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Singapore Transport Firms to be subjected to increased government scrutiny under new law

Singapore has designated 17 transportation companies as critical firms, subject to increased regulatory scrutiny. A new law that took effect on Tuesday aims to protect against extreme scenarios with "malicious" actors.

The Transport Sector (Critical Firms Act) would allow the government to tighten its control over major Singaporean firms in the air, sea and land transport sectors. It will also require approval for any key leadership changes or when a company gains more than 5% control.

Singapore Airlines, SIA Engineering Company, SATS (ground services handling firm), and SBS Transit (bus and rail operator) are among the companies listed on the Singapore Stock Exchange.

According to a law published in the Government Gazette, companies are also required to inform authorities about events such as lawsuits or insolvency which affect their ability to deliver essential services.

Included in the list of critical companies are Changi Airport Group (public transport operator SMRT Corporation), Jurong Port, PSA Marine, and other unlisted companies.

SBS Transit's chief executive Jeffrey Sim stated that the company would continue to work with authorities in order to comply with the law and "support efforts" to ensure the continuity and resilience Singapore's public transportation system.

Singapore Airlines' spokesperson confirmed that the company has noted the inclusion of the Act and will "be in compliance" with it.

SATS and SIA Engineering didn't immediately respond to comments.

In a speech to the parliament in May of last year, Transport minister Chee Hong Ta said that the law is designed to protect against future "extreme scenarios", where malicious actors gain control and negatively influence transport companies.

He said that the companies subject to the law are strategic firms with expertise and market share that cannot be easily replaced.

(source: Reuters)