Saturday, November 15, 2008

New Factory Notification Scheme

With effect from 1 Nov 2008, the Ministry of Manpower (MOM) will put in place a new factory notification scheme. This scheme will affect new factories and two-thirds of existing factories. Under this scheme, factories will have to declare that they have implemented Risk Management (RM) programs before work can commence. The declaration will strengthen the requirement under the WSH (Risk Management) Regulations so that work risks can be better managed.

The new factory notification scheme streamlines the factory registration process and reduces business costs. Currently, factories are required to renew their licenses every year or every two years. They pay an average of $250 for a one-year registration fee. With the new scheme, factories only need to do a one-time notification which will be free of charge. This is expected to cut business costs by about $3.5 million annually.

Not all factories will be included in the scheme. Construction worksites, shipbuilding and repair companies, metalworking companies, wafer fabrication, petrochemical, chemical and pharmaceutical plants will continue to be governed by the existing factory registration process for the time being. Currently, these factories are already required to submit documents on their RM implementation. A review is currently in progress to further strengthen the implementation of safety measures at these workplaces.

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