Political risks insurance (PRI) is an important tool for companies to safeguard their projects and/or investments in overseas markets against political uncertainties.
Companies can also use PRI to unlock access to mid to long-term financing as it gives lenders additional assurance that the impact of political uncertainties over the performance of a project or investment has been mitigated.
With Political Risk Insurance Scheme (PRIS), qualifying Singapore companies can receive premium support for PRI policies. Enterprise Singapore will support 50% of the premium for up to the first three years of each PRI policy. This is subject to a maximum amount of S$500,000 per qualifying Singapore-based company.
A typical PRI policy covers risks such as:
Companies applying for PRIS1 should meet the following criteria:
Approach any Singapore-registered PRI broker/insurer to structure and procure a PRI policy.
Should your company qualify for support under PRIS, the PRI broker/insurer will help you submit your application for PRIS premium support to Enterprise Singapore.
Email us here.
1 Support under PRIS will be up to the qualifying Applicant Company’s interest in the investment or project.
2 Global HQ refers to global management control and decision making functions based in Singapore. Indicators include global C-level executives based in Singapore; board meetings held in Singapore, etc.
3 Strategic business functions refer to activities such as (i) banking and financial, (ii) marketing and business planning, (iii) procurement and logistics, (iv) training and personnel management, (v) investment planning and co-ordination, (vi) R&D and design, (vii) technical support, (viii) manufacturing, and (viiii) other value-added activities.
4 Total Business Spending refers to expenses incurred by the Applicant Company such as staff costs (salary, training), finance costs (bank loans, overdrafts, interest) and other operating expenses such as advertising and promotion, audit fee, depreciation, director’s remuneration, freight charges, insurance cost, office rental, professional consultant’s fees, telecommunications, utilities. For list of exclusion examples, please refer below. Total Business Spending excludes cost of goods sold, cost of sales, distribution and selling expense, exchange rate losses, allowance for doubtful debts, income tax expense, property tax expense