REPRESENTATIVE Nat Oducado of the 1Tahanan Partylist filed two Bills strengthening the industries of Ship Building and Ship Repair (SBSR), Boatbuilding, and Ship Recycling in the Philippines, aimed at creating more competitive maritime jobs in the country.
“It’s time to bring maritime jobs home for the sake of our maritime workers and our overall economy,” said Cong. Oducado, who filed HB 2598 the SBSR Development Bill, and HB 2597 or the Shipyard Fiscal Incentives Bill. “According to OECD and the World Bank estimates, each direct job in shipbuilding creates three to five more indirect jobs, meaning that once fully-implemented, these Bills have the potential to generate up to 100,000 direct and indirect jobs nationwide.”
The SBSR Development Bill creates new mandates for the DTI, DOST, DOLE, and TESDA to provide support in the realm of industry, research and development, and labor to the SBSR industry. It also introduces institutional support to increase the ease and decrease the cost of doing business in the Philippine SBSR industry.
“Through these Bills, we will create jobs in upskilled shipbuilding labor, support services, vocational training, supply chains, and coastal community development industries,” said Cong. Oducado. “With over 578,000 Filipino seafarers deployed worldwide, the Philippines has the potential to lead not just in seafaring, but in the maritime industry as a whole.”
Meanwhile the Shipyard Industry Fiscal Incentives Bill amends the country’s fiscal policy, incentivizing companies to invest in the SBSR industry, including exemptions from Value-Added Tax (VAT) and from taxes and duties on Imported Capital Equipment and Materials. It also introduces a tax credit on equipment needed as capital, and tax incentives for Green Projects.
The initiative garnered support from the country’s lead agency overseeing the Maritime Industry, the Maritime Industry Authority (MARINA).
“We are always glad when Representatives of the People step up to become champions of our local maritime industry,” said MARINA Administrator Sonia Malaluan. “These Bills send a positive signal to both local and international shipbuilders that the Philippines is ready to be a leading destination for SBSR.”
“A developed SBSR industry will create a positive ripple effect, bolstering the domestic shipping sector’s capacity to support agriculture, manufacturing, national defense and inter-island trade,” said MARINA Domestic Shipping Service Director Luisito Santos. “It will also enhance disaster resilience and national food and supply chain security.”
