THREATS 

that can affect our local Flag State Administration, Port State Control,
Classification Societies, Marine Insurance appointed Surveyors, and other Maritime
Inspections pertaining to Ship Survey, Inspections, and Registration and how does the
domestic Administration handle it safely, economically, and competitively.

THREATS MARITIME INSPECTIONS PERTAINING TO REGISTRATION, SHIP SURVEY,

and INSPECTIONS

1. LOCAL FLAGSTATE ADMINISTRATION

2. LOCAL PORT STATE CONTROL
3. LOCAL CLASSIFICATION SOCIETIES
4. MARINE INSURANCE APPOINTED SURVEYORS

SHIP REGISTRATION

POLITICAL, FINANCIAL and COMPETITORS IN THE REGION

POLITICAL

 Countries like the US turns protectionist rhetoric into action PUBLISHEDAPR 9 2020
source : https://www.cnbc.com/2020/04/10/coronavirus-expect-a-lot-more-
protectionism-says-trade-expert.html

- Protectionism is the economic policy of restricting imports from other countries

through methods such as tariffs on imported goods, import quotas, and a variety
of other government regulations. Proponents argue that protectionist policies
shield the producers, businesses, and workers of the import-competing sector in
the country from foreign competitors. However, they also reduce trade and
adversely affect consumers in general (by raising the cost of imported goods),
and harm the producers and workers in export sectors, both in the country
implementing protectionist policies and in the countries protected against.
 Philippines exports to United States was US$11.57 Billion during 2019, according to
the United Nations COMTRADE database on international trade. Philippines exports
to United States - data, historical chart and statistics - was last updated on February
of 2021.

 Outbreak of major hostilities in South China Sea

A military conflict in the South China Sea would force most shipping from Europe,
the Middle East and Africa destined for Asia and the US west coast to be diverted
around the south of Australia.

The additional shipping cost would bring reductions in economic activity around the
world, but with dire effects on countries at the epicentre, according to a study
published by the US National Bureau of Economic Research.

Facing a total freeze on international shipping, Taiwan’s economy would contract by

a third, while Singapore’s economy would fall by 22%, according to the baseline
estimate. Hong Kong, Vietnam, the Philippines and Malaysia would suffer falls of
between 10% and 15%. SOURCE:Australian Strategic Policy Institute
https://www.aspistrategist.org.au/southeast-asia-will-take-a-major-economic-hit-if-
shipping-is-blocked-in-the-south-china-sea/

FINANCIAL

 Equity market crisis triggers economic recession

- “Our first order of business is to address the global health and economic
emergency. Beyond that, the global community must unite to find ways to rebuild
as robust a recovery as possible to prevent more people from falling into poverty
and unemployment.”- World Bank Group Vice President for Equitable Growth,
Finance and Institutions, Ceyla Pazarbasioglu.
 SOURCE : https://www.worldbank.org/en/news/press-release/2020/06/08/covid-19-
to-plunge-global-economy-into-worst-recession-since-world-war-ii

 COVID 19 facing the worst health and economic crisis in 90 years

- Global economic activity, including trade, is at risk of grinding to a halt as
countries implement social distancing and quarantine measures of varying
degrees to fend off the spread of the coronavirus disease, formally referred to as
COVID-19. SOURCE: https://www.cnbc.com/2020/04/10/coronavirus-expect-a-lot-
more-protectionism-says-trade-expert.html

COMPETITORS
 Competitors in the region offers more favorable options
Singapore:
-In South-East Asia, Singapore reports the highest index, followed by Port
Klang and Tanjung Pelepas, Malaysia. These three ports are important hub ports, largely
serving the same trans-shipment markets. The index of Hai Phong, Viet Nam almost
doubled between 2018 and 2019, as its new terminal became the first deepwater port in
northern Viet Nam. SOURCE United Nations Conference on Trade and Development
Review of Maritime Transport 2019 : https://unctad.org/system/files/official-
document/rmt2019_en.pdf

1. Incentive schemes offers attractive and pro-business schemes and programmes

to support Maritime Business . . source : Maritime and Port Authority of
Singapore https://www.mpa.gov.sg/web/portal/home/maritime-companies/setting-
up-in-singapore/programmes-to-support-your-maritime-
business#growing_business
2. Tax exemption: Profits derived from the operation of a Singapore vessel are
exempt from Singapore income tax. source : Maritime and Port Authority of
Singapore
 Competitors have greater Influences of trading limits on maritime business
- Compared to Singapore Choice of classification societies: Eight
internationally recognised classification societies, in addition to MPA, are
authorised to survey and issue tonnage, safety and pollution prevention
certificates to Singapore ships:
source : Maritime and Port Authority of Singapore

-The remaining ports in the region in Indonesia, the Philippines, Thailand and
Viet Nam largely cater for their countries’ own imports largely by the same lines
deploying the same ships along the country’s east coast. SOURCE United Nations
 Conference on Trade and Development Review of Maritime Transport 2019 :
https://unctad.org/system/files/official-document/rmt2019_en.pdf

SHIP SURVEY AND INSPECTION

 Large gap between domestic and international standards

-The IMO Member State Audit Scheme
https://lawphil.net/executive/execord/eo2019/pdf/eo_84_2019.pdf
https://www.imo.org/en/OurWork/MSAS/Pages/Default.aspx
https://wwwcdn.imo.org/localresources/en/OurWork/MSAS/Documents/MSAS/Basic
%20documents/A.1070(28)%20III%20Code.pdf
-The IMO INSTRUMENTS IMPLEMENTATION CODE
https://wwwcdn.imo.org/localresources/en/OurWork/MSAS/Documents/MSAS/Basic
%20documents/A.1070(28)%20III%20Code.pdf

HOW DOES DOES THE DOMESTIC ADMINSITRATION HANDLE IT SAFELY,

ECONOMICALLY AND COMPETITIVELY:

The 8th edition of UNCTAD’s port management series spotlights the top work done
by Train For Trade graduates from Ghana, Indonesia, Malaysia, Nigeria and the
Philippines.
Transfer of knowledge
The case studies are the high point of a two-year course that has already certified
more than 3,000 officials in over 200 ports operating in three dozen countries
worldwide.

“The modern port management course is a good platform for acquiring vast
knowledge and experience. Participants learn many relevant skills and best
practices,” said Jay Daniel R. Santiago, general manager at the Philippine Port
Authority, which participates in the programme.

His assistant general manager Hector Miole agrees: “Much as the programme
requires a lot of time from middle managers in our port, who must also continue
doing their daily tasks, it’s worth it because it can lead to immediate improvements.”

The research process begins when participants select a senior manager as a mentor
to coach them as they conduct their case studies.

“Past results show that the involvement of a mentor highly increases the chances
that the research will be practical and in line with senior management’s priorities,”
said Irish ports representative John Moore.
 Ireland plays a key role in supporting the programme and knowledge transfer from its
experts to other managers in ports across the world.

“It also helps create a culture within the port that fosters the transfer of knowledge,” Mr.
Moore added. SOURCE : UNCTAD United Nations Conference on Trade and
Development

A once-in-a-century crisis—a Great Disruption unleashed by the COVID-19

pandemic—hit the world economy in 2020. The pandemic reached every corner of
the world, infecting more than 90 million and, so far, has killed close to 2 million
people worldwide. Governments around the world responded rapidly—and boldly—
to stem the health and economic contagion of the crisis. Fiscal and monetary
stimulus packages were quickly rolled out to save the economy.

The crisis responses, however, entailed difficult choices between saving lives and
saving livelihoods, between speed of delivery and efficiency, and between short-term
costs and long-term impacts.

"We are facing the worst health and economic crisis in 90 years. As we mourn the
growing death toll, we must remember that the choices we make now will determine
our collective future. Let’s invest in an inclusive and sustainable future driven by
smart policies, impactful investments, and a strong and effective multilateral system
that places people at the heart of all socio-economic efforts."

António Guterres
Secretary-General of the United Nations
https://unctad.org/webflyer/world-economic-situation-and-prospects-2021

To support household incomes and consumer spending, countries in the region

announced a range of measures including income
tax cuts, cash transfers and the expansion of unemployment benefits. Looking
ahead, fiscal
policies in the region are likely to remain expansionary so as to aid economic
recovery from
the pandemic. In Indonesia, the Philippines and Thailand, public spending on
infrastructure
is likely to be an important driver of growth over the outlook period.
https://www.un.org/development/desa/dpad/wp-
content/uploads/sites/45/WESP2021_CH3_EA.pdf