Investment  
     
 

SAFTA's investment related provisions will increase Singapore's attractiveness as an investment location to Australian companies. The chapter focuses on two key elements, comprising provisions on (i) investment promotion and (ii) investment protection.

Investors who can benefit from this chapter are also not limited to nationals of Singapore or companies owned by Singaporeans but include permanent residents and enterprises with substantive business operations in Singapore. 

The main features are as follows:

i. The benefits extend to investors who are nationals or permanent residents of Australia and Singapore and enterprises that are owned or controlled by them.
ii. The chapter includes both traditional investment instruments, such as stocks and equities, as well as intellectual property rights, debt instruments and rights conferred by licenses and permits.
iii. Both countries cannot discriminate the other country's investors vis-à-vis their own investors.  This means that a Singapore investor will enjoy the same treatment that Australia gives to its own nationals except for a number of industries where Australia has taken reservations.
iv. The chapter also covers expropriation and compensations. Both parties cannot unduly expropriate investments unless the expropriation is premised on public purposes as defined in the Agreement.  In the event that such expropriation occurs, the governments are required to afford compensation for the expropriated investment.
v. Both countries will allow the investors to freely repatriate and transfer funds related to their investments. This could include capital, profits, dividends and royalties.
vi. The chapter provides investors greater confidence in investing since both countries have committed to allowing investors from either country, aggrieved of government actions that violate their benefits under this chapter, to take the dispute to an international arbitration tribunal for resolution.

Foreign investments of more than A$50 million require the prior approval of the Australia's Foreign Investment Review Board (FIRB).  Foreign investments will be denied approval if they are assessed to be detrimental to Australia's national interest.  Australia has set up a designated help desk to assist Singapore companies with issues relating to the national interest and information required for their investment application.