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:
- Expropriation
- Currency inconvertibility and transfer restrictions
- Political violence
- Breach of contract by host government
- Non-honouring of sovereign financial obligations
Eligibility
Companies applying for PRIS1 should meet the following criteria:
- Global HQ2 anchored in Singapore
- At least three strategic business functions3 in Singapore
- An annual turnover not exceeding S$500 million
- An annual total business spending4 of at least S$250,000 in Singapore for each of the past three years
- A minimum paid-up capital of S$50,000