Legal Updates for July 2023HSA Consults on Proposed Regulatory Controls on Active Ingredients under Health Products Act
On 17 July 2023, the Health Sciences Authority ("HSA") announced a public consultation on new subsidiary legislation under the Health Products Act 2007 ("HPA"), namely the proposed Health Products (Active Ingredients) Regulations 2023 ("Regulations").
"Active ingredients" are defined as ingredients that contribute to the intended function of the product, and are pharmacologically active substances that may be used to manufacture health products. At present, active ingredients are regulated under the Poisons Act 1938 (which imposes a licensing requirement on importers and wholesalers), and the Medicines Act 1975 (on application for certification).
To ensure that active ingredients are consistently manufactured, stored and distributed in accordance with appropriate quality standards, HSA seeks to implement risk-based regulatory controls that will be streamlined and consolidated under the HPA by way of the Regulations. Further, the proposed Regulations will provide a fit-for-purpose and risk-based licensing framework for active ingredients that will be aligned with international standards.
Once the proposed Regulations are implemented, the regulatory controls under the Poisons Act 1938 and Medicines Act 1975 will no longer apply. Licensed importers and wholesalers will no longer need to hold a separate Form A Poisons Licence under the Poisons Act.
In this Update, we examine the scope, overview, and licensing framework proposed in the draft Regulations.
CCCS Seeks Views on Guidance Note For Environmental Sustainability Collaborations
Proposals for the Guidance Note on Business Collaborations Pursuing Environmental Sustainability Objectives ("Environmental Sustainability Collaboration GN") have finally been introduced in Singapore for consultation by the Competition and Consumer Commission of Singapore ("CCCS"). The Environmental Sustainability Collaboration GN specifically addresses how businesses can collaborate to achieve environmental sustainability objectives in a way that does not contravene competition laws. Particularly, it seeks to clarify how CCCS will assess such business collaborations in the context of Section 34 of the Competition Act 2004, which prohibits agreements between businesses which have as their object or effect the prevention, restriction, or distortion of competition within Singapore. The consultation runs from 20 July 2023 to 17 August 2023.
This Update outlines salient aspects of the Environmental Sustainability Collaboration GN.
Proposed Mandatory Climate Reporting for Listed Issuers and Large Non-Listed Companies
On 6 July 2023, the Accounting and Corporate Regulatory Authority ("ACRA") and Singapore Exchange Regulation ("SGX RegCo") jointly released the Consultation Paper titled "Turning Climate Ambition into Action in Singapore" which sets out Sustainability Reporting Advisory Committee (SRAC)'s recommendations to implement mandatory climate reporting requirements in a tiered and phased manner, beginning with issuers of equity securities on the Singapore Exchange Securities Trading Limited and extending these requirements to large non-listed companies above a certain annual revenue threshold via the Companies Act 1967. Other key recommendations include introducing specific International Sustainability Standards Board Standards as baseline reporting standards and imposing external climate-related audit / assurance requirements. ACRA and SGX RegCo intend to finalise the recommendations by 2024, and will take into consideration the feedback received on the Consultation Paper. Feedback must be submitted before 30 September 2023.
This Update highlights these key recommendations and proposals.
MTI Seeks Feedback on the ASEAN Trade in Goods Agreement (ATIGA)
As an integral part of the Association of Southeast Asian Nations ("ASEAN") Economic Community (AEC), the ASEAN Trade in Goods Agreement ("ATIGA") is the key regional trade agreement that facilitates economic integration within the ASEAN region, which Singapore is a party to. The ATIGA entered into force on 17 May 2010 for ASEAN Member States ("AMS"), and provides a comprehensive framework to achieve the free flow of goods within ASEAN by eliminating tariffs on most goods traded between AMS, as well as by reducing non-tariff barriers.
To keep the ATIGA relevant and more responsive to, and stay ahead of, the changes ASEAN launched negotiations between AMS in March 2022 to upgrade the ATIGA. Substantive negotiations between AMS are targeted to be completed by the end of 2024. From 17 July 2023 to 16 August 2023, the Ministry of Trade and Industry (MTI) is conducting a public consultation to seek feedback on how the ATIGA could be improved and other beneficial provisions that could be incorporated into the ATIGA.
MAS Consults on Proposed New Requirements for Digital Payment Token Service Providers to Enhance Investor Protection and Market Integrity
The Monetary Authority of Singapore ("MAS") is seeking feedback on the following two consultation papers which will introduce legal requirements that aim to enhance investor protection and address market integrity risks in Digital Payment Token ("DPT") services:
- Consultation Paper on Proposed Amendments to the Payment Services Regulations ("Investor Protection Consultation")
- Consultation Paper on Proposed Measures on Market Integrity in Digital Payment Token Services ("Market Integrity Consultation")
This development follows from the earlier "Consultation Paper on Proposed Regulatory Measures for Digital Payment Token Services" issued by MAS in October 2022 which sets out proposals on regulatory measures which aim to reduce the risk of consumer harm in trading in DPTs.
The Investor Protection Consultation seeks comments on the legislative amendments to implement the requirements on segregation, custody and safeguard of assets and money of customers of DPT service providers. The Market Integrity Consultation focuses on the proposed regulatory measures a DPT service provider should establish to ensure market integrity and measures to prevent market abuse in the DPT market.
The consultation period ends on 3 August 2023. The requirements on segregation and custody of customers’ assets and money which are set out in the Investor Protection Consultation are targeted to take effect by October 2023. MAS stated that although it is consulting on the draft legislative changes to implement these requirements, as MAS has already finalised and published its policy positions on the segregation and custody requirements, DPT service providers should prepare to comply with these policy positions by October 2023.
This Update provides more information about these new requirements and the key proposals in the Market Integrity Consultation.
Refinements to the Meaning of "Residential Property" under the Residential Property Act
On 19 July 2023, the Ministry of Law and the Singapore Land Authority jointly announced certain amendments to the Schedule of the Residential Property Notification ("RPN") to update the list of land use zones designated as non-residential property for the purposes of the Residential Property Act 1976 ("RPA"). The amendments have taken effect on 20 July 2023.
Essentially, land zoned as "Commercial & Residential" has been removed from the Schedule of the RPN, effectively bringing such land within the ambit of the RPA. Consequently, foreign persons who wish to acquire land zoned as "Commercial & Residential" would be required to seek the Land Dealings Approvals Unit’s approval for such acquisition. In this Update, we provide a summary of the key changes to the RPN.
MAS Consults on Code of Conduct for ESG Rating and Data Product Providers.
Financial market participants have increasingly used Environmental, Social, and Governance ("ESG") ratings and ESG data products for investment and capital allocation. The Monetary Authority of Singapore ("MAS") proposes to take a phased and proportionate regulatory approach, starting with a voluntary industry code of conduct ("CoC") it has co-created with industry players for ESG rating and data product providers. On 28 June 2023, MAS issued a public Consultation Paper on "Proposed Code of Conduct for ESG Rating and Data Product Providers" to seek views on the draft CoC and the proposed plan for a future regulatory regime to bring ESG rating providers under MAS' regulatory ambit. The consultation closes on 22 August 2023.
This Update outlines the key proposals in the Consultation Paper.
S13O 和 S13U家族办公室申请标准更新
2023年7月5日，新加坡金融管理局宣布修改单一家族办公室基金实体根据《1947年所得税法》第13O和13U条申请免税的资格标准。这些变化旨在鼓励有意义的资本部署，促进新加坡资产和财富管理行业的发展和完善。本资讯为您整理总结了相关申请资格的主要变化。详细内容，请点击查看全文。
Guidelines for Independent Financial Advisers (IFAs) and Directors in Procuring IFA Advice for SGX-Listed Issuers
On 3 July 2023, the Singapore Exchange Regulation ("SGX RegCo") issued a set of "Guidelines on Independent Financial Advisers" ("Guide") and an accompanying Regulator's Column setting out SGX RegCo's expectations and guidance for independent financial advisers ("IFAs") and their opinions and the role and expectations on directors in procuring an IFA opinion, in the context of the Singapore Exchange ("SGX") Listing Rules.
The SGX Listing Rules require the appointment of an IFA and an IFA opinion for exit offers, interested person transactions and, in some cases, under a Notice of Compliance, to direct the issuer to undertake certain actions or review transactions as required by SGX.
This Update briefly highlights the key aspects of the Guide, focusing on guidance for directors in appointing an IFA, the requirements of an IFA opinion under the SGX Listing Rules, the independence of the IFA and the objectivity of the IFA opinion. The Guide also includes guidance in the context of exit offers and IPTs.
Coal to Green Transition: Consultation on Criteria for Early Coal Phase-Out under the Singapore-Asia Taxonomy
The coal to green transition plays a vital role in reducing global greenhouse gas emissions. The transition will not be possible without adequate financing. However, challenges lie in crafting credible and just coal phase-out guidance that sufficiently allays concerns among financial institutions regarding the financing of such projects.
Seeking to meet this challenge, on 28 June 2023, the Monetary Authority of Singapore released the Fourth Green Finance Industry Taskforce Taxonomy Consultation Paper ("Consultation Paper") which sets out the criteria for financing the early phase-out of coal fired power plants under the Singapore-Asia Taxonomy. The criteria are aligned to global science-based 1.5°C-aligned decarbonisation pathways, and take into consideration other guidance such as the ASEAN Taxonomy, and the "The Managed Phaseout of High-Emitting Assets" report by the Glasgow Financial Alliance for Net Zero.
Interested parties should submit their feedback regarding the Consultation Paper by 28 July 2023. Feedback can cover, among others, usability and operationalisation challenges posed by the criteria and which aspects of the criteria require further guidance.
This Update provides a summary of key features of the early coal phase-out criteria contained in the Consultation Paper.
Singapore Moves towards Recognising Electronic Statutory Declarations, Oaths and Affirmations, and Notarisations
As electronic transactions quickly become the new norm, Singapore's legal system has continued to keep pace with developments in technology and practice. A prime demonstration of this is the execution of statutory declarations ("SDs"), oaths and affirmations ("OAs"), and notarisation, which have traditionally had to be performed in person and via wet ink signatures. However, this is set to change with the introduction of legislative amendments to facilitate electronic SDs, OAs and notarisation.
On 3 July 2023, two Bills (the Oaths, Declarations and Notarisations (Remote Methods) Bill and the Constitution of the Republic of Singapore (Amendment) Bill) were introduced in Parliament to provide individuals and businesses in Singapore the option to make SDs, OAs, and to notarise documents through remote means. This Update highlights the key features of the amendments and the proposed framework.
New Law Governing Terms of Lease of Retail Premises to be Introduced
On 4 July 2023, the Lease Agreements for Retail Premises Bill ("Bill") had its first reading in Parliament. The Bill seeks to make it mandatory for retail lease contracts to comply with the Code of Conduct for Leasing of Retail Premises in Singapore ("Code"), which sets out guidelines and principles for landlords and tenants of qualifying retail premises to enable fair and balanced lease negotiations. The Bill also establishes the Fair Tenancy Industry Committee and sets out a dispute resolution process in relation to complaints of non-compliance with the leasing principles or obligations.
While adoption of the Code has thus far been voluntary, the Bill – when passed – will require compliance with the Code's leasing principles. Landlords and tenants of retail premises should thus be aware of their obligations under the Code to ensure compliance. This Update highlights the key features of the framework set out under the Bill and the Code.
Updates to S13O & S13U Application Criteria for Family Offices
On 5 July 2023, the Monetary Authority of Singapore announced changes to the qualifying criteria for single family office fund vehicles applying for the tax exemptions under sections 13O and 13U of the Income Tax Act 1947. The changes seek to encourage the meaningful deployment of capital and bolster the development and sophistication of Singapore's asset and wealth management industry. This Update highlights the key changes and the parties that will be affected.
Timelines for SOPA Payment Claims, Responses, and Adjudication
The Building and Construction Industry Security of Payment Act 2004 (2020 Rev Ed) contains strict timelines for responses, notices, and adjudication. While parties to construction contracts are free to customise their agreements to provide for specific dates or periods for the service of payment claims and responses, does such freedom extend to having ‘weekly progress claims’ and having payment conditioned on the provision of a performance bond? The Singapore High Court decision in Asia Grand Pte Ltd v A I Associates Pte Ltd [2023] SGHC 175 gives us some food for thought.
This Update provides a summary of the Court's decision and the approach towards such contractual provisions on payment.
Ensuring the Responsible Use of AI – Singapore Launches the AI Verify Foundation
On 7 June 2023, the Infocomm Media Development Authority announced the launch of the AI Verify Foundation ("Foundation"), which aims to harness the collective contributions of the global open-source community to develop the AI Verify testing tool for the responsible use of artificial intelligence ("AI"). The Foundation will look to boost AI testing capabilities and assurance to meet the needs of companies and regulators globally.
The responsible use of AI has become a key issue for organisations utilising AI systems and for regulators. In particular, the rise of generative AI throughout a plethora of use-cases across various industries has raised concerns about the resulting risks. To address this, the launch of the Foundation will support the development and use of AI Verify to address the relevant risks of AI. This Update sets out the premise and purpose of the Foundation, the key aspects of AI Verify, and how organisations may utilise the available resources for their use of AI.
Competition Bites EP 5: Cartel Enforcement
Cartels have long been recognised as a significant threat to competition, and competition authorities have been actively combating these clandestine practices. How are cartels regulated in different Southeast Asian jurisdictions? What interesting cases have been observed, and what can we expect in the coming months?
Tune in to our podcast, where representatives from our Competition & Antitrust Team in Indonesia, Malaysia, Singapore and Vietnam provide insights into how cartels are regulated in their respective jurisdictions, share interesting cartel cases, and discuss trends in cartel enforcement. The speakers also shed light on proposed amendments to competition laws and emphasise the importance of complying with competition regulations and avoiding anti-competitive behaviours.
Moderator: Yon See Ting
Speakers from Rajah & Tann Asia’s Competition & Antitrust team:
Indonesia: HMBC Rikrik Rizkiyana
Malaysia: Jane Guan
Singapore: Joshua Seet
Vietnam: Duy Cao
Find out more about our Regional Competition & Antitrust practice here.
Please feel free to drop us your feedback on this session and provide us with your suggestions on what you would like us to discuss on our future podcasts. You may reach out to us at competitionlaw@rajahtann.com.
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