Foreign business owners must increase their investments and hire more local people to qualify for Permanent Resident (PR) status under the Global Investor Programme (GIP).
Investors, including those keen on setting up family offices in Singapore, will also have to channel more funds into the local financial system.
The Economic Development Board (EDB) said on Thursday that the new rules, which will take effect on March 15, will create more job opportunities for Singaporeans in sectors such as finance, tax, fund management, and law.
The EDB noted that many regions around the world are competing to attract high-quality entrepreneurs and capitalists, and these changes are aimed at “selectively attracting those who can bring more economic impact to Singapore, as well as those who are more willing to put down roots and develop their lives in Singapore.”
The GIP was launched in 2004 and last revised in March 2020. The programme offers permanent residency to eligible global investors who intend to drive business and investment growth in Singapore.
This is part of the government’s efforts to strengthen Singapore’s position as a key Asian hub for high-growth technology companies and investment activities, develop existing and new industries, and create jobs for Singaporeans.
Between 2011 and 2022, investors under the GIP created 24,699 jobs, including software engineers, researchers, and public relations practitioners.
Between 2020 and 2022, a total of 200 investors obtained Singapore permanent residency through the programme.
Singapore is one of dozens of countries, including the United States, Britain, Canada, and Australia, that offer what is commonly known as a “golden visa” to attract high-net-worth individuals who can contribute to economic activity and boost investment.
There are changes to all three investment options under the GIP.
Under the first option, new investors must invest at least S$10 million, including existing paid-up capital, in a new business entity or an existing business operation in Singapore.
This is an increase from the previously required S$2.5 million. Applicants must also hire at least 30 employees, of whom at least half must be Singapore citizens, and at least 10 must be new hires, to qualify for a re-entry permit renewal after the initial five-year period.
Under the second option, applicants will be required to invest S$25 million in a GIP-select fund. The EDB will screen a list of funds based on their track record, investment mandate in Singapore, and the industries or market types they focus on.
Previously, applicants only needed to allocate S$2.5 million to a GIP fund that invested at least 50% in Singapore-based companies after receiving in-principle approval.
Under the third investment option, applicants will be required to establish a single-family office in Singapore with at least S$200 million in assets under management, of which at least S$50 million must be deployed and maintained in certain specified investment categories, such as companies listed on the Singapore Exchange’s Mainboard and Catalist.
Leo, a senior property expert in Singapore, said: “Since its launch, the GIP has successfully attracted high-quality applicants who value Singapore’s stability, competitive business environment, tech talent pool, and global connectivity.”
He stated that these improvements will not only encourage the growth of Singaporean businesses and capital but will also increase employment opportunities for Singaporeans.
Singapore’s asset management industry will benefit, as applicants to the programme can provide a rich source of funding for GIP-select funds distributed by Singapore fund managers. Another beneficiary will be the Singaporean portfolio companies that these funds will invest in.
He added: “In a world of rising financing costs, competition for capital is becoming increasingly fierce. These updates will place Singapore in a more advantageous position to attract global capital and become a first-class wealth management hub.”
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