Sembcorp Marine continues to face labour shortages due to Covid-19

Singapore’s offshore builder Sembcorp Marine is experiencing labour shortages with a resulting cost impact due to the Covid-19 pandemic and related restrictions.

As reported in May 2021, Sembcorp Marine has been facing supply chain constraints and a shortage of skilled workers due to the ongoing travel bans caused by the pandemic, as foreign workers, primarily those from India and Bangladesh, are unable to return to Singapore.

Sembcorp Marine said on Tuesday that it continues to face Covid-19 supply chain constraints and shortages of skilled workers, which have impacted the execution and scheduled completion of some of its projects.

The re-introduction of Covid-19 measures, including tighter border controls, could further impact the group’s operations, the company added.

Resolving the skilled manpower shortage on a timely basis is the group’s key priority to address the risk of project delays or terminations.

In the update on Tuesday, Sembcorp Marine said that with the Phase 2 (Heightened Alert) restrictions introduced by the Singapore Government on 16 May 2021, the company continues to face challenges in recruiting new skilled workers for its various projects. The group has therefore been exploring alternative sources for skilled workers, which is likely to incur increased manpower costs for some of its ongoing projects.

Sembcorp Marine said it will continue to work expeditiously with the relevant authorities to expedite the entry of skilled workers into Singapore.

The company will also continue to work closely with customers to coordinate and re-schedule project completions. There has been no cancellation to-date of any of our existing projects.