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Foreign Worker Levy Rebates Extended for Construction, Marine Shipyard and Process Sectors

  1. The government has set aside up to $920 million to extend foreign worker levy (FWL) rebates till end 2022 for the Construction, Marine Shipyard and Process sectors.  This is to better support the estimated 15,000 firms in these sectors, which have to adjust to much more stringent Safe Management Measures (SMM) as a result of COVID-19.
  2. From August 2020, firms in these sectors will receive a $90 FWL rebate monthly for each Work Permit Holder, until December 2021. Closer to December 2021, the government will decide if there is a need to further extend the FWL rebate by another year to December 2022.
  3. Most businesses have to adjust to SMM at workplaces. However, requirements in the Construction, Marine and Process sectors have imposed significantly higher costs.  For example, their workers must take dedicated transport to and from work. Cohorting arrangements mean that most workers cannot be redeployed across worksites.  Staggered rest days will also require much tighter coordination across different sub-contractors. 
  4. As part of the Fortitude Budget, firms that are unable to restart work in June will receive 100% FWL waiver and a $750 FWL rebate.  In July, they will receive a 50% FWL waiver and $375 FWL rebate. All firms in the Construction, Marine Shipyard and Process sectors are automatically eligible for these waivers and rebates.  Based on current projections, the vast majority of the workers in these sectors living in dormitories will be cleared and available to resume work by end July. Accordingly, the FWL waivers will cease from August. However, the levy rebate will be extended at a lower rate to provide continued support to businesses in these sectors. This will provide more time for them to adjust.
  5. To further support businesses, a new Construction Support Package will be extended to firms in the local Construction sector. For the Process, Construction and Maintenance and Marine and Offshore sectors, another support package will also provide further assistance.  Further details of this package will be shared in due course.