With its excellent infrastructure, abundant economic opportunities, and high standard of living, Singapore has become one of the most popular destinations for expats looking to migrate to a new country.
Nonetheless, those wishing to apply for permanent residency in Singapore should be aware that a successful PR application can affect all aspects of your life and finances. Let's go into more detail about these impacts so that you can get a better idea of whether becoming a Singapore PR is right for you.
Like Singapore citizens, male permanent residents are required to serve in the military or civil defence forces when they reach the age of 18. Those who have obtained permanent resident status under the Professional, Skilled and Skilled Worker Program or the Global Investor Program are exempt from this obligation.
However, male applicants who apply for Singapore PR through the Foreign Student Scheme or under the sponsorship of their parents are eligible for National Service (NS) and must be at least 16 years of ageRegister for National Service at the age of 5. Subsequently, they will enlist as early as possible when they reach the age of 18.
At the same time, male permanent residents and those who were previously Singapore citizens or Singapore permanent residents are still at risk of being conscripted into the armed forces, regardless of their plans to obtain permanent resident status. This order may affect individuals who have made personal or professional commitments during their service.
Those who choose to give up their permanent resident status without serving or completing full-time National Service may face serious consequences if they plan to stay in Singapore for a long time. It's not just their job or study applications that will be treated unfavorably. Their family members' applications for long-term visas, re-entry permits, or Singapore citizenship will also be adversely affected.
Many expats mistakenly believe that they are eligible to buy an HDB flat once their Singapore PR application is approved. However, this is not always the case. To clarify, Singapore permanent residents can only purchase BTO or SBF apartments directly from the Housing and Development Board (HDB) if they are married to a Singapore citizen.
On the contrary, couples who are both permanent residents can only buy a resale apartment. Even so, you have to meet specific requirements. Firstly, both spouses must have been Singapore permanent residents for at least three years. Secondly, you must meet the Racial Integration Policy (EIP) and Singapore Permanent Resident (SPR) quota to purchase a resale condominium.
In addition, permanent residents who own property overseas are not eligible to buy HDB flats. This restriction forces you to either property outside of Singapore** or forgo the opportunity to own affordable housing in Singapore, which is a dilemma for those with investment or family ties abroad.
After successfully applying and becoming a Singapore PR, you may notice a reduction in your take-home pay. This is because Singapore Permanent Residents are eligible for Provident Fund (CPF) contributions. The contribution rate starts at 20% of wages and drops to 55% and 60% at age 15 and 9 respectively5%。
You should also contribute to one of the various Self-Help Groups (SHGs) in Singapore. The ethnicity indicated on your ID will determine which ** your donation ends up depositing into. Your employer will deduct a specific amount from your salary and pay it to the CPF Board as it is the collection agency for SHG funds.
On the subject of CPF, you should note that while these contributions are designed to ensure long-term financial security and help fund important aspects of your life, such as housing and healthcare, some people feel that the returns offered by the CPF Board do not meet their expectations. Therefore, they see this mandate as a disadvantage because they believe that the ** could be better invested elsewhere.
In addition, your CPF funds will not be available until you reach the age of 55 or leave the country permanently. This lack of accessibility can be detrimental to Singapore permanent residents who have urgent financial needs or those who prefer to invest their money in other assets.
Of course, many Singapore permanent residents also appreciate their CPF contributions as they help offset specific living costs while functioning as a retirement plan. Ultimately, how you feel about this mandatory contribution will depend on your financial goals and expectations once you successfully apply for PR.
When you embark on the path to becoming a Singapore permanent resident, you must consider all the aspects that come with this status. A thorough understanding of these considerations will ensure that you make an informed decision. If you think applying for Singapore PR is still the right choice, we recommend that you check the requirements for Singapore PR beforehand.
If you are eligible for Singapore PR and need help with your PR application, then a Singapore immigration partner is the place for you. Our experienced consultants have assisted numerous applicants in their successful PR applications. As a result, we are familiar with the intricacies of the process and can help you navigate your immigration journey seamlessly. Contact us today - Mayson Singapore Meisheng.