Until now, a foreign businessperson hoping to win permanent residence in Singapore through the Global Investor Programme had to be an established entrepreneur or business owner. A revision effective 1 March 2020 changed that.
Under the new version, owners of fast-growing companies can apply, and so can principals of family offices, the investment firms that look after wealthy clients’ money. Contact Singapore, a division of the Economic Development Board, administers the programme.
Matthew Lee, the division’s director, said the scheme would now sit better with shifts in the global economy. A string of new business opportunities in recent years had produced a new breed of investors and entrepreneurs, he said. Wider access for people who want to set up a single-family office, in his view, would help strengthen Singapore’s banking and finance sector.
The thresholds
The programme dates to 2004. In its original form it welcomed foreign investors who put $2.5 million into a new business or an existing single-family office in Singapore, with at least $200 million under management.
The revised version keeps the $2.5 million minimum for a new or existing business in Singapore. Investors can also put the money into a GIP fund that backs companies based there.
Startup founders have their own door. They must be among the company’s largest individual shareholders, and the business must be worth at least $500 million. Family office principals need a net worth of at least $200 million held in bank deposits and other collective investment schemes.
The scheme still favours high-performing businesses, though it now offers more routes in.
Where the bar went up
Established business owners face a steeper test. Singapore raised the minimum revenue requirement from $50 million to $200 million.
Renewing permanent residence also got tougher. Eligible firms must now report annual business costs of at least $2 million, twice the earlier $1 million.
