Oral reply to PQs on Singapore’s approach to export controls

Questions

Mr Yip Hon Weng: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) how does the Ministry ensure that the ease of doing business in Singapore is not exploited by companies seeking to bypass US trade restrictions; and (b) whether the Ministry can provide an update on its assessment of the effects of the US chips export control rules on our semiconductor industry and the broader economy.

Ms Joan Pereira: To ask the Deputy Prime Minister and Minister for Trade and Industry whether there are measures in place to ensure that entities operating in Singapore are compliant with export controls and international laws in order to protect Singapore’s status as a well-respected international business hub.

Assoc Prof Jamus Jerome Lim: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) whether the Ministry is aware that Singapore will be placed under the new US AI export controls' Tier Two status; (b) whether it is a specific foreign policy objective of this Government to secure (i) the National Validated End-User status and (ii) Tier One reclassification under these controls; and (c) what specific technical and regulatory enhancements, if any, have been communicated by US counterparts as prerequisites for such status changes.

Assoc Prof Jamus Jerome Lim: To ask the Deputy Prime Minister and Minister for Trade and Industry in light of how US agencies have flagged Singapore as a hub for illicit chip transshipments to blacklisted Chinese AI firms (a) whether the Government is able to (i) disclose the foreign policy rationales behind its regulatory stance with regard to re-exports of such chips since 2023 and (ii) detail any or all inter-agency decisions that led to this situation; and (b) how does the Government intend to rectify any damage to Singapore’s credibility and ties with the US arising from such reports.

Oral Answer (to be attributed to Second Minister for Trade and Industry Dr Tan See Leng)

1. Mr Speaker, may I have your permission to answer Oral Questions Nos 3 to 6 on today’s Order Paper, filed by Members Mr Yip Hon Weng, Ms Joan Pereira, and Prof Jamus Lim, together please. These pertain to questions over US export controls, and Singapore’s approach to such measures. My response today will also cover a similar PQ that has been filed by Mr Mark Lee that has been scheduled for a subsequent sitting.

2. Singapore is a stable, trusted, reliable and well-connected international business hub.  Our economic competitiveness is based on our commitment to the rule of law, zero tolerance for corruption, transparent regulations and an open inclusive business environment. We have painstakingly built up this reputation over time. That is why we take firm and decisive action against individuals and companies that violate our laws. It is the foundation of our competitiveness.

3. Questions have been raised about Nvidia chips that were subject to US export controls. We are scrutinising this issue carefully and will continue to do so. So far, our checks indicate that physical delivery of products sold by Nvidia to Singapore represent less than 1% of Nvidia’s overall revenue. These are mainly deployed in Singapore for major enterprises and the Singapore government. We understand that the remainder of Nvidia’s revenue billed to business entities in Singapore did not involve physical shipments into Singapore. If a company in Singapore is engaged in deceptive or dishonest practices to evade export controls that it is subject to, we will investigate and take the appropriate action in accordance with Singapore laws. It is in our national interest to secure access to leading edge technology and to maintain the integrity of our business environment.

4. Within Singapore, the transfer and brokering of strategic goods and technology is governed by the Strategic Goods (Control) Act. This is a robust framework that is aligned with major multilateral export control regimes, including those imposed by the United Nations Security Council.

5. Outside of these multilateral regimes, countries sometimes impose unilateral export controls on specific items. The US’ export controls on advanced semiconductor chips are one example.

6. Under these rules, the US expects companies to ensure their business transactions adhere to their requirements, including doing the required KYCs on the buyers of the advanced semiconductor chips. While we currently do not have legal obligations to enforce the unilateral export controls of other countries, we expect all companies operating in Singapore to take into account such regulations if they apply to their international business activities. Their international business activities should be conducted transparently. We certainly do not condone businesses deliberately using their association with Singapore to circumvent or violate the export controls of other countries. At the operational level, Singapore Customs works closely with its foreign counterparts, including those from the US, to address their concerns and facilitate their investigations where appropriate, and to the extent our law permits. It is important to emphasise that this open, inclusive and transparent regulatory regime applies to all our trading partners.

7. Some members also had questions about the economic impact on Singapore arising from US controls on advanced semiconductor chips. There is limited impact in terms of our ability to manufacture and export chips. The US’ current technology controls are aimed at a narrow subset of advanced semiconductor chips, whereas Singapore’s semiconductor industry focuses on producing mature node chips which are used globally in appliances, automotives and industrial equipment.

8. However, in terms of access to advanced AI compute – for example Nvidia H100 Graphics Processing Units, or GPUs for short – the previous US Administration had introduced an Artificial Intelligence (AI) Diffusion Rule in January 2025 aimed at managing access to H100 or equivalent GPUs on a country-level basis. Singapore, like around 150 countries, has been classified as Tier Two. The details of the US AI Diffusion rule have not yet been finalised by the current US Administration, and the US has not communicated any specific requirements as prerequisites for changes to countries’ tiering classifications.

9. Our objective is to ensure adequate access to AI compute by both local and international companies with operations in Singapore. We will ensure that US-headquartered cloud hyperscalers can continue to operate in Singapore as Universal Verified End Users, and also support local companies that wish to apply to be National Verified End Users with access to AI compute.

10. In closing, I wish to assure Members that we will continue to work with companies based in Singapore to facilitate their access to advanced semiconductor chips and technologies from all the major source countries. We will also continue to engage the US Administration to address their concerns.