The majority of the 15,000 firms in the construction, marine shipyard and process sectors continue to face financial difficulties as they are unable to resume work due to Covid-19 restrictions. Added to that the situation is likely to persist until all dormitories are cleared of the virus this month.
With payments tied to completion milestones and high overheads, cash flow has become a major concern for many firms, and the extension of the waiver and also levy rebates is meant to ensure that these sectors retain enterprise capabilities to emerge stronger from the Covid-19 crisis.
The government had announced (over several announcements in the past few months) that foreign worker levies for employers of Work Permit and S-Pass holders would be waived for payments due in the months of April, May and June 2020. The most recent iteration of announcements stated that for July 2020, there would be a 50% waiver of the levy.
In the latest announcement posted on the Ministry of Manpower’s website (1 August 2020), the waivers have been extended again.