Tightening of the foreign investment review framework
01 Jan 2021
On 9 December 2020, the Parliament passed legislation to reform the Foreign Acquisitions and Takeovers Act of 1975. The reforms, in force as of 1 January 2021, makes the $0 monetary threshold for mandatory screening of investments in sensitive national security businesses, introduced as a temporary measure in March 2020, permanent. It requires foreign investors to:
- Seek approval for all investments in land or businesses (including starting such a business) that is sensitive to national security, regardless of value.
- Be subject to enhanced monitoring and investigation powers, as well as stronger and more flexible enforcement options and penalties.
- Continue bearing the costs of administering the foreign investment regime, under a reformed fee framework.
Guidance material to assist investors with the transition to the new system was published on the website of the Foreign Investment Review Board.
-
Type:
-
Entry and establishment (Approval and admission)
-
Industry:
-
Not industry specific
-
Manufacturing (Manufacture of chemicals and chemical products, Manufacture of computer, electronic and optical products, and electrical equipment, Other manufacturing)
-
Services (Electricity, gas, steam and air conditioning supply, Water supply, sewerage, waste management and remediation activities, Construction, Transportation and storage, Publishing, audiovisual and broadcasting activities, Real estate activities, Public administration and defence; compulsory social security)
-
Sources:
