SINGAPORE Trends and Developments Contributed by: Terence Quek, Benjamin Cheong, Favian Tan and Rajesh Sreenivasan, Rajah & Tann Singapore
Singapore’s personal data protection legislation, the Personal Data Protection Act 2012, permits businesses to use personal data for AI innova- tion. The PDPC’s initiative is expected to reduce uncertainty and compliance costs for business- es while facilitating greater AI innovation in Sin- gapore. In June 2024, a consortium led by the Monetary Authority of Singapore (MAS) released an open-source toolkit to enable its responsible use in the financial industry. Chinese companies setting up regional headquarters in Singapore or listing on the Singapore Exchange Amid geopolitical tensions and regulatory uncertainties, an increasing number of Chinese companies are choosing to de-risk by estab- lishing their regional headquarters in Singapore or listing on the Singapore Exchange (SGX). Singapore’s stable political environment and well-established financial ecosystem makes it an attractive base for Chinese firms seeking to mitigate risks associated with their home mar- kets. This trend is particularly prevalent in the TMT sector, as the industry faces stricter regu- latory scrutiny and increasing trade challenges in both the United States and China. Setting up shop in Singapore not only provides Chinese companies with access to a robust legal and regulatory framework, but also positions them closer to new growth markets in SEA. By list- ing on the SGX, Chinese firms can demonstrate their commitment to robust corporate govern- ance measures and appeal to both regional and international investors. This trend is likely to drive an increase in M&A activity within the TMT sector in Singapore. As more Chinese firms enter the Singapore market, they are likely to pursue acquisitions of local or regional companies to accelerate their integra- tion and growth in SEA. By acquiring established
businesses, these companies can mitigate the challenges of operating in a new regulatory and cultural environment. Additionally, Singa- pore’s role as a hub for Chinese companies may attract interest from multinational corporations and investment firms seeking M&A opportuni- ties in the region. These global players are likely to acquire Chinese businesses headquartered in Singapore or listed on the SGX to tap into the SEA market’s growth potential. The rise of climate technology and electric vehicles In April 2024, Breakthrough Energy (BE; a climate organisation founded by Bill Gates), Temasek – a Singapore-based global investment firm – and Enterprise Singapore (EnterpriseSG; a Singa- pore government agency supporting enterprise growth) signed a memorandum of understand- ing to launch Breakthrough Energy Fellows in South-East Asia (BE Fellows – SEA). The BE Fellows programme is an initiative to support entrepreneurs and accelerate the development of early-stage, deep-tech climate technologies, aimed at substantially reducing greenhouse gas emissions and facilitating the achievement of global net-zero targets. The BE Fellows – SEA programme will be based in Singapore and backed by joint funding over the next three years. As the first BE Fellows hub outside the United States, the BE Fellows – SEA programme aims to foster start-up growth and support deep-tech climate innovation in Singapore and the wider SEA region. The BE Fellows – SEA programme is likely to increase the number of Singapore- based deep-tech climate startups working on cutting-edge technologies like carbon capture in the coming years. These startups could poten- tially increase M&A activity in the TMT sector in SEA by attracting investment from investors who
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