Singapore’s 18 common laws and 10 Abu Dhabi Global Market financial services laws will govern Gelephu Mindfulness City. These laws, outlined in GMC Law No. 1 of 2024, also known as the Application of Laws Act 2024, will establish the governance framework for the Special Administrative Region, strengthening its autonomy and enhancing its ability to foster economic development.
The new GMC laws will govern areas such as company incorporation, taxation, employment, financial services, and other key aspects of administration.
The 18 Singaporean laws applicable in the GMC include: Companies Act 1967, Contracts (Rights of Third Parties) Act 2007, Customs Act 1960, Electronic Transactions Act 2010, Employment Act 1968, Employment of Foreign Manpower Act 1990, Goods and Services Tax Act 1993, Immigration Act 1959, Income Tax Act 1947, Insolvency, Restructuring and Dissolution Act 2018, Interpretation Act 1965, Official Secrets Act 1935, Personal Data Protection Act 2012, Property Tax Act 1960, Sale of Goods Act 1979, Spam Control Act 2007, Stamp Duties Act 1929, and Unfair Contract Terms Act 1977.
Meanwhile, the 10 Abu Dhabi Global Market financial services laws are Anti-Money Laundering and Sanctions Rules and Guidance, Captive Insurance Business Rules, Conduct of Business Rulebook, Fund Rules, General Rulebook, Glossary, Market Infrastructure Rulebook, Market Rules, Prudential — Insurance Business, and Prudential — Investment, Insurance Intermediation and Banking Rules.
These laws came into effect on the 26th of December last year and may be modified to suit the specific circumstances of the GMC.
They are also subject to amendment either by a GMC law or through amendments in Singapore and in the Abu Dhabi Global Market, unless explicitly disapplied by the GMC Authority.
The GMC Authority, responsible for overseeing these laws, was established under the GMC Royal Charter No. 1 of 2024, granted by His Majesty The King in February last year.
The Application of Laws Act 2024 states that the GMC Authority holds the power to determine the applicable laws for matters not explicitly covered by the Singaporean and Abu Dhabi Global Market financial services laws.
In such cases, the GMC Authority will default to Bhutanese laws.
For civil and commercial matters, Singaporean laws will have presumptive effect, serving as the default framework unless compelling reasons necessitate the use of another legal system or modifications to the existing laws.
For other matters, Singaporean laws will have persuasive effect, meaning they may guide decision-making but are not binding.
The Act further specifies that both Bhutanese and Singaporean laws can be modified by the GMC Authority to align with local circumstances.
In cases where both a Singaporean law and an Abu Dhabi Global Market financial services law apply within the GMC and conflict arises the Singaporean law will take precedence.
However, the GMC Authority retains the discretion to prioritise otherwise.
Until the GMC Authority establishes formal executive and judicial bodies, it will assume all executive and judicial responsibilities under this Act.
Additionally, it may authorise individuals or organisations in writing to perform these functions.
Sherub Dorji
