SINGAPORE — Companies in the construction, marine shipyard and process sectors facing a labour crunch and increased costs because of Covid-19 restrictions will get some reprieve in the coming months.

Around 15,000 such firms will see an increase in foreign-worker levy rebates from May to December, the Ministry of Manpower (MOM) announced on Saturday (May 8).

The rebate for each work-permit holder in these sectors will go up from S$90 to S$250 per month.

"The tighter border restrictions and stricter safe-management measures due to Covid-19 have resulted in significant manpower shortages and increased costs for the construction, marine shipyard and process sectors," said MOM.

It added that the number of work-permit holders in these sectors fell by nearly 60,000, or 16 per cent, last year.

The first round of the increased rebates for May will be paid in June.

"Employers can consider making use of the foreign-worker levy rebate to retain existing workers and bring in work-permit holders from lower-risk countries or regions," said MOM, adding that a decision will be made closer to the year-end if this rebate would be extended beyond December.

The original rebate of S$90 per work-permit holder in the construction, marine shipyard and process sectors has been in place since August last year. 

"The construction, marine shipyard and process sectors play an essential role in Singapore's development, and government agencies are working closely with (these) sectors through the Industry Transformation Maps to transform their businesses and reduce manpower reliance to become more resilient to future shocks," MOM said.

"However, these efforts will take time to bear fruit. In the immediate term, the increased costs continue to weigh heavily on these firms."

On Friday, the ministry said that new entry applications for work-pass holders from higher-risk countries and regions would no longer be accepted with immediate effect. But the new restriction excludes workers needed for key strategic projects and infrastructural works.

Higher-risk countries and regions refer to all places except Australia, Brunei, mainland China, New Zealand, Taiwan, Hong Kong and Macau. 

Singapore has stopped entry for all long-term pass holders, short-term visitors with recent travel history to India, which is battling a deadly wave of infections.

That entry ban, which began on April 24, was later expanded to include visitors with recent travel history to Bangladesh, Nepal, Pakistan and Sri Lanka. CNA

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