This post has been written in partnership with Paul Immigrations.
I have been living in Singapore since 2011 and have considered becoming a Permanent Resident (PR) on several occasions, I even applied for it, and was rejected, in 2013. Since then, I considered trying again several times.
Several of my long-term friends in Singapore have successfully upgraded their status from Employment Pass (EP) holder to full residents through the years and have been very content with their decisions.
At the same time, the regulations and benefits of being a resident have evolved as the Government tries to reduce its dependency on short-term pass holders in favor of those with a longer-term view of staying in the country. These changes have made the benefits of becoming a PR more attractive to foreigners.
If ever do re-apply, I will be sure to engage a professional and experienced consulting partner such as Paul Immigrations to help me submit my application to increase my chance.
But what exactly are the advantages of becoming a PR, financially and personally, vis-a-vis being an Employment Pass holder like I am today?
Read more to find out.
You No Longer Need to Work to Stay in the country
The main reason why foreigners apply for permanent residency is the fact that they will no longer need to worry about getting a work visa to work in Singapore.
Without a PR, a foreigner’s work visa is tied to their employer. This means that their stay in this city-state is linked to them keeping their employment and, should they lose their job, their visa will be canceled too.
It also means that they can only work for the employer who issued their pass and cannot hold two jobs.
While this may not sound like a precarious situation, getting a work visa has become increasingly difficult in this country. There is a finite number of work permits issued every year and the Government has been reducing the quotas for these annually.
Having your residency in this Republic tied to a work visa also means that you cannot retire in the country. PR holders, however, are able to retire in the Little Red Dot, since their residency is not dependent on their ability to work.
The uncertainty around being able to renew your work visa, is very stressful for more foreigners, particularly during difficult economic times, and is one of the main reasons why a PR is the preferred status for those with long-term expectations to live in the city-state.
Longer-term Stability
Even if your job is not at risk and your company has no limitations to the number of EPs they can issue, the short-term nature of work passes, usually issued for one to two years, makes the immigration status of many foreigners unpredictable and unstable.
PRs, on the other hand, get their permits issued for a duration of five years with renewal happening in a higher percentage of cases provided the individual does not violate any laws and continues to contribute to the country.
This immigration stability is one of the most sought after benefits for non-Singaporeans when considering their status in the country.
Advantageous Housing Costs
Singapore’s social housing scheme (HDBs) is one of the country’s most successful social programs. Through the Government’s efforts, millions of Singaporeans and PRs can apply for affordable housing at preferential rates.
At the same time, even if a PR does not qualify for public housing, their status confers them with other housing benefits such as more affordable stamp duty paid on purchases of private housing.
Stamp duty has been fluctuating through the years but peaked at 15% of the cost of a house, making it a significant amount with Singapore’s high housing costs. This benefit alone can mean hundreds of thousands in savings for foreigners who upgrade from EP holders to PRs.
Additionally, PRs are more likely to obtain Government permits to buy landed property, a permit that is harder to obtain by other foreigners.
Preferential Rates at Tours and Attractions
Permanent Residents of Singapore enjoy the same discounts and preferential rates at local attractions and activities in the bustling city as citizens.
Popular places such as Gardens by the bay, the Indian Heritage Center or the Night Zoo all have discounted rates for locals and PRs.
While these are often small amounts, they do add up at the end of the year and are just another benefit that foreigners cannot enjoy.
Full Ability to Do Business
Singapore is one of the most advanced business environments and one of the easiest countries to do business in.
Starting a company can be done from home, with limited investment and with little paperwork. It is affordable, it is efficient and it is a safe financial environment with a strong rule of law.
As a Permanent Resident, a foreigner can freely act within the country’s economic and financial framework and take full advantage by starting a company, being self-employed, or by becoming a Director of any company.
Central Provident Fund (CPF) Contributions
The Central Provident Fund is Singapore’s equivalent of Europe’s social security system and the country’s response to a pension fund.
Employers are obliged by law to make contributions to a Permanent Resident’s CPF fund every month, a benefit only awarded to PRs and citizens but not to EP holders.
CPF contributions can be used to cover healthcare costs or for housing so they act as a saving mechanism and will convert into a pension when the individual retires.
Funding and Grants
The Government of Singapore is very generous when it comes to grants and funding of local businesses and ideas, regularly announcing new schemes. When these become available, they are often reserved to, or given with priority to, PRs and citizens.
Examples of these are HBD financing grants or tuition grants given to help finance tertiary education in Singapore. There are also training grants provided via SkillsFuture which helps employees improve their employability and professional skills with continuing education and workforce skills.
Possibility to Become a Citizen
The Singapore passport has repeatedly been named one of the most powerful and grants its citizens will free entry to dozens of countries. The country is widely respected and holds strong diplomatic ties with most countries around the world.
Many foreigners may consider becoming Singapore citizens to make their immigration status in the country fully secure and improve their international mobility by acquiring a powerful citizenship.
While technically, one does not need to be a PR before applying for full citizenship, it is an advantage and a widely understood stepping stone to achieving full nationality thus those considering becoming full citizens should first apply to become Permanent Residents.
Paul Immigrations Reviews, our fast-track to PT status
If all the above reasons to apply for full residency got you interested, you should reach out to a qualified and experienced consulting firm that can help you achieve your goals and maximize your probability of success.
The process will start with a phone interview with an experienced Consultant after which you will share all the relevant details with regards to your case. The Consultant will then put together a profile assessment which will be discussed during an in-person interview.
After understanding the likelihood of your success, you can decide if you wish to proceed further and submit the case. If you do, the Immigration Specialist will then gather all the documentation and prepare the application.
A cover letter will be crafted to support the case, all the application forms will be filled and the documentation collating. Once the application is ready, the Immigration Specialist will discuss it with you in detail before guiding you to submit the application online.
Paul Immigrations can help you take the next steps after an answer is received, usually around 6 months after it was submitted.