Singapore is well known for having business and investor friendly laws, and has quickly positioned itself as an investment and business hub in the South East Asian region. That is why many foreigners want to apply for a Singapore PR, and live in and work in Singapore because there is zero capital gains tax which is nearly unheard of in Western countries and corporate taxes are lower than most countries around the world.
This is a general discussion on what we have noticed happening in Singapore in recent years, when it comes to the influx of foreigners trying to enter the country. We shall discuss the issues in the following paragraphs.
Since the early 2000s, there has been a huge popularity surge in Singapore PR application, and even citizenship application as Singapore quickly rose to be seen as a stable country in terms of finance, politics as well as geography. Singapore’s property boom during that period of time also encouraged many people from neighbouring countries as well as from as far as the US and Europe to set foot in the country to be part of this boom. Because being a Singapore PR also afforded the individual to reap benefits of no capital gains tax, of which capital gains were rampant in Singapore’s property market, many of these already wealthy individuals simply migrated to Singapore.
In the later years, many of them cashed out and used that money to invest into businesses and more.
However, that quick rise in property prices caused by new, wealthy migrants to the country caused unhappiness in the average Singaporean, many of whom already need a government subsidy just to buy a 99 year leasehold flat known as a HDB in the country. This has caused local politicians and Immigration and Checkpoints Authority (ICA) to greatly increase the difficulty in getting a permanent residence in Singapore now. This is achieved by cutting the quota of new permanent residence given out yearly, as well as being more stringent with their checks for new applicants.
To target and keep these wealthy individuals within the country, many banks and financial institutions in Singapore also provided more wealth and private banking solutions, and local bank secrecy laws have also made Singapore to be seen as the equivalent of the Switzerland of Asia.