Bhutan Joins Singapore’s Non-Traditional Source List, Opening New Opportunities for Workers

In a significant development for labour mobility in South East Asia, Bhutanese skilled workers will soon be eligible to work in Singapore’s manufacturing and service sectors under an updated Work Permit Framework. Announced by Singapore’s Manpower Minister Tan See Leng during last week’s Committee of Supply debate, this decision places Bhutan on Singapore’s list of Non-Traditional Source (NTS) countries, alongside nations like Bangladesh, India, Myanmar, the Philippines, Sri Lanka, and Thailand. Starting 1 June 2025, Bhutanese workers will have access to roles ranging from cooks and welders to hotel housekeepers, marking a new chapter in bilateral economic ties.

This move comes as Singapore grapples with persistent labour shortages in critical industries, while Bhutan seeks to provide its workforce with international exposure and economic opportunities. Beyond the immediate benefits for workers, the policy shift raises broader questions about regional labour dynamics, skill development, and the socio-economic impacts for both nations. With Bhutan’s inclusion in the NTS category, the framework also introduces key reforms, such as the removal of employment duration caps and an increase in the permissible working age, which could reshape how foreign labour is integrated into Singapore’s economy.

A New Avenue for Bhutanese Workers

Under the updated Work Permit Framework, Bhutanese workers will be able to take up a variety of roles in Singapore’s manufacturing and service industries. Positions such as food processing staff, metal workers, riggers, and porters are among those now accessible, providing a diverse range of opportunities for skilled individuals. Employers in Singapore must adhere to a sub-Dependency Ratio Ceiling (sub-DRC) of 8% for NTS workers and offer a fixed monthly salary of at least SGD 2,000 (approximately Nu 127,290). These conditions aim to ensure fair treatment and competitive wages for foreign workers while balancing the needs of local labour markets.

For Bhutan, a small Himalayan nation with a population of just over 700,000, this development offers a chance to address domestic underemployment and enhance workforce skills. Many Bhutanese workers, particularly in rural areas, face limited job prospects at home, where the economy is heavily reliant on agriculture, hydropower, and tourism. The opportunity to work in Singapore—a global economic hub with robust regulations and competitive wages—could provide not only financial benefits but also valuable professional experience. As workers gain on-the-job training in fields like manufacturing, they are likely to return with enhanced skills, potentially boosting Bhutan’s domestic industries.

The benefits extend beyond individual workers to their families and communities. Remittances from Singapore are expected to contribute to household incomes in Bhutan, supporting local economies and potentially reducing poverty levels. Moreover, the exposure to international working standards and practices could inspire entrepreneurship and innovation among returning workers, further strengthening Bhutan’s human resource pool. However, the scale of these impacts remains speculative and will depend on the number of workers who participate and the support systems in place for their reintegration.

Addressing Singapore’s Labour Shortages

Singapore’s decision to include Bhutan in the NTS category is driven by pragmatic needs. The city-state has long relied on foreign labour to fill gaps in sectors such as construction, manufacturing, and hospitality, where local workers are often unwilling or unable to meet demand. Despite efforts to increase automation and upskill the domestic workforce, labour shortages persist, particularly in lower-wage, physically demanding roles. By expanding the list of NTS countries, Singapore aims to diversify its labour pool while maintaining strict regulatory oversight to prevent exploitation.

The updated Work Permit Framework introduces significant reforms to support this goal. Previously, workers from NTS countries faced a 14-year employment cap, while those from North Asian Sources (NAS) and Malaysia encountered no such restrictions. The removal of this limit, alongside raising the maximum working age from 60 to 63 years, reflects a shift towards retaining experienced foreign workers. For employers, this reduces the costs and inefficiencies associated with frequent recruitment and training of new staff. For workers, it offers greater stability and the chance to build long-term careers in Singapore.

However, these changes also raise questions about the broader implications for Singapore’s labour market. While the inclusion of Bhutanese workers may help alleviate shortages, it could intensify competition among foreign workers from different NTS countries. Additionally, the sub-DRC of 8% ensures that employers cannot overly rely on NTS labour, but it may constrain industries already struggling to meet staffing needs. If labour shortages persist despite these measures, Singapore may need to explore further policy adjustments or invest more heavily in automation—an area where progress has been steady but not yet transformative.

Socio-Economic and Cultural Dimensions

The inclusion of Bhutan in Singapore’s Work Permit category is not just an economic transaction; it carries cultural and social significance. Bhutan, known for its philosophy of Gross National Happiness (GNH), prioritises well-being over purely economic metrics. Sending workers abroad, particularly to a high-pressure, fast-paced environment like Singapore, may challenge traditional Bhutanese values of community and balance. While the financial benefits are clear, there is a risk that workers could face cultural dislocation or struggle to adapt to urban life—a concern that has been raised in other countries with significant migrant labour outflows.

To mitigate such risks, both governments will need to ensure robust support systems. For Bhutan, this could involve pre-departure training to prepare workers for cultural differences and workplace expectations in Singapore. For Singapore, it means maintaining stringent protections for foreign workers, including access to grievance mechanisms and fair working conditions. The city-state has faced criticism in the past over the treatment of migrant workers, particularly during the COVID-19 pandemic when dormitory outbreaks exposed systemic vulnerabilities. Ensuring that Bhutanese workers are treated equitably will be crucial to the success of this initiative.

There is also the question of how this policy aligns with Bhutan’s long-term development goals. The country has historically been cautious about external influences, balancing modernisation with the preservation of its unique cultural identity. While international work experience could empower individuals, large-scale migration—however unlikely given Bhutan’s small population—might strain local communities or shift demographic patterns. If the government in Thimphu views this as a temporary measure to boost skills and remittances, it may limit participation to avoid unintended social consequences.

Regional Implications and Future Prospects

Bhutan’s entry into Singapore’s NTS framework also reflects broader trends in South East Asian labour mobility. As economies in the region become increasingly interconnected, countries are seeking to balance domestic needs with international opportunities. For Singapore, diversifying its labour sources reduces reliance on any single country, mitigating risks associated with geopolitical tensions or policy changes in traditional source nations. For smaller nations like Bhutan, access to global markets offers a pathway to economic growth, provided they can manage the challenges of brain drain and cultural adaptation.

Looking ahead, the success of this initiative will hinge on several factors. First, the number of Bhutanese workers who take up opportunities in Singapore remains uncertain. While a small number of Bhutanese professionals already work in the city-state under S Pass and Employment Pass schemes, the Work Permit category targets a different demographic—skilled but often less formally educated workers. Outreach and awareness campaigns will be essential to ensure that potential participants understand the benefits and requirements of the programme.

Second, the long-term economic impacts for both countries are difficult to predict. If Bhutanese workers return with enhanced skills, they could contribute to sectors like manufacturing or hospitality in Bhutan, which are currently underdeveloped. Conversely, if too many skilled workers leave, Bhutan risks losing talent needed for domestic growth. In Singapore, the influx of Bhutanese labour may ease immediate shortages, but it is unlikely to fully resolve structural issues in the labour market without complementary investments in technology and training.

Finally, there is the potential for deeper bilateral ties. Economic cooperation often paves the way for stronger diplomatic and cultural links, and Bhutan’s unique perspective—rooted in GNH—could enrich Singapore’s multicultural fabric. If successful, this labour agreement might inspire similar arrangements with other small nations, further diversifying Singapore’s workforce while offering economic lifelines to less developed countries in the region.

Bhutan’s inclusion in Singapore’s Non-Traditional Source list marks a promising step towards addressing labour shortages in one of Asia’s economic powerhouses while opening new horizons for Bhutanese workers. Starting 1 June 2025, individuals from the Himalayan nation will have the chance to work in diverse roles, gaining skills and earning competitive wages in a secure environment. For Bhutan, the benefits of remittances, skill development, and international exposure are clear, though careful management will be needed to preserve cultural values and ensure workers’ well-being.

For Singapore, this policy reflects a pragmatic approach to labour challenges, with reforms like the removal of employment caps demonstrating a commitment to retaining skilled foreign workers. Yet, as with any migration policy, the long-term impacts remain uncertain. If both countries can navigate the cultural, social, and economic complexities of this arrangement, it could serve as a model for regional cooperation—one that balances economic needs with human dignity. As the first Bhutanese workers prepare to arrive in Singapore, the story of this partnership is only just beginning.