June 2020

Introduction

Why Second Generation Business Owner?

According to an article by the Business Times, “millennials (i.e. those born between 1982 and the late 1990s) are expected to be in control of more than US$2 trillion in wealth in Asia over the next decade.” Moreover, in Asia, it is already becoming apparent that the next generation have become bolder in choosing their own paths and diversifying already very successful family businesses.

There is thus no doubt that this next generation of business owners and leaders bring with them the potential to contribute immensely to an economy such as Singapore. The amendment to the GIP and introduction of this new qualifying criterion is therefore Singapore’s
nod to the incredible potential of the next generation of business owners.

Qualifying Criteria For Next Generation Business Owners

In order to qualify for this scheme, the next generation business owner who is applying for residency must work in one or more of the approved industries published by the Singapore’s Economic Development Board and must be part of the management team in the company (i.e. a position on the board or C-suite).

They must also be a member of the family that runs the business, and the family must be the largest shareholder of the firm or own at
least 30% of the company’s shares. The company’s annual turnover must be at least SGD 500 million per annum on average in the three
previous years before the year the application is submitted (and in the year of the application).

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