It is reported that starting from January 1 next year, the global investor program of the Singapore Economic Development Board will raise the investment categories from SGD 1 million and SGD 1.5 million to SGD 2.5 million, and will cancel the original SGD 2 million investment category for real estate. After the policy adjustment, applicants will no longer be able to apply for permanent residency for their parents and parents-in-law, but can apply instead for a long-term visit pass valid for five years.
The minimum asset requirement for investment immigration has doubled
It is reported that following the increase in the threshold for applying for Singapore permanent residency under the “Contact Singapore” Global Investor Programme by the Singapore Economic Development Board (EDB), another higher net worth investment immigration program—the Financial Investor Scheme (FIS) under the Monetary Authority of Singapore (MAS)—has also raised the minimum requirement for local assets from SGD 5 million to SGD 10 million.
According to experts, starting from January 1 next year, foreigners wishing to become Singapore permanent residents through the FIS program will see the total financial assets required to be held in local financial institutions increase from SGD 5 million to SGD 10 million. Additionally, the value of local private residential properties that applicants can purchase has been reduced from more than SGD 3 million for Sentosa villas (landed property) to SGD 2 million or below for owner-occupied housing. Applicants can still apply for permanent residency for core family members (spouse and unmarried children under 21), and the additional asset requirement for each unmarried child remains at SGD 5 million.
However, the parents of the applicants or their spouses' parents will no longer be able to obtain permanent residency; instead, they will be granted a long-term pass valid for 5 years. According to the existing FIS regulations, for each parent/spouse’s parent for whom the applicant applies for permanent residency, an additional SGD 2.5 million in assets will be required.
Under the new regulations to be fully implemented next year, FIS applicants have two options: First, to keep SGD 10 million in financial assets in a designated account in a local financial institution managed and monitored by the Monetary Authority; Second, the SGD 10 million in assets may include no more than SGD 2 million in value of owner-occupied housing, along with maintaining at least SGD 8 million in financial assets in a local account. Although the threshold has increased, the authorities have also established a new provision: applicants may have a leverage of up to double the minimum asset requirement, allowing borrowing of up to SGD 10 million. However, these funds must be used for investments in locally managed or authorized funds and products.
According to the existing FIS program, applicants must possess at least SGD 5 million in local assets, which includes at least SGD 3 million in Sentosa villas (landed property), with a minimum holding period of 5 years. They may also apply for permanent residency for their spouse, minor children, and parents/spouse’s parents. Meanwhile, the applicant's personal assets must exceed SGD 20 million, and leverage is not permitted.
