Visas for IT professionals to work in Singapore have seen to have visibly dropped, prompting the government to put the review of the Comprehensive Economic Cooperation Agreement (RCEP) on hold. As Indian companies are advised to hire local talent, they are looking at relocating some of their operations to other countries in the region.
"This (visa problem) has been lingering for a while, but since early-2016, visas are down to a trickle. All Indian companies have received communication on fair consideration, which basically means hiring local people," said Nasscom president R Chandrashekhar. Another industry executive added that visas have stopped for "our" people. Following problems for IT, and the banking sector, where there is a lack of transparency on the capital requirement, the Indian government has now decided against expanding the scope of goods where import duties would be cut unless the concerns of domestic industry are addressed.
Sources said that Singapore authorities were insisting on what is called an "economic needs test", which requires compliance with certain economic criteria, to deny access to Indian professionals. "They are doing it despite the CECA clearly stating that there will be no ENT or quotas on agreed services. This is a violation of the agreement," said an Indian officer.
In recent years, Singapore has emerged as a key opponent of allowing foreign professionals into the island nation. In fact, even during the negotiations for the RCEP, which will create the world's largest free trade area comprising India, China, Asean members and Australia, Singapore is seen to block most of the opening up. While RCEP negotiators are putting pressure on India to sharply reduce import duty on goods, they have so far been unwilling to allow easier access for Indian professionals, which is a key demand from the government.
