- From April 1, Singapore’s Maritime and Port Authority (MPA) will waive security deposits for shipping companies with low default risk, potentially boosting their annual cash flow by over $20 million.
- This move, part of the government’s strategy to reduce regulatory costs and enhance Singapore’s competitiveness as a hub port, follows a successful year for the maritime industry in the country.
- The MPA is also focusing on digitalization, including the digitalization of bunkering documentation, and investing in talent through job redesign initiatives.
In a move set to benefit 80% of shipping companies using Singapore’s port, Acting Minister for Transport Chee Hong Tat announced that, from April 1, firms deemed unlikely to default on payments will no longer be required to provide security deposits or banker’s guarantees to the Maritime and Port Authority of Singapore (MPA). The MPA’s new practice, based on a credit-risk profile, aims to enhance cash flow for shipping companies by over US$20 million annually. This initiative is part of the government’s broader efforts to reduce regulatory costs and bolster Singapore’s competitiveness as a hub port and international maritime center.
Record-Breaking Year for Singapore’s Maritime Industry
Following a successful year for Singapore’s maritime industry, which saw record-breaking vessel arrivals, container throughput, and bunker sales, the MPA is planning further digitalization efforts. Minister Chee highlighted the MPA’s focus on digitalizing bunkering documentation and workflow, aiming to save the maritime industry 40,000 man-days annually. The move toward digital bunkering is expected to reduce costs, enhance productivity, and improve crew safety, with plans to make it a mandatory feature in the future.
Investing in Talent and Job Redesign for Singapore’s Maritime Industry
Acting Minister Chee emphasized the need for continued investment in attracting, developing, and retaining talent in Singapore’s maritime sector. Job redesign efforts, facilitated by initiatives like the Maritime Workforce Transformation Guidebook and collaboration with the National Trades Union Congress, aim to transform job roles and benefit both employers and workers. The maritime industry is encouraged to tap into government and NTUC support to explore how job redesign can positively impact organizations and the workforce.
Did you subscribe to our daily Newsletter?
It’s Free! Click here to Subscribe
Source: The Strait Times
