Palau President Surangel Whipps Jr signed Presidential Directive No. 24-65 on Wednesday, December 18, instituting immigration controls for a 90-day period in an effort to combat criminal activity linked to foreign nationals.
However, the directive has raised concerns over the scope of authority given to the National Security Coordinator and its potential effects on Palau’s investment climate and labour market.
The directive was prompted by recent high-profile cases of criminal activity involving foreign nationals, including a murder, immigration fraud, and drug trafficking. Past instances of illegal gambling operations and related crimes further highlight systemic vulnerabilities in visa and work permit processes.
The directive assigns the National Security Coordinator oversight of:
*Approvals for tourist visa extensions and investor visa renewals.
*Reviews of work permit applications submitted by individuals currently on tourist visas.
*Screening applications under the Foreign Investment Board’s review process.
Additionally, all new and renewed visas in 10 categories—including business, work, and resident visas—will be subject to review by the coordinator, who may recommend revocation if warranted.
Critics question whether the National Security Coordinator’s office has the legal mandate to execute such sweeping responsibilities under Palau’s immigration laws. While the directive emphasises inter-agency collaboration, including consultations with the Attorney General and Special Prosecutor, concerns remain about the lack of clear statutory authority for the coordinator to make binding decisions on visa and permit matters.
“The directive consolidates significant power in the hands of one office without clear legislative oversight, which raises legal and constitutional questions,” one legal expert noted.
National Security Coordinator Jennifer Anson said that their office only does background checks on individuals. “We have the Interpol now and other partner networks that help us check applicants’ backgrounds,” said Anson.
Some businesses say that the freeze on investor visa renewals and heightened scrutiny of work permits may deter foreign investment and exacerbate labor shortages in key industries.
Palau’s economy relies heavily on foreign labor, particularly in tourism, construction, and service sectors. With the directive restricting work permits for individuals entering on tourist visas, some employers may face delays in filling critical workforce gaps.
“The tourism industry is already struggling to rebound post-pandemic, and adding hurdles to hiring or retaining foreign workers will make recovery even harder,” said a local business owner.
Similarly, the freeze on investor visa renewals has raised concerns about undermining Palau’s efforts to attract foreign capital.
Whipps expresses that the directive is a necessary step to protect public safety and national security, citing Palau’s recent membership in INTERPOL as an opportunity to strengthen background checks and detect fraudulent applications.
The directive also mandates feedback from affected agencies, allowing for potential adjustments to address shortcomings before its expiration. President Whipps has emphasised that the measures are temporary and aimed at addressing immediate security concerns while evaluating long-term policy changes.
The directive requires written feedback from the Division of Immigration, Division of Employment Services, and Foreign Investment Board on its effectiveness. This input will inform the administration’s decision on whether to extend or revise the measures.
As Palau grapples with balancing security priorities with economic imperatives, the directive shows the complexities of managing immigration in a small island nation dependent on foreign labour and investment. Whether it will achieve its goals without unintended consequences remains to be seen.