Stricter rules for Entre Pass get expats worked up.

The latest news for foreigners who want to set up a business in Singapore was revised by Ministry of Manpower (MOM) recently: "foreigners who want to set up businesses in Singapore are causing jitters among some expatriates"

"The amendments to the EntrePass scheme, made at the end of September, have made it more rigorous for new applicants, but those already on it fear they too will be asked to meet the new, higher standards. Previously, applicants for the pass had to submit a business plan and put down a $3,000 bankers guarantee or get a Singaporean sponsor.

Now, new applicants also have to:

1. Register their company as a private limited-concern

2. Hold a share of at least 30 per cent in the company; and

3. Have at least $50,000 in paid up capital

There are also specific guidelines to ensure that the businesses they set up create employment opportunity for Singaporeans. When they first renew the permits- each permit is valid for a maximum of two year- the business owners will have to show that they employ at least 2 Singaporeans and have total business spending of at least S$100,000 over the past year.

At subsequent renewals, they have to employ at least four Singaporeans and have total business spending of at least S$150,000 over the past year.

The MOM, which administers the scheme, said the changes are a way of ensuring that Singaporeans workers benefit from enterprises set up here. Said a spokeman: "A key characteristic of the new EntrePass framework is the requirement for all companies set up by EntrePass holders to employ locals".

Asked if the change is due to businesses under the old EntrePass not giving jobs to Singaporeans, the ministry said the old framework also considered employment creation, but the new framework has put down mandatory business requirements.

MOM receives about 3,000 EntrePass applicants a year, of which about half are approved. Those under the old framework- about 1, 700- have been given a choice to stay on it or transit to new requirements.

Asked if those renewing their passes under the old framework will also be subjected to the more rigorous assessment, the MOM would only say it is on case by case basis"

***According to ANg Yiying, The Straits Times on 4th November 2009.