FAQs: Powers where Any Entity has Acted against National Security Interests

The Significant Investments Review Act (SIRA) applies to entities that are not designated, but only when the following two criteria are met:

• The entity has acted against Singapore’s national security interests; and 

• There has been a transaction which resulted in changes to the entity’s ownership or control within the two years prior to the above-mentioned action by the entity against our national security interests. 

Currently, there are already existing laws to deal with egregious acts against national security. For example, under the Insolvency, Restructuring and Dissolution Act, the Court may order the winding up of a company if it is being used against Singapore’s national security.  However, winding up an entity could affect the continued provisioning of its functions, and may not be the desired outcome.

The powers under SIRA provide an alternative approach to winding up the company. 

Following the review of the transaction, a range of directions may be issued, such as directing the transacting party to transfer or dispose of his equity interest in the entity or directing the entity to restrict disclosure of confidential information to any person.

The two-year time bar seeks to strike a balance between providing a sufficient runway to commence a review under the Significant Investments Review Act if a national security incident occurs after an ownership or control transaction has occurred, while giving investors certainty as to when transactions would no longer be subject to such powers.

This does not prevent actions which may be brought under separate legislation, such as the Insolvency, Restructuring & Dissolution Act.