Mr Speaker Sir,  

Singapore's reputation as an open, stable, and business-friendly economy is a testament to our foresight and commitment to global integration. Our strategic position as a hub in Southeast Asia has been meticulously cultivated through policies that promote trade, attract foreign direct investment, and ensure a competitive business environment. During the Covid pandemic, our decision to keep supply chains open and maintain trade links not only demonstrated our resilience but also reinforced worldwide investor confidence. This strategic move was crucial at a time when many countries were turning inwards, underscoring Singapore's role as a reliable partner in global trade and commerce. 

As we navigate new geopolitical and security complexities, it is crucial that the Significant Investments Review Bill is crafted and perceived as an extension of these values. The Bill is a proactive measure to safeguard our economic and security interests while reinforcing our commitment to being an open, transparent, and reliable partner in the global economy. It ensures that as Singapore continues to open its doors to international investors and businesses, it does so with the necessary safeguards to protect its critical assets and maintain its sovereign integrity. This approach will ensure that Singapore remains a competitive and attractive destination for global business, innovation, and talent.

Investment management and screening are integral to the global business framework, with many jurisdictions adopting measures to protect sensitive and strategic sectors. Given Singapore's status as a small, open economy with substantial foreign direct investment (FDI) inflows, it is imperative to periodically reassess and enhance our investment management regime. Countries like the United States, European Union members, Australia, Canada, China, the United Kingdom, Japan, and India have established various forms of investment screening, particularly in sensitive sectors such as defense, technology, infrastructure, and energy, reflecting the global trend towards safeguarding national interests.

The Significant Investments Review Bill is intended to strengthen Singapore’s position as a safe and trusted hub for businesses and investments by providing assurance that we have adequate levers in place to ensure the reliability of entities critical to the functioning of the economy. This is not about curtailing openness but about ensuring that openness does not compromise national security or the public interest. It's about safeguarding the integrity and resilience of sectors that are foundational to our national well-being while maintaining a competitive market environment.

Businesses appreciate that the proposed Bill strikes a reasonable balance between national security needs and business priorities. It is not an omnibus legislation and will only be applied to a handful of designated entities critical to Singapore’s national security interests. These are entities that are currently not under sectoral legislation, which covers ownership and control provisions for sectors that relate to infrastructure assets such as utilities and gas, or are strategic to national security such as broadcasting and telecommunications. In addition, the establishment of a dedicated Office of Significant Investments Review as a one-stop touchpoint is a positive move and will help to ensure that key issues and concerns are addressed expediently.

However, there is concern that the legislation might inadvertently impede growth and innovation, particularly in sectors that are capital-intensive and rely on diverse investment sources. To mitigate these concerns, businesses advocate for a transparent, consultative approach and clear guidelines regarding the Bill's implementation and implications.

First, the rules of this proposed Bill should not be retroactively applied. This will ensure that existing investors do not get stuck, and entrepreneurs do not lose value from having a narrower group of investors to prospect for fundraising or exit. The publication of the list of designated entities will also be important to take the guesswork out of potential investors.

Second, there are powers under this Bill that allow for the review of ownership of entities even if they are not designated. There are concerns that this will give the government 'soft' powers to flag and control the transactions of legitimate entities in certain sectors. It would be helpful for the government to provide more clarity on how businesses can have certainty that they would not be penalised under this legislation, and the conditions that they would have to fulfill to not fall out of line with national security provisions.

Lastly, we call for a consistently open and consultative approach from the government, including established timelines for responses and a transparent appeals process. This will enable businesses to effectively navigate the legislation and align their operations with national security requirements.

We need to ensure that companies, investors, and entrepreneurs do not perceive this proposed Bill as a protectionist move by Singapore, as such ownership rules tend to be associated with these intentions. 

Finally, beyond reviewing legislation in investment screening, the government could consider diversifying key markets and supply chains with business and investment stakeholders to safeguard against any forms of economic coercion in critical sectors.

In conclusion, the business community calls on the government to maintain a consultative approach, provide clarity on processes and outcomes, and ensure that the Bill does not inadvertently stifle growth and innovation. In doing so, we can continue to strengthen Singapore's position as a trusted hub for businesses and investments. 

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