Singapore is set to raise the investment requirements for individuals seeking permanent resident (PR) status through the Global Investor Program (GIP) in a bid to attract higher quality applicants who can make a greater economic impact and contribute to Singapore’s growth.
The changes will take effect from March 15 for new applicants and will require a minimum investment of:
- S$10 million in a business, or
- S$25 million in an approved fund.
For those establishing family offices, at least S$50 million must be deployed and maintained in any of the four investment categories.
The GIP, which accords PR status to eligible global investors, has three investment options:
- Option A: Invest in a new or existing business in Singapore. The new minimum investment is S$10 million, inclusive of existing paid-up capital. To be eligible for the Re-entry Permit Renewal after the initial five-year period, investors need to hire minimally 30 employees, at least half of them Singapore citizens and 10 of whom must be new employees.
- Option B: Invest in a GIP-select fund with a new minimum of S$25 million, shortlisted by the Economic Development Board (EDB).
- Option C: Investors need to establish a Singapore-based single family office (SFO) with assets under management (AUM) of at least S$200 million, of which at least S$50 million must be deployed in any of four investment categories.
The investment categories are:
- Companies listed on licensed exchanges in Singapore
- Qualifying debt securities
- Funds distributed by Singapore-licensed managers
- Private equity injection into non-listed Singapore-based businesses
Access to more business opportunities
The revisions to the GIP are part of the EDB’s ongoing review to ensure that the program is effective in attracting only top-tier business owners who are interested in driving the growth of their businesses and investments from Singapore.
Industry observers believe that the changes are timely and will narrow the field to higher quality applicants.
The changes are also expected to encourage GIP investors to deploy more funds in the local financial system and generate more jobs for Singaporeans, including in the finance, tax, legal and fund-management fields.
The GIP was last revised in March 2020 with added eligibility categories. About 200 people were accorded PR status under the program between 2020 and 2022.
The old requirements will continue to apply for existing GIP PRs and applications received before March 15.
Since its introduction, the GIP has successfully attracted high-caliber applicants who value Singapore’s stability, competitive business environment, skilled talent pool and global connectivity, according to the EDB. It adds that investors can leverage these strengths, as well as Singapore’s strategic location at the heart of a growing Southeast Asian region, to access a wide range of business opportunities.
At Healy Consultants Group, we are happy to assist you with your business registration process in Singapore or the Southeast Asia region.