Return on Investment (ROI) Insights

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The GIP is structured not merely as a residency tool, but as a vehicle for active economic participation. Understanding the risk-return profile of each route is vital for wealth advisors and family offices.

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Option A: Business Investment

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Investing SGD 10 million into a new or existing company carries both enterprise risk and strategic upside.

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ROI Potential:

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• High for founders scaling a business in high-growth sectors like fintech, AI, or sustainable logistics.
  
• Requires hands-on management and long-term commitment.
  
  

Strategic Advantages:

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• Full control over investment operations.
  
• Eligible for local tax incentives (e.g., Pioneer Tax Incentive, Development and Expansion Incentive).
  
• Opportunities to build strategic networks in Southeast Asia.
  
  

Risks:

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• Operational failure, compliance lapses, or poor local market fit.
  
• Burden of hiring and office establishment.
  
  

This route best suits entrepreneurs seeking both residency and enterprise expansion into Asia.

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Option B: GIP Fund Investment

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The GIP-approved fund route offers a more passive investment experience, although capital requirements are significantly higher.

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Expected ROI Range:

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• Annual returns typically range from 6%–10%, depending on fund strategy (private equity vs. venture capital).
  
• Performance fees and management fees may reduce net returns.
  
  

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Lock-up Period:

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• Most funds impose a 5- to 7-year lock-in, with limited redemption options.
  
  

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Liquidity and Exit:

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• Liquidity depends on portfolio exits and secondary market arrangements.
  
• Some funds may offer co-investment opportunities or sidecar structures for enhanced exposure.
  
  

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Regulatory Oversight:

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• All GIP funds must be MAS-regulated, reducing counterparty and fraud risk.
  
• Annual reporting and NAV tracking ensure transparency.
  
  

This option is ideal for family offices or UHNWIs seeking exposure to Singapore’s innovation economy without operational overhead.

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Option C: Family Office Deployment

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Family Office deployment of SGD 50 million into Singapore-based assets offers strategic diversification, control, and tax optimization.

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Expected ROI:

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• Varies based on portfolio structure (equities, bonds, PE, hedge funds).
  
• Tax-exempt income under Section 13O/13U can materially enhance net returns.
  
  

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Capital Preservation:

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• Custom portfolios allow for conservative strategies focused on preservation and intergenerational transfer.
  
• Local custody and governance increase resilience against political or legal instability in home jurisdictions.
  
  

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Risk Factors:

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• Mismanagement, regulatory non-compliance, or hiring issues may affect structure.
  
• Increased scrutiny from MAS post-2023 reforms requires better documentation and local footprint.
  
  

SFOs offer unmatched flexibility for strategic families but require multi-disciplinary planning at every stage.

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