Singapore Increase Investment Threshold for Global Investor Seeking Permanent Residency

The new requirements, which come into effect on March 15, raise the minimum investment for permanent residency to S$10 million in a business or S$25 million in an approved fund.
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Singapore has raised the threshold for global investors seeking permanent residency in order to create more jobs and benefit locals. On March 3, 2023, the Singapore Economic Development Board announced that applicants will now require at least S$10 million ($7.4 million) in a business or S$25 million in an approved fund.

A minimum of S$50 million must be deployed and maintained in four government-designated investment categories for those establishing family offices.

This is a significant increase from the previous requirement of a S$2.5 million investment in a Singapore-based business entity, fund, or single-family office.

Growing Wealth Gap

The influx of wealthy families from abroad has contributed to Singapore’s perceived growing wealth disparity. As a result, the government is adjusting its policies in order to encourage more local job creation and investment in the city-stock state’s exchange and funds. In February 2023, it announced a tax increase on the higher-value property and luxury vehicles.

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The investment program’s refinement will “encourage the growth of businesses and capital accumulated in Singapore,” according to Desmond Teo, EY Asean private tax leader.

He went on to say that the country’s asset management industry and the companies that will receive funding will be the two winners. The modifications will go into effect on March 15, 2023.

Singapore – Global Investor Programme

The Global Investor Program was launched in 2004 in order to attract the world’s wealthiest individuals and to provide a pathway to permanent residency in Singapore.

The programme has attracted at least S$5.5 billion in investments and created over 24,000 jobs, with approximately S$1.62 billion injected into approved funds, 57% of which was invested in Singapore-based companies.

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From 2020 to 2022, approximately 200 permanent residences were granted.

Breakdown of Pathways Available

There are three pathways available for the Global Investor Programme.

1. Option A: Invest at least S$10 million in a new or existing Singapore business and hire 30 employees, half of whom must be Singapore citizens, to qualify for a Re-entry Permit Renewal after 5 years.

2. Option B: Invest S$25 million in a fund selected by the Global Investor Programme.

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3. Option C: Create a Singapore-based single-family office with at least S$200 million in assets under management and invest at least S$50 million in four government-designated investment categories, which include companies listed on local exchanges, qualifying debt securities, approved Singapore-licensed managers’ funds, or private equity injection into non-listed, Singapore-based businesses.

Expected High-Net-Worth Individuals

According to Henley & Partners, a residence and citizenship planning firm, Singapore is expected to receive approximately 2,800 high-net-worth individuals in 2022 alone. According to the firm, 249,800 Singaporeans have a net worth of at least $1 million, making it the world’s fifth wealthiest city.

(Source: Bloomberg)


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Manish Khandelwal
Manish Khandelwal

Manish Khandelwal, a travel-tech enthusiast with over a decade of experience in the travel industry. Founder and Editor-in-Chief of Travelobiz.com, he's passionate about writing.

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