S’pore names Shell, ExxonMobil among 9 entities critical to national security under new investment law
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Shell and ExxonMobil are on the list of entities designated under the newly legislated Significant Investments Review Act 2024.
PHOTOS: AFP
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SINGAPORE – Singapore issued a list of nine companies that will need to seek government approval for changes in their ownership or leadership, among other things, as they are deemed critical to national security interests.
The list of entities designated under the newly legislated Significant Investments Review Act (Sira) 2024
The Singapore Refining Company, a joint venture between Singapore Petroleum Company and Chevron, is also included.
Other companies that made the list are Sembcorp Specialised Construction, a wholly owned subsidiary of Sembcorp Industries, and defence and supply chain solutions company ST Logistics.
ST Engineering Marine, ST Engineering Land Systems, ST Engineering Defence Aviation Services, ST Engineering Digital Systems – all subsidiaries of ST Engineering – rounded off the first group of entities to be designated under the law.
Under Sira, designated entities will have to abide by various requirements, including seeking approval for selling a significant stake in the company.
Hence, the new law allows the Singapore Government to block takeovers, ownership changes or control in such entities by those that have acted against national security interests.
Among other provisions, the designated entities will also need approval for the appointment of key officers and voluntary winding-up or dissolution.
Singapore already has sectoral legislation that imposes ownership and control restrictions in critical sectors, including telecommunications, banking and utilities. The new law will complement these.
Shell, which recently agreed to sell its Singapore assets to a joint venture between Indonesia’s Chandra Asri and commodity trader Glencore, said the deal is already subject to regulatory approval.
The transaction is expected to be completed by the end of 2024, a Shell spokesperson told The Straits Times.
“We acknowledge the designation of Shell Singapore under the Significant Investments Review Act. As a global company with operations around the world, we have worked with jurisdictions with similar policies and remain committed to complying with existing laws and guidelines in the countries we operate.”
An ExxonMobil spokesperson told ST: “We understand the intent of the Significant Investments Review Act and will comply with all its requirements.”
The designation of the entities comes in the midst of shifting supply chains and an intensifying rivalry between China and the US, Singapore’s top two trade partners.
A growing list of countries have implemented regulatory frameworks for the screening of investments on national security grounds, including the US, China, Australia, Japan and Britain, to safeguard strategic sectors such as artificial intelligence, semiconductors, cyber security, aerospace and energy.
