The Singapore Economic Development Board (EDB) has recently announced significant changes to its Global Investor Programme (GIP) aimed at providing greater support to the local start-up ecosystem and the broader financial sector. These modifications are expected to generate more high-quality jobs for Singaporeans and reinforce the nation’s position as a global business hub.

In a competitive landscape where jurisdictions worldwide are vying to attract exceptional business owners and capital holders, the EDB has strategically adjusted the GIP to selectively attract individuals capable of making a substantial economic impact in Singapore while fostering a deep connection with the nation.

Effective from March 15, 2023, the changes will be implemented across all three investment options offered under the GIP.

Option A will require applicants to demonstrate a minimum investment of S$10 million, inclusive of existing paid-up capital, in either a new business entity or an existing business operation in Singapore. Additionally, to qualify for Re-entry Permit Renewal after the initial five-year period, applicants must employ at least 30 individuals, with at least half of them being Singapore Citizens. Moreover, a minimum of 10 new employees must be hired.

Option B necessitates a S$25 million investment in a GIP-select fund. These funds will be meticulously shortlisted by the EDB based on a comprehensive assessment of their track record, investment mandate in Singapore, and sectoral focus.

Option C, applicants must establish a Singapore-based Single-Family Office (SFO) with a minimum of S$200 million in Assets-Under-Management (AUM), of which at least S$50 million must be deployed and maintained in one of the following four investment categories:

1. Companies listed on exchanges licensed by the Monetary Authority of Singapore (MAS), such as SGX Mainboard and Catalist.
2. Qualifying debt securities like bonds, notes, commercial papers, and certificates of deposit listed on MAS’ Qualifying Debt Securities Enquiry System.
3. Funds distributed by Singapore-licensed managers listed on MAS’ Financial Institutions Directory.
4. Private equity injection into non-listed, Singapore-based businesses.

These changes aim to encourage GIP investors to channel more funds into the local financial system, thereby creating a greater number of job opportunities for Singaporeans. The roles expected to benefit from this development include finance, tax, and legal professionals, as well as fund managers.

The EDB’s continuous evaluation of the GIP seeks to ensure that the program remains relevant and effective in attracting top-tier business owners who are genuinely committed to driving the growth of their businesses and investments from Singapore. Between 2011 and 2022, GIP investors successfully generated 24,699 jobs across various sectors, including software engineering, research, and public relations.

The GIP was last revised in March 2020 to address the emergence of new types of business owners, particularly founders of fast-growing tech companies and family office principals. On average, 60 investors annually attained Singapore Permanent Residence (PR) status through the GIP between 2020 and 2022.

With these enhancements to the Global Investor Programme, Singapore reaffirms its commitment to nurturing local start-ups and bolstering the financial sector, establishing itself as an attractive destination for business leaders seeking unparalleled growth opportunities in the heart of Asia.