Employment and immigration lawyer explains Singapore's stance on foreign talent and digital nomads
The rise of digital nomads—professionals working remotely while traveling—has transformed traditional employment models, prompting countries to reconsider their labor policies.
In response, several nations have introduced "digital nomad visas," allowing foreign workers to live and work within their borders legally. As interest in these visas grows, the question of how such policies might impact local job markets and regulatory standards has become central.
For Singapore, known for its structured approach to immigration and employment, this trend presents both opportunities and challenges. Digital nomadism, which promotes flexible work across borders, could potentially disrupt this balance, raising questions about compliance, taxation, business considerations and worker protections.
Vivien Yui, co-head of the employment and immigration practice and partner at WongPartnership LLP, shares her insights into Singapore’s stance on digital nomads and its evolving foreign talent policy. She provided a perspective on how Singapore upholds its "Singapore core" workforce policy while selectively welcoming foreign expertise.
Singapore’s immigration policy is crafted to attract high-value talent who can complement the local workforce without impacting local employment.
"We want to attract top entrepreneurs and professionals, particularly in tech," Yui explained.
"But we have to be very selective because, as you know, Singapore is very, very small. So, we can expect that there are considerations such as talent brought into Singapore should contribute to our economic growth and job creation and, at the same time, ensure that our local workforce is looked after."
The Fair Consideration Framework (FCF) mandates that companies prioritize hiring Singapore citizens and permanent residents before considering foreign candidates. "This framework ensures that locals are given a fair chance," she said.
Singapore’s strategy relies on balancing its openness to foreign talent with a structured commitment to local employment, guided by policies like the FCF.
While many countries have introduced digital nomad visas, Singapore currently has no such program. Instead, the government offers targeted work passes, including the Overseas Networks & Expertise (ONE) Pass, Tech Pass, EntrePass and Personalised Employment Pass, which permit high-skilled foreigners to work without always being tied to a local employer as a sponsor.
"Our work passes are more targeted and come with high requirements, including income thresholds or proven expertise in specific fields," Yui noted. "This limits the influx of casual digital nomads but allows flexibility for high-skilled professionals who can contribute to our economy."
Yet, Singapore’s relatively higher cost of living and strict work pass requirements may already deter some digital nomads.
"Singapore is a wonderful place to live, but it’s not cheap," she explained. "Those with substantial financial or professional resources may find it easier to establish themselves here."
Digital nomads often bring valuable skills, particularly in tech and creative fields. However, their presence can affect local job markets, especially if they compete with local workers for similar roles.
Yui pointed out that Singapore’s focus remains on "attracting high-value foreign talent while maintaining fair opportunities for locals."
She suggested that companies conduct regular assessments to ensure that local hiring practices align with Singapore's fair consideration policies.
As Singapore evaluates possible changes in foreign talent policy, businesses should consider how digital nomads and remote foreign workers might impact local employment practices.
"A balanced approach is necessary," Yui said, "one that welcomes innovation while safeguarding opportunities for the local workforce."
Digital nomadism introduces challenges for employers, particularly around compliance with local employment laws and workplace safety standards.
"A foreign company with an employee stationed in Singapore would need to comply with Singapore’s employment and data protection laws, including employee benefits, workplace safety and work injury compensation," Yui explained.
"Employers must ensure that the remote workspace is safe, even if they can't oversee it directly, and implement measures to protect sensitive employee and company data."
Employer liability is also a key consideration. Yui emphasized that companies have a duty to provide a safe work environment for all employees, even those working remotely.
"Employers in Singapore are legally required to ensure a safe working environment, but how do you do that when employees are working from a hotel room or a beach?" she asked. "If an employee sustains an injury while working remotely, who is responsible for the medical expenses?"
Insurance coverage, Yui noted, is essential, as it protects both the employer and employee from potential liabilities in a remote work context.
"Employers must adapt their policies to reflect these emerging risks in the remote work landscape," she said.
As remote work becomes more widespread, companies must revisit employment contracts to address the unique needs of digital nomads and foreign talent.
"Employment contracts for remote or internationally based employees need to incorporate terms that address local compliance, data security, and workplace safety," Yui advised.
She said that employers should include clauses around workspace safety, cybersecurity standards, and insurance requirements to protect both parties in a cross-border work environment.
"Remote work arrangements require careful contract structuring," Yui added, noting that clarity on these terms helps employers and employees manage legal obligations effectively.
With more countries adopting digital nomad visas, Singapore’s next move is in question. However, Yui is cautious about the likelihood of a dedicated visa for digital nomads in the next three to five years.
"Our flexible work policies are evolving, but introducing a specific digital nomad visa would require significant adjustments in areas like taxation, medical insurance, and housing rules for foreigners," she explains.
"While the government recognizes the value of flexible work arrangements that gave rise to digital nomads in the first place, I believe we will continue to focus on meeting the needs of our businesses and workforce in Singapore.”
She points to Singapore’s upcoming tripartite guidelines on flexible work arrangement requests as a step in this direction.
"From 1 December 2024, we will have a process for employees to formally request flexible work arrangements and for employers to consider such requests. However, I believe any extension of our current flexible work arrangement framework to include a digital nomad visa for Singapore in the near term is unlikely."
