If you're considering applying for Permanent Residency (PR) in Singapore, or if you have obtained PR status, here's an excellent list of the advantages and disadvantages (posted to Singapore Expats Forum in mid 2016, plus my revisions as of March 4, 2024):
Better, lower cost privileges at public libraries. PRs pay a one-time fee of only $10.50 for a basic National Library Board (NLB) membership, much less than the annual fee foreigners pay for more limited privileges. Alternatively, PRs (and citizens) holding PAssion cards, including DBS/POSB's PAssion debit cards (free even with DBS's zero minimum balance "My Account"), enjoy complementary NLB Partner Membership.
No need to renew driving licenses. Although new PRs must convert their Singapore driving licenses to reflect their new NRIC numbers and pay a fee to do so, unlike foreigners they do not need to renew their licenses periodically, saving time and money. (Older drivers' periodic competency checks still apply.)
Some limited merchant, attraction, and financial privileges. Like citizens, PRs enjoy some limited privileges from merchants, attractions, and financial institutions. As examples, it's somewhat easier to sign longer term contracts for telecommunications services and utilities (with lower deposit requirements), and some credit cards are only available to citizens and PRs. There are also a few discounts specifically for older PRs, for example the Senior Citizen Concession Card that offers discounted public transit fares. All citizens and PRs enjoy free admission to National Heritage Board museums and The Istana (during open house days).
SkillsFuture program benefits. A couple of the government programs to promote career and talent development are open to Permanent Residents, specifically P-Max and the Individual Learning Portfolio portal.
Extraordinary wage subsidies. During the COVID-19 pandemic the government subsidized the wages of employed PRs, including self-employed PRs who received direct subsidies. These subsidies helped reduce unemployment and income losses among citizens and PRs.
Retirement and Re-Employment Act (RRA) protections. Employers must not force PRs to retire before the minimum statutory retirement age and must offer a reasonable re-employment option for at least 5 years thereafter under the RRA.
Eligibility for certain Ministry of Social and Family Development benefits. Permanent Residents are eligible for some social "safety net" programs. Examples include ComCare, the Assistive Technology Fund, the Taxi Subsidy Scheme, and the Enabling Transit Subsidy.
Some greater ability to express political and social views publicly. For example, Permanent Residents (and citizens) can participate in the annual Pink Dot event. PRs can also pick up free National Day "fun packs."
Some privileges when obtaining visas to visit foreign countries. A few foreign countries may offer Singapore PRs greater odds of visa approval, longer term visas, and/or lower cost visas compared to otherwise similarly situated foreigners.
Singapore Armed Forces Volunteer Corps eligibility. Permanent Residents age 18 to 45, including female PRs, may join the SAFVC.
Not Ordinarily Resident (NOR) tax break curtailed. In certain situations Singapore offered a special income tax break to fairly highly compensated (or higher) individuals based in Singapore who spent a lot of time working outside Singapore. This tax break was called the Not Ordinarily Resident (NOR) Scheme. Citizens and PRs apparently could not qualify for this particular tax break. This tax break is closed to new entrants and will be phased out completely in 2024.
Fee to access Singapore's casinos. Like citizens and unlike foreigners, PRs must pay either a daily or annual entry fee if they want to enter the gambling areas of the Marina Bay Sands or Sentosa casinos.
Limitations on other countries' residence and benefits (exclusivity restrictions). Certain countries may bar Singapore (and other foreign) PRs from obtaining permanent residence and/or from enjoying certain tax breaks (and other benefits) available to residents.
MediShield Life. Singapore requires PRs, no matter where they live, to pay MediShield Life premiums (taxes). MediShield Life provides a basic set of medical insurance benefits at public hospitals (and to a limited extent at public clinics) in Singapore, with benefits designed for citizens staying in B2 or C public hospital wards. (Charges are higher for PRs while MediShield Life payouts are the same, so PRs experience a greater coverage gap with MediShield Life alone.) The premiums are set annually and increase with age, and they are paid from CPF MediSave funds (if there are MediSave funds available; otherwise the premiums must be paid out of pocket). Individuals with preexisting conditions are covered, although a 30% higher premium may apply for up to 10 years. The premiums are not adjusted for income except for the very poorest, when they are subsidized or waived, so lower middle class PRs pay exactly the same MediShield Life taxes as the wealthiest PRs. Extra cost Integrated Shield insurance policies are available to supplement MediShield Life, and since PRs already have mandatory MediShield Life (and somewhat subsidized charges in the public medical system) they pay a lower premium for an Integrated Shield plan than foreigners do. PRs and citizens also enjoy a wider choice of Integrated Shield plans than foreigners, although most of the lowest cost plans (designed to cover care in public hospitals in B1 ward) reduce coverage benefits for PRs. Whether a particular PR gets value-for-money from MediShield Life is highly situational.
CareShield Life. Singapore requires PRs born after 1979 to pay CareShield Life premiums starting from age 30 or when PR status is granted, whichever is later. CareShield Life pays a monthly benefit for life when an individual is severely disabled, defined as an inability to perform at least 3 out of 6 "Activities of Daily Living." PRs born before 1980 who are not disabled can voluntarily join the program. Private insurance carriers offer optional supplemental policies to CareShield Life. Disability insurance in some form is quite important, but CareShield Life isn't always the best fit. Please note that CareShield Life coverage ends (and with no refund of premiums) if/when Singaporean citizenship or PR status ends.
Possible loss of "expat" employment compensation elements. If you arrived in Singapore with "expat" compensation provisions then your employer may reduce or terminate some or all of those elements after transitioning to PR status. Such provisions might include housing, children's education, tax preparation, tax equalization, continuation of home country social insurance and/or retirement savings contributions, pension, seniority privileges, employee stock purchase discounts and stock options, per diems, relocation/repatriation/moving, household goods storage, transportation/car, professional society memberships, disability income insurance, life insurance, unemployment insurance and severance, global medical insurance, medical evacuation, and home country travel, as examples. You might also lose an implied or even actual right to return to a home country position. On the other hand, you might be entitled to new employment benefits as a fully localized employee in Singapore. Highly compensated executives from developed economies on "expat packages" tend to suffer a net loss of compensation and benefits when transitioning to PR and local employment, while less highly compensated workers, including those from countries with few employment-related benefits, may find that fully localized employment in Singapore is a net positive.
Opt-out organ donation. PRs and citizens are automatically subject to the Human Organ Transplant Act (HOTA). By default, when a PR dies in Singapore, some of his/her organs (kidneys, liver, heart, and/or corneas) are donated for medical use. Organ donation cannot occur unless and until the patient is clinically deceased. Everyone ought to sign up to be an organ donor, to give the gift of life. (You or your family might someday be in need of a donor organ. The opt-in MTERA form is available to all adults, including foreigners, who want to donate more than the four HOTA organs.) However, there are a few PRs who do not wish to donate any of their organs after they die. They have a slight paperwork burden to bear; HOTA requires them to submit an opt-out form.
More biometric data required. From 2017, PRs (and citizens) must submit iris scans when they obtain or renew ID cards (and passports). Privacy and security advocates have concerns about whether the government can protect this sensitive biometric information, especially if the government and its contractor are not limiting their biometric data collection to calculated hash values. Eventually the Immigration and Checkpoints Authority will finish upgrading the automated entry gates at Singapore's airports and ports to allow citizens and PRs to enter Singapore using iris scans. The upgraded gates could mean slightly quicker automated entry for citizens and PRs.
Fee changes. There are PR application fees, Re-Entry Permit fees, and NRIC ("blue card") fees. Depending on the circumstances, these fees could be higher or lower than the fees associated with other immigration statuses.
If you are considering applying for or maintaining Permanent Residence in Singapore, you should be aware of PR's evolving advantages and disadvantages. Every person will weigh the advantages and disadvantages at least somewhat differently. Nobody else can decide which characteristics of PR are more or less important to you.
This list is divided into three sections: Clear Advantages, Clear Disadvantages, and Mixed Advantages/Disadvantages (characteristics that may or may not be a net advantage or disadvantage). Whether any particular advantage or disadvantage is relevant depends on your personal situation.
The government can change (and has changed) PR-related rules and policies. This list only reflects the current situation, when last updated.
Clear Advantages
Immigration stability. Second only to citizens, Permanent Residents have the most stable immigration status in Singapore. They may live and/or work in Singapore as long as they wish. During the COVID-19 pandemic, PRs (and citizens) caught outside Singapore were allowed to return to Singapore, albeit with isolation requirements upon arrival, whereas foreigners had no such right of return. PR status is not absolute, but it is quite robust in practice. As examples, a PR who lied in his/her PR application or who commits a serious criminal offense could be ejected from Singapore (after facing any criminal penalties). Also, note that a dependent or spouse of a Singaporean citizen or PR can still enjoy good immigration stability with an approved Long-Term Visit Pass (either LTVP or LTVP+).
Ability to sponsor certain family members for immigration. Adult PRs can sponsor certain immediate family members for LTVPs and/or PR, to allow them to immigrate to Singapore. However, the Immigration and Checkpoints Authority (ICA) reportedly denies about 15-20% of such LTVP applications and greater than half such PR applications. In other words, approval is not guaranteed, even for citizen sponsors, and will depend on financial and other factors.
Ability to sponsor foreign visitors for short-term visas and stay extensions. Adult PRs can access ICA's SAVE and e-XTEND online services as sponsors ("Local Contacts").
Ability to sponsor foreign visitors for short-term visas and stay extensions. Adult PRs can access ICA's SAVE and e-XTEND online services as sponsors ("Local Contacts").
The only realistic path to citizenship for foreigners. After a two year waiting period, PRs can apply for Singaporean citizenship.
Business and employment privileges. PRs can be self-employed, start their own businesses, be directors and officers of most Singapore companies, own businesses, and otherwise lead full economic lives in Singapore. They are also fully employable without requiring work permits or letters of consent, in practically any full-time or part-time employment including most government employment, and can even hold more than one part-time job. One exception: Unlike citizens, PRs cannot drive for ride sharing services unless they work for chauffeured services companies. Although financially unpleasant, bouts of unemployment are allowed.
Ability to retire in Singapore. Singapore doesn't offer a "retirement visa." However, like citizens, PRs can generally stay in Singapore through their retirement years, living off their savings and pensions.
Lower cost public medical services. PRs pay a lower cash rate than foreigners for medical services obtained from public hospitals and public clinics in Singapore. PRs' prescription medicines listed in the Standard Drug Lists and obtained from public hospital/clinic pharmacies are subsidized (though to a lesser degree than medicines for citizens). PRs also enjoy the Health Promotion Board's subsidized rates for Screen for Life tests at Community Health Assist Scheme (CHAS) GP clinics. PRs are also eligible for certain wellness programs, such as the Singapore Cancer Society's free colon cancer screening tests and HPB promotions, such as free step trackers, through the Healthy 365 mobile app. PRs only paid S$10 to see a doctor at any Public Health Preparedness Clinic for any suspected COVID-19 case. Female PR children attending a government-supported secondary school in Singapore are eligible for free HPV vaccinations.
Childcare and Education Advantages
Childcare and Education Advantages
- Lower cost infant care and childcare. PR children pay lower fees than foreigners to attend government-supported infant care and childcare centers, nursery schools, and kindergartens.
- Better, lower cost access to government-run primary and secondary schools. Citizen children come first, but PR children receive placement priority over foreigners when enrolling in government-run/supported primary and secondary schools. PR children also pay substantially lower school fees than foreign children.
- Lower university tuition rates. PRs often pay at least somewhat lower tuition and fees than foreigners to attend public universities in Singapore.
- Ability to buy resale HDB leaseholds. After a waiting period, PRs are eligible to buy resale public housing leaseholds for their own occupancy, without whole flat subletting privileges. Build-to-Order (new) HDB units are reserved for households with at least one citizen. PRs who own resale HDB units are eligible to participate in the Selective En bloc Redevelopment Scheme (SERS) if announced for their units. PRs who own HDB flats are occasionally eligible for incentive programs such as 2024's $300 Climate Vouchers.
- Lower stamp duty (tax) on real estate purchases. PRs pay a substantially lower Additional Buyer's Stamp Duty (ABSD) than most foreign purchasers pay.
- Greater chance of approval to buy landed property. Non-citizens need government approval to buy so-called landed property in Singapore. PRs reportedly have a better chance of approval than foreigners.
- Ability to buy resale executive condominiums earlier. Singapore has a few executive condominium developments, a form of real estate that starts out as HDB (public) but that, after 10 years, reverts to private housing. Like HDB units they start out with 99 year leaseholds, but unlike traditional HDB developments they usually have more extensive amenities such as swimming pools. PRs are eligible to buy resale executive condos only 5 years after construction (with 94 years or less remaining on the leaseholds) and, unlike foreigners, do not have to wait 10 years. (Only citizens can buy new build executive condos.)
Better, lower cost privileges at public libraries. PRs pay a one-time fee of only $10.50 for a basic National Library Board (NLB) membership, much less than the annual fee foreigners pay for more limited privileges. Alternatively, PRs (and citizens) holding PAssion cards, including DBS/POSB's PAssion debit cards (free even with DBS's zero minimum balance "My Account"), enjoy complementary NLB Partner Membership.
No need to renew driving licenses. Although new PRs must convert their Singapore driving licenses to reflect their new NRIC numbers and pay a fee to do so, unlike foreigners they do not need to renew their licenses periodically, saving time and money. (Older drivers' periodic competency checks still apply.)
Some limited merchant, attraction, and financial privileges. Like citizens, PRs enjoy some limited privileges from merchants, attractions, and financial institutions. As examples, it's somewhat easier to sign longer term contracts for telecommunications services and utilities (with lower deposit requirements), and some credit cards are only available to citizens and PRs. There are also a few discounts specifically for older PRs, for example the Senior Citizen Concession Card that offers discounted public transit fares. All citizens and PRs enjoy free admission to National Heritage Board museums and The Istana (during open house days).
SkillsFuture program benefits. A couple of the government programs to promote career and talent development are open to Permanent Residents, specifically P-Max and the Individual Learning Portfolio portal.
Extraordinary wage subsidies. During the COVID-19 pandemic the government subsidized the wages of employed PRs, including self-employed PRs who received direct subsidies. These subsidies helped reduce unemployment and income losses among citizens and PRs.
Retirement and Re-Employment Act (RRA) protections. Employers must not force PRs to retire before the minimum statutory retirement age and must offer a reasonable re-employment option for at least 5 years thereafter under the RRA.
Eligibility for certain Ministry of Social and Family Development benefits. Permanent Residents are eligible for some social "safety net" programs. Examples include ComCare, the Assistive Technology Fund, the Taxi Subsidy Scheme, and the Enabling Transit Subsidy.
Some greater ability to express political and social views publicly. For example, Permanent Residents (and citizens) can participate in the annual Pink Dot event. PRs can also pick up free National Day "fun packs."
Some privileges when obtaining visas to visit foreign countries. A few foreign countries may offer Singapore PRs greater odds of visa approval, longer term visas, and/or lower cost visas compared to otherwise similarly situated foreigners.
Singapore Armed Forces Volunteer Corps eligibility. Permanent Residents age 18 to 45, including female PRs, may join the SAFVC.
Commemorative Coins. The Monetary Authority of Singapore occasionally issues commemorative coins such as the LKY100 coins recognizing the 100th birth anniversary of Lee Kuan Yew. Only Singaporean citizens and Permanent Residents can purchase these coins at original issue.
Clear Disadvantages
National Service obligations. Young male citizens and PRs (and their sons) are required to perform National Service if physically and mentally able, i.e. to serve in Singapore's armed forces, police, civil defense, or another government-decided role, and to be available for periodic medical checks and training exercises for several years thereafter. In the event Singapore goes to war or has some other serious national emergency, most young male PRs and citizens would be required to serve. Young men with National Service (NS) obligations face certain international travel restrictions. NS obligations are waived for first generation PRs under the Professionals/Technical Personnel and Skilled Workers (PTS) and Investor Schemes and, generally, for men who acquire PR status under the Immediate Family Scheme who are in their late 20s or above.
Clear Disadvantages
National Service obligations. Young male citizens and PRs (and their sons) are required to perform National Service if physically and mentally able, i.e. to serve in Singapore's armed forces, police, civil defense, or another government-decided role, and to be available for periodic medical checks and training exercises for several years thereafter. In the event Singapore goes to war or has some other serious national emergency, most young male PRs and citizens would be required to serve. Young men with National Service (NS) obligations face certain international travel restrictions. NS obligations are waived for first generation PRs under the Professionals/Technical Personnel and Skilled Workers (PTS) and Investor Schemes and, generally, for men who acquire PR status under the Immediate Family Scheme who are in their late 20s or above.
Not Ordinarily Resident (NOR) tax break curtailed. In certain situations Singapore offered a special income tax break to fairly highly compensated (or higher) individuals based in Singapore who spent a lot of time working outside Singapore. This tax break was called the Not Ordinarily Resident (NOR) Scheme. Citizens and PRs apparently could not qualify for this particular tax break. This tax break is closed to new entrants and will be phased out completely in 2024.
Fee to access Singapore's casinos. Like citizens and unlike foreigners, PRs must pay either a daily or annual entry fee if they want to enter the gambling areas of the Marina Bay Sands or Sentosa casinos.
Limitations on other countries' residence and benefits (exclusivity restrictions). Certain countries may bar Singapore (and other foreign) PRs from obtaining permanent residence and/or from enjoying certain tax breaks (and other benefits) available to residents.
Some of Singapore's laws apply extraterritorially. A few of Singapore's laws apply to PRs even when they travel outside Singapore. For example, Singapore's Misuse of Drugs Act makes it a crime for PRs (and citizens) to consume any form of cannabis (marijuana) even in countries where local laws allow cannabis.
Mixed Advantages/Disadvantages
Lower Supplementary Retirement Scheme (SRS) contribution limits. PRs are more limited than foreigners in how much they can contribute annually to Singapore's tax-advantaged SRS accounts. Also, PRs cannot make qualified (penalty free) withdrawals prior to minimum retirement age. However, PRs typically have a greater opportunity to make qualified withdrawals Singapore tax free (or at least tax reduced) than foreigners do.
Mandatory Central Provident Fund (CPF) contributions. Working PRs and their employers are required to contribute to Singapore's mandatory national savings program, the Central Provident Fund. CPF is a comparatively safe and high yielding savings vehicle. Compulsory contributions and all earnings are Singapore tax free. (Also, Singapore provides income tax breaks for some voluntary CPF contributions and top ups. It's often wise for new PRs to make substantial voluntary CPF contributions/top ups to their Medisave and Special Accounts, at least up to their income tax break limits if possible.) CPF savings can be used for retirement and also for medical care, insurance, and certain real estate purchases in Singapore. Many individuals would voluntarily contribute to CPF if they could. However, there are some possible disadvantages. Take home pay is reduced compared to a similarly situated foreign worker. Also, those PRs with limited non-CPF savings who plan to retire outside Singapore could end up somewhat "over-invested" in CPF assets and thus incur some currency risk. In rare cases CPF assets and payments might cause reductions in a PR's entitled benefits from other countries.
Mixed Advantages/Disadvantages
Lower Supplementary Retirement Scheme (SRS) contribution limits. PRs are more limited than foreigners in how much they can contribute annually to Singapore's tax-advantaged SRS accounts. Also, PRs cannot make qualified (penalty free) withdrawals prior to minimum retirement age. However, PRs typically have a greater opportunity to make qualified withdrawals Singapore tax free (or at least tax reduced) than foreigners do.
Mandatory Central Provident Fund (CPF) contributions. Working PRs and their employers are required to contribute to Singapore's mandatory national savings program, the Central Provident Fund. CPF is a comparatively safe and high yielding savings vehicle. Compulsory contributions and all earnings are Singapore tax free. (Also, Singapore provides income tax breaks for some voluntary CPF contributions and top ups. It's often wise for new PRs to make substantial voluntary CPF contributions/top ups to their Medisave and Special Accounts, at least up to their income tax break limits if possible.) CPF savings can be used for retirement and also for medical care, insurance, and certain real estate purchases in Singapore. Many individuals would voluntarily contribute to CPF if they could. However, there are some possible disadvantages. Take home pay is reduced compared to a similarly situated foreign worker. Also, those PRs with limited non-CPF savings who plan to retire outside Singapore could end up somewhat "over-invested" in CPF assets and thus incur some currency risk. In rare cases CPF assets and payments might cause reductions in a PR's entitled benefits from other countries.
MediShield Life. Singapore requires PRs, no matter where they live, to pay MediShield Life premiums (taxes). MediShield Life provides a basic set of medical insurance benefits at public hospitals (and to a limited extent at public clinics) in Singapore, with benefits designed for citizens staying in B2 or C public hospital wards. (Charges are higher for PRs while MediShield Life payouts are the same, so PRs experience a greater coverage gap with MediShield Life alone.) The premiums are set annually and increase with age, and they are paid from CPF MediSave funds (if there are MediSave funds available; otherwise the premiums must be paid out of pocket). Individuals with preexisting conditions are covered, although a 30% higher premium may apply for up to 10 years. The premiums are not adjusted for income except for the very poorest, when they are subsidized or waived, so lower middle class PRs pay exactly the same MediShield Life taxes as the wealthiest PRs. Extra cost Integrated Shield insurance policies are available to supplement MediShield Life, and since PRs already have mandatory MediShield Life (and somewhat subsidized charges in the public medical system) they pay a lower premium for an Integrated Shield plan than foreigners do. PRs and citizens also enjoy a wider choice of Integrated Shield plans than foreigners, although most of the lowest cost plans (designed to cover care in public hospitals in B1 ward) reduce coverage benefits for PRs. Whether a particular PR gets value-for-money from MediShield Life is highly situational.
CareShield Life. Singapore requires PRs born after 1979 to pay CareShield Life premiums starting from age 30 or when PR status is granted, whichever is later. CareShield Life pays a monthly benefit for life when an individual is severely disabled, defined as an inability to perform at least 3 out of 6 "Activities of Daily Living." PRs born before 1980 who are not disabled can voluntarily join the program. Private insurance carriers offer optional supplemental policies to CareShield Life. Disability insurance in some form is quite important, but CareShield Life isn't always the best fit. Please note that CareShield Life coverage ends (and with no refund of premiums) if/when Singaporean citizenship or PR status ends.
Possible loss of "expat" employment compensation elements. If you arrived in Singapore with "expat" compensation provisions then your employer may reduce or terminate some or all of those elements after transitioning to PR status. Such provisions might include housing, children's education, tax preparation, tax equalization, continuation of home country social insurance and/or retirement savings contributions, pension, seniority privileges, employee stock purchase discounts and stock options, per diems, relocation/repatriation/moving, household goods storage, transportation/car, professional society memberships, disability income insurance, life insurance, unemployment insurance and severance, global medical insurance, medical evacuation, and home country travel, as examples. You might also lose an implied or even actual right to return to a home country position. On the other hand, you might be entitled to new employment benefits as a fully localized employee in Singapore. Highly compensated executives from developed economies on "expat packages" tend to suffer a net loss of compensation and benefits when transitioning to PR and local employment, while less highly compensated workers, including those from countries with few employment-related benefits, may find that fully localized employment in Singapore is a net positive.
Opt-out organ donation. PRs and citizens are automatically subject to the Human Organ Transplant Act (HOTA). By default, when a PR dies in Singapore, some of his/her organs (kidneys, liver, heart, and/or corneas) are donated for medical use. Organ donation cannot occur unless and until the patient is clinically deceased. Everyone ought to sign up to be an organ donor, to give the gift of life. (You or your family might someday be in need of a donor organ. The opt-in MTERA form is available to all adults, including foreigners, who want to donate more than the four HOTA organs.) However, there are a few PRs who do not wish to donate any of their organs after they die. They have a slight paperwork burden to bear; HOTA requires them to submit an opt-out form.
More biometric data required. From 2017, PRs (and citizens) must submit iris scans when they obtain or renew ID cards (and passports). Privacy and security advocates have concerns about whether the government can protect this sensitive biometric information, especially if the government and its contractor are not limiting their biometric data collection to calculated hash values. Eventually the Immigration and Checkpoints Authority will finish upgrading the automated entry gates at Singapore's airports and ports to allow citizens and PRs to enter Singapore using iris scans. The upgraded gates could mean slightly quicker automated entry for citizens and PRs.
Fee changes. There are PR application fees, Re-Entry Permit fees, and NRIC ("blue card") fees. Depending on the circumstances, these fees could be higher or lower than the fees associated with other immigration statuses.
No comments:
Post a Comment