The Year in Review: 2013 Business Immigration Highlights
December 31, 2013
As the year draws to a close, we look back to the key trends that the Asia Pacific region has witnessed in business and employment immigration during 2013. Some of the region’s largest economies have implemented comprehensive policy reforms, with Australia, China and Singapore taking a stronger stance in compliance, resulting in significant changes to processes and requirements. More countries have adopted measures to protect local workers. There is increasing recognition for the need to compete internationally for top talent, a trend that will carry over to next year as governments develop their approaches to attracting and retaining foreign talent with exemplary skills.
China has taken more than a year to implement regulations for its new Exit-Entry Administrative Law, which replaced the immigration statute that governed foreign nationals’ entry into China for nearly 30 years. Out of this overhaul came more clearly defined criteria for what constitutes illegal employment and illegal residency in China, sharply increased penalties, new and re-categorized visa types, and increased compliance obligations for employers.
Likewise, in Australia and Singapore administrative penalty systems have been further developed alongside, and as an alternate to, pursuing court proceedings against errant employers and foreign workers. As in China, penalties as well as enforceable sponsorship undertakings have been increased to reinforce the compliance message in Singapore and Australia.
In Vietnam, multiple changes to work permit rules took effect this year, while a further implementing circular is expected to be released before the year closes.
The protection of local workers has been a recurrent theme across the region:
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In Singapore, a new Fair Consideration Framework was announced and is poised to take effect next year. This will require companies to advertise in a government-run job bank so that suitably qualified Singaporeans are considered first before foreigners are sponsored for roles.
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In Australia, labor market testing, along with other key changes to the subclass 457 visa program, were introduced. These took effect on 23 November 2013.
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In India, evidence of local recruitment efforts is now required to complete local registration procedures, particularly in the cities of Kochi and Hyderabad.
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In Hong Kong, we are seeing more scrutiny into efforts to recruit locally as part of employment visa application deliberations.
Countries across the region have also tightened entry requirements, especially for individuals intending to work.
The Australian government has overhauled its visitor visa framework and introduced a new subclass 400 visa for specialized, short-term work; engaging in any form of work-related activities while on a business visitor visa is now prohibited.
Malaysia’s Professional Visit Pass (PVP) program has placed new restrictions on foreign travel, depending on the validity of the PVP. Foreign nationals with approved PVP applications who would require an entry visa for work purposes (even those previously eligible for a Journey Performed Visa) must now apply for a reference visa abroad.
Immigration compliance continues to be increasingly related to tax. In the Philippines, the immigration authority has thrown support to the tax authority’s collection and enforcement efforts by requiring more work visa applicants to obtain a Philippine tax identification number (TIN) before applying for the visa. This was even extended to short-term work permit (Special Work Permit) applicants. In China, the new immigration law created an information-sharing platform to facilitate inter-agency enforcement.
Finally, while still not as robust as the investment and talent visa programs in other regions, Asia Pacific countries are recognizing the need to successfully compete on a global stage for highly talented or high net worth individuals. To cite a couple of examples, the new Chinese immigration law contains provisions for a talent introduction visa as well as a permanent residence program, although further details for both programs have not been released yet. Japan is looking back over the first year of its points system program and is exploring reforms to make it more attractive to foreign professionals.
