The Significant Investments Review Act 2024 ("Act"), which came into force on 28 March 2024, sets out a new investment management regime that applies to both local and foreign investors for entities that are critical to Singapore's national security interests. The Act reflects Singapore's proactive and adaptive approach to economic and security challenges, positioning the nation as a global leader in responsible and secure investment practices. It also follows the growing trend worldwide for governments to carefully screen foreign investments in sensitive sectors.
Entities that are critical to the national security interests of Singapore, but are not caught by the existing sectoral legislation, may be designated under the Act ("Designated Entities"). The entities must either be incorporated, formed or established in Singapore; carry out activities in Singapore; or provide goods and services to persons in Singapore.
On 31 May 2024, the inaugural list of Designated Entities was published in the Government Gazette and on the Office of Significant Investments Review website. The nine entities are ST Logistics Pte. Ltd, Sembcorp Specialised Construction Pte. Ltd. ST Engineering Marine Ltd, ST Engineering Land Systems Ltd, ST Engineering Defence Aviation Services Pte. Ltd, ST Engineering Digital Systems Pte. Ltd., ExxonMobil Asia Pacific Pte. Ltd, Shell Singapore Pte, Ltd and Singapore Refining Company Private Limited.
While the list of Designated Entities currently stands at only nine, it must be remembered that the Minister can review ownership or control transactions involving an entity that has acted against Singapore's national security interests, even if the entity has not been designated. The ownership or control transaction must have occurred within the two-year period prior to the act against national security.
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