We are optimistic that the elimination of the FIS will not be detrimental to Singapore’s economy as high net worth individuals and entrepreneurs determined to get Singapore permanent resident status will turn to the GIP.
Singapore (PRWEB) April 10, 2012
Singapore company incorporation specialists Rikvin supports the move to consolidate the Financial Investor Scheme (FIS) and the Global Investor Program (GIP) - two similar schemes that are designed for wealthy foreign investors seeking the Singapore permanent resident (PR) status. Rikvin is optimistic that the consolidation will reduce unnecessary bureaucracy and will not hurt Singapore’s appeal to foreign investors and high net worth individuals (HNWIs).
The Financial Investor Scheme (FIS), which was governed by the Monetary Authority of Singapore (MAS) will be terminated by 30 April 2012. The FIS allowed foreign HNWIs with S$20 million in net personal assets to park at least S$10 million in Singapore for five years in order to earn their PR status. However, many analysts have argued that the FIS did not add economic value and has instead played a role in pushing property prices skywards.
On the other hand, the Global Investor Program (GIP), which is governed by Contact Singapore - a collaboration between the Singapore Economic Development Board (EDB) and the Ministry of Manpower (MOM) - will remain as the main route for foreign strategic investors and high net worth entrepreneurs to pursue Singapore permanent residency.
Under the current system, the GIP offers two options:
1. Invest at least S$2.5 million
a) in a newly set-up Singapore registered company or
b) to expand an existing Singapore company which has an annual revenue of at least S$30 million OR
2. Invest at least S$2.5 million in a GIP-approved fund.
Analysis by Rikvin shows that the GIP creates more value than the FIS to Singapore’s economy as it gives more high-potential Singapore startups direct access to funds needed in the initial stages of their growth. The GIP investments reap high returns as they help existing Singapore firms to develop their capabilities and expand their teams as they grow. In gist, the GIP would have a positive economic impact on smaller to medium-sized Singapore businesses and help catalyze employment.
Commenting further, Mr. Satish Bakhda, Head of Rikvin’s Operations said, “Instead of hurting Singapore’s appeal to foreign investors and high net worth individuals, streamlining the two investor programs is an efficient way to move forward as it will do away with unnecessary bureaucracy. We are optimistic that the elimination of the FIS will not be detrimental to Singapore’s economy as high net worth individuals and entrepreneurs determined to get Singapore permanent resident status will turn to the GIP.”
The GIP will be further enhanced by 15 April 2012.
For fourteen years, Rikvin has partnered with foreign investors, entrepreneurs and professionals in their pursuit to access the limitless opportunities Singapore has to offer. Rikvin’s areas of expertise include Singapore company registration, offshore company setup, accounting, taxation and other related corporate services. Rikvin also provides Singapore work visa and immigration services for foreign professionals wishing to relocate to Singapore.
20 Cecil Street, #14-01, Equity Plaza, Singapore 049705
(65) 6320 1888