Statute Details
- Title: Power to Invest – Applicable to All Statutory Boards
- Act Code: TA1967-S63-1999
- Legislation Type: Subsidiary Legislation (SL)
- Authorising Act: Trustees Act (Cap. 337)
- Authorising Provision: Section 6(2) of the Trustees Act
- Instrument / Number: No. S 63
- Publication / Commencement (as per extract): 11 Feb 1999
- Subsidiary Legislation Citation: SL 63/1999
- Status (as provided): Current version as at 27 Mar 2026
- Key Legal Effect: Extends trustee investment powers (as set out in the First Schedule) to all statutory boards empowered by written law to make like investments
- Relevant Schedules Referenced: Parts II and III of the First Schedule to the Trustees Act
What Is This Legislation About?
This subsidiary legislation is a targeted “extension” instrument. In plain terms, it clarifies that the investment powers normally available to trustees under the Trustees Act also apply to statutory boards—provided those statutory boards are already empowered by their own written laws to make investments of a similar kind.
The instrument is issued by direction of the Minister for Law, acting under the authority in section 6(2) of the Trustees Act. The practical goal is to ensure consistency in how investment authority is understood and exercised across different public bodies. Rather than requiring each statutory board to rely on bespoke investment provisions, the direction aligns statutory board investment powers with the investment categories and permissions set out in the First Schedule to the Trustees Act.
Although the text is brief, its legal significance is substantial: it determines the scope of permissible investments for statutory boards, thereby affecting governance, risk management, and compliance for boards managing funds that are subject to statutory investment rules.
What Are the Key Provisions?
1. Ministerial direction under section 6(2) of the Trustees Act
The core operative statement is that, “in exercise of the powers conferred by section 6(2) of the Trustees Act,” the Minister for Law has directed that the relevant investment power applies to statutory boards. This matters because section 6(2) is the legal “engine” that allows the Minister to extend trustee investment permissions beyond trustees themselves.
2. The investment powers are those “mentioned in Parts II and III of the First Schedule”
The direction does not create a new investment regime from scratch. Instead, it imports the trustee investment permissions contained in the First Schedule to the Trustees Act—specifically, Parts II and III. In practice, this means statutory boards may invest in the same manner that trustees are authorised to invest “for the time being” under those schedule provisions.
3. Applicability is limited to statutory boards already empowered to make “like investments”
The direction is not a blanket authorisation for every statutory board to invest in any way. It applies to “all statutory boards which are empowered by any written law to make the like investments as trustees are for the time being authorised by law to make.” This creates a two-step condition:
- First: the statutory board must have investment authority under its own enabling written law; and
- Second: the investments must be “like” those trustees are authorised to make under the Trustees Act First Schedule (Parts II and III).
4. Legal effect: statutory boards can rely on trustee-style investment permissions
Once the conditions are met, the statutory board’s permissible investment universe is aligned with the trustee authorisation framework. This is important for compliance and for internal governance: boards can structure investment policies, mandate investment managers, and approve instruments with reference to the same categories that trustees would use.
For practitioners, the key is to treat this as an interpretive and enabling extension: it clarifies that the trustee investment permissions are available to statutory boards within the scope of their existing statutory investment powers.
How Is This Legislation Structured?
The instrument is structured as a short notice/direction rather than a long, multi-part statute. It operates through a single principal statement: the Minister’s direction that trustee investment powers (as set out in the First Schedule, Parts II and III) apply to statutory boards meeting the “empowered by written law” and “like investments” criteria.
In terms of legal drafting architecture, the instrument functions by reference. It relies on:
- Section 6(2) of the Trustees Act (the enabling authority for the Minister’s direction); and
- Parts II and III of the First Schedule to the Trustees Act (the substantive list of authorised investment methods).
Accordingly, the “substance” for investment permissions is not fully reproduced in the instrument itself; it is imported by reference. Practitioners should therefore read this direction together with the relevant First Schedule provisions to understand the actual investment categories and limitations.
Who Does This Legislation Apply To?
The direction applies to all statutory boards that satisfy the conditions described in the instrument. “Statutory boards” is a term of art in Singapore public law, generally referring to bodies established by statute and empowered to perform public functions. The instrument does not apply to private trustees or ordinary individuals; it is aimed at public bodies.
However, applicability is conditional. A statutory board must be empowered by its own written law to make investments that are “like” those trustees are authorised to make. This means that a practitioner should not assume automatic coverage for every statutory board. Instead, the enabling statute for the board should be reviewed to confirm that it contains investment authority of the relevant kind.
Why Is This Legislation Important?
1. It standardises investment authority for public bodies
Investment powers for trustees are typically framed with a view to balancing prudence, legal certainty, and the need for workable investment options. By extending those powers to statutory boards, the direction promotes harmonisation. This reduces ambiguity and helps boards adopt investment policies that are consistent with established trustee investment permissions.
2. It affects governance, compliance, and risk management
For statutory boards, investment decisions can have significant financial and reputational consequences. The direction provides a clearer legal basis for what investments are permissible. In practice, this influences:
- board resolutions approving investment strategies;
- procurement and appointment of investment managers;
- internal controls and compliance monitoring; and
- documentation for audits and regulatory reviews.
3. It reduces the need for bespoke investment provisions
Many statutory boards have enabling legislation that may not be detailed on investment methods. This direction allows those boards to “plug into” the trustee investment framework—so long as their enabling laws authorise “like investments.” This can streamline legal analysis and help avoid the risk of investing outside the intended statutory scope.
4. It is a reference-based instrument—so careful reading is essential
Because the direction imports the investment permissions from the Trustees Act First Schedule (Parts II and III), the practical legal work is often in cross-referencing. A lawyer advising a statutory board should confirm:
- the board’s enabling statute authorises the relevant class of investments; and
- the trustee investment permissions in the referenced schedule are understood correctly, including any conditions, categories, or limitations contained in those Parts.
Failure to do this can lead to compliance gaps—particularly where a board’s enabling law is silent, narrower than trustee powers, or authorises only certain types of investments.
Related Legislation
- Trustees Act (Chapter 337) — in particular, section 6(2) and the First Schedule (Parts II and III)
Source Documents
This article provides an overview of the Power to Invest – Applicable to All Statutory Boards for legal research and educational purposes. It does not constitute legal advice. Readers should consult the official text for authoritative provisions.