Workers’ Party MPs stress the need for stronger corporate governance to protect Singapore’s reputation from misuse by foreign entities.
SINGAPORE: Workers’ Party MPs Louis Chua and Jamus Lim have raised concerns in Parliament about “Singapore washing,” a term describing how Chinese companies relocate or register in Singapore to mitigate tensions between the U.S. and China. This practice often aims to obscure these companies’ links to China and leverage Singapore’s strong global reputation.
In a speech on the ACRA (Amendments) Bill, Associate Professor Lim from Sengkang GRC emphasized the importance of maintaining Singapore’s hard-earned reputation for sound corporate regulation.
“We should also not allow the world to think that an easy business environment also means a permissive one,” he said. “Such a mindset will undermine our hard-won brand name, and eventually come back to bite us.”
FOCUS ON FINANCIAL CRIMES
MP Louis Chua cited the S$3 billion money laundering case from 2023 as a critical example of the risks posed by lax regulatory frameworks. He warned that financial criminals could exploit Singapore as a transition hub or base for illicit activities.
Speaking on the Corporate Service Providers Bill, Mr. Chua called for stricter training requirements for nominee directors, enhanced corporate governance standards, and robust measures to combat money laundering. He urged the government to err on the side of caution in tightening regulations, reinforcing Singapore’s stance as a reliable and secure financial hub.
“SINGAPORE WASHING” IN GLOBAL FOCUS
The term “Singapore washing” gained attention in 2022, when the Financial Times highlighted cases such as Shein and Cue moving their headquarters to Singapore amid growing U.S.-China tensions. The phenomenon has since drawn global scrutiny, with coverage in Bloomberg, The Japan Times, and Voice of America in 2024.
Both MPs stressed the importance of protecting Singapore’s reputation by ensuring regulatory standards are not diluted.
“When it comes to our commitment to tackling money laundering and illegal activities, we need to take a clear and strong stand,” Mr. Chua said. “Examining the sector with a fine-tooth comb will ensure legitimate businesses can confidently operate in Singapore.”
Their remarks have drawn praise online, with many Singaporeans commending the MPs for addressing these complex and critical issues.
