15,000 firms in the Construction, Marine Shipyard and Process sectors to receive higher Foreign Worker Levy Rebates

1. The Government will be providing a higher Foreign Worker Levy (FWL) rebate for the Construction, Marine Shipyard and Process (CMP) sectors. From May to December 2021, the FWL rebate for each Work Permit Holder in the CMP sectors will be increased from $90 per month to $250 per month.
2. The tighter border restrictions and stricter Safe Management Measures due to COVID-19 have resulted in significant manpower shortages and increased costs for the CMP sectors. In 2020, the number of Work Permit Holders in these sectors declined by nearly 60,000, or 16%. In view of the global COVID-19 situation, border control measures will remain tight to reduce importation risks. Safe Management Measures will also continue to be in place to minimise the risk of infections at the workplace. These restrictions are likely to remain in place for the foreseeable future to keep Singapore safe.
3. The CMP sectors play an essential role in Singapore’s development, and Government agencies are working closely with the CMP sectors through the Industry Transformation Maps to transform their businesses and reduce manpower reliance to become more resilient to future shocks. However, these efforts will take time to bear fruit. In the immediate term, the increased costs continue to weigh heavily on these firms.
4. To help the sectors tide over this difficult period and retain enterprise capabilities for Singapore to emerge stronger from COVID-19, these firms will receive higher FWL rebates from May to December 2021. The first round of the increased FWL rebate in May 2021 will be paid out in the following month. Employers can consider making use of the FWL rebate to retain existing workers and bring in Work Permit Holders from lower-risk countries or regions. The Government will decide closer to December 2021 if there is a need to further extend the FWL rebate.
5. The higher FWL rebate is part of a broader package of measures of support to the CMP sectors. For example, the Government has announced measures to provide further contractual relief for prolongation costs for Public Sector construction contracts and recently implemented measures to make it easier for employers to hire Work Permit Holders from the People’s Republic of China.