In a significant move to bolster the resilience of its transport infrastructure, Singapore has enacted the Transport Sector (Critical Firms) Act, effective April 1, 2025. This new legislation introduces heightened regulatory oversight for 19 key transport entities, including major players such as Singapore Airlines (SIA), SBS Transit, and PSA Corporation. By implementing this framework, the government aims to safeguard against potential disruptions and malicious influences across the air, land, and sea transport sectors.
The Act designates 17 critical firms that provide essential transport services, alongside two entities with substantial equity interests in these firms. In the land transport sector, notable inclusions are SBS Transit Rail, SMRT TEL, and SMRT Trains. The air transport sector features entities like Changi Airport Group, SIA, and SIA Engineering Company, while the maritime sector includes PSA Corporation, PSA Marine, and Jurong Port. Under this new law, these firms are now required to seek government approval for any major changes in ownership and leadership, as well as to report events that could potentially impair their service provision.
Government Oversight and Intervention
A key aspect of the Transport Sector (Critical Firms) Act is the step-in powers granted to the Transport Minister. This authority allows intervention in extreme cases where essential services are at risk, although it is intended to be a last resort. The government is likely to engage with affected firms beforehand to mitigate potential issues, emphasizing a collaborative approach to maintaining operational integrity.
The Act complements the Significant Investments Review Act, enhancing Singapore’s ability to scrutinize investments that are critical to national security. This dual framework reflects the government’s proactive stance in protecting its critical infrastructure while ensuring that essential services remain reliable and uninterrupted.
Commitment to Safety and Reliability
Key stakeholders, including SIA and SMRT, have expressed their commitment to aligning with the new regulatory requirements. They emphasize the importance of collaboration with government authorities to uphold safety and reliability standards in their operations. The introduction of the Transport Sector (Critical Firms) Act underscores the strategic significance of transport entities within Singapore’s economic framework and the necessity for robust regulatory mechanisms to protect national interests.
In conclusion, the Transport Sector (Critical Firms) Act represents a decisive step by the Singapore government to fortify its transport infrastructure against potential threats. By ensuring continuity and stability in essential transport services, this legislation is poised to enhance the overall resilience of Singapore’s transport sectors, securing the nation’s economic and operational integrity for years to come.
