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Singapore Proposes New Bill to Regulate Significant Investments in Critical Entities for National Security

Updated: Mar 20

On November 3, 2023, the Ministry of Trade and Industry (MTI) announced Singapore’s proposal to introduce the Significant Investments Review Bill (hereinafter referred to as the “Bill”). The Bill is designed to oversee substantial investments, regardless of their origin, in entities crucial to the nation’s security interests. Its primary objective is to establish a comprehensive framework for monitoring ownership and control changes within these essential entities, fostering a secure and equitable investment environment.


The Bill was formally introduced during the Parliamentary session that took place on November 6, 2023. The second reading is scheduled for January 2024, and if approved, it will come into effect a few months thereafter.


Ownership and control changes

The Bill mandates a stringent notification and approval process for ownership and control alterations. It emphasizes transparency and accountability, ensuring that all stakeholders are kept informed about significant changes. Key points include:

  • Buyers and sellers must notify the MTI at various control thresholds, such as 5 percent, 12 percent, 25 percent, and 50 percent.

  • The MTI retains the authority to direct remedial actions in case of non-compliance with approval conditions, potentially leading to the disposal of stakes in the designated entity.

  • Critical entities bear the responsibility of timely notification to the minister regarding any changes in ownership and control.

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