This chapter examines key market trends in the Philippine shipbuilding and repair sector, focusing on research & development, decarbonisation, digitalisation, and labour. It highlights emerging technologies and pilot projects supporting low/zero-emission vessels, as well as progress in digital shipping solutions and smart and resilient port initiatives. Labour trends, workforce composition, and skills gaps are also analysed, with attention to training programmes and structural challenges in retaining talent.
Peer Review of the Philippines’ Shipbuilding Industry
Abstract
The Philippines is modernising its shipbuilding sector through targeted R&D and innovation. Technology adoption aims to improve efficiency, safety, and competitiveness while tapping into new markets. Although 95% of current activity focuses on maintenance, future developments aim to meet international environmental standards and support higher-value shipbuilding.
Government support is driving digitalisation and opportunities for local production. Core operations are being digitalised as a foundation for advanced technologies. Rising demand for marine-grade components such as angle bars and mooring ropes presents a case for localisation. Industrial parks are proposed to close the gap between new builds and repairs.
DOST and PCIEERD are leading maritime innovation and decarbonisation. Through projects like the Median and STMTA, these institutions promote dual-mode vessels, carbon-reduction technologies, and maritime transport roadmaps. Collaboration with MARINA supports alignment with long-term sector goals.
Research focuses on green technologies, though mostly in export-oriented shipyards. Priority areas include structural efficiency, cost optimisation, digitalisation, electrification, and decarbonisation. Based on the current orderbook, 25% of vessels completions will be alternative fuel-capable in 2026. Most green innovations remain concentrated in foreign-owned yards.
Workforce initiatives are progressing, but domestic shipyard sustainability lags behind. Partnerships with universities and agencies like PPA and CHED aim to modernise training and attract young talent. Ports are greening operations, but similar efforts in shipyards are limited.
Lack of testing infrastructure is a major barrier to innovation. The absence of towing tanks restricts ship performance research. While partnerships with Chinese universities offer specialised training, stakeholders continue to call for domestic facilities and stronger government backing.
Research and development (R&D) in the Philippine maritime sector is gaining momentum as efforts focus on modernising operations through the adoption of new advanced technologies. These initiatives aim to enhance efficiency and safety, develop cost-competitive solutions for the domestic market, and position the industry to access niche markets and opportunities for domestic and international growth. While production and new orders in the shipbuilding sector have shown variability in recent years, government programmes and collaborations with key stakeholders have provided a strong foundation for progress. The strategic approach emphasises first digitalising core operational components and gradually integrating cutting-edge technologies to drive the sector’s transformation, sustainability and competitiveness.
The Department of Science and Technology (DOST) is the Philippines’ premier government body dedicated to driving national development through innovation, research, and technology. The DOST aims to address pressing societal challenges, enhance the competitiveness of industries, and ultimately improve the quality of life for Filipinos. This vision is operationalised through its various councils and programmes that target sectoral priorities across the country.
One of the key sectoral planning councils under the DOST is the Philippine Council for Industry, Energy, and Emerging Technology Research and Development (PCIEERD). This council plays a pivotal role in shaping science and technology initiatives in the Philippines, particularly in fostering advancements in critical sectors like energy, emerging technologies, and industry. A prime example of PCIEERD’s efforts in the maritime sector is its collaboration with the MARINA on the S&T for Marine/Maritime Transport Applications (STMTA) project. This joint initiative aims to develop a comprehensive technology development plan for the Philippine maritime and marine transport sector. Central to its goals are the conduct of Science and Technology Assessments (STAs) and research and development (R&D) activities to facilitate the local adoption of new and emerging maritime transport technologies (NEMTTs). Figure 4.1 gives an overview of the funding allocated under the PCIEERD’s Transport Sector S&T Fund.
Source: (DOST, 2024[1])
The R&D projects funded under the STMTA highlight key areas of focus in maritime technology developments supported in the Philippines (Figure 4.2). Structural efficiency leads with nine projects, emphasising optimisation of operations and safety as well as a strong focus on overhauling existing infrastructure rather than prioritising future alternatives. Cost optimisation (6 projects) complements these efforts by promoting financially competitive domestic technology development.
At the same time, digitalisation (7 projects) reflects the sector’s push for modernisation and technological advancement, with a noticeable shift toward integrating cloud technologies into current systems, reflecting efforts to modernise and enhance operational efficiency. Decarbonisation and electrification to reduce emissions and transition to cleaner energy (4 projects each) are also strongly targeted, and energy efficiency and environmental protection (6 projects each) further underline the commitment to sustainability. The broad scope of technologies covered in maritime projects, with projects often tarting multiple technology development aims, suggests a diverse range of implementations across projects.
Source: (DOST, 2024[1])
Generally, projects to support R&D and innovation in the Philippines’ maritime sector focus on maximising collaboration across diverse areas, including human resource development, subsea technology, specialised training modules, and emerging technologies like blockchain and cloud computing. Partnerships with stakeholders and academic institutions aim to support national innovation efforts and international collaborations. Research development projects through training and education modules collaborated through stakeholders such as CHED (Commission of Higher Education), PPA (Philippines Port Authority), PCG (Philippines Coast Guard), alongside the University of the Philippines (UP)’ education modules, aim to modernise the workforce and inspire youth participation. A key limitation for R&D remains the absence of a towing tank or research facilities for hydrodynamic testing, restricting advancements in ship performance research. The facility exists and has been operational for initial assessments. But there is still the necessity to improve the facility by upgrading Electrical, motor and stability components. There is also a necessity to couple the facility with additional Hydrodynamic testing facilities to get more idealistic results in Motion of the test subjects/vessels (Descartin et al., 2022[2]).
The Philippines is advancing maritime decarbonisation through international commitments and national innovation efforts. The country is implementing policies under the Maritime Industry Development Plan (MIDP) 2019–2028, including studies on alternative fuels and support for low- and zero-emission technologies. MARINA and DOST-PCIEERD are supporting pilot projects such as an electric ferry for urban waterways, a hybrid marine-air vehicle (WISE), and a wave-powered trimaran— aimed at promoting clean transport and local innovation, though most remain at prototype stage.
Production of alternative fuel-capable vessels is emerging, led by foreign-owned shipyards. Six methanol-capable vessels ordered by Singapore-based Cargill are scheduled for delivery in 2025–2026 from Tsuneishi. These represent up to 25% of the CGT orderbook but remain concentrated in export-driven, foreign-owned yards.
Energy Saving Technologies are integrated into export vessels but not widely adopted locally. Export-oriented shipyards have consistently incorporated ESTs—mainly bow enhancements and pre-swirl stators—into vessels since 2007. Adoption is still limited to foreign-owned yards.
Offshore wind development offers long-term opportunities for shipbuilding. With a projected capacity of up to 21 GW by 2040, offshore wind could create significant demand for support vessels and infrastructure. Hyundai Heavy Industries plans to invest USD 550 million in offshore wind production facilities at the former HHIC-Phil yard.
Ports are promoting sustainability through green infrastructure, awards, and environmental programmes. The Philippine Ports Authority (PPA) is developing eco-friendly ports, implementing the Port Environmental Code, and promoting large-scale tree and mangrove planting. Several ports have received APEC Green Port Awards since 2021.
4.2.1. Decarbonisation of the maritime sector
The Philippines is actively involved in the global effort to decarbonise the shipping and shipbuilding industries. Internationally through the participation in fora, and commitment to the International Maritime Organization (IMO) net-zero targets, and at the national level through different programmes and financial support to projects. Under the Maritime Industry Development Plan (MIDP) 2019-2028, the Philippines launched a study on alternative energy sources and fuel to explore the transition of the shipping industry to alternative fuel. Further, MARINA has notably been collaborating with the DOST- PCIEERD to promote the offtake of emerging low/zero-emission maritime technologies in the Philippines’ shipping and shipbuilding industries.
Green shipyards
Alternative fuel capable vessels
Foreign-owned shipyards in the Philippines have started production of alternative fuel capable vessels. Six methanol capable vessels are present in the orderbook and are scheduled to be delivered in 2025 and 2026. In 2025, these vessels represent nearly 14% of completion in terms of CGT, and 25% in 2026. The methanol capable vessels orders have been placed by the Singaporean operating company Cargill in Tsuneishi shipyard. The offtake of alternative fuel capable vessels building is currently solely concentrated in a foreign-owned shipyard and is driven by foreign demand.
Under the STMTA between MARINA and DOST- PCIEERD, a project has been launched to develop a pilot e-boat for inland waterway transport along the Pasig River, aiming to test a sustainable electric ferry system. The project focuses on creating a replicable electric ferry prototype and establishing the necessary onshore energy infrastructure. By addressing urban congestion through this clean transport solution, the initiative seeks to assess its economic viability, fuel efficiency, and environmental benefits in comparison to other alternatives, with a view toward potential scale-up. This project is part of the broader Comprehensive Roadmap for the electric vehicle industry (DOE, 2023[4]), aiming at decarbonising the current fleet of vehicles.
Energy Saving Technologies (ESTs)
Since 2007, alongside orders for dual-fuel methanol vessels, ships built in the Philippines have increasingly integrated Energy Saving Technologies (ESTs). ESTs are consistently incorporated into vessels, with an average of two per ship, for vessels destined for the export market. The most common ESTs in Philippine-built vessels are bow enhancements and pre-swirl stators, which account for 52% and 36% of integrations, respectively. Currently, only foreign owned shipyards, HHIC-Phil (Subic SY) until its bankruptcy in 2019, and Tsuneishi have integrated ESTs into vessels.
In addition to energy saving technologies adopted at the shipyard level, several pilot projects co-ordinated by MARINA DOST-PCIEERD have supported the offtake of emerging technologies in the Philippine shipping and shipbuilding industry.
This collaboration notably supported the development of a hybrid marine-air vehicle designed for rapid and efficient inter-island transport. Funded with PHP 22 090 million from PCIEERD, the project— running from January 2022 to December 2024— focuses on the design, construction, and operation of a prototype Wing-in-Surface Effect (WISE) vehicle. This hybrid craft leverages surface effect technology to reduce water friction, thereby enhancing speed and energy efficiency. Led by Cebu Technological University, the project is carried out in co-ordination with key stakeholders, including the Department of National Defense, domestic shipbuilders, and local government units.
In collaboration with Aklan State University and Metallica Shipyard, MARINA and DOST-PCIEERD have also supported the development of a hybrid trimaran that combines multiple engines with alternative energy sourced from ocean waves. When operating in open water, the trimaran harnesses wave energy through its outriggers, which drive double-action hydraulic pumps to generate additional power. Designed as a passenger and cargo vessel, the hybrid trimaran has a planned capacity of 100 passengers, 4 vans, and 15 motorcycles. The waterjet propulsion system, delivered by the Metals Industry Research and Development Center (MIRDC) in December 2023, has been installed along with all other marine equipment.
Offshore wind
Another opportunity for advancing shipbuilding projects lies in the Philippines' commitment to scaling up offshore wind energy, a key component in achieving the national targets of 35% renewable energy by 2035 and 50% by 2040. In 2022, the World Bank Group and the Department of Energy (DoE) of the Philippines released a roadmap an offshore wind energy roadmap with two scenarios, showing that the country has the potential to create capacity up to 21 GW by 2040 (World Bank, 2022[5]). Under the high growth scenario, the offshore wind sector could represent 21% of the country’s electricity supply, and create up to 205 000 jobs by 2040, notably in the shipbuilding sector. The DOE already approved the construction of 16 offshore wind farms, with an estimated potential capacity of 7 668 MW (DOE, 2024[6]).
A Philippine offshore wind production hub is currently under development, with the Korean shipbuilder Hyundai Heavy industries planning to invest USD 550 million over the next 10 years to update the facilities of the former HHIC – Phil to launch the production of offshore wind structures that could create 10 000 jobs over the next 3 to 5 years.
Environmental practices
In addition to decarbonisation efforts in the offtake of emerging green technologies, shipyards, under the leadership of MARINA, have also increasingly focused on improving environmental practices. Under Memorandum Circular No. SR-2022-01, all MARINA registered boatbuilder/ repairer are required to conform with relevant environmental IMO standards to prevent or reduce pollution of the marine environment.
In line with Executive Order No. 26 (National Greening Program), MARINA has issued Advisory No. 2022-31, requiring all MARINA-registered shipyards to participate in tree and mangrove planting programmes. This initiative is aimed at mitigating environmental degradation and promoting biodiversity conservation, particularly in coastal and forested areas near shipyards.
The Maritime Industry Authority (MARINA) has partnered with WWF-Philippines and WWF-Norway to enhance waste management and environmental practices in Filipino shipyards. On 11 October 2022, a collaborative meeting at the MARINA Central Office, followed by field visits to shipyards in Navotas City, emphasised the need to improve solid waste management and promote sustainable practices within the sector. This ongoing partnership aims to provide technical support to shipyards, ensuring that waste disposal and recycling processes meet regulatory standards (MARINA, 2022[7]).
4.2.2. Port decarbonisation and environmental efforts
In addition to shipbuilders, other maritime stakeholders are involved in the decarbonisation the sector. In 2021, the Philippine Ports Authority (PPA) announced its commitment to developing eco-friendly and sustainable ports through it “Green port” initiatives, to develop alternative fuel infrastructures and to enhance energy-efficiency of port operations (Philippine Ports Authority, 2021[8]).
Along with port authorities, the Philippine Department of Energy (DOE) is working with industry stakeholders to promote the use of cleaner fuels in shipping, notably LNG and hydrogen, which are explored in the Philippines Energy Plan 2020-20240 (DOE, 2020[9]).
Efforts by Philippine ports to adopt more sustainable practices have gained international recognition. Since 2021, six ports under the jurisdiction of the Philippine Ports Authority (PPA) have received awards under the Asia-Pacific Economic Cooperation (APEC) Port Services Network (APSN) Green Port Award System (GPAS). These include the ports of Batangas, Cagayan de Oro, Surigao, General Santos, Manila South Harbor, and Manila International Container Terminal (MICT). Notably, the Port of Batangas has been awarded twice, while the Port of Cagayan de Oro is a three-time awardee. In 2022, MICT was again recognised for its strategy of integrating climate change management into its daily operations, with the goal of becoming the most sustainable terminal in the Philippines (Manila International Container Terminal, 2022[10]; APEC, 2023[11]).
Building on the APSN GPAS framework, the PPA has also introduced its own award system to further incentivise and promote environmental achievements among Filipino ports. This system uses the Green Port Award System (GPAS) indicator framework, which assesses commitment and willingness (25%)—measured through green strategies, dedicated funding, and annual sustainability reporting; action and implementation (50%)—including the adoption of clean energy, energy efficiency, environmental protection, and green port management; and efficiency and effectiveness (25%).
To complement these efforts, the PPA has developed its Port Environmental Code (Green Code), which serves as a framework to guide Philippine ports toward sustainable operations. The Green Code aligns with the UN Sustainable Development Goals by promoting environmental protection and fostering collaboration while ensuring operational efficiency. As a living document, the Green Code continues to evolve in response to emerging technologies and best practices, with the goal of remaining a relevant and effective tool for advancing sustainability in the maritime sector.
Moreover, under PPA Administrative Order (AO) No. 014-2020, all applicants for port accreditation, permits, and service contracts are required to plant trees and/or mangroves in partnership with the Department of Environment and Natural Resources (DENR) (Philippine Ports Authority, 2022[12]). As of 31 January 2025, this initiative has resulted in the planting of 12 375 956 trees and mangroves, significantly contributing to the environmental restoration and carbon mitigation efforts of the Philippine port system.
Part of PPA’s strategies to increase environmental protection have notably been to reduce the waste from port and ship operations. PPA is complying with MARPOL 73/78 Convention, the “International Convention for the Prevention of Pollution from Ships”, aimed at minimising garbage dumping from ships. PPA also joined Worldwide Fund for Nature (WWF) in the “No Plastics in Nature” initiative, targeting reducing plastic pollution at major Filipino ports like North Harbor, Batangas, and Cagayan de Oro (WWF, 2022[13]).
The Philippine government is advancing digitalisation to modernise shipbuilding and maritime services. National frameworks such as the Maritime Industry Development Plan (MIDP) and the proposed Shipbuilding Development Bill prioritise technology adoption in the shipbuilding and ship repair (SBSR) sector. MARINA has introduced digital tools, including MARINA BEST—a blockchain-based certification system launched in 2024—to streamline transactions and regulatory processes. However, uptake remains limited in domestic shipyards compared to internationally owned facilities.
Targeted R&D projects aim to improve operational efficiency and maritime safety. Collaborations between MARINA and the Department of Science and Technology (DOST), working through PCIEERD, have produced systems such as MARIS for real-time vessel tracking, MEDIAnS for energy and route optimisation, and AIS for safer navigation and collision avoidance. The Marine Autonomous Surface Ship (MASS) project is also underway, exploring future applications of unmanned vessels. While promising, many of these technologies are still in early stages or limited to pilot implementations.
Port digitalisation is progressing through infrastructure investment and software innovation. The Philippine Ports Authority (PPA) has committed to major investments to enhance logistics and port operations, supported by the Port Terminal Management Regulatory Framework (PTMRF). Tools such as PAROLA, developed for Cebu Port Authority, improve ship scheduling and capacity use. Additional initiatives aim to extend digital capabilities to smaller ports and vessels.
Despite progress, sector-wide digital integration remains uneven. While the foundations for digital transformation are being established, challenges persist—particularly in domestic yards—due to infrastructure gaps, limited technical capacity, and slow diffusion of innovation. Broader adoption will depend on sustained investment, policy alignment, and targeted capacity-building.
4.3.1. Digitalisation of the maritime sector
The Philippine shipbuilding and ship repair (SBSR) industry is a vital component of the country's maritime sector. The MIDP Core Programme 3, Modernization, Expansion, and Promotion of the Philippine Shipbuilding and Ship Repair Industry places significant emphasis on its modernisation, expansion, and promotion to bolster the overall maritime industry (MARINA, 2024[14]). The key aim is modernising the SBSR sector by upgrading facilities, equipment, and technology to meet international standards and compete globally. Similarly, the Shipbuilding Development Bill aims at revitalising and modernising the country's SBSR industry by providing incentives to encourage local and foreign investors to enter the sector (MARINA, 2024[14]). Potential element of bill will be to support research and innovation in shipbuilding technologies.
MARINA places significant emphasis on modernising the country's domestic fleet, providing strong support to automation and digitalisation of frontline services as ways to address current maritime safety situation (MARINA, 2024[15]). The aim is to support the automation and digitalisation of domestic shipyards to strengthen the current regime of fleet inspection. MARINA initiated an in-house Blockchain-Enabled Automated Certification System (MARINA BEST) project1, which focuses on the broader digitalisation of services in the maritime sector. It is an advanced web application aiming to improve and streamline online services (such as online tracking of transactions, and online payment), creating a unified information system. It was implemented in July 2024.
4.3.2. Digitalisation of the fleet and shipping
As part of MARINA’s partnership with DOST-PCIEERD, the 2023-2028 Maritime Industry Development Plan focuses on sustainable innovation, digitalisation and knowledge creation through developing projects that relate to the digitalisation of fleet and shipping:
4.3.3. Digitalisation of ports and facilities
The PPA has set out its “Blueprint for Resilient and Efficient Ports” for 2024 which includes a total investment of PHP 28.59 billion (around USD 491 million dollars) in 84 infrastructure projects (MARINA, 2024[14]). The 84 projects included in the 2024 Roadmap aim to modernise and improve the efficiency and capacity of maritime trade and commerce while ensuring sustainability and enhancing safety. PPA is leveraging digital technology to transform port operations. PPA has already completed 29 projects leveraging connectivity for the development of port infrastructure. These include equipping ports with the facilities necessary to facilitate overall logistics and transportation of offshore wind energy. The expansion of Roll-on/Roll-off (RoRo) infrastructure notably plays an important role in the goal, reinforcing passenger heavy ports and accommodating the growing trade volumes.
Other goals of the roadmap include streamlining processes, reducing administrative delays, enhancing transparency, and driving operational efficiency. Digital innovation aims to improve the overall experience of users while increasing the responsiveness of port facilities to market demands. PPA announced further developments regarding the binding Port Terminal Management Regulatory Framework (PTMRF) for ten ports. The objective is to foster dynamic port management that emphasises efficiency and responsiveness to market demands.
The Port capacity analysis and route optimisation for local maritime Administrator (PAROLA) is a 1-year project delivered by CPA, MARINA, DOST-PCIEERD, UP Department of Computer Science, and the Intelligent Transportation Systems Laboratory (ITSlab PH) developed and designed a modular software to effectively measure port capacity and ship scheduling system. This is part of the modernisation plan of Cebu Port Authority (CPA) and the MARINA for the Philippine maritime industry. It entails the creation and integration of the PAROLA software to port operations and transportation management.
The DOST set out targets as part of its 2020-2029 roadmap focused on maritime transport. These include but are not limited to:
Efficient cargo monitoring through a network of synchronised modal inland terminals and ports
Recycling index for boats and vessels
Development of a localised Electronic Chart Display Information System (ECDIS) for nautical highways detection and notification for collision incidents
Algorithms for alternative voyage or sea route
The maritime sector remains a key source of employment, with the Philippines leading globally in seafaring labour. In 2023, the country recorded 578 626 seafarer deployments, reflecting a strong recovery from the pandemic. Employment contracts nearly returned to pre-COVID levels, with 561 370 processed in 2022. In shipbuilding and repair, Austral Philippines employed the largest workforce (279), followed by Seatrium and Batangas Shipyard.
Afloat ship repair dominates SBSR employment, but overall workforce numbers are declining. Half of SBSR workers are engaged in afloat ship repair, while Class A–C yards account for 34% of employment. Total workforce levels fell by nearly 5% from 2022 to 2023, following a steep decline of 34.7% between 2019 and 2021 due to COVID-19 and the closure of HHIC-Phil.
Labour safety and working conditions remain under scrutiny. Worker unions have raised concerns about safety incidents, leading to stronger enforcement of standards. The industry follows ISO and IMO-aligned protocols, with oversight from MARINA, DOLE, DENR, and international regulatory frameworks such as SOLAS and MARPOL.
Skills development remains a challenge despite targeted training efforts. While 82% of SBSR workers are skilled or semi-skilled, education gaps persist. Maritime higher education enrolment has increased post-pandemic, but dropout rates remain high (~35%), driven by financial and academic pressures. The absence of specialised postgraduate programmes limits domestic talent pipelines. Government training schemes and partnerships with institutions in Korea, China, and the UK aim to address these gaps.
Persistent structural issues affect workforce development and retention. Two thirds of major shipyards require rehabilitation, and shortages of key materials—such as marine-grade steel—persist. Limited domestic demand for locally built ships, strong international competition, and brain drain continue to undermine workforce growth and retention. Weak links between industry and academia further aggravate the skills mismatch.
4.4.1. Shipbuilding workforce trends
The maritime sector plays an important role in the economic and industrial employment in the Philippines. The latest data shared by the International Labour Organization (ILO) states that the maritime sector represents 1.8 million workers at the national level, the shipbuilding and ship repair represent a share of 9% of maritime employment in the Philippines (or 153 000 workers) as of 2021 (ILO, 2024[16]).
ILO’s estimates are primarily derived from the collection of Harmonised Microdata, which relies on labour force and household surveys (ILO, 2024[16]). These datasets capture a broader range of employment, including informal sector workers and those indirectly linked to shipbuilding, which might explain some of the differences compared to administrative data from MARINA. In addition, ILO defines the shipbuilding and repair subsector as composed of the following ISIC codes at the 4-digit level: 2811 – Manufacture of engines and turbines, except aircraft, vehicle and cycle engines; 3011 – Building of ships and floating structures; 3012 – Building of pleasure and sporting boats; and 3315 – Repair of transport equipment, except motor vehicles. The inclusion of ISIC 2811 and ISIC 3315 includes workers in units that are not directly related to shipbuilding, which could partially account for the discrepancy in workforce estimates.
Source: (ILO, 2024[16])
Austal Philippines is the largest yard in terms of manpower for 2023 with a total of 279 workers. It is followed by Seatrium Philippines (184 workers) and Batangas Shipyard (174 workers).
The Philippines were the first seafarer suppliers worldwide according to UNCTAD data from 2021 (UNCTAD, 2021[18]). The Department of Migrant Workers (DMW) of the Philippines recorded a total of 3.6 million deployment for sea-based overseas Filipino workers between 2011 to 2020. The highest number of deployed workers was reached in 2016 with 442 820 workers and dropped down to 217 223 in 2020. The pandemic importantly affected the number of seafarers which resulted in a loss of income of 2.8% for the Philippines between 2019 and 2020 (with USD 6.5 billion earned in 2019 to USD 6.4 billion). Following 2020, the number of deployed seafarers has more than doubled going from 217 223 to reaching 578 626 in 2023 (MARINA, 2023[19]).
Source: (MARINA, 2022[20])
Following a peak in 2019 with 571 508, employment contracts significantly dropped in 2020 – presumably linked to the pandemic but have since continued to increase and are almost reaching the 2019 level with a total of 561 370 in 2022.
4.4.2. Labour breakdown by subsector of activity
Source: (MARINA, 2025[17])
The data used for this breakdown was shared by MARINA in January 2025 and presents data for 2023. In total, 26 710 workers are accounted for in this overview. Half of the employed workers (or 13 586) are involved in afloat ship repair as of 2023, and 17% (or 4 546) are employed in Class C shipyards for shipbuilding and ship repair – which entails that they are working on ships with a maximum length of 80 meter. SBSR shipyards (Class A, B, or C) represent 34% of employment, or 9 069 out of 26 710.
Similarly to its impact on seafarers, there was a significant decline in the number of employees in the shipbuilding and ship repair industry during 2020 and 2021 due to the COVID-19 pandemic and to the corporate bankruptcy of HHIC – Phil. According to data collected by MARINA in its regional offices, the industry employed 8 801 workers in 2021, representing a 34.7% decrease compared to the workforce in 2019 (MARINA, 2024[22]). The SBSR 2019 Capability and Capacity Assessment Report had recorded a total of 13 479 personnel in the industry that year (MARINA, 2024[14]). In 2023, 9 069 workers are employed in Class A, B, and C shipyards for SBSR which represents a 4.9% percentage decrease when compared to 2022.
The workforce in the Philippine shipbuilding and ship repair industry remains predominantly male, with 93% male employees, or 12 529 out of the 13 479 personnel that year according to the 2019 SBSR Capability and Capacity Assessment Report. However, recent years have seen initiatives to promote gender equality in the sector. In response, MARINA has undertaken initiatives to promote Gender and Development (GAD) principles into its SBSR industry which include gender sensitivity training, women's empowerment programmes, data collection on gender composition and the development of policies promoting gender equality (MARINA, 2024[14]).
4.4.3. Safety and labour
Labour unions and non-governmental organisations have highlighted safety concerns in Philippine shipyards. The Metal Workers Alliance of the Philippines (MWAP) has expressed the need for stricter standards following the tragic death of six workers at the Keppel Subic Shipyard in 2011 (IndustriALL Global Union, 2011[23]). Similarly, in May 2018, one worker had a fatal injury, and four others were hurt at one of the Subic shipyards after falling from scaffolding. The Department of Labour and Employment (DOLE) in central Luzon ordered the subcontractor of Hanjin Heavy Industries (HHIC – Phil) to pause operations while the incident was under investigation (Safety4Sea, 2018[24]).
The Philippines SBSR sector operates under a comprehensive framework of safety programmes that are mandated by national and international standards and implemented by individual shipyards. These aim to ensure the safety and well-being of workers. Classification societies establish and monitor standards for the construction and operation of ships infrastructure which permit international comparison notably with regards to safety. There are 3 local classification societies in the Philippines as well as seven International Association of Classification Societies (IACS) which oversees the compliance of vessels with both international and flag-state regulations (MARINA, 2023[19]). Certifications and standards include “ISO 9001:2015” on quality management, “ISO 45001:2018 on occupational health and safety (OH&S) management systems” to reduce workplace risks and promote a safe working environment, or “ISO 30000:2009 about ship recycling management systems”.
Safety of Life at Sea (SOLAS), the International Maritime Organization (IMO), Marine Pollution (MARPOL) are some of the key international regulatory bodies responsible for establishing and monitoring safety standards across the maritime industry. National bodies such as the flag state administration (MARINA), enforce maritime laws, oversee ship registration and ensure compliance of operations with international maritime conventions. Other Filipino bodies include the Department of Labour and Employment (DOLE) and the Department of Environment and Natural Resources (DENR).
4.4.4. Skills and education
Source: (MARINA, 2025[17])
Most employees (82% or 21 951 out of 26 710) in the shipbuilding and ship repair shards of class A, B and C, Afloat ship repair, Boat building and ship breaker are part of the "skilled/semi-skilled” category. As defined by the DOLE Rules and Regulations implementing the Migrant Workers and Overseas Filipinos Act of 1995, workers are categorised as “skilled” when they have obtained an academic degree, sufficient training or experience in the job for which they are applying. Bill no. 2464 further highlights that this category refers to persons with special skills, knowledge or abilities, and/or training, and possessing a degree of expertise – which is not limited to national certificated issues by the Technical Education and Skills Development Authority (TESDA). “Semi-skilled workers” possess some specialised skills or training beyond basic education acquired through on-the-job training, vocational courses, or short-term technical education. They possess a degree of independence and proficiency. As per Professional Regulatory Commission (PRC) Law, the "technical” category refers to individuals registered and licensed to practice a regulated profession in the Philippines and who holds a valid Certificate of Registration and Professional Identification Card (PIC) from the Professional Regulation Commission (PRC). They represent 7% of the workforce in 2023, or 1784 workers. Other categories represent 8% for administrative (or 2131 workers) and 3% for managerial with 844 workers.
According to MARINA, there are 85 accredited Maritime Training Institutions (MTI) that mostly caters the training needs of the seafarers, 83 Maritime Higher Education Institutions (MHEIs) that mostly offer BSMT and BSMarE courses, and 31 assessment centres as of 2023 (MARINA, 2023[19]). Most of these institutions are located in the NCR.
Source: (MARINA, 2023[19])
Following the decrease in enrolment during the pandemic, both Bachelors of Science have shown an increase in the number of total enrolments in their programmes. Between the two most recent school years available, the BS in Marine Engineering and the BS in Marine Transportation have both shown an increase in enrolment of almost 11%.
The number of graduates for BS in Maritime Transportation and BS in Marine Engineering shows a downward trend. The two graphs reveal a significant disparity between the number of enrolees and number of graduates which suggests challenges in programme completion linked to high dropout rates. For 2023-2024, the Commission on Higher Education (CHEd) observed a global dropout rate of 35.15% in universities and colleges – which is slightly lower than the one for previous year with 40.98% (Sarao, 2023[25]).
Several academic sources have examined the challenges Philippine students face to complete their degrees. In 2023, the Journal for Educators, Teachers and Trainers highlighted determined that financial constraints were the main reason for dropouts, despite the Free Tuition Act. Other reasons included personal reasons and programme difficulty. The highest dropout rate occurred in the first year of the studies and diminished over the course of the programme. The study also showed the differences in dropout rates with other degrees where they remained low, demonstrating the impact of support systems provided by certain colleges (Bravo, 2023[26]). Addressing these issues could bolter graduation rates and ensuring a more reliable pipeline of skilled professionals for the SBSR sector.
The University of the Philippines (UP) has also expressed the need for the development of Master's programmes – such as in Naval Architecture where these are essentially missing to address the skills gap in the industry. Moreover, through a partnership with MARINA, UP is planning to develop a framework to assess the quality and effectiveness of training programmes provided by the agency (for clarification). Additionally, the insufficient training programmes for shipyard workers combined with the frequent departures of skilled workers for better opportunities abroad exacerbate the local skills shortage.
4.4.5. Training programmes
Some government-supported programmes are being implemented to address some of these challenges. The Aluminium welding training programme for shipbuilding workers offers one example of specialised training as a result of MARINA's initiative to replace wooden-hulled vessels with aluminium parts. This was created in collaboration with the Board of Investment of the Department of Trade and Industry (DTI-BOI), the Department of Science and Technology's Metal Industry Research and Development Center (DOST-MIRDC) and the Philippines Welding Society (PWS). This programme underscores the importance of offering workers trainings necessary to adapt to the changing skills needs of the sector. In addition, the University of Cebu Towing Tank provides its students with a Wave Basin Simulator to conduct research and tests on ship models which include hull resistance testing, propulsion testing and manoeuvring testing (Descartin et al., 2022[2]). This training ground for ship design is a valuable resource for the education of maritime architects, engineers and the broader maritime industry.
The Technical Education and Skills Development Authority (TESDA), which has formerly partnered with MARINA to upskills workers in the SBSR sector, also offers courses through various accredited institutions to meet industry standards and provide workers with certification recognised both locally and internationally (MARINA, 2021[27]).
International collaboration such as between the UP and the University of Strathclyde – among other efforts to partner with universities in Korea, the Netherlands, and China – reflect a reliance on external institutions for advanced research and student training, due to limited local resources. A Memorandum of Understanding (MoU) between UP and the University of Strathclyde offers academic collaboration on Naval Architecture and Marine Engineering programmes to enhance the professional opportunities of students and to allow institutional exchange of best practices and co-operation on research (UP college of Engineering, 2022[28]). Similarly, an MoU was signed on the 12th of November between the Department of Labor and Employment (DOLE), Korea Marine Equipment Research Institute (KOMERI), and TESDA to establish a training center for Eco-Friendly Shipbuilding Specialists in the Philippines that will be located at the DOLE Central Office. This initiative aims to upskill shipbuilding workers in line with sustainable industry demands to improve the competitiveness at the global level for new green jobs (Department of Labor and Employment, 2024[29]).The Maritime Industry Authority (MARINA) of the Philippines also participates in international collaboration with Harbin Engineering University (HEU) in China offering scholarships to Filipinos pursuing postgraduate studies for Naval Architecture and Marine Engineering. This MOU began in 2023 with one MARINA Scholar pursuing a Master of Science in Ship Construction and Ocean Engineering at HEU. This partnership aims to provide opportunities for Filipino students to access high-quality education at a renowned institution to improve competitiveness of workers in the global maritime industry.
4.4.6. Challenges to attracting labour and skills development
The shipbuilding and ship repair industry faces a number of challenges that impact its workforce. First, with regards to equipment and facilities, the most modern and advanced facilities, equipment, tools, and machinery are found in Class A shipyards or those with foreign partners. And approximately 66% of the country's main shipyard facilities require rehabilitation and upgrades. Moreover, the local market suffers from a scarcity of essential machinery, equipment, and spare parts for shipbuilding and repair, including marine-grade steel.
Second, there is limited demand for locally built vessels since domestic shipyards are not cost-competitive with international players, particularly Chinese shipyards, leading to a preference for importing ships for domestic trade. MARINA recorded 356 newly built imported ships for domestic use in 2021. Of these, 98% (349 ships) were classified as miscellaneous, mainly recreational boats. The lingering effects of the COVID-19 pandemic as well as the closure of certain shipyards in that period has affected its operation and resulted in losses for the overall financial performance of different companies.
This lack of interest for domestic ships also exacerbates the overall unattractiveness of these shipyards for workers. In addition, the Philippines faces a major challenge with regards to the emigration of highly skilled workers to other industries or other countries.
The lack of higher education diplomas in specialised maritime fields and the insufficient number of training programmes for shipyard workers – notably in domestic shipyards, reinforces the local skills gap. According to UP, limited collaboration between maritime industry players and local universities results in the unalignment of curricula with the SBSR's sectoral needs.
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