Singapore blocks visas for Indian IT professionals

Lack of transparency on capital requirement a catalyst for problems in Indian IT, banking sectors

While the main focus has been on the US, visas for Indian IT professionals working in Singapore have fallen significantly, leading to the government to put on hold the review of the Comprehensive Economic Cooperation Agreement (CECA) citing violation of the trade pact, according to The Times of India.

With Indian companies being advised to hire local talent, they are looking at relocating some of their operations to other countries in the region as well.

Companies such as HCL, TCS, Infosys, Wipro, Cognizant and L&T Infotech have all relocated to Singapore.

"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," Nasscom president R Chandrashekhar told.



Visas have stopped for our people, added another industry executive. Precipitated by 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 "economic needs test" (ENT), 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, who did not wish to be identified due to the ongoing negotiations.