The Singapore Economic Development Board (EDB) recently announced changes to the Global Investor Programme (GIP), significantly raising the threshold for ultra-wealthy individuals seeking permanent residency in Singapore as business owners or investors. The move is part of an effort to support local startups and create more job opportunities for Singaporean citizens.
The GIP, first introduced in 2004, previously required a S$2.5 million ($1.9 million) investment in a business entity, fund, or Singapore-based single family office as a pathway to permanent residency. However, the new rules now require higher investments for each category.
For those seeking residency by opening a business, the investment threshold has been raised to at least S$10 million. In addition, the business must hire at least 30 employees, including 15 Singaporean citizens and 10 new employees, to be eligible for the “Re-entry Permit Renewal” after the initial five-year period.
For those seeking residency through investments, they must now invest S$25 million in a GIP-select fund and maintain the investment to qualify.
For those pursuing the family office option, they will still need assets under management of at least S$200 million. However, the new rules require that the same amount must be deployed in four categories: companies listed on exchanges licensed by the local regulator, qualifying debt securities, Singapore-licensed funds, and private equity in non-listed Singapore-based businesses.
According to the EDB, the changes aim to selectively attract individuals with the ability to make a greater economic impact for Singapore and to foster a deeper connection to the country. The new rules will come into effect from March 15, 2023.
In conclusion, the Singapore government is taking a bold step to support local startups and create more jobs for its citizens through the GIP. These changes not only raise the bar for ultra-wealthy individuals seeking permanent residency in Singapore but also ensure that they will have a positive economic impact on the country.
For more information: Economic Development Board (EDB)’s GIP