KUALA LUMPUR - Across Asia and Europe, countries are increasingly dependent on foreign workers to fill labour gaps in manufacturing, healthcare, and services.
Japan alone employed over 2 million foreign workers in 2023, Singapore’s foreign workforce represents around 35% of total employment, and Germany hosts nearly 2.9 million non-EU workers.
From Japan’s dozens of visa categories to Singapore’s strict enforcement, Malaysia’s quotas, and Germany’s documentation demands, both employers and employees face constant pressure to comply.
These systems, while designed to regulate labour flows, can inadvertently create risk, inefficiency, and uncertainty, making reform an urgent priority for governments and businesses alike.
Understanding Residence and Work‑Status Systems
Visa and work‑residence systems across Asia vary widely in complexity, enforcement, and worker protections, creating different pressures for both employers and migrant employees.
According to the ILO, migrant workers made up 4.7% of the global labour force in 2022, with many concentrated in Asian destination countries.
Japan includes more than 366,000 technical interns and “engineer / humanities / international services” visa holders, reflecting the fragmentation of visa categories and administrative burdens.
In South Korea, the Employment Permit System (EPS) brought in 923,000 foreign workers in 2023, with the government expanding quotas and sectors eligible for low-skilled migrants.
Singapore hosted 1.5 million migrant workers, nearly 39% of its labour force, under a multi-tiered system including Employment Passes and Work Permits, which are frequently adjusted for salary thresholds, quotas, and sectoral rules.
Malaysia and Thailand similarly rely on documented migrant permits, though irregular flows remain significant, with 2.3 million migrant workers in Thailand and an estimated 2.3 million in Malaysia, according to ILO-backed studies.
ILO highlights ongoing vulnerabilities, forced-labour conditions were statistically present among 29% of Malaysian domestic workers, 7% in Singapore, and 4% in Thailand.
Labour outflows from origin countries also illustrate the regional dynamics, with Nepal sending over 219,000 workers to Malaysia in 2023, marking one of the largest increases among Asian origin countries.
Analysts note that these variations reflect a persistent tension in Asia, destination countries that need foreign labour to fill critical gaps, but administrative complexity, quota restrictions, and tied‑visa systems limit worker mobility and create compliance challenges for employers.
ILO emphasizes that even well‑structured visa pathways may fail to protect migrant workers without strong institutional coordination, transparent processes, and enforcement of labour rights.
Comparing Asian and European Systems
While Asia hosts a highly diverse set of visa regimes, European countries like Germany adopt a more standardized, legally transparent approach.
Germany issued over 80,000 work visas in the first half of 2024, including EU Blue Cards for highly skilled professionals, but requires strict documentation, proof of qualifications, and minimum salaries depending on occupation.
France also maintains a structured work permit system with distinct permits for skilled and seasonal workers, alongside rigorous labour market testing to prioritize local candidates.
The Netherlands offers the highly skilled migrant scheme, combining relatively fast processing with strict income thresholds and employer sponsorship requirements.
The United Kingdom, post-Brexit, has implemented a points-based immigration system that evaluates skills, salaries, and shortage occupation status to regulate labour inflow.
Compared to Japan’s fragmented visa categories and South Korea’s tied low-skilled visas, Germany offers clear legal pathways but less flexibility for lower-skilled migrants.
Based on OECD, Singapore and Japan, by contrast, have high proportions of foreign workers in critical sectors, yet frequent policy adjustments, multi-tiered passes, and language barriers create administrative burdens for employers.
Malaysia and Thailand face similar challenges with quotas, multi-agency approvals, and irregular migrant populations, which contrast with the more centralized, predictable European systems.
Analysts argue that Asian countries, while more flexible in absorbing low- and semi-skilled migrants, must strengthen coordination, transparency, and rights protections to match Europe’s clearer legal frameworks.
This comparison underscores a regional divide, Asian systems often prioritize rapid labour supply with higher administrative complexity and vulnerability, while European systems emphasize legal clarity and protection, sometimes at the cost of flexibility for employers and low-skilled workers.
Employer and Employee Responsibilities
Employers across Asia carry significant responsibilities to ensure that foreign workers remain legally compliant.
In Japan, over 80% of companies hiring foreigners struggle with visa rules, renewals, and reporting, often relying on legal counsel or internal teams.
In Malaysia, 900 employers were charged from Jan 2024 to mid-2025 for hiring undocumented workers, showing enforcement gaps and administrative burdens.
As for Thailand, the Ministry of Labour estimates over 150,000 migrant workers had incomplete documentation in 2024, prompting inspections and fines.
A Southeast Asia migration expert, Dr Lee Hwok Aun said that tied-visa systems, common in Malaysia, Thailand, and South Korea, create a structural imbalance.
“Workers often have limited mobility, making it crucial for both employers and authorities to enforce compliance fairly,” says Lee.
In Japan, overstays or failure to maintain accurate records can trigger deportation, business sanctions, or civil penalties .
Even when employers act in good faith, complex rules and language barriers often make compliance difficult.
Employers are increasingly encouraged to adopt digital tracking systems, maintain clear documentation checklists, and consult legal experts to reduce the risk of violations.
According to the ILO, clear communication and shared responsibility between employers and workers are critical to prevent exploitation and ensure regulatory compliance across Asian migration systems.
Reducing Risks and Improving Systems
Employers can reduce compliance risks by using digital tracking for visa expiry, maintaining clear document checklists, consulting immigration lawyers, and training foreign workers.
Japanese firms using compliance software for over 2 million foreign workers have cut overstays and misclassification cases.
In Malaysia, centralized documentation portals reduced permit processing delays by 30% in 2024 while Thailand’s digital tracking and employer training cut fines by 15%.
Workers benefit by understanding visa rules, keeping official documents, and reporting employment or residence changes.
ILO research shows migrants with pre-departure training have up to 40% fewer compliance issues.
Simplifying and harmonizing visa systems further protects both employers and workers. Singapore’s streamlined employment pass categories in 2024 reduced errors among 1.5 million foreign workers.
The complex and varied visa systems across Asia create significant challenges for both employers and migrant workers, often leading to compliance risks and administrative burdens.
Strengthening coordination, transparency, and worker protections, while adopting digital monitoring and training, can mitigate these risks.
Learning from Europe’s clearer legal pathways, Asian countries can balance the need for labour with safeguarding migrant rights and reducing systemic inefficiencies.
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