top of page
Search
a22162
Mar 155 min read

Marine Shipyard Sector: Work Permit Requirements



Marine Shipyard Sector: Work Permit Requirements


Singapore's Ministry of Manpower (MOM) outlines the specific requirements for obtaining work permits in the marine shipyard sector. Here's a summary:


To qualify as a shipyard or shipyard-sponsored contractor:


  • Certificate of Registration (Shipyard): The employer must possess a valid certificate of registration as a shipyard issued by the Maritime and Port Authority of Singapore (MPA).

  • Waterfront Facility: The business must have a physical waterfront facility for undertaking shipbuilding or ship repair works.


Principal Business Activity


In the context of obtaining work permits for the marine shipyard sector in Singapore, the principal business activity plays a crucial role in determining the specific requirements and application procedures. Here's how:


  • Qualification for Specific Requirements: Not all companies involved in marine-related activities qualify for the relaxed regulations specific to the shipyard sector.

  • Companies solely involved in areas like marine equipment supply or ship brokerage wouldn't be classified under the shipyard sector. They might fall under the services sector with different work permit requirements.

  • Shipyard Registration and Facilities: To qualify for the benefits of the shipyard sector in terms of work permits, the company must possess:

  • Valid Certificate of Registration (Shipyard): Issued by the Maritime and Port Authority of Singapore (MPA), signifying the company's legitimacy as a shipyard.

  • Waterfront Facility: A physical location equipped for shipbuilding or ship repair works.


Therefore, companies seeking to leverage the relaxed work permit regulations for the shipyard sector in Singapore must ensure their principal business activity revolves around:


  • Shipbuilding: Constructing new vessels from scratch.

  • Ship Repair: Undertaking maintenance, refurbishment, or modifications on existing ships.


Key Point: Engaging in solely marine-related activities wouldn't suffice for qualification. The company's core operations must demonstrably involve building or repairing ships at a waterfront facility.


For companies whose principal business activity lies outside these areas, work permit requirements might fall under different sectors like services or manufacturing, with potentially stricter regulations or limitations on foreign worker employment.


Choose the SSIC code from the provided list that best aligns with your core business activity registered with ACRA.


Activity

Singapore Standard Industrial Classification (SSIC) 2020

Building of ships, tankers and other ocean-going vessels

(including conversion of ships into off-shore structures)

30110

Building and repair of pleasure crafts, lighters and boats

30120

To qualify as a shipyard or shipyard-sponsored contractor


You need to meet the requirements below:

If your company is a

These requirements and benefits apply to you

Sponsoring shipyard

  • You need a certificate of registration (shipyard).

  • You must have a waterfront facility for shipbuilding or ship repair works.

  • Sector-Specific Advantages: Registered shipyards enjoy simplified processes for:

    • Supporting resident contractors and common contractors.

    • Obtaining work permits for some NTS and PRC workers without prior approval (subject to specific conditions).

    • Applying for or renew Work Permits on your own.

Non-sponsoring shipyard

  • You need a certificate of registration (shipyard).

  • You must have a waterfront facility for shipbuilding or ship repair works.

  • You can support common contractors, but subject to approval.

  • You require prior approvals to apply for or renew NTS or PRC Work Permits.

  • You can apply for or renew Work Permits on your own.

Resident contractor

  • You must be supported by a specific sponsoring shipyard.

  • You don’t require prior approvals to apply for or renew NTS or PRC Work Permits.

  • Your sponsoring shipyard must apply for or renew Work Permits on your behalf.

Common contractor

  • You can be supported by several sponsoring or non-sponsoring shipyards.

  • You require prior approvals to apply for or renew NTS or PRC Work Permits.

  • The sponsoring or non-sponsoring shipyard must apply for or renew Work Permits on your behalf. Specific Work Permit applications or renewals must be made by the same shipyard that supported you for the prior approval applications.

Migrant Worker Eligibility


Here's a breakdown of migrant worker eligibility for work permits in Singapore's marine shipyard sector:


Eligibility Factors:


Source countries or regions


You can employ migrant workers from these countries or regions:


  • Migrant Worker Source: Singapore offers various work permit sources for foreign workers:

  • Non-Traditional Source (NTS) Work Permit: This permit caters to foreign workers from countries with no established Free Trade Agreements (FTAs) with Singapore.

  • India

  • Sri Lanka

  • Thailand

  • Bangladesh

  • Myanmar

  • Philippines

  • Malaysia

  • People’s Republic of China (PRC)

  • North Asian sources (NAS):

  • Hong Kong (HKSAR passport)

  • Macau

  • South Korea

  • Taiwan


Age when applying


Here's a breakdown of the age requirement for migrant workers applying for work permits in Singapore's marine shipyard sector:


  • Minimum Age: All non-domestic migrant workers must be at least 18 years old when applying for a work permit.


Additional Considerations:


  • Age Limit for Specific Nationalities: While the minimum age is 18, there are additional limitations for certain nationalities:

  • Malaysian Workers: Cannot exceed 58 years old when applying.

  • Non-Malaysian Workers (excluding Malaysians): Cannot be older than 50 years old when applying.


Important to Note:


  • These age limits apply at the time of the initial work permit application.

  • All workers, including migrant workers, can only be employed in Singapore up to 60 years old.


Maximum period of employment


For the marine shipyard sector, the maximum number of years a worker can work in Singapore on a Work Permit is as follows:


Source country/region

Types of workers

Maximum period of employment

NTS, PRC

Basic-skilled (R2)

14 years

NTS, PRC

Higher-skilled (R1)

26 years

NAS, Malaysia

All

No maximum period of employment.

Quota and Levy


Here's a breakdown of the quota and levy system for work permits in Singapore's marine shipyard sector:


Quota System:


  • Ratio: Employers can hire up to 3.5 Work Permit holders for every 1 local employee who earns the Local Qualifying Salary (LQS).

  • Local Qualifying Salary (LQS): This is the minimum monthly salary that a local worker must earn to be counted towards the quota entitlement. The current LQS is subject to change and can be found on MOM's website.

Key Points:


  • This quota system incentivizes the hiring of local workers in the shipyard sector.

  • Employers exceeding the quota will face additional costs and restrictions.


Foreign Worker Levy:


  • Purpose: A levy imposed by the government on employers hiring foreign workers.

  • Levy Rates:

  • Basic-Skilled Workers: $400 SGD per month (as of January 2024)

  • Higher-Skilled Workers: $300 SGD per month (as of January 2024)

  • Impact:

  • Increases the overall cost of employing foreign workers.

  • Discourages excessive reliance on foreign labor.


Additional Considerations:


  • Levy Changes: As of January 1, 2026, the quota will be reduced to 3 Work Permit holders for every 1 local employee earning the LQS. Additionally, the levy for basic-skilled workers will increase to $500 SGD per month.


Migrant Worker Requirements:


  • Skills and qualifications relevant to the designated job role in the shipyard.

  • Clean medical history as per MOM's regulations.

  • Completion of mandatory safety courses:

    • Shipyard Safety Instruction Course for Workers (General Trade) (SSICGT)

    • Apply Workplace Safety course and Health in Shipyard (General Trade)


Resources:



Obtaining a work permit in Singapore involves adhering to various regulations set forth by MOM. It's advisable to consult with MOM or a licensed employment agency for comprehensive guidance on the application process and necessary requirements.


It's strongly recommended to consult with MOM or a licensed employment agency for the most current information and the work permit application process specific to the marine shipyard sector.


It's highly recommended to consult with MOM or a licensed employment agency for the work permit application process specific to the marine shipyard sector. They can advise on any potential exceptions or specific requirements applicable to certain situations.


How Bestar can Help


Here's how Bestar can potentially assist the marine shipyard sector with work permit requirements in Singapore:


Streamlining the Process:


  • Expertise in Regulations: Bestar's staff possesses a deep understanding of the complex work permit procedures specific to the marine shipyard sector. This knowledge can help employers navigate the application process efficiently and ensure they meet all the requirements.

  • Guidance and Support: Bestar can provide comprehensive guidance on:

  • Determining employer eligibility (registered shipyard with a waterfront facility)

  • Selecting the appropriate work permit category (NTS, PRC)

  • Completing the necessary paperwork

  • Complying with quota and levy requirements


Additional Services:


  • Work Permit Renewal Assistance: Bestar can assist with the renewal process for existing work permits, ensuring all documentation is accurate and submitted within the designated timeframe.

  • Liaison with Authorities: Bestar may act as a liaison between the employer and MOM, facilitating communication and addressing any inquiries that might arise.







97 views0 comments

Comments

bottom of page