Singapore: Ministry of Transport introduces the Transport Sector (Critical Firms) Bill in Parliament

The Ministry of Transport launched the Transport Sector (Critical Firms) Bill in Parliament on Wednesday, an official release said. The Bill seeks to strengthen the resilience of key corporations in the air, sea and land transport sectors in Singapore, and safeguard their provision of important transport companies.

Four acts to be amended

The Bill will amend 4 Acts: the Bus Services Industry Act 2015, the Civil Aviation Authority of Singapore Act 2009, the Maritime and Port Authority of Singapore Act 1996, and the Rapid Transit Systems Act 1995.

Air, sea and land transport sectors type key pillars of the Singapore economic system. The COVID-19 pandemic has strengthened the significance of the nation’s air and sea hubs, which ensured the stream of important provides and stored Singapore related to the world. Many Singaporeans additionally depend on the state’s mass public transport system for protected and dependable every day commutes.

The Ministry of Transport and its statutory boards, the Civil Aviation Authority of Singapore (CAAS), the Maritime and Port Authority of Singapore (MPA), and the Land Transport Authority (LTA), have reviewed the countey’s sectoral laws to strengthen the resilience of key transport corporations by means of this Bill.

It enhances the Significant Investments Review Act that was handed in Parliament in January 2024, which seeks to strengthen the resilience of Singapore’s economic system and improve Singapore’s nationwide safety.

Key options of the invoice

Introduction of the designated entities regime:

The invoice units out a delegated entities regime, underneath which entities will be designated by the related authority (i.e. CAAS, MPA or LTA) underneath their respective sectoral laws if they’re key entities concerned in the provision of important transport companies in Singapore.

Such entities will both be designated as a “designated working entity” in the event that they immediately present important transport companies in Singapore, or a “designated fairness curiosity holder” in the event that they maintain fairness curiosity in a delegated working entity.

Entities designated underneath MOT’s sectoral laws will likely be topic to a focused set of controls over possession, administration appointments, and will likely be required to inform the respective sectoral statutory boards of adjustments in key operational and resourcing preparations. The designated entities won’t be concurrently designated underneath the Significant Investments Review Act 2024.

Ownership controls:

The Bill will introduce notification and approval obligations on patrons, sellers and the designated entities for specified adjustments in possession or management of these entities.

Controls over administration appointments:

The Bill can even introduce approval necessities for designated entities to nominate the chief govt officer and the chairperson of the board.

For a delegated working entity that can be a licensee underneath the related authority, the authority’s approval will likely be required for the appointment of the administrators of the board, in addition to the chief govt officer and the chairperson of the board.

Operations and resourcing controls:

Designated entities will likely be required to inform the related authority of occasions that would materially impede or impair the provision of important transport companies in Singapore. The related authorities will present advisory tips on these notification necessities after the invoice comes into drive.

In the excessive situation the place the designated working entity turns into unable to supply important transport companies safely and reliably, they could even be issued with a particular administration order by the minister, to make sure service continuity for residents.

Remedial instructions:

Remedial instructions could also be issued underneath particular circumstances. For instance, if prior approval was not sought or circumstances of approval weren’t complied with, the authority could direct the switch or disposal of fairness curiosity in designated entities, or the removing of key appointment holders.

Appeals:

The invoice will permit events to attraction to the Minister for Transport relating to choices by the related authority on designation and purposes for approval on possession or administration appointments.

Industry engagement

Industry representatives have been consulted on the invoice and its potential impression on companies and buyers in the air, sea and land transport sectors in Singapore. The related authorities will likely be approaching entities to be designated for engagement on compliance with the necessities of the invoice, if permitted by Parliament.