New Law Targets Entities Critical to National Security, Mandating Ownership and Control Scrutiny
On May 31, 2024, Singapore published its first list of companies designated under the Significant Investments Review Act, which came into effect on March 28. The Act targets entities vital to the country’s national interests and mandates stringent controls over ownership and management. Among the nine companies designated were ExxonMobil Asia Pacific, Shell Singapore, and several units of ST Engineering, including those involved in defense and security solutions.
The law is designed to scrutinize significant investments—both local and foreign—into companies that are critical to Singapore’s national security, especially those not already covered by existing legislation. Entities subject to this law must seek government approval for significant changes in ownership or control.
Three of the designated companies, including ExxonMobil Asia Pacific and Shell Singapore, operate in the petrochemical industry. Additionally, Singapore Refining Company, a joint venture between Singapore Petroleum Company and Chevron Singapore, is included. ST Engineering’s four designated units encompass defense-related firms like ST Engineering Land Systems and ST Engineering Defence Aviation Services, as well as ST Engineering Marine and ST Engineering Digital Systems, which support defense operations.
The government’s decision-making process for designating companies under this Act includes evaluating whether the entity plays a crucial role in Singapore’s national security. However, the government has clarified that the new law will not affect the daily operations or long-term strategy of the designated companies.
