Investment

ASTEP includes a high-quality Investment chapter which sets out clear rules based on international best practices. This will facilitate the increase in investment flows between Singapore and Chinese Taipei by seeking to remove barriers to market access. At the same time, investors and investments from Singapore and Chinese Taipei are ensured protection with a framework of disciplines which also recognizes and respects the right of both sides to regulate.

These disciplines, which are subject to exceptions listed in the Services-Investment schedules of ASTEP, include:

  • National Treatment: Singapore investors and investments in Chinese Taipei will be provided similar treatment to that of locals, and will not be discriminated in favour of local investors and investments “in like circumstances”.
  • Performance requirements: Foreign investors and investments within Chinese Taipei shall not be subject to a range of performance requirements that might distort trade and investment. This includes requirements to purchase goods produced in Chinese Taipei or to export a certain level of goods, prior to making an investment in Chinese Taipei.
  • Senior Management and Boards of Directors: Singapore investments in Chinese Taipei may not be required to appoint persons of a particular nationality/citizenship to senior management positions, or to appoint to the board of directors majority persons of a particular nationality/citizenship such that Singapore investors are unable to control the investment.

In addition, the chapter contains disciplines to ensure that Singapore investors and investments are protected by balanced rules such as:

  • Expropriation: Chinese Taipei can only expropriate or nationalize a Singapore investor’s property in Chinese Taipei for a public purpose, in a non-discriminatory manner, in accordance with due process and upon payment of compensation.
  • Compensation for Losses: Should Singapore investments suffer losses owing to war, armed conflict or other similar situations in Chinese Taipei, Singapore investors will be provided the same treatment that is given to locals or to other foreigners, whichever may be more favourable.
  • Transfers: Subject to specific exceptions, Singapore investors will be guaranteed free flow of capital in and out of Chinese Taipei.