Debunking Myths of SPR Applications

Introduction

 Singapore’s strong economy, high-quality healthcare and world-class education system make it an attractive destination for professionals and their families who are seeking new opportunities. For many people looking to live and work in Singapore for the longer term, obtaining Singapore Permanent Resident (“SPR”) status is a logical step with the many benefits the status confers on foreigners. With Singapore’s growing reputation as a global hub for business, education and innovation, more people are eager to secure SPR status not only for personal and economic advantages but also as a stepping stone toward eventual Singaporean Citizenship. In Singapore, all SPR applications are regulated and overseen by the Immigration & Checkpoints Authority (“ICA”). Given that SPR approvals are highly discretionary without definitive parameters (eg. a points-based assessment system) to provide certainty on the outcome, misconceptions often obscure the reality of SPR applications. This article explores the eligibility requirements to apply for SPR and its benefits, the factors that ICA takes into account when granting SPR status and the common myths associated with these factors, statistics on the number of SPR approvals granted each year and important considerations for REP renewal.

SPR Eligibility

There are only a few categories of individuals who qualify to apply for SPR. These include those who have family ties to Singaporeans and/or SPRs, such as spouse of a Singapore Citizen (“SC“) or SPR, unmarried child aged below 21 years old, born within the context of a legal marriage to, or have been legally adopted by, a SC or SPR, and aged parent of a SC. Individuals who are currently working and living in Singapore, such as holders of an Employment Pass or S Pass and students studying in Singapore (subject to conditions) are also eligible to apply for SPR. Additionally, foreign investors can apply for SPR under the Global Investor Programme which is jointly administered by the Singapore Economic Development Board and the ICA.

Upon acquiring SPR status, a Re-Entry Permit (“REP”) that is renewable every 5 years (subject to conditions) will be issued. The REP allows a SPR to retain permanent       residence status while traveling or remaining abroad.

Benefits of being a SPR

Being a SPR allows an individual to live and work in Singapore freely without the need for visas. Eligible family members, such as a spouse and unmarried children under 21, can be included in the SPR application as well. SPR holders benefit from Central Provident Fund (“CPF”) contributions, a retirement savings account that offers attractive interest rates which can be used for housing, healthcare, education, and investments. SPR status provides job flexibility as well, as holders can change employers without needing to reapply for a work permit, aside from being considered a local hire for employers subject to foreign employee quotas. Additionally, SPR children receive priority for admission to local schools, benefiting from Singapore’s renowned education system. A key benefit of SPR status is the ability to purchase residential properties with significantly lower Additional Buyer’s Stamp Duty (“ABSD”) rates (5% – 35%, depending on whether it is the first or subsequent residential property) compared to foreign buyers (60%). SPRs can also buy resale government Housing Development Board flats which are more affordable than private properties. SPR status is also a prerequisite step toward Singapore Citizenship for those looking to establish themselves permanently here.

ICA Factors

Given the limited number of SPR approvals granted each year, the ICA assesses each application holistically by considering a myriad of factors which include the individual’s family ties to Singaporeans, economic contributions, qualifications, age, family profile and length of residency, ability to contribute to Singapore and integrate into our society, as well as his or her commitment to sinking roots in Singapore. These factors form the core basis of ICA’s assessment of SPR applications, and we now debunk some of the most common myths that are associated with SPR applications against the backdrop of these ICA factors.

  1. Family Ties to Singaporeans

Myth: Marrying a Singaporean guarantees PR approval.

Reality: While being married to a Singaporean can strengthen your PR application, it does not automatically guarantee approval. The ICA evaluates multiple aspects, including your ability to contribute economically and socially, and integrate into society. A genuine marriage demonstrates commitment to settling down here but must be complemented by other positive factors.

Having other family members who are Singaporeans also demonstrates the applicant’s connection to Singapore through familial ties, but it is important that the applicant showcases his/her own commitment to making Singapore home. Generally, a newlywed spouse of a SC will only be able to get a Long-Term Visit Pass (“LTVP”) and not SPR.

  1. Economic Contributions

Myth: High income or sizeable personal assets secures SPR status.

Reality: A substantial income demonstrates financial stability but it is definitely not the sole nor most important criterion. The ICA also assesses employment background, career progression, and contributions to Singapore’s economy. In addition, there is a need to be mindful of public policy issues that come with a sudden widening of the population’s income gap if there is an influx of wealthy foreigners. Ensuring that living expenses and housing remains affordable for all Singaporeans would be a paramount consideration.

  1. Qualifications

Myth: Only individuals in high-demand professions are granted SPR.

Reality: While it would be advantageous to have specialised skills in areas where Singapore is experiencing a shortage such as in the healthcare, infocomm technology and maritime industries, the ICA considers a broad range of professions to keep a balanced commercial landscape. As much as certain skills and job positions may be advantageous, applicants from various fields can qualify as the emphasis is on the applicant’s overall profile, including work experience, education, and how well the applicant has integrated into Singapore society.

  1. Age

Myth: Younger applicants have an advantage in obtaining SPR.

Reality: There is some truth to this widely-held notion. Although older applicants have been successful in getting SPR, statistics have shown that 87.5% of SPR approvals in 2023 were granted to applicants who were 40 years and younger, as shown in the table below. The preference for younger applicants corresponds with the fact that Singapore is set to attain “super-aged” status in 2026, and 1 in 4 citizens will be 65 years and above by 2030.1 As such, there is a real need to ensure that Singapore’s immigration policy is targeted at addressing such population issues. Ultimately, the ICA will still evaluate how the applicant can contribute to Singapore’s long-term interests based on the applicant’s unique profile and potential contributions to Singapore.

  1. Family Profile

Myth 1: Having children born in Singapore guarantees SPR approval.

Reality: While having children born in Singapore may have a positive impact on the SPR application as it indicates an intention to raise a family here, it is by no means a guarantee of SPR approval for the parents. The ICA assesses the entire family unit’s ability to integrate and contribute to society, considering all other factors as outlined in this article.

Myth 2: Male children can choose not to apply for SPR to avoid National Service.

Reality: Commitment to sinking roots (as explained below) is a factor that ICA considers, and leaving 1 or more family members out of the SPR application could potentially be viewed as having a lack of commitment to sink roots here. Additionally, a readiness to serve in National Service also signals a clear commitment to the nation. The ICA would expect the whole family unit to apply together, given that there is an expectation that the family intends to make Singapore home, supporting population growth, demographic stability and contributions to the economy and workforce.

  1. Length of Residency

Myth: Long-term residence in Singapore automatically leads to SPR status.

Reality: While a longer stay demonstrates commitment and assimilation into the Singaporean culture and community, it does not necessarily mean that SPR approval would definitely be granted. There is an expectation that the applicant is a contributing member of society, whereby the ICA looks at the applicant’s integration efforts during his/her residency, employment background, economic contributions, community involvement, and adherence to laws. Merely residing for an extended period without meaningful engagement would be deemed insufficient.

  1. Ability to contribute to Singapore and integrate into society, as well as commitment to sinking roots in Singapore

Myth: Owning assets such as businesses and properties in Singapore ensures SPR approval.

Reality: Asset ownership is not a direct criterion for SPR approval. Owning properties here, especially if they are tenanted residential properties or commercial properties for business purposes, are poor demonstrations of this last factor which is made up of the crucial 3 components of social contribution, integration and commitment. The ICA focuses on your overall commitment, including involvement in community activities, participation in social integration, and indications of long-term plans to reside in Singapore based on assimilation into the heartlands of society. Demonstrating genuine integration efforts holds more weight than property ownership alone, as the government seeks to protect Singapore’s multi-cultural values and traditions whilst maintaining social harmony.

The factors listed above are integral in ICA’s evaluation of SPR applications whilst addressing the country’s population concerns. It has been widely publicised that Singapore is encountering a shrinking and ageing resident population. This has been reiterated in the recent government population report that the country’s resident total fertility rate has reached a historic low of 0.97 in 2023, largely exacerbated by the COVID-19 pandemic, which resulted in economic uncertainty and disrupted marriage and parenthood plans for some Singaporean couples, as well as prioritisation of careers, shifting attitudes towards marriage and parenthood, and concerns about child-raising costs.2 As such, the ICA factors have been carefully calibrated to safeguard the nation’s future and sustainability. Our firm’s acute understanding of the realities of the ICA factors can help tailor your SPR application to align with ICA’s holistic assessment approach to enhance your chances of success.

Number of SPR Approvals

With the many benefits of being a SPR, it comes as no surprise that there is high demand to acquire SPR status. The average number of SPR approvals has remained consistent at approximately 32,000 per year for the last decade as shown in the graph below, the result of a conscious effort by the government to keep the pace of immigration steady and stable so that Singapore remains a cohesive society. Due to such controlled measures, this means that applying for SPR is highly competitive and as such, it would be entirely expected that the ICA would evaluate each application carefully and holistically in exercising its discretion on whether to grant approval.

REP Renewal

It bears reiterating that for newly-minted SPRs, obtaining SPR approval is not an end-all as retaining SPR status requires a successful REP renewal in the 5th year if the individual intends to exit and enter Singapore freely. A SPR is required to have a valid REP if s/he wishes to travel out and return to Singapore. Otherwise, the SPR will lose SPR status if s/he leaves Singapore and remains abroad without a valid REP. Just as how ICA takes into consideration the list of factors that have been outlined in this article for granting SPR approval, a successful REP renewal largely hinges on the very same factors that got the individual his/her SPR approval in the first place. As Singapore adapts its immigration policies to address its ageing population issues, the government’s targeted efforts in granting SPR approvals are geared towards these SPRs being Singaporean Citizens eventually, ensuring continuity and sustainability for the future. It is therefore of utmost importance that SPRs continue to reside in Singapore, have economic and social contributions, and demonstrate that they are well-integrated here and are committed to sinking roots.

Conclusion

SPR status is a coveted privilege that offers numerous benefits, including economic stability, education opportunities, and pathways to citizenship. However, the application process is competitive, demanding a comprehensive, well-rounded profile. Understanding and addressing ICA’s evaluation criteria, as well as recognising the realities of the ICA factors, can significantly enhance success rates.

Keeping immigration policies measured and controlled is a conscious effort by the government to ensure a paced and stable influx of foreign talent. This ensures sustainability where infrastructure and resources are concerned whilst addressing the nation’s population issues. Therefore, the ICA evaluates each SPR application with careful consideration of a myriad of factors to achieve balance between the applicant’s needs with that of Singapore as a whole.

SMTP’s experience

As a law firm that has been established since 1994, our Immigration and Family Offices Practice has a wealth of experience in SPR applications and renewal of REPs for our clients and their family members, including any subsequent conversions to Singapore Citizenship. Our firm collaborates with clients to enhance their social integration and economic contribution profiles to help their SPR applications stand out. Our lawyers work closely with clients and their advisors, adopting a tailored and holistic approach to address families’ specific needs and requirements.

Should you or your clients require any assistance or advice, please feel free to contact our Business Development Team to schedule a consultation.

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