ExxonMobil, Shell, ST Engineering units among 9 entities designated under Singapore’s Significant Investments Review Act
Of the designated companies, two are units of multinationals while the rest have Singapore-based parent firms
EXXONMOBIL Asia Pacific, Shell Singapore and four ST Engineering units are among nine corporate entities that have been designated as “critical entities” and thus face ownership and control regulations under Singapore’s Significant Investments Review Act.
The other three are ST Logistics; Sembcorp Industries unit Sembcorp Specialised Construction; and the Singapore Refining Company.
The list was published in the government gazette after the market closed on Friday (May 31).
Three of the designated entities are in the petrochemical industry, including the only two units of foreign multinational corporations: ExxonMobil Asia Pacific and Shell Singapore. The third, Singapore Refining Company, is a joint venture between Singapore Petroleum Company and Chevron Singapore.
The Singapore government is one of ST Engineering’s major clients. Of the company’s four units designated under the act, two are makers of defence equipment and security solutions: ST Engineering Land Systems and ST Engineering Defence Aviation Services.
The other two are ST Engineering Marine, which provides marine and shipbuilding services, and ST Engineering Digital Systems, which provides digital services. Both units also support the group’s defence business.
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The law, which came into effect on Mar 28, scrutinises significant investments – from local or foreign sources – in entities that are critical to Singapore’s national interests but not yet covered by existing legislation.
These designated entities are subject to ownership and control requirements such as needing government approval for major changes in ownership.
In response to queries, an ExxonMobil spokesperson said: “We understand the intent of the Significant Investments Review Act and will comply with all its requirements.”
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Lina Poa, ST Engineering’s group head of corporate communications and investor relations, expects the designation will have no impact on the group’s day-to-day activities, nor its long-term growth and strategy.
“We will continue to focus on our role as a strategic partner in the Singapore defence ecosystem as it is today,” Poa said.
This is the first group of companies to be designated under the new law.
The Ministry of Trade and Industry has previously said that the list of designated companies will be reviewed as required, though there are no plans to significantly expand it in the near future.
Designated entities may also be removed if they no longer meet the relevant criteria.
In January’s parliamentary debate on the Bill, Minister for Trade and Industry Gan Kim Yong said that one factor in deciding to designate an entity is whether it provides a critical function in relation to Singapore’s national security interests.
This includes being a key provider of security-related functions, especially where there are limited or no alternatives.
The government had already engaged all entities that were being considered for designation before tabling the Bill, Gan said then.
Separately, the Significant Investments Review Act also provides for certain actions to be taken against any entity – including those that are not designated – that has acted against Singapore’s national security interests.
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