The SIRA also grants the Minister the authority to “call-in” ownership or control transactions of any entity for review if (i) such entity has acted against Singapore’s national security interests (the “Relevant Action”), and (ii) the ownership or control transaction occurred within the two years prior to the Relevant Action. Following such review, the Minister may require for a range of targeted actions to be implemented, such as directing the transacting party to transfer or dispose of its shareholding in the entity or directing the entity to restrict disclosure of confidential information to any person. 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. Similar to the SIRA, the TSA imposes mandatory notification and/or approval requirements in respect of transactions involving entities that
have been designated as (a) designated operating entities (providing any essential transport service in Singapore) or (b) designated equity interest holders (holding any equity interest in designated operating entities), and requires such designated entities to seek approval for the appointment of key personnel in management. 2025 FDI Data Overall foreign direct investment in Singapore has continued on an upward trajectory following a dip in 2023, after experiencing a sharp increase in 2021. In 2025, FDI inflow amounted to S$197 billion, following S$182 billion in 2024 and S$170 billion in 2023. The bulk of this investment arrived from the U.S. at about S$35 billion, the Netherlands at more than S$18 billion, Ireland at about S$15 billion, Mainland China at about S$14 billion and the United Kingdom at about S$9 billion. The large majority of these investments arrived from the finance and insurance sector, followed by professional, administrative and support services; wholesale and retail trade; manufacturing; and information and communications.
Outlook for 2026 The full impact of the SIRA regime remains to be seen, but the Singapore government has emphasized its commitment to maintaining a balance between protecting the country’s national security interests and minimizing adverse impact on business and investors. Similarly, the TSA has been implemented with the stated objective of safeguarding essential transport services while minimizing regulatory burden on commercial operators and investors in the transport sector. As of May 21, 2026, only a handful of critical entities have been designated under the SIRA and TSA, as most critical entities are already sufficiently covered by existing laws. The government aims to work closely with affected stakeholders and implement clear processes where possible. In the meantime, investors should make sure that applicable notification and/or approval requirements are duly factored into transaction timelines if they are investing into any target company that has been listed as a SIRA- or TSA- designated entity.
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FDI and National Security Review
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