SINGAPORE Law and Practice Contributed by: Renu Menon, May Ng, Blossom Hing, SC and Ong Ken Loon, Drew & Napier LLC
pore’s commitment to sustainability goals under the Singapore Green Plan 2030. The global push for digitalisation and the rapid advancement of artificial intelligence have been major catalysts for the exponential growth of data centres across Southeast Asia in recent years. In 2025, sev- eral large-scale data centre financings have been announced within the region, including the landmark SGD2.25 billion green loan secured by data centre specialist, AirTrunk, in Singapore to support the devel- opment of a new hyperscale data centre in Loyang, Singapore. Southeast Asia’s data centre demand is projected to grow rapidly through 2030, and this strong momentum is expected to continue driving activity in the project finance space within the region. 8.2 Public-Private Partnership Transactions PPPs are governed primarily by the Public Sector (Governance) Act 2018 and the Public Private Part- nership (PPP) Handbook issued by the Ministry of Finance. These frameworks facilitate collaboration between the government and private entities, par- ticularly in infrastructure and service delivery projects. Key sectors for PPPs include transport, healthcare, and urban development. The Building and Construc- tion Authority and Land Transport Authority often oversee relevant projects, ensuring they align with national goals. However, obstacles such as the complex procurement process may deter private investment. Additionally, regulatory compliance and risk allocation are criti- cal considerations; potential investors must navigate legal frameworks to address liabilities and financ- ing structures. Lastly, the goals of the public sector and private sectors may diverge, and PPPs may face agency problems, which could result in opportunistic behaviours by the participants arising from conflicts of interest. The Singapore government actively promotes PPPs, but challenges can arise due to differing interests between public and private sectors. Ongoing dia- logue and adjustments to the regulatory landscape are essential to enhance the effectiveness of PPPs and attract investment, particularly as Singapore aims for
sustainable development and infrastructure improve- ment. 8.3 Governing Law In Singapore, project documents such as construction contracts, power purchase agreements, and offtake contracts are not strictly required to be governed by local law. Parties may choose the governing law of their contracts, including English or New York law. This choice is generally respected under Singapore law so long as the choice is bona fide and not contrary to public policy. While there are generally no restrictions on the sub- stantive choice of law, it is common for construction contracts for local projects with no international ele- ment to be governed by Singapore law. It is also not uncommon for construction contracts with interna- tional elements carried out in Singapore to be gov- erned by Singapore law. Regarding dispute resolution, international arbitration is widely accepted and promoted in Singapore, par- ticularly due to its robust legal framework and arbitra- tion-friendly environment. The Singapore International Arbitration Centre is a popular venue for arbitration. The governing law and dispute resolution provisions should be clearly articulated in the contracts to avoid potential challenges. Parties may opt for interna- tional arbitration regardless of the governing law they choose. 8.4 Foreign Ownership In Singapore, there are certain restrictions regarding foreign ownership of real property, including surface and subsurface rights, as well as water rights. Foreign Ownership of Real Property Land Titles Act Under the Land Titles Act 1993, foreign entities may require approval to acquire certain types of real estate. For instance, the Residential Property Act 1976 gener- ally restricts foreign ownership, allowing foreigners to buy private residential properties only with approval from the Minister for Law.
525 CHAMBERS.COM
Powered by FlippingBook