That said, there are some gaps to be filled.
Mr Ong Sim Ho, managing director of corporate and finance practice and head of family office at Drew & Napier, noted that applicants can only choose from two GIP funds at the moment.
“If EDB wants to make this a real option, the number of GIP funds must go up so that applicants have a real choice,” he said.
EDB’s website currently lists two funds run by Jungle Ventures and Phillip Private Equity that are accepting investments. “The rest of the GIP Funds have since closed fundraising,” the website said.
Mr Ong also noted feedback from some family office clients that there are “limited” investment options in Singapore.
While that is “unlikely to be a deciding factor” for these investors, “what is urgently needed is to foster a vibrant and active investment ecosystem” for family offices here, he added.
A BOOST FOR SOME SECTORS
Overall, the changes to the GIP are set to benefit the local financial sector – in particular, the asset management industry.
For example, fund managers that distribute the GIP-select funds and the portfolio companies that these funds invest in are “obvious winners”, said EY’s Mr Teo, noting that GIP applicants “could be a rich source of fund-raising”.
Local businesses, both big and small, also stand to gain.
The new criteria for applicants under the family offices option to deploy at least S$50 million in certain investment categories is a “wise move” that will help to divert more capital to businesses and funds here, said Mr Kagalwala.
“Local start-ups and businesses looking for seed money will have one more avenue to attract capital,” he added.
Apart from additional liquidity, the physical presence of high-quality investors and their teams “should further increase the vibrancy of Singapore’s venture scene”, be it through new collaborations or mentorships, said PwC Singapore’s partner for tax and entrepreneurial and private business Lim Kexin.
“These updates to the GIP continue to put Singapore at the forefront of attracting high-quality global investors,” said Mr Teo.
“The revised investment options are not only expected to encourage the growth of businesses and capital accumulated in Singapore, but will also boost employment opportunities for Singaporeans through direct and indirect channels.”