What Are the Benefits and Problems of Singapore Citizenship?

Considering the numerous benefits and drawbacks, it is natural for individuals to contemplate becoming a Singaporean citizen.

Singapore is renowned for its high quality of living, safety, environmental sustainability, cultural diversity, and prominent position in various world rankings and reports.

These factors make it an attractive destination for many people seeking long-term residence. However, the decision to pursue Singapore citizenship should be carefully evaluated by weighing the pros and cons, which we will discuss in this blog.

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Benefits of Obtaining Singapore Citizenship

As mentioned, Singapore citizenship offers numerous advantages that contribute to a high quality of life and open doors to various opportunities. Here are some key benefits of Singapore citizenship:

Employment

Singapore citizens can enjoy greater employment opportunities and advantages in the job market. Some industries and government positions may give preference to citizens, providing a competitive edge when seeking employment or career advancement.

Housing

Singapore citizens can access various housing options, including the opportunity to buy or rent Housing Development Board (HDB) flats. This helps citizens secure affordable and well-maintained housing in the country.

Here, we have a look at the eligibility granted to locals, PRs, and foreigners to show the differences:

Healthcare

Medifund

In Singapore, ensuring equitable access to healthcare is a top priority. To address the needs of individuals facing financial constraints, the government has established a scheme called Medifund.

Medifund is a safety net that provides assistance to Singaporean citizens who are unable to afford their medical expenses, even after utilizing other available subsidies and healthcare financing options.

Medifund operates as a financial assistance program, offering support to those who have exhausted their savings, insurance coverage, and other means of healthcare financing. It aims to ensure that no Singaporean is denied necessary medical treatment due to financial limitations.

Community Health Assist Scheme (CHAS)

The Community Health Assist Scheme (CHAS) in Singapore is a government initiative aimed at ensuring accessible and affordable healthcare for all Singaporean citizens, including Pioneer Generation (PG) and Merdeka Generation (MG) cardholders.

CHAS provides subsidies for medical and dental care at participating General Practitioner (GP) clinics and dental clinics. All Singaporean citizens are eligible for CHAS, including PG and MG cardholders. There are no age restrictions for CHAS eligibility.

CHAS subsidies work alongside other government assistance schemes, such as Medifund, to provide additional financial support for individuals with more significant healthcare needs.

Medical Fees

Foreigners and permanent residents can expect to pay more for medical consultation charges at polyclinics as compared to Singapore citizens. The subsidies offered to PRs at restructured hospitals are also lower than those offered to locals. Foreigners are not eligible to receive subsidies.

Education

In Singapore, the education system follows a structured framework. It begins with six years of primary school, followed by four to six years of secondary school, post-secondary education at polytechnics or junior colleges, and university.

Permanent residents and foreigners typically pay heftier school fees as compared to Singapore citizens. Only Singapore citizens are eligible for education subsidies as well, such as Edusave.

Pension (Central Provident Fund)

CPF, or the Central Provident Fund, is a comprehensive social security system in Singapore that aims to provide financial security and retirement savings for its citizens and permanent residents.

It is a mandatory savings scheme that requires employees and employers to contribute a portion of the employee’s salary to the CPF.

CPF contributions are made monthly and are divided into different accounts, namely the:

• Ordinary Account (OA)
• Special Account (SA)
• Medisave Account (MA)

These accounts serve different purposes and can be used for various needs throughout an individual’s life. The Ordinary Account (OA) primarily covers housing-related expenses, such as purchasing a property, paying mortgage loans, and funding home improvements.

The Special Account (SA) focuses on long-term savings and investments, ensuring financial stability during retirement. Lastly, the Medisave Account (MA) is dedicated to healthcare expenses, including hospitalization, medical insurance, and approved medical procedures.

CPF contributions are calculated based on a percentage of an employee’s salary, with a cap on the contribution amount. The employer and employee each make contributions, helping individuals build up their CPF savings over time.

These savings accumulate with interest and can be withdrawn for specific purposes, such as education, healthcare, and housing.

CPF offers several benefits to its members, including stable retirement income, affordable housing options, healthcare support, and financial assistance for various life events. It provides a strong foundation for individuals to plan for their future and ensure a comfortable standard of living during retirement.

Leave

Maternity Leave

Working mothers in Singapore whose children are Singapore citizens are entitled to 16 weeks of government-paid maternity leave. If the child is not a Singapore citizen, working mothers can only receive 12 weeks of paid maternity leave.

Paternity Leave

Eligible working fathers, including those self-employed, can get 2 weeks of government-paid paternity leave if their child is a Singapore citizen. Adoptive fathers can also get this leave if they meet certain requirements, including if the child is a Singapore citizen.

From 1 Jan 2024, this will be doubly increased to 4 weeks.

Child Care Leave

Eligible working parents with Singapore citizen children below 7 years of age can get up to 6 days of government-paid childcare leave (GPCL) per relevant period.

Enhanced Child Care Leave

Eligible working parents with Singapore citizen children aged between 7 and 12 years can get 2 days of paid leave per relevant period.

Infant Care Leave

From 2024, unpaid infant care leave will be increased from 6 to 12 days yearly per parent for children below 2 years of age.

Parenthood

Baby Bonus Scheme

Having a child and raising it in Singapore is costly, which is why the government created the Baby Bonus Scheme to help parents better manage related costs.

This scheme includes the Baby Bonus Cash Gift (BBCG) and Child Development Account (CDA), the latter of which is a unique co-savings scheme.

The CDA account has 2 components, the First Step Grant, which does not require parents’ savings for disbursal, and the government co-matching scheme of parents’ savings. It has just been enhanced for babies born on or after 14 Feb 2023 as follows:

Only children who are Singapore citizens with lawfully married parents are eligible to receive the BBCG.

MediSave Grant for Newborns

Every qualifying Singaporean newborn can get a S$4,000 MediSave grant. Adopted children and those born to divorcees or unwed mothers can also receive this grant.

The money is meant to support a newborn’s healthcare fees, such as recommended childhood vaccinations and hospitalisation.

Child Care Subsidy

The government also has subsidies for child care and infant care to help defray preschool fees for Singaporean children. Any Singapore citizen child enrolled in an infant care or child care centre licensed by the Early Childhood Development Agency (ECDA) is eligible.

Parents can obtain these subsidies:

• Basic Subsidy: For working applicants (mother or single father working at least 56 hours monthly) with Singapore citizen children
• Additional Subsidy: For working applicants with Singapore citizen children and a gross monthly household income of S$12,000 and below or per capita income of S$3,000 and below

The subsidy amounts are:

Certain applicants may also apply to get higher subsidies under Special Approval, such as:

• Non-working applicants looking for a job, studying or training, medically unfit, incarcerated, or pregnant
• Non-parent caregivers such as legal guardians and grandparents
• Children under the HDB’s public rental scheme or under specified financial assistance schemes

Parenthood Priority Scheme

Parents or parents-to-be can apply for a BTO or sales of balance (SBF) flat under the Parenthood Priority Scheme (PPS) to boost their balloting chances. Up to 30% of BTOs and 50% of SBF flats are allocated to applicants.

They must be first-time buyers with a Singapore citizen child to be eligible.

Taxation

Parenthood Tax Rebate (PTR)

The PTR is offered to Singaporean tax residents to encourage them to have more children. Under this scheme, they can receive tax rebates of:

• S$5,000 for the 1st child
• S$10,000 for the 2nd child
• S$20,000 for the 3rd child and onwards

Working Mother’s Child Relief (WMCR)

This is another tax relief to encourage working mothers to keep working even after having a child. It also aims to encourage parents to take up Singapore citizenship for their children and to reward families with Singapore-citizen children.

The amount of WMCR claimable per child depends on the child order, matched to a percentage of the earned income. Note that this will change to a fixed sum for children born or adopted on or after 1 Jan 2024.

Here is how it is calculated:

Qualifying Child Relief (QCR)/Handicapped Child Relief (HCR)

Working mothers that have met all the conditions for the WMCR can claim QCR or HCR for the same child. The WMCR and QCR/HCR combined is capped at a limit of S$50,000 per child.

Problems of Obtaining Singapore Citizenship

National Service

As a Male Singapore citizen, it is important to understand the obligations that come with National Service (NS). Upon reaching 16.5 years of age, male citizens are required to register for NS. Subsequently, at the age of 18, they will be enlisted for two years of full-time National Service, unless granted a deferment.

Furthermore, it is mandatory for male citizens to serve 40 days of Operationally Ready National Service every year until the age of 50 years (for officers) or 40 years (for non-officers). 

This means that if you become a Singapore citizen, your male child will also be required to fulfill the two-year National Service commitment. The same applies to second-generation Permanent Residents (PRs).

Lack of Dual Citizenship

When you decide to become a Singapore citizen, it is important to note that you will be required to renounce your citizenship of your home country and surrender your home country’s passport. Singapore strictly adheres to a policy that does not allow for dual citizenship.

Begin the Process of Singapore Citizenship as a Permanent Resident

Your Singapore citizenship journey starts with becoming a permanent resident before you can move on to a Singapore citizenship application.

At SCI, our team of immigration and relocation experts has amassed years of experience helping foreigners obtain their permanent residency status. Contact us today to find out how we can support your goal of being a Singapore citizen!

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Suggested Readings

Everything to know about the Singapore Budget 2021 Singapore Budget 2018 – Overview of Tax Changes for Businesses and Individuals Relaxed Work Visa Rules for Foreign Spouses of Residents in Singapore, Companies Set to Benefit 55 Business Ideas to Get You Started as an Entrepreneur