On 2 March 2023, the Singapore Economic Development Board (“EDB”) announced changes to the Global Investment Programme (“GIP”). The changes will direct more support to the local start-up ecosystem and the broader financial sector, as well as generate more good jobs for Singaporeans.
Many jurisdictions around the world are competing to attract high-calibre business owners and owners of capital. EDB is making these changes to selectively attract individuals with the ability to make more economic impact for Singapore, and the affinity to be more rooted to Singapore.
Changes
The changes which take effect from 15 March 2023, will be made to all three investment options under the programme.
Under Option A, applicants will be required to:
- Demonstrate an investment of at least S$10 million, 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$25 million in a GIP-select fund. These GIP-select funds will be shortlisted by EDB based on a holistic assessment of their track record, investment mandate in Singapore, as well as the sectoral focus of the funds.
Under Option C, applicants will be required to establish a Singapore-based Single-Family Office (“SFO”) with Assets-Under-Management (“AUM”) of at least S$200 million, of which at least S$50 million 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”) e.g., SGX Mainboard and Catalist;
- 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.
These changes will encourage GIP investors to deploy more funds in the local financial system and generate more jobs for Singaporeans, including in roles such as finance, tax, and legal professionals, as well as fund management.
Summary of Changes
Further details on the changes to the GIP from the existing requirements are summarised in the below table as published by EDB on 2 March 2023.
| Investment Option | Existing Requirements | New Requirements (w.e.f. 15 Mar 2023) | |
| Option A | Investment Conditions | Invest S$2.5 million in a new business entity or existing business operation in Singapore upon Approval-in-Principle (AIP). | Demonstrate an investment of at least S$10 million (including paid-up capital) in a new business entity or existing business operation in Singapore upon AIP. |
| Re-entry Permit (REP) Renewal Conditions (Economic) | Hire at least 10 incremental employees, of which at least 5 must be Singapore Citizens (SCs) and incur total business expenditure (TBE) of S$2 million by Year 5 of Permanent Residence (PR) status. | Hire at least 30 employees, of which at least half must be SCs, by Year 5 of PR status. Of these, at least 10 must be incremental hires. | |
| Option B | Investment Conditions | Invest S$2.5 million in a GIP fund that invests at least 50% in Singapore-based companies upon AIP. | Invest S$25 million in a GIP-select fund that also invests in Singapore-based companies. |
| REP Renewal Conditions (Economic) | Hire at least 10 incremental employees, of which at least 5 must be SCs, and incur TBE of S$2 million by Year 5 of PR status. | Maintain investment in the GIP-select fund. | |
| Option C | Investment Conditions | Invest S$2.5 million in a new or existing Singapore-based Single-Family Office (SFO) with Assets-Under-Management (AUM) of at least S$200 million, of which at least S$50 million must be held in Singapore, upon AIP. | Demonstrate to have established a Singapore-based SFO with AUM of at least S$200 million, of which at least S$50 million has been transferred into Singapore, upon AIP. This S$50 million must be deployed in any of the following 4 investment categories, no later than 12 months from the date of the Final Approval letter: o Companies listed on MAS-licensed exchanges; o Qualifying debt securities; o Funds distributed by Singapore-licensed/registered managers; or o Private equity injection into non-listed Singapore-based businesses. |
| REP Renewal Conditions (Economic) | Hire at least 10 employees, of which at least 5 must be SCs and 3 must be investment professionals and incur TBE of S$2 million by Year 5 of PR status. | Maintain at least S$50 million AUM across any of the 4 investment categories throughout the 5-year PR status; and Hire at least 5 incremental Family Office professionals, of which at least 3 must be SCs, by Year 5 of PR status. | |
Reading Materials:
The following materials are available on the EDB website:
Announcement: Changes to Global Investor Programme