IE Singapore launches Political Risk Insurance Scheme

This will aid Singapore-based firms when they go global.

International Enterprise Singapore launched its Political Risk Insurance Scheme to help Singapore-based companies protect their projects and investments from political risk as they internationalise. IE Singapore will potentially support up to S$2 billion worth of overseas investments by Singapore companies over the next three years. The scheme covers up to 50% of the premium for a company’s political risk insurance policy.

An IE Singapore announcement said political risk insurance is a useful risk mitigation tool, especially in emerging markets where political risk is a significant challenge for foreign investors. “Currently, two-thirds of overseas projects by Singapore companies that IE Singapore works with take place in emerging markets, including China, Southeast Asia and the Middle East,” said the release.

With PRI, according to IE Singapore, companies will be able to: i. protect against sudden political disruptions that could impact their operations or erode the value of their investments; and ii. unlock access to financing as PRI gives lenders assurance that the impact of political uncertainties for a project or investment has been mitigated.

Meanwhile IE Singapore will be targeting companies involved in infrastructure projects in the energy, water, oil & gas and telecommunications sectors, as well as those with mid- to long-term investments into overseas markets.