Excluding S-REITs from New Rules for Global Investor Programme
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the exclusion of Singapore Real Estate Investment Trusts (S-REITs) from new Global Investor Programme (GIP) rules requiring family office applicants to invest $50 million in listed equities, as raised by Ms Usha Chandradas. Minister of State Alvin Tan explained that the policy, effective February 2025, aims to boost liquidity in the equities market, which is currently lower than that of S-REITs and bonds. He stated that the measure intends to make Singapore more attractive for raising equity capital, while allowing applicants to deploy their remaining assets into other categories, including S-REITs. The Minister of State also noted that tax incentive criteria for single family offices remain unchanged and continue to permit investments into S-REIT products. Finally, he affirmed that the Government will regularly review the GIP to ensure it effectively attracts entrepreneurs and business owners to drive investment growth from Singapore.
Transcript
18 Ms Usha Chandradas asked the Deputy Prime Minister and Minister for Trade and Industry (a) whether he can clarify the rationale for excluding Singapore Real Estate Investment Trusts (S-REITs) from the new rules under the "family office option" of the Global Investor Programme, which require new applicants to allocate at least $50 million of their assets under management to equities listed on approved Singapore exchanges; and (b) whether there are any future plans to review this exclusion.
Ms Usha Chandradas (Nominated Member): Question 18, Sir. For this question, I would like to declare my interest as an independent director of a Singapore-listed Real Estate Investment Trust (S-REIT).
The Minister of State for Trade and Industry (Mr Alvin Tan) (for the Deputy Prime Minister and Minister for Trade and Industry): As part of measures announced by the Equities Market Review Group to strengthen Singapore’s equities market, the Government has refined the scope of qualifying investment categories for the Family Office option under the Global Investor Programme (GIP).
From 21 February 2025, new GIP applicants under this option, who are required to establish a Singapore-based Single Family Office (SFO) with at least S$200 million of assets under management (AUM), must deploy a minimum of S$50 million into equities listed on approved Singapore exchanges.
This enhancement is intended to draw investments into our equities market, which has comparatively less trading liquidity than S-REITs and bonds. In so doing, the Review Group hopes to make Singapore a more attractive location for companies to raise equity capital.
SFOs applying for GIP can continue to deploy their remaining AUM in other investment categories including S-REITs. SFOs whose owners are not applying for the GIP are not affected by this change. The criteria for MAS tax incentives for SFOs remain unchanged. SFOs under these schemes can continue to invest their funds into various investment products including S-REITs.
The Government will continue to review the GIP to ensure it remains relevant and effective in attracting entrepreneurs and business owners who intend to drive their businesses and investment growth from Singapore.