In March of this year, Singapore announced changes to its Global Investor Programme (GIP) policy. Despite the increased requirements, the enthusiasm among applicants has only grown, with a majority of high-net-worth entrepreneurs from Asia. Do you know why?
A Global Queue to Enter Singapore
1. Not higher thresholds, but more precise selection of individuals
The significant increase in application thresholds by Singapore is primarily aimed at attracting high net worth entrepreneurs and business elites who genuinely desire to settle in Singapore and bring new economic vitality.
According to statistics from London-based investment consultancy Heneley & Partners, Singapore currently has nearly 250,000 millionaires (in US dollars), ranking it fifth globally among cities with the highest concentration of wealthy individuals. In just one year, more than 2,800 individuals with assets over one million US dollars joined Singapore in 2022, compared to only 1,500 in 2019. This number has nearly doubled in three years.
It is no wonder that Singapore’s Prime Minister openly remarked, “While we have only 3.5 million Singaporeans, billions of people are eager to enter our country.”
The raised thresholds of the GIP program aim to filter out less committed middle-class applicants and ensure that high net worth clients who genuinely desire to settle in Singapore can do so. After all, the GIP program offers a direct path to permanent residency for those who meet the requirements.
2. Impact on Investors
The raised investment thresholds will require investors to have a larger capital base to enter the Singaporean market.
The requirement to hire Singaporean citizens will encourage investors to actively establish connections with local businesses and communities, emphasizing social responsibility and sustainable development.
The new regulations may introduce increased risks and uncertainties for investors in the Singaporean market, necessitating careful consideration of investment opportunities.
In conclusion, for future investors planning to apply for the GIP immigration program, it is crucial to seek the assistance of professional immigration agencies that can provide comprehensive investment management and risk control services. These agencies will help investors mitigate risks and maximize their investment returns.
Go Global Gem, headquartered in Singapore, is a cutting-edge internet-based comprehensive accounting firm with over 20 years of team experience. We have successfully assisted numerous families in immigrating to Singapore. We offer tailor-made immigration solutions for each applicant, ensuring an efficient, secure, and comfortable immigration journey.
H Company’s Story of Going Global
H Company is a comprehensive packaging solutions provider specializing in project planning, packaging design, and product manufacturing. It went public on the Shenzhen Stock Exchange in 2015 and currently operates five major bases and over 20 factories nationwide, offering comprehensive packaging solutions to its clients.
Mr. L, a graduate from the University of Brighton in the UK, currently serves as the Chairman and General Manager of H Company. As the company’s and his personal wealth grew, Mr. L began planning to expand globally. After considering multiple countries, he ultimately chose Singapore.
1. Reasons for Mr. L’s Choice of Singapore
A. Stable Economic Development
Singapore boasts a highly developed economy and advanced commercial infrastructure. It is one of the most important financial centers in Asia and ranks among the wealthiest and most competitive economies globally. Additionally, Singapore has no foreign exchange controls, allowing for relatively free capital flow.
B. Quality Education Resources
Singapore follows the British Commonwealth education system and has a globally renowned bilingual education system. The government places great emphasis on education, and prestigious institutions like the National University of Singapore and Nanyang Technological University are well-regarded worldwide.
C. Favorable Tax Policies
Singapore’s tax system is friendly, with relatively low personal and corporate income tax rates compared to developed countries, and there is no inheritance tax.
Singapore offers unparalleled advantages in terms of living environment, children’s education, and overseas asset planning. Coupled with its favorable tax policies, it is not only suitable for residence but also for conducting business and work.
2. H Company’s GIP Solution
Based on Mr. L’s requirements of having a successful career and providing his children with high-quality education, the account manager at Go Global Gem formulated a GIP solution. Currently, all the necessary work is progressing smoothly.
Taking into consideration H Company’s and Mr. L’s specific needs, Go Global Gem recommended a suitable solution.
The GIP program offers three different options, and recently, new policies have been introduced. The details are as follows:
Option A:
Applicants must demonstrate an investment of minimally SGD 10 million in a new business entity or in the expansion of an existing business operation in Singapore.
Renewal Requirement: After the initial five-year period of permanent residency, if you wish to renew the re-entry permit, your company must employ at least 30 individuals, with at least half of them being Singaporean citizens, and you need to hire 10 new employees.
Previously, the renewal requirement was 10 new employees, with half being Singaporean citizens, and a Total Business Expenditure (TBE) of SGD 2 million.
| Options | Existing provision | New provision |
| Investment Option A | l Invest $2.5 million in a new business entity or in an existing business operation in Singapore | l Demonstrate an investment of minimally SGD 10 million in a new business entity or in the expansion of an existing business operation in Singapore. |
| Renewal criteria | l You must employ minimally 10 employees (at least half of whom must be Singapore Citizens) | l You must employ minimally 30 employees (at least half of whom must be Singapore Citizens), out of which there must be at least 10 incremental employees |
| Investment Option b | l Invest SGD 25 million in a GIP fund* that invests in Singapore-based companies. | l Invest SGD 25 million in a GIP-select fund* that invests in Singapore-based companies. |
| Renewal criteria | l You must employ minimally 10 employees (at least half of whom must be Singapore Citizens) | l Maintain the SGD 25 million investment in a GIP-select fund |
| Investment Option c | l Setup a Singapore-based Single-Family Office with at least SGD 200 million in Assets-Under-Management (AUM*), of which a minimum of SGD 50 million must be placed in Singapore. | l Establish a Singapore-based Single-Family Office with Assets-Under-Management (AUM) of at least SGD 200 million, where minimally SGD 50 million must be transferred into Singapore and deployed in any of the 4 investment categories listed below:
(i) Equities, REITS or Business Trusts listed on Singapore-approved exchanges; (ii) Qualifying debt securities listed on MAS’ enquiry system; (iii) Funds distributed by Singapore-licensed/registered managers or financial institutions; and (iv) Private equity investments in non-listed, Singapore-based operating companies. |
| Renewal criteria | l you must employ at least 10 employees, five of whom must be Singapore citizens (with at least 3 investment professionals) | l The Single-Family Office in Singapore that you establish must employ at least 5 incremental Family Office professionals (with at least 3 Singapore Citizens) and
l maintain the SGD 50 million AUM across any of the 4 investment categories. |
Option B:
Applicants must maintain the SGD 25 million investment in a GIP-select fund, which is ten times the current requirement.
Option C:
For applicants interested in establishing a single-family office, you must set up a family office in Singapore with assets under management of at least SGD 200 million.
Under the new regulations, your family office must invest at least SGD 50 million in four specific categories within 12 months from the date of the approval letter:
- Equities, REITS or Business Trusts listed on Singapore-approved exchanges, such as those listed on the Singapore Exchange Mainboard and “Catalist”.
- Qualifying debt securities listed on MAS’enquiry system, including bonds, notes, commercial papers, and certificates of deposits, among others.
- Funds distributed by Singapore-licensed/registered managers or financial institutions; and
- Private equity investments in non-listed, Singapore-based operating companies.
The Singapore GIP program stands out as the fastest and most direct pathway to immigration, with no strict requirements on education, age, or language proficiency. It offers a highly efficient process, allowing applicants to achieve immigration status within one year. It is considered one of the most efficient investment immigration options available.
If you have a desire for such an opportunity, please do not hesitate to contact us immediately.
For enquires please reach out to us: Email:
info@goglobalgem.com