Written reply to PQ on protecting Singapore-domiciled companies from foreign regulatory overreach and preserving Singapore's neutral business hub reputation

Question:

Mr Yip Hon Weng: To ask the Deputy Prime Minister and Minister for Trade and Industry (Trade) (a) what is the threshold at which the extraterritorial application of foreign laws on Singapore-domiciled companies infringes upon Singapore's sovereignty; (b) what legal frameworks protect these entities from foreign regulatory overreach; and (c) how does the Government ensure such incidents do not undermine Singapore's reputation as a neutral business hub.

Written Answer by Deputy Prime Minister and Minister for Trade and Industry (Trade) Mr Gan Kim Yong

1.           States can enact laws to regulate extraterritorial conduct in accordance with accepted principles of international law. However, a State cannot enforce its laws within another State's territory without the other State's consent. If a State enforces its laws in Singapore without our consent, it will be a breach of our sovereignty. Singapore's reputation as a trusted global business hub rests on our commitment to the rule of law, zero tolerance for corruption, regulatory transparency, and an open and inclusive business environment. 

2.           We recognise that foreign laws with extraterritorial effect may impact Singapore-domiciled companies. We expect Singapore-domiciled businesses and companies to adhere to relevant laws of the jurisdictions in which they operate. We also work closely with foreign counterparts to address their concerns and facilitate their investigations where appropriate and in accordance with our domestic laws. This principled and consistent approach is what makes Singapore a trusted partner to both countries and companies.