S'pore to screen investments in entities critical to national security

Legislation needed to strengthen resilience of economy in the face of new threats: Gan

- Chor Khieng Yuit

Singapore has passed a Bill that will allow it to screen investments in “a handful of entities” deemed critical to national security interests.

It will apply to local and foreign investments, therefore ensuring a level playing field for all investors.

Trade and Industry Minister Gan Kim Yong said on Jan 9 that the Government has already reached out to all the entities that are being considered for designation under the Significant Investments Review Bill.

“That means if you have not been approached, you are not currently being considered,” he added.

The list of designated entities will be published in the Government Gazette after the law comes into force, which is expected to be in a few months’ time.

Speaking in Parliament, Mr Gan said that the legislation has become necessary as the world has become increasingly complex, and the economic environment more uncertain and challenging.

He cited challenges such as military conflicts that have disrupted critical supplies of energy and food, and rising protectionism amid geopolitical tensions.

“As an open economy, we can be vulnerable to actors that may seek to undermine our national security interests through ownership and control of critical business entities,” said the minister.

“We must constantly review and update our regulatory regime, to keep pace with the changes in the global economic landscape and to strengthen the resilience of our economy in the face of new threats.”

He added that the Bill had been “carefully calibrated” to balance between having adequate oversight over the ownership and control of these critical entities, while ensuring that Singapore’s economy remains open and business- and investor-friendly.