Asean Mobility spotlight October 2022

In this edition of the Asean Mobility Spotlight, we address the immigration changes taking place across Southeast Asia as our countries continue to rebound from various measures taken to mitigate the spread of COVID-19 pandemic. This includes the following:

a) Changes to immigration visas and passes
b) Current trends or observations on audit and enforcement activities
c) The consequences of non-compliance

In a nutshell, COVID-19-related immigration restrictions have been replaced by the introduction of more welcoming immigration programs to drive and create business and economic opportunities. These programs are tailored to attract corporates and (somewhat unconventionally from a historical perspective) foreign individuals as well. However, we observe that this “welcoming” policy has been balanced with continued (and in some cases increased) immigration enforcement activities.

Corporate: Attract and control
Simplification and improvement of an expatriate’s work permit application processes are implemented (Indonesia and Singapore). On the other hand, more stringent requirements are imposed such as increases in salary thresholds (Singapore), in-person filing and longer processing times (Vietnam).

Individuals: Wealthy or talented
Malaysia and Thailand governments have launched long-term (10-20 years) residence permits to attract wealthy foreigners. The Singapore government introduced a personal long-term (5 years) work pass intended for top talents, who need to be employed by an established company and meet certain salary thresholds, both current and prospective. Nomad visa and pass programs have been introduced in Malaysia (launched) and Indonesia (yet to be launched).

Immigration enforcement
Singapore uses data analytics to identify suspicious cases of unfair employment practices for further investigations, which may result in the employers being barred from hiring or renewing foreign workers.

In view of the changing trends outlined in this edition of the Spotlight, employers need to undertake a holistic review of their current talent mobility policies and immigration compliance and reporting processes to fully capitalize on the potential opportunities that these changes present.

Where gaps are identified, our EY teams are here to review and make recommendations about any relevant immigration program available, advise on any relevant immigration programs available and assist with any remediation or corrective action required.

Please note that the information provided in this spotlight is updated as of October 2022.