Reed Smith Client Alerts

Key takeaways

  • Singapore government passes new Significant Investments Review Bill on 9 January 2024
  • The Bill allows the Minister to designate critical entities required to notify or seek approval from the Minister for ownership or control changes
  • An Office of Significant Investments Review will be set up under the MTI as dedicated one-stop touchpoint for stakeholders to address concerns and minimise impact 

Autoren: Johnny Lim Ping Ting Tan Michael Kwan (Resource Law LLC), Darren Sie (Resource Law LLC), Si Ting Chua (Resource Law LLC), Russell Lee (Resource Law LLC), Trixie Ng (Resource Law LLC)

The Singapore government passed the Significant Investments Review Bill (the SIRB) on 9 January 2024. This Bill was first introduced on 6 November 2023 and seeks to safeguard Singapore’s national security interests by screening investments in critical entities that have the potential to threaten Singapore’s national security. This development is similar to the approach taken in leading jurisdictions, such as the UK having the National Security and Investment Act 2021. The SIRB is expected to come into force in mid-2024.

Definition of national security

The SIRB does not define the concept of national security. Addressing parliament, the Minister for Trade and Industry (the Minister) mentioned that national security “would cover areas critical to Singapore’s sovereignty and security”, including economic security and the continued delivery of essential services in Singapore. He further explained that “providing a specific definition of national security or specific examples of such threats would not only constrain our ability to act quickly to address new risks that may emerge over time but also expose Singapore’s vulnerabilities”.