Singapore keeps investment screening rules as FDI hits record $197b

Investors must seek approval for specified ownership changes in nine designated entities.

Singapore aims to balance national security with minimising the impact on businesses and investors as it maintains screening requirements for investments in strategically important sectors, according to Dechert's FDI and National Security Review 2026.

As of 21 May 2026, nine entities across the defence, logistics, petrochemicals, public security, and technology sectors are designated under the Significant Investments Review Act (SIRA).

SIRA extends government oversight to critical entities not already covered by sector-specific legislation.

Under the legislation, investors must notify the government after acquiring a 5% stake in a designated entity and obtain approval before increasing their holdings to 12%, 25%, or 50%, becoming an indirect controller, or acquiring the business of a designated entity.

“The SIRA also grants the Minister for Trade and Industry (the Minister) ‘call-in’ powers to review ownership or control transactions (within a two-year period) involving any entity that has acted against Singapore’s national security interests, regardless of whether it has been designated,” the report said.

Singapore expanded its investment screening framework in April 2025 when the Transport Sector (Critical Firms) Act came into force, extending ownership and control screening to entities critical to the country’s air, sea, and land transport sectors.

In October 2025, Singapore clarified how equity interests held by bare trustees or lenders as collateral are treated when calculating controller thresholds under SIRA.

Foreign direct investment inflows into Singapore reached a record $197b in 2025, up from $182b in 2024 and $170b in 2023.

The US was the largest source of investment in 2025 with $35b, followed by the Netherlands ($18b), Ireland ($15b), mainland China ($14b), and the UK ($9b).

“The large majority of these investments arrived from the finance and insurance sector, followed by professional, administrative and support services; wholesale and retail trade; manufacturing; and information and communications,” the report said.