Introduction

 For many people looking to live and work in Singapore for the longer term, obtaining Singapore Permanent Resident (“SPR”) status is a logical step with the many benefits the status confers on foreigners. In Singapore, all SPR applications are regulated and overseen by the Immigration & Checkpoints Authority (“ICA”). This article examines the eligibility requirements to apply for SPR, the benefits of having SPR status, the statistics on SPR approvals granted each year and the factors that the ICA considers when reviewing and approving SPR applications.

Eligibility

There are only a few categories of individuals who qualify to apply for SPR. These include those who have family ties to Singaporeans and/or SPRs, such as spouse of a Singapore citizen (“SC“) or SPR, unmarried child aged below 21 years old, born within the context of a legal marriage to, or have been legally adopted by, a SC or SPR, and aged parent of a SC. Individuals who are currently working and living in Singapore, such as holders of an Employment Pass or S Pass and students studying in Singapore are also eligible to apply for SPR. Additionally, foreign investors can apply for SPR with the Economic Development Board under the Global Investor Programme. Upon acquiring SPR status, a Re-Entry Permit (“REP”) that is renewable every 5 years (subject to conditions) will be issued. The REP allows a SPR to retain permanent residence status while traveling or remaining abroad.

Benefits of being a SPR

One of the immediate benefits of obtaining SPR is that it allows the individual to live and work in Singapore, as well as enter and leave the country freely without the need to apply for travel or work visas. The applicant may also include the spouse and unmarried children under 21 years old in the SPR application, whilst parents of the SPR are eligible to apply for a Long-Term Visit Pass. Additionally, being a SPR allows one to have a retirement account with the Central Provident Fund (“CPF”). The CPF scheme is where the employee and employer each contributes a small percentage amount of the employee’s monthly salary into a CPF account which has relatively stable and attractive interest rates. Aside from being a retirement fund, the monies accumulated can be used for housing, healthcare, education and investments.

As an employee holding SPR status, one is essentially free to switch jobs without the worry and hassle of having to re-apply for a new work permit due to a change of employer. Furthermore, employers have to abide by the foreign employee quota (“quota”) regulated by the Ministry of Manpower which the SPR employee is precluded from, so hiring local employees (comprising of citizens and SPRs) would be an important consideration for employers to ensure that the quota is not exceeded. Additionally, children of SPRs are prioritised (compared to foreigners) in obtaining entry into local schools. Given Singapore’s reputation and standing in terms of its education system, it comes as no surprise that this is an important aspect for many who are seeking an education for their children here.

Perhaps one of the most coveted benefits as an SPR is the ability to purchase property at much more affordable stamp duty rates than foreigners. In April this year, the government announced that foreigners purchasing residential properties are now liable to pay 60% of additional buyer’s stamp duty (“ABSD”), compared to SPRs who are only liable for 5% of ABSD.[1] This stark difference has made the SPR status even more sought after than before, especially for individuals looking to purchase a residential property here both as a home and an investment when relocating with their families. SPRs are also eligible to purchase resale government Housing Development Board (“HDB”) flats, which are usually priced much more affordably compared to private housing.

It is also widely known that the Singapore passport is one of the most powerful in the world, ranked second globally with the ability to enable passport holders to travel without a pre-approved visa to 192 destinations.[2] With the exception of a child below 21 years old born to, or adopted by, a Singaporean parent, being a SPR is a prerequisite to obtaining Singapore citizenship. Being a citizen would confer upon the individual the same rights as locally-born Singaporeans, which include better tax rates, grants and rebates, voting rights and the ability to purchase new government HDB flats.

Statistics on SPR Approvals

With the myriad of benefits as a SPR, it comes as no surprise that there is high demand to acquire SPR status. Since 2010, the average number of SPR approvals has remained consistently at 30,000 each year, the result of a conscious effort by the government to keep the pace of immigration measured and stable so that Singapore remains a cohesive society and a good home for all Singaporeans.[3]

The consistent number of SPR approvals granted each year means that applying for SPR is highly competitive. To put things into perspective and with reference to the diagram below, the total number of foreigners holding the Employment Pass or S Pass who are eligible to apply for SPR is 343,200, which is 22% of non-residents totalling 1.56 million. Assuming half of these eligible foreigners apply for SPR, and disregarding the pool of eligible applicants who have family ties to Singaporeans and/or SPRs, less than 20% of foreigner applicants would actually succeed in obtaining SPR status. As such, it would be entirely expected that the ICA would look at each application holistically when exercising its discretion on whether to grant approval.

ICA Factors

Given the volume of applications that the ICA is likely to process relative to the number of approvals granted each year, the ICA takes into consideration a myriad of factors when determining whether to grant SPR. Factors that are reviewed include the individual’s family ties to Singaporeans, economic contributions, qualifications, age, family profile and length of residency, ability to contribute to Singapore and integrate into our society, as well as his or her commitment to sinking roots in Singapore.

The factors listed above are integral in addressing the country’s population concerns. It has been widely publicised that Singapore is encountering a shrinking and ageing resident population. This has been reiterated in the recent government population report that the country’s resident total fertility rate has generally been declining for the past few decades, largely due to the rising proportion of singles, later marriages, and married couples having fewer children.[4] As such, those ICA factors have been calibrated for the nation’s future and sustainability. Figures show that in 2021, 90.1% of SPR approvals were granted to applicants aged 40 and below, and 83.4% of SPR approvals that were granted for those aged 20 and over have at least post-secondary qualifications.[5] In addition, it is generally favourable for family units to apply for SPR as a whole, and understandably so to support population growth, demographic stability and contributions to the economy and workforce.

The applicant’s length of residency is also an important precursor to the individual’s ability to contribute to, integrate in and commit to Singapore. Typically, an applicant who has stayed for many years in Singapore would have a higher chance of having the SPR application approved compared to another applicant who has only stayed in Singapore for a short period of time, as the former would have had sufficient time to be integrated with mainstream Singaporean society. However, an applicant with a relatively short term of residency can look to bolstering his SPR application through social integration efforts. There have been cases of successful SPR applications due to the individual’s active participation in grassroots and charity work, volunteering activities, setting up of charitable foundations and significant social and economic contributions to society. As such, the ICA reviews each application carefully and holistically so that such newly-minted SPRs have the potential to adapt successfully, integrate seamlessly, and make valuable contributions to Singapore.

Conclusion

The SPR status is highly regarded and coveted by foreigners looking to live and work in Singapore. Being a SPR provides many advantages for those who have made Singapore their home, which include housing, education, healthcare and financial benefits. As such, applying for SPR is highly competitive, a conscious effort by the government to ensure a paced and stable influx of foreigners. This ensures sustainability where infrastructure and resources are concerned whilst addressing the nation’s population issues. Therefore, the ICA evaluates each SPR application with careful consideration of a myriad of factors to achieve balance between the applicant’s needs with that of Singapore as a whole.

SMTP’s experience

As a private client firm, our Immigration and Family Offices department has a wealth of experience in SPR applications and renewal of REPs for our clients and their family members, including any subsequent conversions to Singapore citizenship. Our firm collaborates with clients to enhance their social integration and economic contribution profiles to help their SPR applications stand out. Our lawyers work closely with clients and their advisors, adopting a tailored approach to address families’ specific needs and requirements.

Should you or your clients require any assistance or advice, please feel free to contact our Business Development Team to schedule a consultation.

[1] https://www.straitstimes.com/business/property/higher-absd-s-pore-citizens-buying-2nd-home-to-pay-20-up-from-17-rate-for-foreigners-doubles

[2] https://www.straitstimes.com/singapore/singapore-passport-remains-second-most-powerful-in-the-world

[3] https://www.mha.gov.sg/mediaroom/parliamentary/written-reply-to-pq-on-the-number-of-permanent-residence-status-granted-in-2021/

[4] pg 15, Population in Brief 2022

[5] pg 27, Population in Brief 2022