Deliverables from Global Investor Programme

9 Mr Thomas Chua Kee Seng asked the Minister for Trade and Industry (Trade) since the launch of the Global Investor Programme (a) how many employment opportunities have been created for Singaporeans; (b) what is the total local business expenditure generated; and (c) what are the actions taken to prevent abuse of the programme.

The Senior Minister of State for Trade and Industry (Ms Sim Ann) (for the Minister for Trade and Industry (Trade)): Mr Deputy Speaker, the Global Investor Programme (GIP) aims to attract and anchor entrepreneurs and investors of high calibre who can bring quality investments and good jobs to Singapore. From 2011 to 2016, GIP investors brought in $1.8 billion in total business expenditure via direct investments, generating over 6,000 job opportunities in Singapore. Industries that have benefited include infocomm media, engineering and financial services.

To qualify under the GIP, applicants may invest in a business or in a GIP fund that invests in Singapore-based companies. Both options have safeguards to prevent abuse. Each applicant is required to submit detailed plans and supporting documents to the Economic Development Board (EDB). EDB assesses the applicant's track record, business and investment plans, and potential contribution to Singapore. EDB also engages a risk assessment consultancy firm to undertake independent checks and works with relevant agencies for security screening. GIP investors undergo a fresh round of checks before their re-entry permits are renewed.

In addition, GIP funds are carefully assessed by an independent rating agency and a fund selection panel. All GIP fund managers must be incorporated and based in Singapore and be regulated by the Monetary Authority of Singapore (MAS). Investors of GIP funds are subject to the relevant safeguards under MAS' regulatory regime for fund management companies.

Mr Deputy Speaker: Mr Thomas Chua.

Mr Thomas Chua Kee Seng (Nominated Member): Thank you, Deputy Speaker. I would like to ask: what has been the performance of the GIP funds that are set up to invest in Singapore-based companies so far? And, if GIP investors are required to invest in only companies in designated sectors, for example, medtech, aerospace, logistics, infocomm, and so on, what have been the significant contributions of these companies to our sectors to date?

Ms Sim Ann: I will take both supplementary questions together. The primary objective of the GIP is for Singapore-based companies to benefit from the injection of capital from GIP funds and tap on the GIP investors' entrepreneurial track record to inject dynamism into our economy.

I can share that, as of 2017, the total GIP funds amount to $1.5 billion, but in terms of the performance, this would vary from fund to fund because each fund would have their respective mandate to invest in different sectors of focus. Furthermore, the GIP funds are invested in less liquid private equity companies, and their investment horizons span over a five- to seven-year time period, so we can effectively talk about the real returns only after it liquidates all its investments.

Mr Deputy Speaker: Mr Chua.

Mr Thomas Chua Kee Seng: Given the stiff global competition for business talents and investors, how does Singapore's business talent attraction scheme, such as the GIP, compare or compete with those from other countries, for example, Hong Kong?

Ms Sim Ann: Quite a number of countries or economies do have these investor residency programmes. In comparison to a number of these programmes, Singapore's GIP would have one of the more stringent qualifying criteria. For example, the minimum investment required under GIP is $2.5 million. This is higher than the minimum required in other locations, such as Australia, the United States (US) and the United Kingdom (UK).

I believe that in Hong Kong, they have an investor entrepreneur scheme that does not state upfront a minimum investment amount. However, to put this into context, the GIP is only one of a very broad range of schemes that the Government employs to promote investment and also to grow our economy.