Legal Updates

Legal Updates for July 2022

What's the Penalty for Breach of Workplace Safety Measures?
The Workplace Safety and Health Act ("WSHA") provides measures that employers and other stakeholders must take to avoid accidents. In particular, Part 4 of the WSHA sets out the duties and offences of persons at the workplace, including employers. In Public Prosecutor v Manta Equipment (S) Pte Ltd [2022] SGHC 157, the Singapore High Court has set out a detailed sentencing framework for an employer's breach of duty to ensure its employees' safety and health at work. The Court also set out its position that this framework should apply to all other Part 4 offences.

The Court's decision provides greater clarity and guidance in determining the appropriate sentence for a breach of the WSHA provisions regarding workplace duties. This Update provides a summary of the decision and the key elements of the sentencing framework set out by the Court.

Consultation on Changes to Carbon Pricing Act 2018 to Revise Carbon Tax Regime
In joining the global fight against climate change, Singapore has raised its climate ambitions to achieve net zero emissions by or around mid-century. In this regard, the Singapore Government stated in the Budget 2022 that it intends to, among other things: (i) raise the carbon tax progressively from 2024; (ii) introduce a transition framework to give eligible companies in emissions-intensive trade-exposed sectors more time to adjust to a low-carbon economy; and (iii) provide companies with the option to use eligible international carbon credits instead of paying carbon tax for up to 5% of their taxable emissions from 2024 onwards.

The carbon tax regime in Singapore is governed under the Carbon Pricing Act 2018 ("CPA") that provides for, among other things, requirements relating to registration, reporting and payment of tax in relation to greenhouse gas emissions. To give effect to the proposed changes to the carbon tax regime in order to meet Singapore's climate goals, legislative changes are being proposed to the CPA. These proposed changes are set out in the draft Carbon Pricing (Amendment) Bill ("Bill"), which the Ministry of Sustainability and the Environment is seeking feedback on through a public consultation exercise from 8 July 2022 to 5 August 2022.

In this Update, we outline key proposed changes in the Bill.

MAS Proposes to Exempt Exchanges/Market Operators Offering Limited Post-Trade Services from Regulation as Clearing Facilities
The Monetary Authority of Singapore ("MAS") is seeking comments on its proposal to exempt an approved exchange ("AE") or a recognised market operator ("RMO") which provides limited post-trade services after the execution of a trade on its platform from being regulated as a clearing facility under the Securities and Futures Act ("SFA"). It is proposed that the exemption will be granted to AEs or RMOs which only provide post-trade services relating to verifying the transactions conducted on the organised market that they operate and calculating the obligations of the parties under those transactions before the transactions are cleared or settled bilaterally between the transacting parties. Such activities fall within the definition of "clearing or settlement", in relation to a clearing facility, under the SFA.

The proposal is set out in the MAS "Consultation Paper on Proposed Exemptions for Approved Exchanges and Recognised Market Operators that Provide Certain Clearing and Settlement Services". The Consultation Paper is open for consultation until 9 September 2022.

This Update provides a summary of the requirements for qualifying for the proposed exemptions for such AEs and RMOs which provide limited post-trade services that fall within the definition of "clearing or settlement" under the SFA.

Public Consultation on Proposed Online Safety Measures – New Compliance Obligations for Social Media Services
On 13 July 2022, the Ministry of Communications and Information issued a Public Consultation on Proposed Measures to Enhance Online Safety for Users in Singapore ("Public Consultation"). The Public Consultation sets out the proposed measures to address harmful online content on social media services, which include:

1. Code of Practice for Online Safety, which sets out the required measures and safeguards against harmful content to be implemented by designated social media services; and

2. Content Code for Social Media Services, which empowers the Infocomm Media Development Authority to direct social media services to disable access to harmful content.

The public has until 10 August 2022 to give their feedback in this Public Consultation. This Update provides a summary of the main facets of the proposed measures and what obligations social media services may expect in the eventual codes.

HIC Measures of Foreign Interference (Countermeasures) Act 2021 Come into Force from 7 July 2022
The Foreign Interference (Countermeasures) Act 2021 ("FICA") has partially come into force – specifically, the provisions counteracting hostile information campaigns ("HICs") have come into effect from 7 July 2022. First introduced in Parliament on 13 September 2021, FICA was subsequently passed on 4 October 2021.

FICA provides measures to prevent, detect and disrupt foreign interference in Singapore's domestic politics, particularly by electronic communications activity. While FICA addresses foreign interference through (i) HICs and (ii) the use of local proxies, only the provisions targeting HICs have come into force. The provisions to counteract foreign interference via local proxies will come into force at a later stage.

FICA combats HICs by establishing new offences targeting the perpetrators of such attacks. It also empowers the Minister of Home Affairs to issue directions to various entities (such as those providing social media services, email or instant messaging services, internet access services, and running websites) to help the authorities investigate and counter HIC content. The key directions include the following:

1. Technical Assistance Directions to disclose information required to determine if the harmful communications activity is being undertaken by or on behalf of a foreign principal;
2. Account Restriction Directions to social media or relevant electronic service providers to block content in user accounts from being viewed in Singapore;
3. Stop Communication (End-User) Directions requiring the communicator to cease communication of specific HIC content to viewers in Singapore;
4. Disabling Directions requiring internet intermediaries to stop the communication of specific HIC content in Singapore;
5. Access Blocking Directions requiring internet access service providers to block access to the HIC content where internet intermediaries or communicators fail to comply with the above directions;
6. Service Restriction Directions to social media services, relevant electronic services, and internet access service providers to take practicable actions to restrict the dissemination of HIC content;
7. App Removal Directions requiring an app distribution service to stop apps from being downloaded in Singapore;
8. Must Carry Directions requiring parties to carry a mandatory message from the Government to warn Singaporeans about a HIC;
9. Disgorgement Directions requiring the return or surrender of money or material support accepted for publishing information/materials of concern; and
10. Proscribed Online Locations ("POL") – The Minister may proscribe purveyors of HIC content as POLs. The purchase of advertisement space on these POLs, or on other websites that promote the POLs, will not be allowed.

A Guide to Renewable Energy in Southeast Asia
Globally, nations and regulators are rallying their people and businesses to combat climate change. At the most recent 2021 United Nations Climate Conference of the Conference of the Parties ("COP26"), attaining net zero emissions by mid-century was underscored as a key outcome. To achieve this target, there is an urgent need to phase out the use of unabated coal and increase investment in renewable energy ("RE"). The Association of Southeast Asian Nations ("ASEAN") member states have also affirmed their commitment to accelerate decarbonisation and cut emissions at the COP26.

Investment and deployment of RE is a key solution to decarbonisation and achieving the net zero emissions goal. ASEAN countries have taken steps to varying extents and effectiveness for energy diversification, including efforts to deploy RE and develop RE technologies. Each ASEAN country faces its own particular set of challenges and constraints in achieving its net zero emissions goal due to a myriad of factors including its stage of economic development, resources (financial and non-financial) and geographical constraints.

In this Guide, we provide an overview of the RE landscape in the region and certain salient legal and regulatory issues affecting the development and deployment of RE in Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.