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Restrictive immigration policies in the West including US, UK, Australia and Europe may prove to be beneficial to immigrant friendly nations such as Singapore.

Recently, Singapore’s national daily, The Straits Times, ran an article on the how tougher immigration rules in the US and Europe are driving out highly skilled immigrants and discouraging foreign talent from building their careers and businesses on Western shores. The article squarely pointed out that by capping the number of immigrants and making it harder to obtain a work visa, the US stands to lose in the long term and is likely to face competition from countries that are adopting an open door policy to immigration – Singapore being a case in point.

The immigration debate is becoming a red hot political issue in many countries around the world especially the US, UK and Australia. The anti-foreigner sentiment has been further fueled in the aftermath of the financial crisis that led to unimaginable high rates of unemployment. While it is necessary to keep tabs on illegal immigration and periodically check immigration levels to ensure that immigrants remain an asset and not a liability, it is important to realize the economic benefits that can be derived by adopting a liberal immigration policy. As New York Times op-ed columnist Thomas L Friedman commented in his column, “In an age when attracting the first-round intellectual draft choices from around the world is the most important competitive advantage a knowledge economy can have, why would we add barriers against such brainpower — anywhere? Vivek Wadhwa, a senior research associate at the Labor and Worklife Program at Harvard Law School pointed out in his Business Week essay that immigrants have played a crucial role in jump-starting start-ups and creating innovations in the US.

Singapore’s Prime Minister, Mr. Lee Hsien Loong echoed similar sentiments during his recent National Day Rally speech. Commenting on the importance of staying open to foreign talent PM Lee said, ”…Because we need talent, we need to gain talent. It makes a tremendous difference to us doing critical work in our economy, helping Singapore to become an outstanding city…We need reinforcements to grow our economy and create better jobs for Singaporeans. The foreign workers supplement our ranks and enable us to build successful companies.” However, Mr. Lee also pointed out that the government is mindful of whom they accept and will continue to ensure that citizens come first.

Singapore’s openness to foreign talent is best reflected in its work visa schemes such as the Singapore Employment Pass and Singapore Entrepreneur Pass that are designed to facilitate the entry and stay of foreign professionals and entrepreneurs. Unlike the US, where one has to wait for several years to obtain a green card, Singapore Permanent Residency status can be obtained within 3-6 months time after submitting the PR application. Given the open immigration policy, ease of Singapore company formation and the high quality of life, Singapore is a natural magnet for smart minded foreign entrepreneurs who are keen to establish their business in the region. Singapore is also a hot-spot for foreign professionals who are flocking this dynamic city in search of greener pastures. With the rapid expansion of Asian companies and tighter immigration norms is the West, it is believed that a sizable number of Western workers from the US and Europe are keen to relocate to the region. Singapore is a natural choice as it is clean, environment friendly, safe, westernized, strategically located in the heart of Southeast Asia and tops for quality of life in the region. Singapore’s open door immigration policy is visible in its population statistics. As of June 2010, foreigners account for 36% of Singapore’s 5.08 million population of whom 540,000 are permanent residents and 1.3 million are foreign professionals and workers along with their dependents.

Below is an excerpt from PM Lee’s National Day speech on how Singapore gains from the inflow of foreigners.

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