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The investment chapter under the PSFTA aims to foster an open environment for cross-border investment, minimize restrictions, strengthen protection of investments and provide access to each other's markets.
The key features are as follows:
| (a) |
Ensures investors coverage of the entire lifespan of investments from pre-establishment to sale. |
| (b) |
Deems that all investment sectors in Panama as open to Singapore investors unless otherwise listed in the Annexes. |
| (c) |
Contains safeguards against unreasonable expropriation by both the governments of Singapore and Panama. In the event of an expropriation, investors will be entitled to compensation. |
| (d) |
Should an aggrieved investor who has suffered losses feel that the Panama or Singapore government has acted in breach of its obligations under the PSFTA, it can take the Panama or Singapore government to an international arbitration tribunal. |
| (e) |
Agree not to impose a list of restrictive conditions ("performance requirements") relating to the establishment and management of investments, as well as to the granting of incentives. |
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