18-2-2025 (SINGAPORE) In response to mounting concerns over potential circumvention of US export restrictions on advanced semiconductor chips, Singapore’s government has firmly stated its position against businesses exploiting their ties to the city-state for regulatory evasion.
Second Minister for Trade and Industry Dr Tan See Leng addressed Parliament on Tuesday, emphasising that whilst Singapore is not legally bound to enforce unilateral export controls imposed by other nations, it expects businesses operating within its jurisdiction to conduct their international activities with complete transparency.
The parliamentary session was prompted by recent reports suggesting Singapore-based intermediaries were involved in the illegal transfer of Nvidia chips to China. Dr Tan revealed that physical deliveries of Nvidia products to Singapore constitute less than 1% of the company’s total revenue, primarily serving local enterprises and government entities.
This clarification comes amid scrutiny over Singapore’s role in Nvidia’s financial reporting, where the country appears as the second-largest revenue source after the United States, accounting for approximately 22% of the company’s quarterly earnings. Dr Tan explained this discrepancy, noting that the figure reflects billing locations rather than physical delivery destinations, a common practice among global corporations operating regional hubs.
Foreign Affairs Minister Dr Vivian Balakrishnan reinforced Singapore’s stance, acknowledging the nation’s unique position as a global trade hub whilst emphasising its commitment to maintaining integrity. “We will not allow companies to use their association with us to engage in deceptive or evasive measures,” he stated, highlighting Singapore’s willingness to cooperate with international partners on investigations when necessary.
The discussion also touched upon Singapore’s classification as a Tier Two country under proposed US AI export controls, a framework creating three levels of access to AI technology. Dr Tan indicated that Singapore aims to ensure “adequate access” to AI computing resources for both local and international companies, whilst maintaining ongoing dialogue with US authorities.
Under Singapore law, the Strategic Goods (Control) Act governs the transfer of strategic goods and technology, aligning with major multilateral export control regimes. However, US restrictions on advanced semiconductor chips fall outside these multilateral frameworks.
The government maintains that current US technology controls have limited impact on Singapore’s semiconductor industry, which primarily focuses on mature node chip production for global automotive, industrial, and consumer applications.
