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The Anti-Red Tape Authority targets an October or November launch for new rules to simplify permits for shipbuilders and ship repairers
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Compliance with four key agencies costs the sector an estimated P492.5 million, with 174.6 days of processing, 50 information obligations, and 134 administrative steps
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A one-stop shop and digital permit system are set to be in place by the end of 2027
The Anti-Red Tape Authority (ARTA) aims to launch by October or November a joint memorandum circular (JMC) that will streamline regulations for the shipbuilding and ship repair (SBSR) industry, make it easier to do business, and strengthen the Philippines’ position as a hub for SBSR investments.
The JMC will set the policy framework for reforms identified under ARTA’s whole-of-government reengineering initiative, ARTA director general Ernesto Perez said at the recent 2nd Metro Ship Builders and Ship Repairers Association, Inc. SBSR Convention 2026.
The circular is a joint effort of ARTA, the Maritime Industry Authority (MARINA), the Embassy of Denmark in the Philippines, and industry stakeholders.
Shipyards keep the country’s domestic fleet, ports, and supply chains running. Faster, cheaper permitting for SBSR companies could cut delays in vessel construction and repairs, lower compliance costs, and attract more shipyard investment—supporting more reliable shipping capacity for cargo owners, carriers, and port operators.
A “fragmented” regulatory journey
Perez described the SBSR sector’s regulatory process as a “fragmented regulatory journey.” It involves 20 government agencies, 195 steps, 49 requirements, and 366 days of processing time.
To pinpoint bottlenecks and craft practical solutions, ARTA held industry consultations and site visits, and conducted business process mapping (BPM) and standard cost model (SCM) assessments.
During the BPM and SCM workshops, ARTA identified four priority agencies based on their critical role in SBSR transactions:
- MARINA
- Board of Investments (BOI)
- Department of Environment and Natural Resources–Environmental Management Bureau (DENR-EMB)
- Department of Labor and Employment (DOLE)
P492.5 million in compliance costs
The assessment found that the SBSR sector spends an estimated P492.5 million on compliance with these agencies, involving 174.6 days of processing, 50 information obligations, and 134 administrative steps.
The top contributors by category were:
- Cost of permits and licenses: MARINA (89.3%), BOI (7%), DENR-EMB (2.6%)
- Processing time: DENR-EMB (32.6%), MARINA (28.8%), DOLE (21.1%)
- Number of obligations: BOI (32%), MARINA (26%), DENR-EMB (22%)
- Administrative steps: DENR-EMB (36.6%), MARINA (21.6%), BOI (17.9%)
Key reforms under the JMC
The JMC aims to:
- Set up an SBSR one-stop shop (OSS) as a single, coordinated channel for regulatory transactions
- Speed up digitalization and system interoperability through an electronic OSS
- Improve access to incentives and government support through the BOI
- Strengthen coordination and stakeholder participation through a new SBSR technical working group
It will also simplify requirements, enable information sharing, and clarify coordination among agencies.
Perez said the JMC turns the identified process improvements into specific, coordinated, and institutionalized reforms for the sector. For SBSR companies and investors, this means fewer unnecessary steps, a lighter compliance burden, fewer repeated submissions and overlapping processes, and better access to government services through the OSS.
“Ultimately, these reforms are intended to allow companies like you to spend less time navigating regulatory processes and more time focusing on operation, investment, and industry growth,” Perez said.
Reform timeline
Under ARTA’s roadmap:
- Q2 to Q3 2027: Digitalization of priority processes and system integration of concerned agencies
- Q3 2027: Data sharing and interoperability, including a “source-only” principle so companies need not submit the same information repeatedly
- Q4 2027: Establishment of the OSS
- One year after the JMC takes effect: Monitoring, performance tracking, and continuous improvement
