Written reply to PQ on risk management and corporate accountability of companies receiving EDB incentives

Question:

Mr Kenneth Tiong Boon Kiat: To ask the Deputy Prime Minister and Minister for Trade and Industry (a) whether EDB incentives currently require sign-off from both regional and global headquarters of recipient companies; (b) what mechanisms ensure continuity of commitments when regional executives rotate; and (c) whether the Ministry will consider requiring a global headquarters interlocutor as a condition for incentive approval to prevent orphaned projects. 

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

1.                  The Economic Development Board administers incentives to support companies undertaking substantive economic activities in Singapore. The incentive is awarded to the Singapore entity that will be carrying out the project and legally binds it to specified economic commitments. The award includes clawback provisions when commitments are not met. Personnel changes do not affect the company’s legal obligations under the incentive award.