Individual seeking permanent-resident (PR) status via Singapore’s Global Investor Programme (GIP) must soon invest more: at least 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.
Economic Development Board (EDB) says the changes would encourage GIP investors to deploy more funds in the local financial system and generate more jobs for Singaporeans.
The changes take effect from March 15 2023 for new applicants. The old requirements will continue to apply for existing GIP PRs and applications received before March 15 2023. With many jurisdictions “competing to attract high-calibre business owners and owners of capital”, the aim is to selectively appeal to those who can make a greater economic impact and “be more rooted to Singapore”, said the EDB. Industry observers said the revisions are timely and will narrow the field to higher quality applicants.
The changes are part of EDB’s ongoing review to ensure the GIP is effective in “attracting only top-tier business owners who are interested to drive the growth of their businesses and investments from Singapore”. The GIP accords PR status to eligible global investors, with three investment options. Each has additional requirements for such PRs to get their re-entry permit (REP) renewed after five years.
Option A is to invest in a new or existing business in Singapore. The new minimum investment is S$10 million, inclusive of existing paid-up capital.
Option B is to invest in a GIP-select fund, shortlisted by EDB, with a new minimum of S$25 million.
The current Option C is to invest S$2.5 million in a new or existing Singapore-based single family office with assets under management (AUM) of at least S$200 million – at least S$50 million of which must be held in Singapore. From Mar 15, investors will instead have to establish a Singapore-based single family office with AUM of at least S$200 million, of which at least S$50 million must be deployed in any of the four categories, within 12 months of final approval.
The categories are: companies listed on licensed exchanges here; qualifying debt securities; funds distributed by Singapore-licensed managers; or private equity injection into non-listed Singapore-based businesses. Currently, for all three options, the REP renewal condition is to hire at least 10 incremental employees – with at least five citizens – and have total business expenditure (TBE) of S$2 million by the fifth year of their PR status. For the family-office option, at least three of the hires must be investment professionals.
For Option A, the TBE requirement will be removed. Such investors must instead hire at least 30 employees, including at least 15 Singapore citizens. At least 10 must be incremental hires.
For Option B, both the TBE and hiring requirements will be removed. Instead, investors must have maintained their investment in the fund.
For Option C, the TBE requirement will be removed. The investor must maintain at least S$50 million in AUM, across any of the four categories, throughout the five-year period of PR status. They must hire at least five incremental family-office professionals, with at least three being citizens.