New: You can now listen to articles.SINGAPORE: Nine companies, including three in the oil industry and four under ST Engineering, have been designated as critical entities under a new law aimed at managing threats posed by significant investments., which came into force in March, scrutinises such investments, whether local or foreign, into entities that are critical to Singapore’s national security interests.
Previously, Singapore relied on sector-specific laws – such as legislative restrictions on foreign ownership and licensing regimes where investors must seek approval from relevant regulators – to manage entities in regulated sectors like telecommunications, banking and utilities. The new law applies to entities that are deemed critical and are not yet covered by existing legislation, and are designated based on whether the entity provides a critical function in relation to the country’s national security interests, such as being a key provider of security-related functions where there are limited or no alternatives.
Sellers are also required to seek approval when they cease to be a 50 per cent or 75 per cent controller.