A Permanent Resident (PR) of Singapore is a residential status that many foreigners dream of having. Singapore is a thriving economy with a population of over 5.3 million and a very high per capita income. As a PR, you are entitled to a number of benefit and perks that give you a special status in this country. Here are the top 6 benefits of becoming a PR in the country:
1. Lower-Cost Housing
A PR is entitled to purchase affordable property due to the lower stamp duty fee. He or she only needs to pay half the stamp duty as compared to a foreigner; whereas a Citizen pays even less than half of what a PR pays. A PR will be able to buy a HDB (Housing & Development Board) flat after three years, supposing the income does not exceed a certain amount.
2. Career Stability
As a PR, you need not to worry about re-applying for work permit every time you change your job. It is quite hectic and painful as there is a high risk of having your new work pass application rejected by the government or your employer, leaving you with no option but to leave the country. A PR will be free from all these risks, making it easier and safer for you to switch jobs should the need arise.
Employers in the nation also generally prefer to hire Permanent Residents to avoid the tedious work pass application for foreign workers. Furthermore, having PR in their firms gives them a higher quota to hire more foreign workers, which is what many local companies are aiming for.
3. Central Provident Fund Plan
A permanent resident is required to contribute a small percentage of salary to this savings plan as per workforce law. The good thing is that your employer will also be funding your CPF account, on top of your salary on a month basis. Just think of CPF as a retirement plan so that you can feel secure as you get older. Whether you need funds for housing, medical or even investment, CPF can become quite handy.
CPF does not reduce your income, rather it increases manifold in the long run when you get the lump sum of money. Do note that you cannot access these funds until you are 52. However, should you wish to leave the city and renounce your PR, you will be able to withdraw the full sum of your CPF.
4. Priority for Your Kids’ Education
PR get priority entry for their kids at the local public educational institutes. It also allocates your children more places in schools as compare to foreigners. This is vital as everyone wants the best for their kids especially when this nation has the best education system in the world. Non-PR unfortunately do not have any choice when it comes to schooling and thus have to accept whatever the available options are.
5. Easier Loan for Investments or Housing
One of the benefits of PR is that you can borrow a loan from bank to start your own business or purchase property. You will get loans approved with minimum processing time and lower interest rates. On the other hand, if you were to be a S pass or Employment Pass holder, your loan application would have a high chance of being rejected, coupled with higher processing time.
6. An Opportunity Towards Singapore Citizenship
Permanent Residency is the ultimate door to obtaining Singapore Citizenship status.
As a citizen, you will be entitled to greater benefits such as improved tax rates, voting rights, and the ability to purchase further-subsidized housing. A PR can only purchase government housing on resale, whereas a Citizen is able to purchase new government HDB flats – a privilege not provided for PR. A local passport is also your hassle-free visa and ticket to the world, thanks to strong diplomatic ties of the government with other nations. A Singaporean passport means that you will have ability to travel anywhere in the world.