The upcoming Significant Investments Review law is a pivotal part of Singapore’s strategy to enhance its economic resilience and security, according to Minister for Trade and Industry Gan Kim Yong. Speaking at the 39th Singapore Economic Roundtable on November 9, he outlined the need for Singapore to adapt to the turbulent global landscape while maintaining robust connectivity and seeking new areas of cooperation.

The proposed law, introduced in Parliament earlier this month, aims to scrutinize investments in “critical entities” not currently regulated by existing sectoral legislation. This initiative is designed to manage risks associated with such investments more effectively, reinforcing Singapore’s position as a trusted business hub in a stable and secure environment.

Gan highlighted that globalization is currently at a critical juncture, with security increasingly influencing international economic policies. He noted that geopolitical conflicts are disrupting supply chains, leading to a more competitive economic landscape as major powers vie for supremacy. This environment necessitates a reevaluation of how economies approach foreign investment and collaboration.

In his remarks, Gan identified three significant shifts indicating a major reorganization of the global economy. First, countries are reconfiguring alliances to align with geopolitically stable partners, resulting in concentrated investment flows. Second, global supply chains are being restructured to mitigate risks. Lastly, economic considerations are now weighed against national security imperatives, reshaping how countries operate within the global market.

As a small, open economy, Singapore must navigate these complexities while remaining committed to trade and investment. The proposed Significant Investments Review law is a critical step in addressing the challenges posed by an evolving landscape. Additionally, Gan emphasized the importance of expanding connectivity to both regional and international markets to enhance Singapore’s economic space.

The Minister also highlighted the necessity of supporting a rules-based global trading architecture. He stressed Singapore’s commitment to reinforcing key multilateral institutions, particularly in advocating for reforms in the World Trade Organization’s dispute-settlement system.

Gan pointed to sustainability and the digital economy as key areas ripe for cooperation, indicating that forging new collaboration methods is vital in responding to shifts in the global economic landscape. These strategic initiatives aim to bolster Singapore’s relevance as a global business hub while ensuring it remains competitive on both cost and quality fronts.

During the roundtable’s question-and-answer segment, attendees discussed various factors influencing Singapore’s economic strengths and the challenges of maintaining its competitive edge. The consensus underscored the importance of balancing the need for foreign talent with local innovation and a transformation in the manufacturing sector.