Top Reasons to Avoid Becoming a Singapore Permanent Resident

While Singapore Permanent Residence (PR) brings certain advantages, it is essential to consider the disadvantages before making a decision.

What Can You Gain as a Singapore PR?

One of the most common misconceptions is that PR is a substitute for Singapore citizenship. In actuality, PR provides numerous benefits such as the provision of Medishield life, eligibility for certain social programs, and the ability to work and live in the country long-term. However, for many, the question is whether all these benefits are worth the trade-offs.

The Disadvantages of Singapore PR

Contribution to CPF Fund

One of the primary drawbacks of becoming a PR is the mandatory contribution to the Central Provident Fund (CPF), which requires a significant portion of your salary to be set aside. Specifically, PRs are required to contribute 20% of their salary to their CPF scheme, with their employer contributing an additional 17%. This mandatory saving can be burdensome, as it reduces the amount of cash flow available for immediate spending.

Living Conditions and Cost of Living

While Singapore is a vibrant city-state, it comes with high living costs. Issues such as traffic congestion, expensive vehicles and parking, and the cost of cigarettes can add to the financial strain. Additionally, the influx of PRs and foreigners in recent years may make it difficult for newcomers to blend in, as some Singaporeans exhibit signs of xenophobia.

Policy Limitations

As a PR, you may face several limitations under the Singaporean government's policies. For example, you may not be eligible for certain social assistance programs, such as Medifund and the Primary Care Partnership Scheme. Furthermore, PRs are not eligible to vote, receive the Parenthood Tax Rebate, or serve in certain professions, like taxi driving, if you are unemployed.

Limited Eligibility for Housing Benefits

PRs face significant restrictions when it comes to housing benefits. They are not eligible for the purchase of subsidized new flats from the Housing Development Board (HDB), nor can they rent subsidized flats. PRs also cannot access housing grants, and they may not be eligible for mortgage loans from HDB at concessionary interest rates.

Educational and Healthcare Disparities

PRs may also encounter higher costs in education and healthcare. PR children may have to pay higher school fees, and they are not eligible for the Edusave scheme. While medical subsidies are available, they are often lower for PRs, requiring supplementary private insurance.

Conclusion

While PRs receive certain benefits, the drawbacks listed above and the diminishing advantages make it worthwhile to consider the option of Singapore citizenship. The decision to become a PR should be carefully weighed against the long-term goals and future plans of an individual.

Key Takeaways: - CPF fund contributions - High living costs - Limited eligibility for housing benefits - Educational and healthcare disparities - Lack of voting rights and eligibility for certain social programs

Final Note

Although becoming a PR presents some challenges and limitations, Singapore remains an attractive destination for those seeking a fulfilling life in a vibrant city-state. The final decision should be based on a careful evaluation of one's personal circumstances and future aspirations.