Changes to Global Investor Programme will generate more spin-offs for the Singapore economy

The Singapore Economic Development Board (EDB) announced changes to the Global Investor Programme (GIP) today. 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.

GIP CHANGES

Changes will be made to all three investment options under the programme. The changes will take effect from 15 March 2023. 

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. 

Further details on the changes to the GIP from the existing requirements are summarised in the Annex. 

STAYING RELEVANT AND EFFECTIVE 

These changes are part of EDB’s ongoing review of the GIP to ensure the programme’s effectiveness in attracting only top-tier business owners who are interested to drive the growth of their businesses and investments from Singapore. 

Between 2011 and 2022, GIP investors created 24,699 jobs across a range of roles such as software engineers, researchers, and public relations practitioners. 

The GIP was last revised in March 2020, when changes were made to address the emergence of new breeds of business owners, including founders of fast-growing tech companies and family office principals. Between 2020 and 2022, an average of 60 investors were accorded Singapore Permanent Residence (PR) status through the GIP annually. 

“Building on the success of the GIP to date, these changes will strengthen the support for our local start-up ecosystem and create more good jobs for our people.”