excellence Awards 2024
In today's digital age, technological innovation is not just a competitive advantage; it is a key driver of progress. Companies that embrace digital disruption and leverage the power of technology are unlocking a world of opportunity, transforming industries, and shaping a more connected future.
InterContinental unveils rain refund package for guests
Guests receive a refund for a 1-night room rate if it rains for more than 2 hours during their stay.
New law weaves in work protections and retirement benefits into gig workers' safety net
Platform workers will be able to make CPF contributions into their ordinary and special accounts.
Surbana Jurong's new HQ integrates green spaces and smart technology
The headquarters features biophilic elements that enhance natural light and air circulation.
ION Orchard dives into gamification amidst experiential retail demand
The mall's in-app augmented reality game offers more than 30 rewards.
Why Singaporeans are okay with locking away over $4b of their money
Customers can only access locked’ money with a physical card or by visiting a branch.