SINGAPORE: Individuals looking to apply for permanent residency (PR) under an investment programme will soon be required to invest much higher amounts in Singapore, as part of changes announced on Thursday (Mar 2) to generate “more spin-offs” for the economy.
Currently, the Global Investor Programme (GIP) grants PR status to eligible foreigners who invest at least S$2.5 million in a new or existing business, a GIP fund that invests in Singapore-based firms, or a new or existing single family office based here with at least S$200 million in assets under management.
With many jurisdictions “competing to attract high-calibre business owners and owners of capital”, the latest changes are aimed at “attracting only top-tier business owners who are interested to drive the growth of their businesses and investments from Singapore”, said the Economic Development Board (EDB) which administers the programme.
“These changes will encourage GIP investors to deploy more funds in the local financial system and generate more jobs for Singaporeans, including in roles such as finance, tax, and legal professionals, as well as fund management,” it added in its press release.
Changes will be made to all three investment options from Mar 15.
Applicants looking at the first option of investing in a new or existing business in Singapore will have to demonstrate an investment of at least S$10 million, inclusive of paid-up capital.
For the second option of GIP-select funds, the minimum investment required will go up to S$25 million. These funds will be selected based on a “holistic assessment” of factors such as track record and investment mandate in Singapore, said EDB.
The third option will require applicants to set up a Singapore-based single family office with at least S$200 million in assets under management.
Of which, a minimum of S$50 million must be deployed in any of these four investment categories – companies listed on exchanges licensed by the Monetary Authority of Singapore (MAS), qualifying debt securities and certificates of deposit listed on MAS’ enquiry system, funds distributed by Singapore-licensed managers that are listed on MAS’ financial institutions directory, and private equity injection into non-listed, Singapore-based businesses.