What if I told you all those happy accounts from expats on Singapore PR forums aren’t telling you the full story? There’s no free lunch in this world, even Singapore PR. Aside from all the benefits of Singapore PR, here are 4 cons of it that you should consider.
1. Conscription; compulsory and for 2 years
Commonly seen as a rite of passage for all Singaporean men, your son(s) will have to serve two years of National Service upon turning 18. After which, 40 days of Operationally Ready National Service is required every year until they turn 40, or 50 if they hold the rank of an officer).
It may not seem like a bad idea; however, that is TWO years of your son’s life taken away.
2. Lower contribution limit to Supplementary Retirement Scheme (SRS)
It’s no secret that contributing to your SRS account could help you save on Income tax if you hold a middle-high income. The contribution cap for foreigners is $35,700; but, upon conversion to PR, the cap is reduced to just $15,300.
If you command a middle to high income, this could significantly affect the amount of income tax you pay since Singapore uses a progressive tax system.
3. Low Success of Getting PR On First Try
While the government is receptive towards foreigners and PRs, they have become increasingly stringent with PR applications. With each application taking about 6 months to process, you could be looking at a very long waiting time (we’re talking years) before you can finally get your blue identity card. That’s not to say that the wait isn’t worth it.
Maybe your son doesn’t want to serve in the army and wants to go overseas to study instead. In this case, he would have to renounce his PR.
However, renouncement of PR may complicate his future applications for work passes in Singapore and he will not be able to attain PR status again. This is the case for anyone who has attained PR status but wishes to renounce it.
When applying for PR for your whole family, make sure you take long-term plans into account before submitting those paperwork.
Bottom line: Think Twice, Think Thrice… and Consult!
Applying for PR is a really big decision and step to take. While the benefits are extremely enticing, there are terms and conditions you have to abide by.
Reach out to us for a complimentary 10 minute consultation if you want to increase your chances of approval for PR today!
Co-written by Wong Jiayi & Sulochana Uthirapathi