Applicants will need at least S$10 million (US$7.4 million) in a business or S$25 million in an approved fund, the Singapore Economic Development Board said in a statement Thursday. For those establishing family offices, at least S$50 million must be deployed and maintained in four government-designated investment categories.
That compares with a previous requirement of a S$2.5 million investment in a business entity, fund or Singapore-based single family office. The changes take effect from March 15.
Singapore is tackling a perceived growing wealth gap brought on in part by the arrival of rich families from overseas. The country’s infrastructure and stability have attracted a growing number of ultra-wealthy individuals, contributing to a spike in costs for everything from luxury cars to golf club memberships and condominiums.
The government is fine-tuning its policies by encouraging more local jobs and investment in the city-state’s stock exchange and funds. One adjustment has been a tax hike on higher-value property and luxury cars.
The Global Investor Programme was introduced in 2004 to attract the world’s wealthiest people and provides a route to permanent residency.
Singapore was expected to get around 2,800 high-net-worth individuals in 2022 alone, according to residence and citizenship planning provider Henley & Partners. The firm estimates that 249,800 residents there have a net worth of at least US$1 million, making it the world’s fifth wealthiest city.
Here’s a breakdown of the pathways available:
Option A
- Invest at least S$10 million, inclusive of existing paid-up capital, in a new business entity or existing business operation in Singapore
- Hire at least 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
Option B
- Applicants must invest S$25 million in a Global Investor Programme-select fund
Option C
- Requirement to establish a Singapore-based single family office with at least S$200 million in assets under management
- At least S$50 million must be deployed and maintained in these categories including companies listed on local exchanges, qualifying debt securities, funds distributed by approved Singapore-licensed managers; or private equity injection into non-listed, Singapore-based businesses