Singapore strengthens management of companies critical to national security

Singapore has issued a list of nine companies deemed critical to national security interests, therefore they will need to seek government approval for changes in their ownership or leadership, among other things.

As reported by The Straits Times, the list of entities designated under the newly legislated Significant Investments Review Act (Sira) 2024 includes the Singapore-based subsidiaries of global oil giants ExxonMobil and Shell, Singapore Refining Company – a joint venture between Singapore Petroleum Company and Chevron, Sembcorp Specialised Construction – a wholly owned subsidiary of Sembcorp Industries, and defence and supply chain solutions company ST Logistics.

Under Sira, the designated entities will have to abide by various requirements, including seeking approval for selling a significant stake in the company. Hence, the new law allows the Singapore Government to block takeovers, ownership changes or control in such entities by those that have acted against national security interests.

Among other provisions, the designated entities will also need approval for the appointment of key officers and voluntary winding-up or dissolution.

Singapore already has sectoral legislation that imposes ownership and control restrictions in critical sectors, including telecommunications, banking and utilities. The new law will complement these.

As the number of visitors to Singapore continues rising post-pandemic, the Monetary Authority of Singapore (MAS) is expecting more and higher-value cross-border payment transactions.