Singapore Overview
Singapore is considered one of the world’s best places to live, and is frequently voted best Asian city due to its excellent infrastructure and public services. It is also one of the wealthiest countries in the world if measured by GDP per capita.
The Republic of Singapore consists of Singapore Island and 57 small neighbouring islands, located close to the equator, resulting in a tropical climate. Singapore was originally founded as a British trading colony in the early 19thcentury and gained independence in 1965. Today it has emerged as a world-class destination with its multi-racial and multi-cultural society. Singapore is a city state, with a rich mixture of cultures that exist in harmony in an organized community.
Singapore has excellent infrastructure and state-of-the-art telecommunication, business and financial facilities. The country has grown into an international financial centre, evidenced by the presence of many international banks and the volume of financial transactions which take place in this thriving city. Singapore is an exception to other large cities by virtue of the fact that it has one of the lowest crime rates in the world, where even littering is punishable by law.
Over the last 20 years the Singaporean government has made great efforts to attract talent and exceptional human capital to facilitate the continued growth of its economy. However, in the past few years the government has increased the requirements for incoming talent and has slowed the number of Employment Passes and Permanent Residence approvals. Additionally, the rules of the Global Investor Programme have been tightened, making it more difficult for entrepreneurs to move to Singapore.
English is the predominant language in Singapore and is used specifically in administration, business and technology. Singapore is politically stable, as well as economically prosperous, and offers an extensive and reputable education system and a highly reliable healthcare system. A stroll down the famous Orchard Road provides the evidence that Singapore attracts affluence. This factor, combined with the high quality of service and quality of life, makes it an ideal environment for residence and business.
Residence in Singapore
It is one of the Singaporean government’s objectives to attract talent to live and work in the country. The government’s intention is for foreigners to make Singapore their home by becoming permanent residents.
There are defined categories of foreigners who are eligible to apply for permanent residence. These include:
- Investors and Entrepreneurs under the Global Investor Program
- Employment Pass Holders under the Professional, Technical Personnel and Skilled Workers Scheme (PTS)
- Spouses and unmarried children of a Singapore Citizen or a Singapore Permanent Resident
- Aged parents of a Singapore citizen
Foreigners interested in working and living in Singapore may apply for in-principle approval for a residence permit by submitting an application before they enter Singapore, provided they satisfy the specific criteria. The advantage of obtaining permanent residence status is that the person is entitled to live and work in Singapore for at least five years.
A person holding an Employment Pass in Singapore may submit an application for permanent residence to the Immigration & Checkpoints Authority (ICA) after one year of employment and residence within Singapore. This is a very popular route for professional and highly skilled individuals, as no substantial investment is required to obtain these passes. Once permanent residence is obtained, the applicant no longer requires an Employment Pass, thereby giving the applicant more flexibility in his/her employment options.
Under the PTS, an applicant may include their spouse and unmarried children under 21 years of age in the permanent residence application.
The Global Investor Program is specifically for entrepreneurs or investors interested in making substantial financial investments in Singapore and is designed to attract wealthy foreign entrepreneurs and investors who wish to make Singapore their home.
The Global Investor Program
The Global Investor Program (GIP) has been designed for investors who are interested in starting up a business or investing in Singapore and thereby receiving Singapore Permanent Residence (PR) status.
Investment Options
Under the GIP, the investor can choose one of the following options:
Option A: Invest at least SGD 2.5 million in a new business entity or to expand an existing business operation
Option B: Invest at least SGD 2.5 million in a GIP-approved fund that invests in Singapore-based companies
Eligibility for Application
An investor is eligible to apply for PR under the GIP if he/she has a substantial business track record and a successful entrepreneurial background.
The investor must possess at least three years of entrepreneurial and business track record and must produce audited financial statements of his/her company for the last three years. If the company of the investor is in the real estate or construction-related industry, the company’s turnover must be at least SGD 200 million in the most recent year and at least SGD 200 million per annum on average for the last three years. If the investor’s company is in other sectors, the company’s turnover must be at least SGD 50 million in the most recent year and at least SGD 50 million per annum on average for the last three years.
Provisions for the Family
The spouse of the investor and his/her children (below 21 years old) are eligible to apply for PR under the GIP application. Male dependents will be liable for National Service.
Parents and unmarried children of the investor who are 21 years old and above are not eligible to be included in the GIP application for PR status, but instead, they can apply for a five year Long Term Visit Pass.
Validity of Re-Entry Permit
Upon the formalisation of the PR status, the investor will be issued a Re-Entry Permit (REP). A valid REP is necessary whenever the PR wishes to travel in and out of Singapore. It enables a person to retain the PR status while away from Singapore.
Subsequent to the first five years, the REP would be renewed if the investor fulfils the following conditions:
For a three year renewal:
The investor must have fulfilled the investment conditions under Option A or Option B of the GIP; and either have set up a business in Singapore with five or more Singaporean employees and have incurred at least SGD 1 million in total business spending a year; or the investor or at least one of his/her dependants, who is also a PR under the GIP, must have resided in Singapore for more than half of the time.
For a five year renewal:
The investor must have fulfilled the investment conditions under Option A or Option B of the GIP; and must have set up a business in Singapore with five or more Singaporean employees and have incurred at least SGD 1 million in total business spending a year; and the investor and his/her dependents who are also PR under the GIP must have resided in Singapore for more than half of the time.