Investor residency scheme brings in S$1.8bn between 2011 and 2016
TODAY file photo
SINGAPORE - From 2011 to 2016, the Republic’s investor residency programme has brought in investments which generated S$1.8 billion in total business expenditure, and created more than 6,000 job opportunities in industries such as infocomm media, engineering and financial services, said Senior Minister of State (Trade and Industry) Sim Ann in Parliament on Tuesday (Jan 9).
The Global Investor Programme (GIP) scheme — which was launched in 2004 — accords permanent residence (PR) status to foreign investors with substantial business track record and successful entrepreneurial background, provided that they intend to drive their business and investment growth from Singapore. To qualify, foreigners have to invest a minimum of S$2.5 million in Singapore through a business, or in GIP funds that invest in Singapore-based companies.
As of June last year, a total of 1,826 applicants have been granted PR status since the programme’s inception, the Ministry of Trade and Industry said in response to TODAY’s queries.
Ms Sim was responding to questions filed by Nominated Member of Parliament Thomas Chua, who asked about the programme’s outcomes and the safeguards in place to prevent its abuse.
On the safeguards, Ms Sim said that, for example, each applicant is required to submit detailed plans and supporting documents to the Singapore Economic Development Board, and the agency check and review the application in detail before giving the green light. GIP funds are also carefully assessed by an independent rating agency and a fund selection panel. Investors of these funds are also subject to the relevant safeguards under the Monetary Authority of Singapore’s regulatory regime for fund management companies.
As of last year, the GIP funds totalled S$1.5 billion. The performance of each fund varies, said Ms Sim when asked by Mr Chua about the performance and contribution of the funds.
Ms Sim reiterated that the GIP’s primary objective is “for Singapore-based companies to benefit from the injection of capital from GIP funds and tap on the GIP investor’s entrepreneurial track record to inject dynamism into our economy”.
She also noted that Singapore’s programme has a more stringent qualifying criteria, compared to similar schemes in other places such as Australia, the United States, and the United Kingdom. Hong Kong, for instance, has an “investment as entrepreneurs” scheme which does not stipulate a minimum investment amount, she added.
