Palau's President Tommy Remengesau has signed a law to invest into getting local people to improve their skills.
The Skilled Palauan Workforce Investment Act calls for the creation of a vocational certification programme at the Palau Community College.
The Act is aimed at increasing the hiring of locals in skilled trades that are normally dominated by foreigners.
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It will also create a tax incentive for businesses that hire vocationally certified citizens although there is a 15-year time limit to the tax deal.
Mr Remengesau says he hopes that Palauans will come to comprise a majority in the private sector by the year 2025.
