Introduction

Being a Singapore Permanent Resident (“SPR”) is a status coveted by many foreigners across various nationalities. This is premised on a myriad of personal considerations such as business, relocation, education, property purchase, and citizenship plans in Singapore.

Where obtaining SPR is concerned, there are two routes for consideration:

• The first and more commonly-known route involves individuals applying to the Immigration and Checkpoints Authority (“ICA”) in the capacity of an Employment Pass (“EP”)/S Pass holder. This is also known as the Professionals, Technical Personnel and Skilled Workers Scheme (the “PTS Route”).
• The second alternative route involves successful business owners and ultra-high-net-worth individuals applying to the Economic Development Board (“EDB”) under EDB’s Global Investor Programme (the “GIP Route”).

This month’s article brings a summary and comparison of the key requirements to obtain SPR under each route, and explains how we at Sim Mong Teck & Partners (“SMTP”) walk our clients through their journey to become SPRs.

PTS Route

Approving Authorities

Naturally, a pre-requisite is for foreigners to first obtain their EPs/S Passes from the Ministry of Manpower (“MOM”), if they have yet to do so. In situations where an existing EP/S Pass is due for expiry, for practical purposes the EP/S Pass renewal should first be secured from MOM, which can be granted for up to 3 years.

Foreigners with valid EPs/S Passes from MOM will have the standing required to take the next step of submitting the SPR application under the PTS Route. ICA acts as the sole approving authority under this route.

Assessment Criteria and Requirements

ICA considers various factors to assess an SPR applicant’s ability to contribute to Singapore, integrate into Singapore society, and commit to sinking roots in Singapore:

• Family ties to Singaporeans
• Economic contributions
• Qualifications
• Age
• Family profile
• Residency time

A key point to note is that these factors are phrased in a general sense, without further elaboration on any specific rubrics tied to each factor. This is in significant contrast to the GIP where the assessment criteria and requirements are clearly spelt out, albeit entailing higher barriers to entry.

Estimated Processing Time

According to ICA’s latest update issued around end-June 2024, SPR applications will be processed within 6 months, provided all supporting documentation are submitted in order. However, some applications may take a longer time to process, subject to ICA’s discretion on a case-by-case basis.

GIP Route

Approving Authorities

Unlike the PTS Route, EDB plays an important role in the GIP approval process. Nevertheless, ICA also plays a role in ensuring that applicants’ background checks are well in order, which is equally crucial to a successful GIP application.

Unlike the PTS Route, the GIP Route does not involve EPs/S Passes or MOM. In other words, foreigners who meet the prevailing GIP requirements will be fast-tracked to SPR status when their GIP applications are approved. Be that as it may, foreigners may still consider obtaining an EP/S Pass in the interim period where their GIP applications are still in progress.

Assessment Criteria and Requirements

Unlike the various factors considered by ICA under the PTS Route, EDB mainly focuses on the economic factor. There are two main considerations under the economic factor:

• Fulfilling any of the four qualifying criteria:

(Note: The business which GIP prospects rely on to demonstrate fulfilment of any criteria is herein referred to as the “Main Business”.)

• Established Business Owners
• Applicant must have at least 3 years of entrepreneurial and business track record; and
• Main Business must have at least S$200m annual turnover in the year before applying for GIP; and
• Main Business must have an at least S$200m average annual turnover in the 3 years before applying for GIP; and
• Applicant must hold at least 30% (privately-owned Main Business) shareholding or be one of the largest individual shareholders (publicly-listed Main Business); and
• Main Business must be engaged in at least one of the designated industries listed in page 20 of EDB’s GIP Factsheet (current version in force: 15 March 2023).
• Next Generation Business Owners
• Applicant’s immediate family must hold least 30% (privately-owned Main Business) shareholding or be the largest shareholder (publicly-listed Main Business); and
• Main Business must have at least S$500m annual turnover in the year before applying for GIP; and
• Main Business must have an at least S$500m average annual turnover in the 3 years before applying for GIP; and
• Applicant must be part of the Main Business’s management team (e.g. C-suite/Board of Directors); and
• Main Business must be engaged in at least one of the designated industries listed in page 20 of EDB’s GIP Factsheet (current version in force: 15 March 2023).
• Founders of Fast Growth Companies
• Main Business must not be publicly-listed; and
• Applicant must be a founder of the Main Business; and
• Applicant must be one of the largest individual shareholders of the Main Business; and
• Main Business must have a valuation of at least S$500m; and
• Main Business must be invested into by reputable Venture Capital/Private Equity firms; and
• Main Business to be engaged in at least one of the designated industries listed in page 20 of EDB’s GIP Factsheet (current version in force: 15 March 2023).
• Family Office Principals
• Applicant must possess at least 5 years of entrepreneurial, investment or management track record; and
• Applicant must have at least S$200m of net investible assets.
• Investing through any of the three options:
• Option A: Demonstrate that at least S$10m has been invested into a new Singapore business entity, or invested in the expansion of an existing Singapore business operation.
• Option B: Invest S$25m in a GIP-select fund that also invests in Singapore-based companies. The current list of GIP-select funds can be found on EDB’s website.
• Option C: Establish a Singapore-based Single-Family Office with at least S$200m Assets-Under-Management (“AUM”), out of which at least S$50m must be deployed in any of the 4 categories:
• Equities, REITs, or business trusts listed on Singapore-approved exchanges; or
• Qualifying debt securities listed on the Monetary Authority of Singapore’s Qualifying Debt Securities Enquiry System; or
• Funds distributed by Singapore-licensed/registered managers or financial institutions; or
• Private equity investments in non-listed, Singapore-based operating companies.

Estimated Processing Time

According to EDB, GIP applications take approximately 12 months to process, provided all supporting documentation are submitted in order. GIP applications will also be subject to due diligence checks.

As such, some applications may take a longer time to process, subject to EDB/ICA’s discretion on a case-by-case basis.

SMTP – Your Guide on the Route to SPR

PTS Route

While this commonly-used route poses lower barriers to entry as compared to the GIP Route, it is ultimately clouded with a mist of uncertainty surrounding what each of the factors considered by ICA truly mean. Furthermore, a corollary of the relatively lower barriers to entry is that the competition to obtain SPR is significantly higher. A successful SPR application under this route thus necessitates applicants to put their best foot forward and stand out from the crowd.

Here at SMTP, we bring more than two decades of practical experience and a correspondingly rich bank of precedent to value-add to our clients’ bids for SPR. Being a private client practice that wholeheartedly believes in the philosophy of providing bespoke advice to our clients, we endeavour to dispel any doubts and misconceptions that clients may have, analyse each client’s SPR applicant profile, and provide tailored advice on further curation. By charting out a roadmap with the milestones to be fulfilled beforehand, we bring a sense of direction to the overall preparation process leading up to the eventual submission of SPR applications under the PTS Route.

GIP Route

In contrast, the GIP Route has relatively higher barriers to entry as well as clearer assessment criteria and requirements.

Be that as it may, a GIP application still entails significant processes throughout its generally longer timespan. As an EDB-recognised service provider bringing a similar wealth of experience to the table, we are highly cognisant of the prevailing GIP conditions as well as the intricacies behind the entire application process, ensuring a streamlined experience for interested and qualified GIP applicants.

Should you require our assistance or wish to find out more on applying for SPR, be it as an EP/S Pass holder or as a GIP applicant, please feel free to contact our Business Development team to arrange a meeting with our legal team. We look forward to working with you.