SINGAPORE Law and Practice Contributed by: Terence Quek, Benjamin Cheong, Hoon Chi Tern and Favian Tan, Rajah & Tann Singapore
7. Overview of Regulatory Requirements 7.1 Regulations Applicable to a Technology Company
Competition law concerns relating to the Com- petition Act 2004 of Singapore are regulated by the CCCS, and the MAS administers the Secu- rities and Futures Act 2001 of Singapore (the “Securities and Futures Act”). Furthermore, depending on the industry in which the target company operates, it may be necessary to obtain the approval of the relevant government agencies – given that statutes may limit or require prior regulatory approval for share ownership in certain regulated companies (eg, those in the insurance, media, banking and finance industries). 7.3 Restrictions on Foreign Investments There are generally no restrictions on foreign investment – except in certain regulated sectors (see 7.1 Regulations Applicable to a Technol- ogy Company ) – that limit or require prior regu- latory approval for control or share ownership in regulated companies, especially where these companies are critical to national interests. There is generally no requirement to register or report: • the investment of foreign capital; • foreign loans; or • foreign technology agreements. 7.4 National Security Review/Export Control The Significant Investments Review Act 2024 (SIRA) and its related subsidiary legislation, the Significant Investments Review Regulations 2024 and the Significant Investments Review (Reviewing Tribunal) Rules 2024, came into force on 28 March 2024. SIRA sets out a new invest- ment regime to regulate significant investments, both local and foreign, into entities that are criti- cal to Singapore’s national security interests.
There are generally no requirements to incorpo- rate and operate a technology company. How- ever, licensing requirements would be relevant if the company is involved in specified industries. Some of the more common industries and rel- evant regulatory bodies that companies in the technology sector typically encounter are: • financial services (including electronic money (or e-money), account issuance money trans- fer, digital payment tokens, money-changing and capital markets services) – MAS; • insurance (including direct insurance, reinsur- ance, general insurance and insurance brok- ing) – MAS; • telecommunications (including internet access, mobile networks and web hosting) – Infocomm Media Development Authority; • broadcasting – Infocomm Media Develop- ment Authority; • food and agriculture – Singapore Food Agency (SFA); and • life sciences and healthcare – HSA. The length of time needed to obtain a licence varies widely across the various regulatory bod- ies and depends on the nature of the licence sought. 7.2 Primary Securities Market Regulators The SIC is the regulator that supervises takeo- vers and mergers of public companies, as well as the Takeover Code. The SGX administers the listing rules applicable to public companies.
308 CHAMBERS.COM
Powered by FlippingBook