What is Tech@SG

Tech@SG programme is administered by two government organizations, the Singapore Economic Development Board (“EDB”) and Enterprise Singapore (“ESG”). It aims to help fast-growing companies establish their core teams in Singapore and bring aboard skilled foreign talent.

Under the programme, eligible companies are assisted in two aspects:

1. Company-level endorsement to the Ministry of Manpower (“MOM”), which reduces rejection risk for Employment Pass (“EP”) applications to MOM; and thereafter,
2. Coverage for the first renewal of each new EP obtained via Tech@SG. Each renewal will be valid for up to 3 years.

EP is a work visa which allows foreign nationals to live and work in Singapore, and Tech@SG enables fast-growing companies to support their business growth with the necessary skilled manpower. EPs are typically granted for an initial period of 1 to 2 years, and are eligible for renewal of up to another 3 years each time.

While EPs are typically granted and renewed on the discretion of MOM and assessed on the points-based Complementarity Assessment Framework (“COMPASS”), the endorsement granted through the Tech@SG programme provides lower chances of rejection for applications and renewals.

Company requirements

For the Tech@SG programme, all 4 criteria below must be fulfilled by the applicant company:

1. It has incorporated a business entity in Singapore via the Accounting and Corporate Regulatory Authority (“ACRA”),
2. It has a digital or technological offering (e.g. big data and analytics, artificial intelligence, cybersecurity etc.) as its core business / service,
3. It has secured more than US$10 million (cumulative) in investment funding in the past 36 months, and
4. It has received funding (no minimum amount) from a Tech@SG-recognized investment firm in the past 36 months.

Individual requirements

Above requiring the applicant company to meet the its criteria, an individual intending to obtain EP via Tech@SG must also fulfil the 2 criteria below:

1. Have a fixed monthly salary that meets MOM’s prevailing salary criteria. The minimum required for an EP is S$5,000, further subject to MOM’s COMPASS framework with effect from 1 September 2023, and
2. Be considered a core team member with the appropriate functional role (e.g. business development, human resources, finance, product developer, software engineer, data scientist etc.) and level of seniority (i.e. only manager-level and above).

Application process

The process can be divided into two portions:

1. Obtain the approval of the Tech@SG application from either EDB or ESG, and
2. Obtain the approval of each EP.

The first portion involves incorporating a Singapore company (if it has not already been established), setting up a CorpPass account, completion of the Tech@SG application form, finalizing a business plan (including but not limited to headcount and expenditure projections etc.), and providing funding proof. Review by EDB or ESG will take 10 to 15 days to process, notwithstanding any requests for additional information or documents and further time needed by the authorities.

The second portion includes registering an EP Online account (if it has not already been set-up), reviewing and drafting EP applications for employees. Review of each application by MOM will take an estimated 10 days, notwithstanding any requests for additional information or documents and further time needed by MOM.

While EDB and ESG’s support will end at the earlier of 2 years or after approvals/renewals of 10 EPs, the company will still have access to the authorities’ suite of services to assist with further expansion of operations in Singapore.

Advantages of Tech@SG

Lower Rejection Risk and More Streamlined Process

One of the primary advantages of the Tech@SG program is the significantly lower rejection risk. The program provides company-level endorsements to MOM. This endorsement reduces the risk of rejection, ensuring that companies can secure EPs for their key employees more reliably and quickly. In contrast, the conventional EP application process can be more unpredictable, where companies may face rejections due to various other regulatory reasons.

Furthermore, the Tech@SG program allows companies to streamline their hiring process by endorsing up to 10 EP applications over a two-year period. This bulk endorsement approach simplifies the administrative workload, enabling companies to plan their talent acquisition strategy more effectively without the constant concern of potential work visa rejections. For tech companies, which often need to scale rapidly, this streamlined process is a significant advantage.

Support for Renewals and Extended Validity

Tech@SG also offers support for the first renewal of each new EP obtained under the program, extending the initial EP validity by up to 3 additional years. This provision reduces the administrative burden on companies, allowing them to focus on growth and development rather than dealing with regulatory formalities. Employees benefit from greater stability, knowing that their employment status is secure for a longer duration. This extended validity is particularly beneficial for tech companies that rely on continuity and stability within their core teams to maintain momentum and drive long-term projects.

Targeted Support for High-Growth Tech Companies

The program specifically targets high-growth tech companies, ensuring that they can quickly build up their core teams in Singapore. This focus is crucial for companies in rapidly evolving industries where timely access to skilled talent is a competitive advantage. By catering to the unique needs of tech businesses, Tech@SG helps these companies maintain their growth momentum and innovate without being hampered by regulatory delays. The program is designed to attract companies that operate at the cutting edge of technology, such as those involved in artificial intelligence, big data, cybersecurity, and fintech.

Streamlined Eligibility Requirements

The eligibility requirements for Tech@SG are also streamlined compared to the standard EP application process. With specific criteria listed on EDB’s and ESG’s websites, it is more straightforward for prospective applicants to qualify. This focus on companies with a strong technological foundation and significant financial backing ensures that the program supports businesses with high potential for growth and innovation.

Strategic Advantages and Enhanced Reputation

In addition to operational benefits, Tech@SG offers significant strategic advantages. By facilitating the hiring of top-tier international talent, the program helps companies to build diverse and high-performing teams. This diversity can lead to increased creativity, improved problem-solving, and a broader range of perspectives within the company. Moreover, attracting international talent can enhance a company’s reputation, making it more attractive to investors, partners, and potential clients on a global scale. This reputation boost is a key advantage over the conventional EP process, which does not offer the same level of endorsement or recognition from major government agencies like EDB and ESG.

Reduced Risks and Administrative Burden

With endorsements from EDB or ESG, companies benefit from reduced risks and administrative burdens. The program ensures faster processing times, with applications typically processed within 10 to 15 working days. This expedited timeline is crucial for companies needing to quickly onboard international talent to drive their growth and operations. The support from these key government agencies also provides companies with a stamp of credibility, which can be advantageous when seeking further investment or entering new markets.

Conclusion

Overall, Tech@SG is designed to support tech companies in scaling rapidly by easing the process of acquiring and retaining international talent. This targeted assistance allows tech firms to focus on growth and innovation without being hindered by regulatory and administrative challenges. By offering a streamlined, supportive, and strategic approach to hiring international talent, Tech@SG plays a vital role in fostering a vibrant and competitive tech ecosystem in Singapore. The program’s comprehensive benefits, from higher approval rates and streamlined processes to strategic advantages and financial support, make it a superior alternative to the conventional EP application process.

Our firm has a breadth of experience helping clients establish businesses in Singapore and advising on work visa applications. Should you require our assistance in navigating the Tech@SG and EP applications, please feel free to contact our Business Development team to arrange a meeting with one of our lawyers.