London (CNN Business) A controversial law designed to stem the flow of misinformation online in Singapore could damage the city state's reputation for innovation.

Google, Facebook, and Twitter voiced their reservations on Thursday about the statute after it was approved by lawmakers in Singapore. The new law criminalizes the spread of "false statements of fact," as defined by the government.

Critics argue the law will hurt freedom of speech by forcing social media platforms to censor users in order to avoid potential fines.

Google GOOGL , which has its Asia headquarters in Singapore, says it was "concerned that this law will hurt innovation" and that "how the law is implemented matters."

Facebook FB Simon Milner, vice president of public policy at, said the company remains "concerned with aspects of the new law" and hopes the government will take a "proportionate and measured approach" in applying the rules.

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