The Significant Investments Review Bill will introduce a new investment management regime for specified entities identified as being critical to national security, says Trade and Industry Minister Gan Kim Yong.
The new Bill aims to provide Singapore with an “updated toolkit” to manage threats posed by significant investments into critical entities in an increasingly complex world, says Trade and Industry Minister Gan Kim Yong
Entities designated as critical will be required to notify or seek approval from the authorities for ownership or control changes
During the debate in parliament, MPs raised concerns over what constitutes national security interests, the wide-ranging powers given to the Trade and Industry Minister in the Bill and the possible impact on foreign investments
WHY IS THIS NECESSARY?
The need for an updated regulatory toolkit comes amid an increasingly complex world and an uncertain economic environment, said Mr Gan, citing several global financial crises in recent years and the COVID-19 pandemic that led to border restrictions and supply shortages.
Geopolitical contestations have also triggered more protectionist measures, while military conflicts have brought about disruptions to critical supplies such as energy and food.
“This has led to many countries prioritising domestic and national security considerations, leaning towards ‘near-shoring’, ‘friend-shoring’ and ‘re-shoring’ of supply chains,” he told the House.
