SINGAPORE – Changes will be made to the Global Investor Programme (GIP) to get foreign businessmen to invest more and hire more locals to qualify to become permanent residents under it.
These investors, including those keen to set up family offices here, will also have to channel more funds to the local financial system.
This was announced by the investment arm of Singapore’s Economic Development Board (EDB) on Thursday.
EDB is making these changes to selectively attract individuals with the ability to make an economic impact for Singapore, and the affinity to be more rooted here.
The changes to all three investment options under the programme will kick in from March 15.
The GIP was launched in 2004 and last revised in March 2020. This programme accords Permanent Resident status to eligible global investors who intend to drive their businesses and investment growth from Singapore.
It is part of the Government’s efforts to strengthen Singapore’s status as a key Asian node for high-growth tech companies and investment activities, grow existing and new industries, and create jobs for Singaporeans.
GIP investors will be encouraged to deploy more funds in the local financial system and generate more jobs for Singaporeans, including in finance, tax, fund management and the legal sector, EDB said.
These changes are part of the board’s ongoing review of the GIP to ensure the programme’s effectiveness in attracting only top-tier business owners who are interested to grow their businesses and investments from Singapore.
Under the first option, new investors who apply for the programme will be required to have invested at least S$10 million, inclusive of existing paid-up capital, in a new business entity or existing business operation in Singapore.
This is an increase from the previous S$2.5 million required. Applicants must also have hired minimally 30 employees, with at least half of them being Singapore Citizens and 10 of whom must be new employees, to be eligible for Re-entry Permit Renewal after the initial five-year period.
Under the second option, applicants will be required to invest S$25 million in a GIP-selected fund. These GIP-selected funds will be shortlisted by EDB based on a holistic assessment of their track record, investment mandate in Singapore, as well as the type of industries or markets the funds focus on.