SINGAPORE Trends and Developments Contributed by: Monica Yip and Dorothy Marie Ng, WongPartnership
performance requirements, the new MEI regime will apply to existing buildings which are desig - nated as energy-intensive. Property owners of, or industry players intending to acquire exist - ing buildings must now consider whether such buildings might be subject to the MEI require - ment and whether they will have to comply with the Bill. Significant Investments Review Act The Significant Investments Review Act 2024 (SIRA) came into force on 28 March 2024. The purpose of SIRA is to put in place a regime to review and regulate potential investments into critical entities with a view to protecting Singa - pore’s national security. Under the SIRA, certain entities (which are formed or which carry on activities or business or which provide goods or services in Singapore) may be designated as being subject to restrictions on investment, own - ership and control ( “designated entity” ). The list of designated entities is published in the Gov - ernment Gazette. When deciding which entities should be considered a designated entity, one factor that may be considered is whether the entity provides a critical function in relation to Singapore’s national security interests. Where there is a proposed change in owner - ship and control of a designated entity, certain approvals and notification requirements apply to buyers, sellers and such designated entities, some salient examples of which are as follows. Approvals Investors and acquirors of designated entities require Minister approval before: • an existing investor ceases to be a 50% or 75% controller; • a potential investor or acquiror becomes a 12%, 25% or 50% controller;
• a potential investor or acquiror becomes an indirect controller; or • acquiring, as a business concern, any part of the business or undertaking of a designated entity (such approval to be sought together with the relevant designated entity). Designated entities require Minister approval or consent before: • the appointment of any new key personnel; • voluntarily winding up, dissolving or terminat - ing the entity; • making any judicial management order; or • appointing any (interim) judicial manager. Notification requirements Investors and acquirors of designated entities are required to notify the relevant Minister within seven calendar days after becoming a 5% con - troller. Designated entities are required to notify the rel - evant Minister: • within seven calendar days after becoming aware of a change in ownership or control; • within 14 calendar days in advance if steps are taken to enforce any security over the property of a designated entity; and • 14 calendar days in advance if steps are taken to execute or enforce any judgment, or order of court obtained against the desig - nated entity. The Office of Significant Investments Review (OSIR) has been established to administer and operationalise the SIRA. Stakeholders such as businesses or investors may reach out to OSIR for any informal or pre-transaction enquiries that they may have.
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