Migrant representatives are worried National's four-year rule could deter talented, trained immigrants.
Federation of Ethnic Councils president Pancha Narayanan said the good-conduct requirement could put off the very migrants National might want.
"Professional people with labour skills are wanted around the world. They will think it's not worth the hassle."
A management consultant, Mr Narayanan hires technologists and design engineers from around the globe. They have told him the most important thing they are interested in is not pay but how well their families will settle.
He said they wanted a degree of certainty and after going through all the hoops to get into New Zealand would not appreciate being under further scrutiny.
The president of the Refugee Council, Dr Nagalingam Rasalingam, said the four-year probation would put migrants off coming "because they will be kept in limbo".
Dr Manying Ip, associate professor of Asian studies at Auckland University, said the policies were playing up to populist sentiment.
"They are going back to the good old days of New Zealand wanting to be the Britain of the Pacific."
Extra scrutiny could put off skilled immigrants
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