SIA, SBS Transit, PSA among 19 key transport entities to face greater controls under new law

Source: Straits Times
Article Date: 02 Apr 2025
Author: Lee Nian Tjoe

Law to guard against adverse influences, major interruptions in services kicks in.

Bus operator SBS Transit, national carrier Singapore Airlines (SIA) and port operator PSA are among 19 key entities in the transport sector that will be subject to greater regulatory scrutiny under a law that came into force on April 1.

The Transport Sector (Critical Firms) Act gives the Government more control over key Singapore companies in the air, land and sea transport sectors to guard against adverse influences and major interruptions in essential transport services.

The list of designated entities was published in the Government Gazette on April 1.

The entities comprise 17 critical firms that provide essential transport services directly in Singapore, as well as two that hold equity interest in key transport firms here, meaning they have control or influence in decisions affecting the provision of essential transport services.

The law prepares Singapore for extreme scenarios and guards against the risk of malicious actors gaining control of and adversely influencing key transport entities here.

Among the 17 designated operating companies, five are from the land transport sector.

They are rail operators SBS Transit Rail, SMRT TEL and SMRT Trains, as well as bus companies SBS Transit and SMRT Buses.

In the air transport realm, nine companies will be designated.

They are airport operator Changi Airport Group (Singapore); SIA and its budget arm Scoot; aviation ground handlers and caterers Sats, Sats Airport Services, Sats Asia-Pacific Star and Sats Catering; aircraft maintenance, repair and overhaul provider SIA Engineering Company; and Changi Airport Fuel Hydrant Installation, which provides fuel storage and infrastructure at the airport.

PSA Corporation, PSA Marine and Jurong Port are the designated operating entities in the sea transport industry.

Public transport company SMRT Corporation and port operator PSA International are listed as designated equity interest holders.

The designation of these companies will be effective on April 15.

The new law empowers the Civil Aviation Authority of Singapore, Land Transport Authority, and Maritime and Port Authority of Singapore to apply relevant controls over these firms.

Designated entities have to notify the relevant authority and seek approval for major ownership and leadership changes.

These include the appointment of key positions such as chief executive, chairperson and board directors.

The firms must also keep the authorities informed of events that could materially impair the provision of essential transport services, such as a lawsuit or an insolvency.

The law also empowers the transport minister to step in during extreme cases when certain essential transport services cannot continue safely and reliably.

These powers apply to a wider range of companies than they did before.

Transport Minister Chee Hong Tat told Parliament in May 2024 that these step-in powers would be exercised only as a last resort, and it was likely that the authorities would already be in talks with the affected firm to find ways to improve the situation.

Should the powers be invoked, the minister will appoint those with the requisite competencies to manage the designated entity, he said.

Passed in Parliament in May 2024, the Transport Sector (Critical Firms) Act complements the Significant Investments Review Act, which allows Singapore to screen major investments in entities deemed critical to national security interests.

It was earlier reported that the legal amendments for the Transport Sector (Critical Firms) Act were set to take effect in the second half of 2024, and a list of designated entities would be drawn up by the end of 2024.

When asked why the law is coming into force only on April 1, a spokesperson for the Ministry of Transport said: “More time was needed for the development and drafting of subsidiary legislation to bring the Transport Sector (Critical Firms) Act into force.”

SIA and Scoot said they will be in compliance with the Act.

SMRT said it fully supports and is aligned with the roll-out of the Act, recognising its role as a “national strategic public transport company”.

Mr Lam Sheau Kai, president of SMRT Trains, and Mr Tan Peng Kuan, managing director of SMRT Buses, said: “We will continue to work closely with the Land Transport Authority and the Ministry of Transport to uphold the highest standards of safety and reliability in our operations.”

Mr Jeffrey Sim, group chief executive of SBS Transit, said the company already works closely with the authorities on key decisions, including senior appointments, and critical functional and financial control matters.

“We will continue to work with the authorities to align (ourselves) with the requirements of the Act,” he added.

A spokesperson for PSA Singapore declined comment.