Massive Workforce Cuts as Operations Cease

In a startling announcement, CCIC Singapore, a cargo inspection firm, revealed the layoffs of hundreds of employees as it grapples with the severe impact of US sanctions on Iranian oil shipments. As of June 9, the company confirmed it has halted its operations in Singapore, a decision fueled by complications that far exceeded expectations.

US Sanctions: The Catalyst for Collapse

The company, linked to China and incorporated in Singapore, was blacklisted by the US on May 13 for allegedly disguising the origins of Iranian oil sent to China. According to CCIC Singapore, the sanctions have resulted in frozen bank accounts, crippling cash flow, and the inability to cover operational costs. The fallout has led to a loss of clients and operational disruptions, forcing the company to initiate liquidation.

Employee Claims and Severance Woes

Despite the turmoil, CCIC Singapore stated it would disburse May salaries and part of severance pay within three days. However, full retrenchment benefits won't be available until the liquidation wraps up, tentatively set for June 30, 2026. Reports indicate the company employed around 400 individuals in Singapore and Malaysia, with a significant portion based in Singapore.

A Tough Decision for Management

The management expressed deep regret over the decision to terminate their Singapore operations, describing it as extremely challenging yet a necessary response to the unprecedented circumstances.

Claims Filed Amid Uncertainty

As of Monday, 25 affected employees have filed claims for unpaid salaries and retrenchment benefits with the Tripartite Alliance for Dispute Management (TADM). Mediations are being arranged to help resolve these claims. The Ministry of Manpower (MOM) has reiterated the company’s obligation to pay employees, warning that enforcement actions may be taken if it fails to fulfill these duties.

Is CCIC Singapore Planning to Challenge US Accusations?

When approached for comments on the sanctions, CCIC asserted its commitment to complying with all applicable laws. The company is focused on managing ongoing issues legally while maintaining communication with relevant authorities.

A Glimpse Inside a Troubled Office

On a visit to CCIC’s office, a lone employee reported that operations were still ongoing, though many of her colleagues had already been laid off. She indicated a mix of emotions among remaining staff regarding the sanctions but chose not to openly discuss discontent.

The Future Remains Uncertain

With a troubling picture ahead, CCIC Singapore’s future appears bleak, stricken by sanctions and workforce reductions. The ramifications of the US's drastic measures have left the firm—and its employees—navigating an uncertain and challenging road ahead.