Pacific Islanders, who made up 7 percent of the population, experienced societal discrimination. The Ministries of Justice and Pacific Island Affairs had a program to identify gaps in delivery of government services to Pacific Islanders.
Asians, who made up 10 percent of the population, also reported some societal discrimination. The government mandates a race relations commissioner who developed a Diversity Action Program aimed at the Maori, Pacific Islander, and Asian communities. The program includes an annual Diversity Forum to eliminate race-based discrimination. It was widely attended and considered effective.
The Office of Ethnic Affairs within the Department of Internal Affairs focuses on improving dialogue and understanding about minority communities among the wider population.
The law prohibits noncitizens from purchasing land or obtaining citizenship. The only legal mechanism to obtain a citizenship is by blood, meaning that one of the parents must be Palauan. Children born to noncitizens inherit their parents' citizenship. Foreign workers constituted approximately 55 percent of the workforce. A majority of citizens viewed the recent rapid increase in foreign workers negatively. Foreign workers and their dependents, both documented and undocumented, accounted for nearly a third of the population. Foreign residents were subject to discrimination and were targets of petty and sometimes violent crimes, as well as other harmful acts against the persons and property. Foreign residents made credible complaints that the authorities did not pursue or prosecute crimes committed against noncitizens with the same vigor as crimes against citizens.
In addition some foreign nationals experienced discrimination in employment, pay, housing, education, and access to social services, although the law prohibits such discrimination.
The Division of Labor handles cases of workplace discrimination against foreign workers.