Minister emphasizes the need for safeguards to protect economic resilience and national security amid growing foreign investments
Singapore is considering the introduction of new tools to manage significant foreign investments in critical sectors, according to Gan Kim Yong, the Minister for Trade and Industry. Speaking on August 28, 2023, he noted that while many countries have already implemented measures to scrutinize investments in sensitive industries, Singapore is looking to strengthen its position as a trusted business hub while ensuring that such investments do not undermine the nation’s economic stability or security.
Gan emphasized that Singapore must remain an attractive destination for global businesses, but the government must also prevent any potential risks that could arise from foreign ownership or control in critical entities. He pointed to existing laws that govern foreign investments in areas like banking, telecommunications, and media, and suggested that new regulations may build upon these examples.
Academics believe the country may soon introduce legislation to address investment concerns. These measures could include a national security review process to evaluate investments’ impact on the country’s resilience. Experts also foresee a focus on scrutinizing investments from state-owned foreign entities or those that could potentially pose risks, such as access to sensitive data or surveillance.
Despite concerns that new regulations might affect investment volumes, experts are confident that Singapore’s overall attractiveness as a business hub will remain intact. The nation’s focus on balancing national security with economic growth through these measures is expected to reinforce its reputation as a safe place to do business.
