ST : Foreigners parking assets for PR must invest $10m

Oct 1, 2010

Foreigners parking assets for PR must invest $10m

Minimum asset value to double from next year under MAS investor scheme

By Teh Joo Lin

FOREIGNERS aiming to become permanent residents in Singapore through a government scheme will have to double the minimum value of assets they park here to $10 million.

The Monetary Authority of Singapore's (MAS) Financial Investor Scheme (FIS) is the second permanent residency programme targeted at wealthy foreigners which has tightened its qualifying criteria recently.

Stricter rules for the Economic Development Board's Global Investor Programme (GIP), some of which kick in today, were reported early this week.

These moves come as the Government acts to better manage the pace and flow of immigrants to address concerns among Singaporeans.

The new FIS rules, effective from Jan 1 next year, require applicants to place at least $10 million in assets for a continuous period of five years, up from a minimum of $5 million previously. The assets must be placed with a financial institution regulated by the MAS, although a portion - up to $2 million - can be used to buy private residential properties.

The MAS declined to comment on the changes. But The Straits Times understands that some banks were notified of the new rules about a month ago.

While the more stringent criteria may dampen response for the PR scheme in the short run, analysts are confident that over time, wealthy individuals will still be attracted to park their funds and settle here.

Bank of Singapore's executive director Lee Woon Shiu told The Straits Times they will 'realise Singapore is a serious private wealth banking hub which doesn't want to attract just a quick inflow of funds'.

'Ten million is a fair amount to attract the right pedigree of clients - not just the newly minted crowd who have struck the jackpot once,' he said.

Other changes to the FIS scheme include allowing the applicant's parents and parents-in-law to apply only for five-year long-term visit passes. Currently, they can be included as part of his PR application if he puts up $2.5 million per parent.

Banks and immigration specialists The Straits Times spoke to expect a surge in applications from China, Taiwan and Indonesia before the changes take effect.

For many prospective FIS applicants, the raised bar was an issue of willingness, not affordability, said Mr Pearce Cheng, an immigration and relocation specialist.

Noting that current applicants generally need a personal net worth of $20 million, he said: 'It could be a turn-off for them to park so much money and be locked in for five years, because there are many other options such as Canada and the United States.'

Sociologist Tan Ern Ser said: 'The point is how you balance the need for good global talent while satisfying local citizens, so maybe they did some linear programming and found this is the optimum solution.'

joolin@sph.com.sg