The Singapore Economic Development Board (EDB) announced changes to the global investor programme (GIP) on 2 March 2023.
The changes will look to direct more support to the local start-up economy and the broader financial sector, as well as generate more jobs for Singaporeans.
They will be made to all three investment options under the ‘golden visa’ programme, effective from 15 March 2023.
Under option A, applicants will be required to:
- Demonstrate an investment of at least S$10m (£6.2m, $7.4m, €7m), inclusive of existing paid-up capital, in a new business entity or existing business operation in Singapore; and
- Hire minimally 30 employees, at least half of whom must be Singapore citizens and 10 of whom must be new employees, to be eligible for the re-entry permit renewal after the initial five-year period.
Under option B, applicants will be required to invest S$25m in a GIP-select fund. These GIP-select funds will be shortlisted by EDB based on an assessment of their track record investment mandate in Singapore, as well as the focus of the funds.
Under option C, applicants will be required to establish a Singapore-based family office with assets under management (AuM) of at least S$200m, of which at least S$50m must be deployed and maintained in any of the following four investment categories:
- Companies listed on exchanges licensed by the Monetary Authority of Singapore (MAS);
- Qualifying debt securities such as bonds, notes, commercial papers, and certificates of deposit that are listed on MAS’ qualifying debt securities enquiry system;
- Funds distributed by Singapore-licensed managers that are listed on MAS’ financial institutions directory; and
- Private equity injection into non-listed Singapore-based businesses.
Matthew Lee, senior vice president of Contact Singapore EDB, said: “Since it was introduced, the GIP has been successful in attracting high-calibre applicants who value Singapore’s stability, competitive business environment, skilled talent pool and global connectivity. Investors can tap these strengths, as well as our strategic location at the heart of a growing southeast Asian region, to access a wide range of business opportunities.”
‘Premium investors’
Matthew Smalley, managing partner at advice firm Tallrock Capital, told International Adviser: “With regards to the new GIP changes, I still believe there is a very strong argument for Singapore to continue to be an attractive jurisdiction for ultra-high net worth clients and family offices.
“Singapore possesses one of Asia’s most politically stable governments, has a very strong financial sector, is perfectly placed regionally with international connectivity, and has a very robust common law system.
“It also provides tax exemption incentives for funds managed by family offices, and we have seen the numbers of family offices explode over the last few years to around 700 or more currently.
“Some commentators may say that the increase in this new threshold [in the GIP], is perhaps a ‘political response’ to the public sentiment of too many foreigners coming to Singapore. However, the new increase in investment capital and hiring quotas, will definitely stimulate economic growth in Singapore, and provide more job opportunities for the local market too.
“However, it may mean that only the ‘premium investors’ will now be able to come under that programme – and those on the ‘fringe of deciding on Singapore or not’, may no longer be able to meet the increased requirements, and may now go elsewhere regionally, which could be a missed opportunity for the Singapore economy.”
Golden visa decline in Europe
These changes in Singapore come at at time where European Union countries are looking to close their golden visa schemes.
Last month, both Ireland and Portugal announced the shutting of their programmes.
In March 2022, members of the European Parliament (MEPs) overwhelmingly decided to demand a ban on golden passports.
The vote – which saw 595 in favour, 12 against and 74 abstentions – followed commitments by the European Commission, France, Italy, Germany, the UK, Canada and the US to limit wealthy Russians with links to the government from accessing golden passports.
The European Parliament deemed citizenship-by-investment schemes as “objectionable from an ethical, legal and economic point of view and pose several serious security risks”.
There are still a handful of EU countries with golden visa schemes such as Malta and Greece, but the European Parliament is continuing to crackdown on the schemes.
