Singapore has designated nine entities, including ExxonMobil Asia Pacific and Shell Singapore, as “critical entities” under the Significant Investments Review Act, which came into effect on March 28, 2024. This law scrutinizes significant investments from local or foreign sources in entities deemed essential to Singapore’s national interests, filling gaps not addressed by existing regulations.

The designated companies include four units from ST Engineering, which is a major supplier of defence equipment to the Singapore government. The specific units affected are:

ST Engineering Land Systems
ST Engineering Defence Aviation Services
ST Engineering Marine
ST Engineering Digital Systems
Other entities designated include Sembcorp Specialised Construction and Singapore Refining Company, the latter being a joint venture between Singapore Petroleum Company and Chevron Singapore.

According to the regulations, these entities will face new ownership and control requirements, which necessitate government approval for any major changes in ownership. An ExxonMobil spokesperson acknowledged the intent of the Act and confirmed the company’s commitment to comply with its stipulations.

The Ministry of Trade and Industry stated that the list of designated companies would be reviewed periodically, and entities could be removed from the list if they no longer meet the criteria. In discussions regarding the Act, Minister Gan Kim Yong emphasized that critical functions related to national security would be a key factor in designating entities.

This marks the first group of companies identified under the new law, aimed at enhancing Singapore’s national security framework and investment landscape.