Singapore tightened its foreign investor program to attract individuals of higher quality. If successful, future qualifications for the scheme would be like «limited edition bags», according to Farro Capital co-founder Hemant Tucker in a conversation with finews.asia.
In March, Singapore’s Economic Development Board (EDB) tightened requirements for its Global Investors Programme (GIP), which grants a path to potential permanent residency (PR) in the city-state. The minimum threshold for business entities and investments rose four-fold to S$10 million ($7.5 million) and 10-fold to S$25 million, respectively. Single family offices also have to increase local investments.
«I think perhaps five years from now, we will really see the proper impact of the new condition,» said Hemant Tucker, co-founder and CEO of multi-family office Farro Capital, in a conversation with finews.asia.
«Limited Edition Bags»
One of the main reasons to apply for GIP is to obtain PR through the program. By this account, success is already a relatively exclusive matter. In February, Minister of State for Trade and Industry Low Yen Ling said in parliament that about 200 people had been granted PR via GIP between 2020 and 2022.
And moving forward, exclusivity will be on the rise, if the program were to achieve its expressed goal of attracting investors of higher quality.
«If GIP were to be successful, it's like some of your limited edition bags because it's not easy to get,» described Tucker.
Sufficient Investment Opportunity
Under the EDB’s new requirements, GIP applicants need to invest a certain amount in local companies. Beyond those listed on the Singapore Stock Exchange, there are also options in unlisted businesses across the venture capital and private equity ecosystem.
«There is sufficient opportunity for deploying that capital,» Tucker added.
Established in 2022, Farro Capital is a Singapore-headquartered multi-family office. It has over $1 billion in assets under management, serving clients across 12 markets and four continents.
