Singapore launches public consultation on the Cybersecurity (Amendment) Bill

19 Dec 2023

On 15 December 2023, the Cyber Security Agency of Singapore (“CSA”) launched a public consultation to seek feedback on the Cybersecurity (Amendment) Bill (the “Bill”). The public consultation will end on 15 January 2024.

The Cybersecurity Act 2018 (“CA”) sets out the legal framework for the oversight and maintenance of national cybersecurity in Singapore. In light of the adoption of new technological tools and business models, such as cloud computing, the CSA is proposing amendments to the CA to ensure that Singapore’s cybersecurity laws remain fit-for-purpose to address the emerging challenges in cyberspace.

The key points of the proposed Bill that may potentially affect you are as follows:
 

A. What are the key changes in the proposed Bill?
  • Expands the scope of the CA to cover situations where the provider does not own and control the critical information infrastructure (“CII”) used for the continuous delivery of the essential services they are responsible for (i.e., non-provider-owned CII) The provider of essential services will be required to obtain legally binding commitments from their computing vendors / the owners of the non-provider-owned CII.
  • Widens oversight of the Commissioner of Cybersecurity (the “Commissioner”) beyond CII owners to also include major foundational digital infrastructure service providers, entities of special cybersecurity interest and owners of systems of temporary cybersecurity concern.  
  • Enhances regulatory powers of the Commissioner by, for example, expanding the types of incidents to be reported to the Commissioner and granting the Commissioner the power to authorise the conduct of on-site inspections. 
B. Why are these changes being made?  

As Singapore continues to digitalise, there is an increased risk of cyber attacks. Given the potentially pervasive knock-on impact that disruptions to the functioning of digital infrastructure can have on essential services, it is important to ensure that there are necessary safeguards put in place, so that Singaporeans and businesses can embrace digitalisation with confidence.

C. Whom does it affect? Does the service I am providing fall under the new provisions? What are my obligations?  

We have set out 5 types of entities who are intended to be affected by the proposed amendments.
 
In general, all of the above entities below will be required to adhere to cybersecurity standards of practice, report cybersecurity incidents to CSA, and comply with directions issued by the Commission to ensure the cybersecurity of specific computer systems under their charge. For specific obligations for each type of entity, please see the Annex below.
 
Entity What are my obligations?
If the computer/computer system you use is designated as CII
(1) Non-provider-owned CII
 
Providers of essential service who do not own the CII they use, but use CII owned by a computing vendor, and the provider is designated by the Commissioner as a “provider of an essential service responsible for the cybersecurity of non-provider-owned critical information infrastructure” under section 18AA
 
  • New obligations in Part 3A (see more in Scenario 1 in the Annex below)
(2) Provider-owned CII
 
Providers of essential services who own the CII they use, and the CII is designated by the Commissioner under section 7 as “provider-owned critical information infrastructure”
  • New incident reporting obligations under Part 3 (see more in Scenario 2 in the Annex below)
If the computer/computer system you use is not designated as CII under section 7 or new section 18AA, it may still fall within one of the 3 categories below
(3) Major FDI service providers (in particular cloud computing service providers and data centre facility service providers)
 
Providers of “foundational digital infrastructure services”[1], where the provider is designated as a “major FDI service provider”.
 
You may be designated as a major FDI service provider if the Commissioner is satisfied that you provide an FDI service to or from Singapore, and the loss or impairment of the provision of the FDI service will lead to or cause disruption to a large number of businesses or organisations that rely on or are enabled by the FDI service.
 
[1] “Foundational digital infrastructure services” are services that promote the availability, latency, throughput or security of digital services, and have been specified in the Third Schedule to the Act:
  1. Providing a cloud computing service, meaning a service, delivered from a computer or computer system in Singapore or outside Singapore, that enable on-demand administration and broad remote access to a scalable and elastic pool of shareable computing resources, including where such resources are distributed across several locations; or  
  2. Providing a data centre facility service, meaning any service which relies on a computer or computer system in Singapore to facilitate data storage, processing and transmission by another person through the centralised accommodation, interconnection and operation of one or more computers or computer systems, encompassed within a facility in Singapore dedicated to that purpose, which —
    1. includes a service to host that other person’s computers or computer systems within the facility; and
    2. excludes a service provided from a facility which is owned by the sole party using the service.
  • New obligations under Part 3B (see more in Scenario 3 in the Annex below)
(4) Entities of special cybersecurity interest
 
An entity (body corporate, unincorporated association, partnership or a person other than an individual) designated as an “entity of special cybersecurity interest” (ESCI).
 
You may be designated as an ESCI if the Commissioner is satisfied that you store sensitive information, or if you use computers/computer systems to perform a function which, if disrupted, will have a significant detrimental effect on the defence, foreign relations, economy, public health, public safety or public order of Singapore.
  • New obligations under Part 3C (see more in Scenario 4 in the Annex below)
(5) Owners of systems of temporary cybersecurity concern
 
If you are the owner of a computer or computer system designated as a “system of temporary cybersecurity concern” (STCC).
 
Your computer or computer system (located wholly or partly in Singapore) may be designated as an STCC if the Commissioner is satisfied that the risk of a cyber-attack on the computer or computer system is high and the loss or compromise of the computer or compute system will have a serious detrimental effect on the national security, defence, foreign relations, economy, public health, public safety or public order of Singapore.
 
Examples of STCC would be systems set up specifically to support high-key international events in Singapore (e.g. the World Economic Forum), or systems set up to support the distribution of vaccines during the COVID-19 pandemic.
 
  • New obligations under Part 3D (see more in Scenario 5, in the Annex below)
D. What are the penalties for non-compliance?  

In the event of any non-compliance with the amended law, this may invite a fine of up to $100,000 or to imprisonment for a term not exceeding 2 years or to both and, in the case of a continuing offence, to a further fine not exceeding $5,000 for every day or part of a day during which the offence continues after conviction.
 
As an example, such a penalty would be applicable where the provider of the essential service (who is not the owner of the CII) fails to obtain the required commitments from the owner of the non-provider-owned CII, and the provider of the essential service, without reasonable excuse, thereafter fails to comply with the Commissioner’s order to cease the use of the non-provider-owned CII. 
 
The CSA is also contemplating financial penalties in lieu of fines/imprisonment in relation to major FDI service providers or persons designated as an entity of special cybersecurity interest. The financial penalties are presently under review and will be set out in a future version of the Bill. The CSA has indicated that the financial penalties will be (a) commensurate with the risks resulting from non-compliance and (b) an effective deterrent against non-compliance.

E. What are my next steps before the legislation comes into force?  

For your reference, please click here to access Public Consultations Paper on the Cybersecurity Amendment Bill, and click here to access Draft Cybersecurity (Amendment) Bill 2023.
 
If you intend to provide any feedback in relation to the proposed amendments to the CA, such feedback must be submitted no later than 5pm (SGT) on 15 January 2024.

We will continue to closely monitor developments in this area, and you can expect more detailed updates from us shortly in due course.
 
Please do not hesitate to contact any members of our Data Protection, Privacy and Cybersecurity Practice if you require more information about the proposed amendments and how they may impact your business operations, or if you require our assistance in drafting any feedback or representations to the CSA.

Annex

Scenario 1: If you are a provider of essential services who does not own the CII you use, but use CII owned by a computing vendor (i.e. “non-provider-owned CII”)
  • If you are a provider of essential services that use CII from a computing vendor and do not own the CII yourself, new Part 3A of the Act imposes duties on you, such as to:
    • (a) Provide the Commissioner with information on the non-provider-owned CII (new section 18AE) – non-compliance is an offence
    • (b) Comply with any codes of practice, standards of performance or written directions in relation to providers responsible for the non-provider-owned CII as may be issued by the Commissioner (new sections 18AF and 18AG) – non-compliance is an offence in certain circumstances
    • (c) Notify the Commissioner of any change in the beneficial or legal ownership of the non-provider-owned CII (new section 18AH) – non-compliance is an offence
    • (d) Notify the Commissioner of any prescribed cybersecurity incident involving the non-provider-owned CII (new section 18AI) – non-compliance is an offence 
    • (e) Cause regular audits of the adherence of the non-provider-owned CII with the Act, codes of practice and standards of performance, to be carried out by an auditor approved by the Commissioner (new section 18AJ) – non-compliance is an offence
    • (f) Cause regular cybersecurity risk assessments of the non-provider-owned CII to be carried out (new section 18AJ) – non-compliance is an offence; and
    • (g) Participate in cybersecurity exercises relating to the providers responsible for non-provider-owned CII as required by the Commissioner (new section 18AL) – non-compliance is an offence. 
  • You (as provider of the essential service) must obtain legally binding commitments from the computing vendor to ensure that you are able to discharge your duties under the Act. For more details, see new sections 18AE, 18AI and 18AJ. 
Scenario 2: If you are a provider of essential services and own the CII you use (i.e. provider-owned CII) 
  • Existing section 14 of the Act is amended to expand the types of incidents to be reported to the Commissioner, so that it also includes:
    • (a) prescribed cybersecurity incidents in respect of any other computer or computer system under the owner’s control that does not fall within section 14(1)(b) of the Act [note: section 14(1)(b) covers a prescribed cybersecurity incident in respect of any computer or computer system under the owner’s control that is interconnected with or that communicates with the critical information infrastructure]
    • (b) prescribed cybersecurity incidents in respect of any computers or computer systems under the control of a supplier to the owner that is interconnected with or communicates with the provider-owned CII. 
  • Section 7 of the Act has also been amended to ensure that providers of essential services located in Singapore cannot avoid their duties under Part 3 of the Act by offshoring their CII. Therefore, please note that there is a potential for any computer or computer system that you own that is located wholly outside Singapore to also be designated as a provider-owned CII for the purposes of the Act. 
Scenario 3: If you are designated as a major FDI service provider 
  • If you are designated as a major FDI service provider, new Part 3B of the Act imposes duties on you, such as to:
    • (a) Provide the Commissioner with information related to the cybersecurity of the major FDI (new section 18BF) – non-compliance may result in financial penalties
    • (b) Comply with any codes of practice, standards of performance or written directions in relation to the major FDI that may be issued or approved by the Commissioner (new sections 18BG and 18BH) [operational details to be released later] – non-compliance may result in financial penalties;
    • (c) Notify the Commissioner of any prescribed cybersecurity incident [operational details to be released later], where:
      • The incident results in a disruption or degradation to the continuous delivery of the FDI service it provides in Singapore; or
      • The incident has a significant impact on the major FDI provider’s business operations in Singapore
                      (new section 18BI – non-compliance may result in financial penalties). 

Scenario 4: If you are designated as an entity of special cybersecurity interest (ESCI) 
  • If you are designated as an ESCI, new Part 3C of the Act imposes duties on you, such as to:
    • (a) Provide the Commissioner with information on the system of special cybersecurity interest (new section 18CF) – non-compliance may result in financial penalties;
    • (b) Comply with any codes of practice, standards of performance or written directions in relation to the system of special cybersecurity interest that may be issued by the Commissioner (new sections 18CG and 18CH) – non-compliance may result in financial penalties;
    • (c) Notify the Commissioner of any prescribed cybersecurity incident [operational details to be released later], where:
      • The incident results in a breach of the availability, confidentiality or integrity of the ESCI’s data; or
      • The incident has a significant impact on the business operations of the ESCI
                       (new section 18CI – non-compliance may result in financial penalties).
 
Scenario 5: If the computer/computer system you own is designated as a system of temporary cybersecurity concern (STCC) 
  • If your computer/computer system is designated as an STCC, new Part 3D of the Act imposes duties on you, such as to:
    • (a) Provide the Commissioner with information on the STCC (new section 18DF) – non-compliance is an offence;
    • (b) Comply with any codes of practice, standards of performance or written directions in relation to STCC that may be issued by the Commissioner (new sections 18DG and 18DH) – non-compliance is an offence in certain circumstances;
    • (c) Notify the Commissioner of any prescribed cybersecurity incidents [operational details to be released later], such as:
      • Prescribed cybersecurity incidents in respect of the STCC;
      • Prescribed cybersecurity incidents in respect of any computer or computer system under the owner’s control, that is interconnected with or that communicates with the STCC;
      • Prescribed cybersecurity incidents in respect of any computer or computer system under the control of a supplier to the owner that is interconnected with or that communicates with the STCC
                       (new section 18DI – non-compliance is an offence).

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