US$100,000 H-1B visa fee may draw top talent to Asia: analysts

[SINGAPORE] The hefty new US$100,000 H-1B visa fee for foreigners working in top jobs in the United States may see talent moving to alternative hubs around the world, analysts told The Business Times.

The visa fee will make hiring foreign talent more expensive for US firms, and make it more attractive for them to locate their talent in Asia.

Dr Lei Hsien-Hsien, chief executive officer of The American Chamber Of Commerce in Singapore, said the visa fee hike is a consequence of the Trump administration’s plans, which prioritise jobs for Americans.

She pointed out that the strategy to protect domestic jobs is a strategy similar to what other countries employ.

But there may be a silver lining for the Asia-Pacific.

Murray Sarelius, partner and head of personal tax and global mobility services of KPMG in Singapore, said the visa fee hike “could give rise to the creation of more talent hubs by US companies in the Asia-Pacific region, especially for countries with a huge base of technology and knowledge-based talent who are able to work remotely”.

Skilled professionals will most probably consider alternative hubs such as Canada, Europe or in Asia itself, said Ding Suk Peng, workforce tax leader at PwC Singapore.

She added that firms will be more selective about which roles justify US sponsorship. “We can expect greater emphasis on building local talent pipelines and expanding regional centres of excellence.”

H-1B1 visa exemption benefits Singapore

Within Asia, Singapore stands to benefit significantly from the H-1B1 visa price hike exemption, which was announced by the US Embassy in Singapore on Monday (Sep 29).

Implemented in 2004, the H-1B1 visa is a temporary visa exclusively available to Singapore and Chile citizens. Each year, there is a cap of 5,400 H-1B1 visas for Singaporeans, and 1,400 for Chileans.

According to the US Department of State’s website for the Bureau of Consular Affairs, 939 H-1B1 visas were issued to Singapore citizens in fiscal year 2024, which ended on Sep 30, 2024. In FY2023, 944 such visas were issued; 927 were issued the year before.

Analysts welcomed the exemption, stating that Singaporeans will continue to benefit from less expensive access to the US employment marketplace, as compared to other nationalities.

“This is likely to encourage Singapore companies to enable their talent to gain global exposure through stints in the US, further supported by Singapore government initiatives such as the Overseas Markets Immersion Programme,” said Sarelius.

Ding said the exemption underscores the strength of Singapore’s bilateral ties and positions the country as a trusted hub for global talent mobility.

However, she believes the overall boost for the Singapore economy will be “modest”.

American companies will bear the brunt

Dr Lei said the impact of the visa fee hike will likely be internalised within the US.

She believes that small and medium-sized enterprises will be more impacted than multinational corporations (MNCs), due to their lack of reserves and contingency plans.

Sarelius added that the fee will “also be keenly felt by startups and early-stage companies looking to establish themselves in the US, as US$100,000 is a significant hiring cost for a business conscious of its cash burn”.

Even MNCs are not spared from the pressures arising from the visa fee hike.

Sarelius noted that the application fee will likely weigh on MNCs’ hiring or choice of location, particularly for companies seeking large-scale recruitment.