Key Considerations ^ In March 2024, Singapore introduced a new investment screening regime to regulate significant investments (whether local or foreign) into entities that are critical to the country’s national security interests. ^ Under the Significant Investments Review Act of 2024 (SIRA), entities that are designated as critical to Singapore’s national security interests must notify or seek approval from the government for certain changes in ownership or control arising from investments. As of the date of this publication, there are nine such entities. ^ The SIRA also grants the Minister for Trade and Industry (the Minister) “call-in” powers to review ownership or control transactions (within a two-year period) involving any entity that has acted against Singapore’s national security interests, regardless of whether it has been designated. ^ The regime under the SIRA is intended to complement the existing suite of sector-specific legislation by bringing critical entities that are not already adequately covered by such legislation within the scope of the government’s oversight and management. ^ The administration of the SIRA is handled by the Office of Significant Investments Review (OSIR), which has been set up by the Singapore Ministry of Trade and Industry to serve as the dedicated one-stop touchpoint for stakeholders. ^ In April 2025, a complementary regime under the Transport Sector (Critical Firms) Act 2024 (TSA) came into force, extending ownership and control screening to entities critical to Singapore’s air, sea and land transport sectors. The Ministry of Transport has confirmed that entities adequately regulated under the TSA will not be concurrently designated under SIRA.
FDI Regime Overview The SIRA and its related subsidiary legislation came into force on March 28, 2024, to boost Singapore’s ability to safeguard its national security interests as a small and open economy amidst an increasingly complex global landscape. The SIRA does not supersede existing sectoral legislation that governs entities in regulated sectors such as telecommunications, banking and utilities, but complements it by empowering the government to more broadly scrutinize investments into critical entities that are not already adequately covered by such existing legislation.
Under the SIRA, any entity that (i) is incorporated, formed or established in Singapore, carries out any activity in Singapore, or provides goods and services to any person in Singapore, may be designated as a “designated entity” if the Minister considers such designation to be necessary in the interest of Singapore’s national security. The term “national security” has not been specifically defined in order to give the government the flexibility to respond quickly to changing security concerns in a rapidly evolving global landscape.
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