New law to strengthen economic resilience and security amid global uncertainties
Singapore’s Minister for Trade and Industry, Gan Kim Yong, emphasized that the upcoming Significant Investments Review law is a key part of the nation’s strategy to enhance economic resilience and security amidst a rapidly changing global landscape. Addressing the 39th Singapore Economic Roundtable, Gan highlighted that this legislation aims to scrutinize investments in “critical entities” that are not currently covered by sector-specific regulations, ensuring that potential risks are more effectively managed.
This proposed law is timely, given the evolving geopolitical landscape, which is increasingly affecting global economic policies. As supply chains are disrupted and geopolitical tensions rise, the role of security in economic decision-making has become more pronounced. Gan noted three significant shifts reshaping the global economy: the reorganization of alliances, the restructuring of global supply chains to reduce risks, and a shift in priorities where national security is now weighed alongside economic goals.
In addition to the new legislation, Gan highlighted that Singapore must continue expanding its connectivity to both regional and international markets. This includes reinforcing multilateral institutions like the World Trade Organization and supporting reforms to its dispute-settlement system. The country also needs to explore new areas for cooperation, particularly in sustainability and the digital economy, to maintain its position as a global business hub.
Gan concluded that Singapore’s strategy must adapt to these global shifts by balancing openness to trade and investment with the need to safeguard national security and economic stability.
