Getting Singapore Permanent Residency ('SPR') Status Under The New & Enhanced Global Investor Programme ('GIP') In Singapore

• Law Firm: Withers LLP
• Subject Matter: Finance and Banking, Corporate/Commercial Law, Financial Services, Fund Management/ REITs, Venture Capital, Corporate and Company Law
• Author: Ms Stacy Choong, Lian Chuan Yeoh and Chua Yee Hoong
• Published date: 08 March 2023

The GIP was launched in 2004 by the Economic Development Board ('EDB') with the objective of providing a faster track to SPR status for eligible global investors who intend to drive their businesses and investment growth from Singapore.

4 Categories of Eligible Investors

Over the years, the eligibility criteria for applicants have been expanded from Established Business Owners to include 3 other categories, namely: Next Generation Business Owners, Founders of Fast Growth Companies and Family Office Principals.

3 Investment Options

Despite the differences in background and expertise of the 4 categories of Eligible Investors, the investment conditions had previously remained the same for all of them.

They have the choice of investing at least S$2.5 million in one of 3 investment options:

• Option A:a new or expanding business in a qualifying industry in Singapore;

• Option B:an approved venture capital fund ('GIP Fund') that invests in Singapore-based companies, or

• Option C:a single-family office based in Singapore, that has at least S$200 million in assets under management ('AUM').¹

Rationale for an updated GIP regime

The government has recently announced that between 2020 and 2022 alone, around 200 people have been granted SPR through the GIP and that the GIP investors who are approved as SPRs are less than 1% of the total number of SPRs approved every year.

In addition, the government also announced that the GIP has generated more than S$5.46 billion in total business expenditure via direct investments from 2011 to 2022, and created more than 24,000 jobs in Singapore.

In his parliamentary speech on 28 February 2023, the Minister for Trade and Industry Mr. Gan Kim Yong also announced that the GIP will soon be enhanced by the EDB to ensure that Singapore captures even more value from the capital, businesses, and networks that the investors bring. He indicated that the investment quantum will be raised, to ensure greater contributions from the investors, and to direct more funds and resources into the local Singapore ecosystem. In addition, the scope of the GIP-select funds will also be adjusted, in order to capture more value from a wider pool of investors.

Effective date of the changes

Earlier today, the EDB has announced the upcoming key changes to the GIP, which is slated to take effect for applications submitted from 15 March 2023. Any new applications and previously submitted but incomplete applications will only be processed under the existing...