The US$100,000 fee should not damage America’s economy: an ex-H-1B visa holder reflects

I HELD an H-1B visa for nine years in the early 2000s. The non-immigrant visa in the US allows employers to hire foreign workers in speciality occupations.

Aided by a professional services firm, the process to obtain the visa was relatively smooth, though I remember there was much paperwork to fill.

When I held the H-1B, I did not spend much time in the US. Typically, I was there for one or two weeks a year to help grade examinations for a US-headquartered professional body.

I think a US national could have performed the work I did. However, having several Asian graders helped reflect the professional body’s growing international stature and the fact that more non-US candidates were taking its exams. Also, having some international perspectives hopefully helped to improve the grading and exam-setting process. 

I enjoyed my brief stints in the US. While the work was at times tedious, networking with the large contingent of US exam graders – as well as international ones – was fun and educational.

Crucially, spending time in America gave me a better appreciation of and fondness for the country, despite the occasional encounters with failing infrastructure.

Likewise, my time spent studying in the UK and working out of Hong Kong, China and Malaysia helped me understand these places better. While the experiences differed vastly, I still hold positive views of my stints in those places.

Visa fee hike shock

I empathise with the shock felt by those aspiring to get an H-1B to work in the US, as they deal with the reality of the recent imposition of a US$100,000 fee per worker for new applicants. 

Each visa typically lasts three years and can be renewed. With the significantly higher upfront costs for new applicants, companies will likely apply for such visas only for a few highly paid and much-valued employees.

In short, for many fresh graduates and relatively inexperienced workers, the dream of working in the US may be dead.

Might the US’ high-flying technology sector, which hires many skilled workers under the H-1B visa programme, be particularly hard hit? And, might the US economy as a whole suffer, given that the programme has provided a pathway for many skilled migrants into the US?

Arguably, the swingeing fees imposed on new H-1B applicants can be a win for both the US and countries such as India, whose nationals traditionally take up a large share of H-1B visas.

Nurturing domestic talent

One, employers in the US will have to work harder to find US nationals to take on jobs that may have gone to holders of H-1B visas.

Should finding suitable US nationals for some roles prove to be difficult, US employers may be pushed to invest more in training domestic hires, given the high costs of hiring foreigners.

Indeed, there could be a silver lining if the tougher conditions for H-1B visa applications improve the job prospects of America's fresh college graduates, who are reeling from the adverse impact that artificial intelligence's (AI) rise has had on their hiring.

Two, economies such as India’s, which sees huge numbers of human talent leave for the US, could benefit from slowing down the brain drain.

Think of talent staying in developing countries to contribute to growing the economy and nation building. Sure, India’s economy may lose out on the repatriation of earnings by its skilled nationals working in the US. However, said nationals might ultimately create more exciting new businesses in India. 

Leveraging technology and AI, developing countries with strong institutions and rich in human talent can bank on innovation to quickly climb the economic value chain.

America’s wide reach

Three, America can continue accessing top global talent even if fewer foreigners work in the US.

Big US companies across key sectors such as finance and technology have large overseas operations. Employees in these overseas operations can share know-how with US-based counterparts at head office and contribute to the growth and dynamism of American companies.

Given the strong profitability and rich valuations of leading American companies in diverse sectors, said businesses often rank among employers of choice wherever they operate.

Also, as technology improves, skilled workers all over the world can relatively easily collaborate online with the brightest minds in the US to achieve breakthroughs in research and other areas.

Four, America’s soft power remains formidable, and will hardly be diminished by slowing its intake of skilled foreign workers.

Much of the world voraciously consumes movies, television shows and music produced out of the US. Fast food and consumer good concepts popularised in the US spread their wings across many foreign territories.

Large numbers of talented international students continue heading to America for further studies, and numerous alumni of top US universities occupy influential positions worldwide.

Today, a large swath of the US’ population has family members in all corners of the globe. Consider informal family networks of Americans that reach out to places in Latin America, Europe, Africa and Asia.

Ultimately, the US’ imposition of large upfront fees on H-1B visa applicants is understandable: Employers are penalised for recruiting from overseas and encouraged to hire domestic talent. 

In an age of much disruption, countries need social cohesion to thrive. Protecting jobs for locals, offering locals strong social support, and so forth, matter. 

Looking ahead, balancing giving citizens security by clearly prioritising their needs without damaging economic dynamism is key to how well countries big and small fare. 

Singapore citizens are lucky. Because of free trade agreements in place, nationals of Chile and Singapore can be hired in speciality occupations under the H-1B1 visa programme. The employment period is one year. Extensions may be obtained twice, but only in one-year increments. The US$100,000 upfront fee does not apply to these applicants.

I treasure the opportunity of having been able to work in the US under a much more liberal H-1B visa regime. For those who cannot get such a chance, they should seize opportunities elsewhere in a multipolar world, including in a growing Asia.