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Tuesday, 24 July 2012

HDB restricts PR flat owners' abilities to sublet

With immediate effect, Singapore permanent residents who own flats will only be allowed to sublet their HDB flats for one year, down from the current three years. In a statement, the Housing Board says that subletting rules for PRs have been revised to deter flat owners from buying flats for rent or investment. Under previous rules, PRs who owned flats were subject to the same set of rules Singapore citizens had to abide by as flat owners. This meant that they could seek HDB approval to sublet their flats for a maximum of three years if they met the Minimum Occupation Period (MOP) requirement. However, new revisions made to the rules and regulations mean that flat owners with permanent residency will only be allowed to sublet their flats for a maximum of one year, and only if they are doing so for the first time. Furthermore, applications to extend approvals will be assessed at the end of one year on a case-by-case basis only, with the total period of subletting a flat capped at five years. Previously, owners could apply to renew the period of subletting upon the expiry of each three-year period, with no cap on the number of renewals and the total period of subletting. According to the authority, a 2011 crackdown on illegal subletting resulted in the compulsory acquisition of flats owned by a total 18 people. In total, 56 were penalised for subletting their flats without HDB approval. HDB also added that PRs should sell their flats if they no longer need the flats for themselves. In one case, a couple had their flat compulsorily acquired after HDB found that they had been using their executive apartment in Tampines as a lodging house for tourists. No changes have been made to the rules governing flat ownership by Singapore citizens. Flat owners should contact HDB to report or ask for more information on subletting

Good conduct condition to be set for PRs

A good conduct condition will be introduced for Singapore permanent residents if the proposed amendments to the Immigration Act (IA) are approved. The Immigration (Amendment) Bill was introduced for First Reading at the Parliamentary Sitting today. Four key amendments to the IA were proposed to help strengthen Singapore's border security as well as facilitate the legal entry of bona fide foreigners into Singapore while keeping out undesirable persons, goods and conveyances. The first amendment proposes to criminalise marriages of convenience by any person in order to obtain an immigration facility (e.g. entry visa, permanent residency, long-term pass, etc). The amended provision will also include criminal syndicates and middlemen who facilitate or stand to gain from such illicit practices. The penalties for the offence are a fine not exceeding $10,000 or imprisonment for a term not exceeding 10 years, or both. The manufacture, trafficking, and possession of paraphernalia for immigration forgeries will also be criminalised. The proposed amendment will come with a presumption clause that would assume that any person found in possession of the forgery paraphernalia has the intent to commit forgery, unless proven otherwise. The penalties for the offence are a fine not exceeding $8,000 or imprisonment for a term not exceeding 5 years, or both. The third proposed amendment will allow immigration authorities to receive advance information about passengers or crew arriving in Singapore. This proposed amendment will tighten the Immigrations & Checkpoint Authority's (ICA) checkpoint security measures by empowering ICA to collect passenger/crew information on inbound persons prior to arrival. Many other countries have already implemented a system of advance passenger information for security risk management purposes. Meanwhile the last amendment allows ICA to cancel the Re-entry Permit (REP) issued to a Singapore Permanent Resident (PR) if he contravenes any law or is involved in any activity which threatens a breach of peace or is prejudicial to public order. He will lose his PR status if he travels out of Singapore or remains outside Singapore without a valid REP. This proposed amendment will also enable ICA to impose, vary, or set additional conditions for the validity of the REP.

Singapore Permanent Residence tougher to attain

The PTS Scheme is a scheme which gives a foreign individual working in Singapore on a P, Q or S Singapore work pass the opportunity to apply for a permanent resident status in Singapore. It has long been seen as the easiest route to gaining Singapore permanent residency. However, according to a recent news article, the number of Singapore permanent resident (PR) applications approved under the Professionals, Technical Personnel and Skilled Workers Scheme (PTS Scheme) have plummeted by 58.7% between 2009 and 2010. Deputy Prime Minister and Minister of Home Affairs, Mr. Teo Chee Hean confirmed that only 11,161 PR applications were approved in 2010. In comparison, 27,042 PR applications were approved in 2009. The article also revealed the profiles of applications that were approved under the PTS Scheme between 2005 and 2010. In gist, out of all the approved PR applicants during this period: 83% are diploma or university graduates; 56% are 30 years old or younger; and 43% earn at least S$4,000 per month. Additionally, 85% of the successful applicants received their PR status five years after residing in Singapore via the Singapore employment pass, long-term visit pass (LTVP), work pass, dependant’s pass and student pass. Analysis by Rikvin shows that the following three factors – acceptable salary, age and education – are crucial to securing the Singapore permanent residency status and in fact serve Singapore’s human capital and societal needs. For one, having more residents who are diploma or university graduates dovetails with the national strategy to increase the quality of its workforce as they can fill professional-level vacancies and complement the workforce. Secondly, as Singapore has an ageing population, having more residents who are younger means having a more productive and future-ready workforce. In turn, granting young foreign professionals the PR means that they can set up homes in Singapore. This translates to the possibility of building families and mitigating the low birth trend that Singapore has been facing for years. Thirdly, having residents earning more than S$4,000 a month, which was the qualifying salary for a P2 Employment Pass w.e.f 1 July 2011, is consistent with the national aim to attract more high-calibre professionals to Singapore. Furthermore, having a higher salary means having the ability to meet the rising costs of living in Singapore. On a macroscopic level, the ability to meet these requirements mean that applicants have proven that they have the means to reside in Singapore and not fall through society’s cracks. Singapore does not have a dole system and will never be a welfare state. Approving the application of potential residents who can independently earn a living and sustain their livelihood will in turn ensure that Singapore as an economy does not incur unnecessary societal debt. This then ensures a lower societal burden for all and for years to come.