For many Ultra-High Net Worth Individuals (UHNWI), business owners, and global investors, Singapore’s Global Investor Programme (GIP) is another way to seek Permanent Residency in the exclusive and expensive nation-state. The GIP offers investors three investment options to choose from in order to receive Permanent Residency. As of 15th March 2023, there will be new changes to the criteria for the GIP according to each option offered, as detailed below.
These criteria are applicable to both new GIP candidates and existing Permanent Residents under the GIP scheme who are renewing their Re-entry Permits (REPs). To be eligible for REP Renewal after five years, you will have to ensure that you comply with these new criteria depending on which option you have chosen.
Option A: invest in a new of existing business in Singapore.
- The new minimum investment amount is SGD 10 million, inclusive of existing paid-up capital. This is an increase from the previous SGD 2.5 million required. Investors must also hire at least 30 employees, half (15) of which must be Singapore Citizens and 10 of whom must be new employees.
Option B: invest in a GIP-select fund shortlisted by the Economic Development Board (EDB).
- The new minimum investment amount is SGD 25 million. This is an increase from the previous investment allocation amount of SGD 2.5 million, and a stricter criterion involving the EDB.
Option C: invest in a new or existing Singapore-based single family office.
- Investors are now required to establish a family office with assets under management of at least SGD 200 million, of which at least SGD 50 million must be deployed and maintained in four specific investment categories, within 12 months of final approval. They must also hire at least 5 family-office professionals, at least 3 of whom must be Singapore Citizens.
Previously, for all three options, the conditions to renew the REP were:
- To hire at least 10 incremental employees, with at least 5 Singapore Citizens
- Have total business expenditure of SGD 2 million by the 5th year of their PR status
- For Option C, at least 3 of the hires must be investment professionals.
As of 15th March 2023, the total business expenditure requirement will be removed for all options. For Option A, this has been replaced by the hiring of employees. For Option B, the hiring requirements have also been removed – instead, investors must maintain their investment in their chosen fund. For Option C, the total business expenditure requirement has been replaced by the new investment and hiring requirements outlined above.
The EDB hopes that these changes will encourage GIP investors to place more funds in the local financial system and create increased employment for Singaporean Citizens, especially in the financial and legal industries. Their investments will also directly impact the local businesses that receive their funds, creating a greater economic impact locally in Singapore.