Effective 1 March 2020, more qualified investors can look to fast-tracking their permanent resident status (PR) under the new rules governing the Global Investor Programme (GIP).
GIP More Investors To Qualify For Fast Track PR Schemes
The GIP, an initiative administered by Singapore’s Economic Development Board (EDB), was first introduced in 2004 and grants Singapore Permanent Resident status to eligible global investors who intend to drive their businesses and investment growth from Singapore. To qualify, applicants need to showcase substantial business track record and possess a solid, successful entrepreneurial background.
What Are The New Changes Being Implemented?
Under the updated scheme, there will be more investors to qualify for it. Next-generation business owners and founders of fast-growing companies from certain industries, as well as family offices, will qualify to apply for PR status through the GIP. Currently, only established business owners and entrepreneurs are eligible.
Mr Matthew Lee, director of Contact Singapore, a division of the Economic Development Board which oversees the GIP, said that the updates to the scheme were made to better reflect rapid shifts in the global economy over the past few years which have resulted in new business opportunities and new breeds of entrepreneurs and business owners. Expanding the scheme to attract business owners who want to start a single family office in Singapore will “strengthen our banking and finance sector”, he added.
An overview of the expanded criteria can be viewed below:
|Established Business Owners||Next-Generation Business Owners||Founders of Fast Growth Companies||Family Office Principals|
|At least 3 years of entrepreneurial and business track record
Running a company with an annual turnover of at least $200 million the year prior to application and at least $200 million per year on average for 3 years prior to the application
(Update: Increase from $50 million annual turnover the year prior to application and an average of $50 million per year for 3 years prior to the application)
At least 30% in company shareholding if company is privately owned
|Immediate family members should have at least 30% shareholding or is the largest shareholder in qualifying company
Company’s annual turnover must be at least $500 million the year prior to the application and at least $500 million per year on average for 3 years prior to the application
Applicant must be part of the management team of company such as board of director
|Founder and one of the largest individual shareholders of a company worth at least $500 million
Company must have reputable venture capital or private equity firms as investors
|Must have net investable assets of at least $200 million
At least 5 years of entrepreneurial investment or management track record
Table is adapted from Straits Times Graphics; Information sourced from EDB
What Does This Mean For Singapore?
More local companies will be able to have access to funds to grow their businesses. Investors will be looking at 25 government-approved industries to fund their money into, thus, creating a healthy business ecosystem in Singapore’s economy. With more businesses receiving funding by investors, more jobs can be created for both locals and expatriates.
Eligible investors who are approved for the GIP are accorded with the Singapore PR, thus, also helping Singapore to build increase its population base.