Introduction

Be it through the Professionals, Technical Personnel & Skilled Workers Scheme (“PTS Scheme”) or the Global Investor Programme (“GIP”), obtaining Singapore Permanent Residence (“SPR”) and its corresponding Re-Entry Permit (“REP”) is not the end of the line for SPR holders. SPR holders must take proactive steps to ensure a successful REP renewal, as a valid REP is instrumental to safeguarding a SPR status. This month’s article focuses on the various challenges faced when the time comes for REP renewal.

Understanding the Importance of REP Renewal

The REP is an essential document for SPR holders who wish to retain their SPR statuses whilst outside Singapore. Leaving or remaining outside Singapore without a valid REP will result in a loss of SPR status – this in turn necessitates a SPR reinstatement application or a fresh SPR application, both of which are subject to approval from the Singapore authorities.

REP renewal applications are managed by the Immigration & Checkpoints Authority (“ICA”). For SPR holders who obtained their SPR statuses through GIP, ICA will also take into consideration inputs from the Economic Development Board (“EDB”).

Key Challenges in REP Renewal

1. Residency Time in Singapore

Significant emphasis is placed on whether a SPR holder has spent time sufficient time residing in Singapore. SPR holders who have spent extended periods outside of Singapore without valid reasons may face difficulties during their REP renewal applications.

• PTS Scheme: SPR holders who have lived in Singapore for years but then relocated overseas must be prepared, if requested by the authorities, to provide justifications for their absence (e.g. overseas studies). Having sufficiently robust employment in Singapore, CPF contributions, and family ties in Singapore will also help to strengthen a REP renewal application.
• GIP: Generally, SPR holders would have signed an acknowledgment form with EDB during their GIP applications, wherein they have acknowledged the specific written REP renewal conditions that they are bound by. Subject to the actual contents of the said acknowledgement form, the general stance is that the main GIP applicant – or every single dependant who have also obtained SPR status under the GIP application – must have resided in Singapore for over half the REP validity period

2.  Economic Contributions and Employment Stability

Besides residency time in Singapore, SPR holders must also demonstrate that they are actively contributing to Singapore’s economy. The Singapore authorities evaluate various factors including but not limited to employment history, CPF contributions, investments, business activities etc.

• PTS Scheme: Continuous employment in Singapore with steady CPF contributions enhances REP renewal prospects. Any gap in employment and/or change in employment status should be explained with supporting documents.
• GIP: As one of the GIP’s main policy objectives is to spur the growth of Singapore’s economy, this is of particular importance and must be closely monitored and followed up on by GIP applicants.

Where “economic contribution benchmarks” are concerned – as above, SPR holders should generally refer to the acknowledgment form signed with EDB during their GIP applications. Subject to the actual contents of said acknowledgement form, as well as the investment option undertaken (i.e. A, B, or C), these benchmarks may involve but are not limited to:

• Local headcount numbers (Option A, Option B (pre-15 March 2023 GIP conditions), Option C)
• Size of assets-under-management (Option C)
• Deployment into specified local investments (Option C)
• Maintaining an investment in a GIP-select fund (Option B)
• Local business expenditure (pre-15 March 2023 GIP conditions for all Options)

3.  Increased Scrutiny in REP Renewal Applications

It appears that over the years, the Singapore authorities have tightened up their assessment of REP renewal applications to ensure that only SPR holders who continue to reside and contribute to Singapore will be able to retain their SPR statuses in the long run. In turn, this necessitates the need for SPR holders to demonstrate consistently strong ties, contributions, and commitment to Singapore in order to constantly secure REP renewals.

The authorities may, on a case-by-case basis, conduct additional due diligence checks on SPR holders with limited local presence and/or unclear local economic contributions.

Establishing a Business and/or Single-Family Office in Singapore

A plausible strategy to strengthen a SPR holder’s REP renewal application is the establishment of a business or Single-Family Office (“SFO”) in Singapore. This provides a platform to demonstrate a firm economic presence and commitment to Singapore’s long-term growth.

• Renewal of REP for SPR holders under the PTS Scheme: Continuing to be gainfully employed in Singapore or setting up a business in Singapore creates local employment and generates local business expenditure. This effectively establishes a deeper economic footprint, in turn strengthening the case for REP renewal.
• Renewal of REP for SPR holders under the GIP: This may only be useful in cases where a GIP applicant has made significant progress towards fulfilling GIP-linked economic commitments, as said commitments will still form the starting point.

As such, GIP applicants must always bear in mind what economic contributions they have committed to Singapore during their GIP applications. If it is foreseen that there will be significant issues in fulfilling such commitments, it is prudent for GIP applicants to take early initiative to commence a dialogue with EDB, and seek approval for alternative platforms/ways to contribute to Singapore’s economy, which will be strictly subjected to EDB’s evaluation.

From the second REP renewal onward, GIP applicants may consider setting up a business and/or SFO in Singapore. Similarly, this creates local employment and generates local business expenditure, effectively establishing a deeper economic footprint and in turn strengthening the case for REP renewal.

Conclusion

Securing SPR status is an important milestone for immigrants to Singapore, but maintaining this status requires careful planning and proactive engagement. While the key consideration is for PR holders to demonstrate strong economic ties and residency ties to Singapore, it must be noted that the GIP has specific KPIs for economic contributions to Singapore.

As a private client firm with over 30 years of experience, we at SMTP have assisted many clients obtain their SPR statuses through the PTS Scheme and the GIP, set up SFOs, incorporate Singapore businesses, and successfully renew their REPs. We also possess extensive experience in assisting clients with Section 13O/U incentive applications for SFOs’ fund vehicles, enabling such entities to benefit from statutory tax exemptions. Our lawyers work closely with clients and their advisors, adopting a bespoke philosophy to address 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.