Having just one scheme eliminates unnecessary bureaucracy and helps streamline Singapore permanent residency applications. As the demand for Singapore PR status remains robust, we are optimistic that more funds will go directly to deserving enterprises.
Singapore (PRWEB) April 12, 2012
Asiabiz, a Singapore company registration specialist, is optimistic that the newly-announced consolidation of two permanent resident (PR) schemes for foreign investors and high-net worth individuals (HNWIs) will benefit Singapore firms.
The Financial Investor Scheme (FIS) and the Global Investor Program (GIP) were introduced in 2004 to allow foreign investors and HNWIs two possible routes to attain the Singapore permanent resident.
The Financial Investor Scheme (FIS), which was introduced by the Monetary Authority of Singapore (MAS), allowed foreign HNWIs to earn their Singapore permanent residency if they park a minimum of S$10 million in Singapore for five years. However, many analysts have argued that the FIS did not help create jobs for Singaporeans or add much value to the economy. Some analysts also said that the FIS has played a part in inflating property prices. As such, MAS will terminate the scheme by 30 April 2012.
Moving forward, the Global Investor Program (GIP), which was introduced by Contact Singapore will be the main route for foreign investors and HNWIs to pursue Singapore permanent residency. Under the current system, the GIP offers two options.
The first option is to invest at least S$2.5 million in either a start-up that has opted to form a Singapore company or an expanding Singapore company which has an annual revenue of at least S$30 million. The other option is to invest a minimum of S$2.5 million in a GIP-approved fund which would then serve key industry sectors.
Analysis by Asiabiz shows that the Global Investor Program creates more value than the Financial Investor Program to Singapore’s economy as it links high-potential Singapore start-ups directly to funds needed in the initial stages of their growth. This would in turn help start-ups develop their capabilities and get to the level of growth that allows them to expand operations.
Additionally, the streamlining of the PR scheme for investors could not come at a better time as it connects growing enterprises to funding that catalyzes the next steps of their development. In sum, the GIP connects smaller to medium-sized Singapore businesses to the funds and connections they need to grow the business.
Adding his comments, Mr. James Nuben, Head of Tax Division, Asiabiz Services, said, “Merging the two investor programs makes sense as both schemes are similar. Furthermore, having just one scheme eliminates unnecessary bureaucracy and helps streamline Singapore permanent residency applications. As the demand for Singapore permanent resident status remains robust, we are optimistic that more funds will go directly to deserving enterprises. This will in turn benefit Singapore’s economy and boost its reputation as a Asia's business epicenter.”
ABOUT ASIABIZ SERVICES
Asiabiz Services is a Singapore-based consultancy that offers business solutions for both local and foreign professionals, investors and entrepreneurs. Our areas of expertise include Singapore company incorporation, offshore company setup, accounting, taxation and other related corporate services. Asiabiz Services also provides Singapore work visa and immigration services for foreign professionals wishing to relocate to Singapore.
120 Telok Ayer Street, Singapore 068589
Phone: +65 6303 4614