Singapore said it will provide additional financial support to the maritime industry in the wake of the global COVID-19 outbreak.
The relief measure is part of the "MaritimeSG Together Package for Maritime Companies, Individuals and Seafarers" announced by The Maritime and Port Authority of Singapore (MPA).
The package, amounting to about SG$27 million, will provide financial support to companies; individuals for training; and financial and employment support to Singaporean seafarers.
"The maritime sector is key to Singapore’s economy. Sea trade, which accounts for over 80% of global trade, is particularly important during this time to ensure the flow of essential goods including food and medicine. To provide support to the industry, MPA has announced the MaritimeSG Together Package which will take effect from 1 May 2020," MPA said in a statement.
The latest measure is on top of previous measures announced earlier under the Unity, Resilience and Solidarity Budgets.
Financial support for maritime companies and individuals
MPA said part of the relief package is 30% port dues concession for all cargo vessels to help vessel owners and operators of cargo vessels.
This will run from 1 May to 31 Dec 2020. MPA said it will also grant a 30% port dues concession for all non-passenger-carrying harbour craft in the Port of Singapore over the same period.
MPA said it will also implement a 50% rebate on counter rental and overnight berthing for regional ferry operators after earlier announcing a 35% rebate to regional ferry operators to offset their monthly rental fees for overnight berthing of vessels and counter rental at Tanah Merah Ferry Terminal for three months starting Mar 2020.
With effect from 1 May 2020, MPA will increase this support to 50% until 31 Dec 2020.
To strengthen longer-term capabilities, MPA will also introduce new manpower schemes and increase the co-funding provided under selected Maritime Cluster Fund programmes, from 1 May to 31 Dec 2020, among others.
Credit management measures for maritime companies
Recognizing that maritime companies may face challenges in managing their cash flows and meeting their financial obligations, MPA said it will exercise flexibility in credit management measures from 1 May to 31 Dec 2020.
“The effect of global supply chain disruption is increasingly being felt by the shipping industry. It is timely that more support be offered to the industry. While every crisis brings uncertainty, it also brings opportunity," said Quah Ley Hoon, chief executive of MPA.
"The MaritimeSG Together Package aims to provide targeted support for the maritime companies, individuals, and seafarers. They have been working tirelessly to keep our ports open and cargoes going. Besides showing our appreciation for them, MPA also hopes to take this opportunity to accelerate the transformation of Maritime Singapore for the future," she added.
