SINGAPORE LAW AND PRACTICE Contributed by: Jeffrey Lim, Daniel Lim, Frederick Tay, Genevi Lim, Lakshmanan Anbarazan, Sarah Lai, Stephanie Goh and Tobias Andreas Satria, Joyce A. Tan & Partners LLC
2. Recent Developments and Market Trends 2.1 Current Economic, Political and Business Climate Current Economic/Political/Business Climate and the Near-Term Outlook in Singapore The economic, political, and business climate in Sin - gapore is stable and generally positive, though the near-term outlook for 2026 is tempered by global uncertainties, potential trade conflicts and fluctuat - ing tariffs imposed under the current administration in the USA which may affect businesses in Singapore. Regardless, Singapore remains a highly attractive destination for FDI due to its strong fundamentals, including political stability, a pro-business environ - ment, and strategic regional hub status. Recent Developments in the Regulation of FDI in Singapore Singapore has a robust anti-money laundering and countering financing of terrorism (AML/CFT) regime made up of several disparate pieces of legislation and regulations, comprising those which apply generally to all persons and those which apply only to specific regulated sectors, such as financial institutions. MAS has undertaken regulatory actions against nine finan - cial institutions (FIs) and a number of individuals for anti-money laundering-related breaches imposing composition penalties amounting to SGD27.45 mil - lion in total on nine FIs for breaches of MAS’ AML/ CFT requirements in relation to the case. The crack - down serves as a caution for businesses that while FDI is accessible and attractive in Singapore, AML/ CFT requirements should be closely adhered to. More recently, the U.S. Treasury Department sanc - tioned several Singapore-registered firms and indi - viduals in late 2025 for alleged ties to a Cambodian tycoon accused of masterminding large-scale cyber - crime networks. This case highlights the potential reputational and operational risks for FDI in Singapore entities, even if formal action or enforcement is not taken domestically. In 2024, MAS published its National Anti-Money Laun - dering Strategy, which outlines Singapore’s strategic approach to address money laundering risks. Singa -
(d) the Intellectual Property Office of Singapore (IPOS); see 11. Intellectual Property and Data Protection for more information; • in relation to finance-related business: (a) the Monetary Authority of Singapore Act 1970; and (b) the Monetary Authority of Singapore (MAS); • in relation to taxation: (a) the Income Tax Act 1947; (b) the Goods and Services Tax Act 1993; and (c) the Inland Revenue Authority of Singapore (IRAS); see 9. Tax for more information; • in relation to data protection: (a) the Personal Data Protection Act 2012 (PDPA); and (b) the Personal Data Protection Commission (PDPC); see 10. Employment and Labour for more information. 1.2 Regulatory Framework for FDI Singapore has historically promoted FDI through an open investment policy and various incentives. While there was no specific legislation governing inbound FDI solely based on its foreign origin, certain sec - tors, such as media and broadcasting, have long had restrictions. More recently, the Significant Investments Review Act 2024 (SIRA) has introduced new regulations. SIRA oversees significant investments, from both local and foreign sources, into entities designated as critical to Singapore’s national security. Investors in these “Des - ignated Entities” must now follow specific notification and approval procedures for changes in ownership and control. For instance, an investor must notify the Minister for Trade and Industry upon reaching a 5% stake and must seek prior approval to increase their control to 12%, 25%, or 50%. Approval is also required for acquiring indirect control or the business of a Designated Entity. For more information, see 7. Foreign Investment/ National Security .
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