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DIRECTORY OF SINGAPORE PROCESS & CHEMICALS INDUSTRIES 2021/2022
to resume work, would have the the waiver for levies due in July increased to 100%. The levies due in August and September would also be fully waived. In addition, the S$375 levy rebate would be extended for another two months, to August and September 2020.
Industry members were highly appreciative of the government’s support, without which many of them might not have been able to cope with the continued losses.
Meanwhile, the process sector continued to face labour shortage due to border closure. As of June 2021, an estimated 30% of its 25,000 migrant workers had returned to their home countries.
New temporary MOM measures to increase migrant worker pool
The Association’s close industry cooperation with others in the Construction, Marine Offshore and Process (CMP) sectors continued to bear fruit in 2021.
To the relief of companies in the three sectors, the MOM on 13 August 2021 introduced new measures to help them retain their existing Work Permit Holders (WPHs) and facilitate the inflow of new ones.
It said the new temporary measures “will ensure that the CMP sectors continue to meet manpower needs for their operations, preserve core capabilities and emerge stronger from Covid-19”.
For the process sector, WPHs whose work permits are due to expire between July and December 2021 will be allowed to renew their permits for up to two years, even if they do not meet the renewal criteria. This includes WPHs who are reaching the maximum period of employment, or who are reaching the maximum employment age. Firms also do not need to maintain at least 10% of their WPHs as higher skilled workers.
From July 2021, the validity of In-Principle Approvals (IPAs) of all process sector work pass holders, including Employment Passes, S Passes and Work Permits, who are unable to enter Singapore due to border control measures, will be extended by up to one year.
From 1 October 2021 to 31 March 2022, Man-Year Entitlement (MYE) waiver requirement will be removed for new and renewal WPH from non-traditional sources (NTS)1 and the People’s Republic of China (PRC).
Manpower Minister Tan See Leng, who was visiting a construction company to learn about its use of technology, said the construction, marine shipyard and process sectors are key drivers in the nation’s economy.
For the process supporting service sector, which saw some 30% of its 25,000 migrant workers leaving for home it was a much-needed shot of assurance from the government.
Hopeful for process sector as Singapore economy remains resilient
Generally, most of those interviewed for this article expect continuing headwinds because of manpower issues, and had said recovery depends on how soon borders could be open for more migrant workers to be brought in to replace those who have returned home. They are cautiously optimistic that business may return to the pre-pandemic level from 2023 onwards.
Without sufficient workers though most are not prepared to commit to new projects, especially if they come with a liquidated damages clause. As the situation gets better, they expect to see a rush by industry players to secure more workers to fulfil backlog projects.
Although new projects and those that were delayed are expected to be started by the end of 2021, the majority of the PCM players would still have to be reliant on maintenance and repair/refitting work such as Shutdown and Turnaround.
Overall, confidence will have to return to the global oil and gas industry before pre- pandemic planned projects and new ones in Singapore can be expected to see the light of day. There are also continuing concerns over oil price stability and exposures to further trade issues.
According to Deloitte in its “2021 energy, resources, and industrials industry outlooks” another area of concern is the question over supply chain post-pandemic.
“The disruption of global supply chains caused by the dual effects of trade tensions and the pandemic has spurred most companies to evaluate changes to their supply chains...... Some companies have diversified away from overseas suppliers, replacing them with partners closer to home,” it said.
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