A Singapore-based cargo inspection company with ties to China has entered liquidation proceedings and laid off hundreds of employees following its inclusion in a recent round of United States sanctions targeting companies involved in illicit Iranian oil shipments.
CCIC Singapore, a wholly-owned subsidiary of Beijing-headquartered China Certification & Inspection Group (CCIC), was among 15 entities blacklisted by the US on 13 May. The firm is alleged to have assisted in obscuring the origin of Iranian oil destined for China, including through document falsification and inspection of sanctioned shipments.
According to employees affected by the layoffs, staff across all departments were informed of their termination on 30 May, with immediate effect the following day. The company, which reportedly employed over 400 staff across Singapore and Malaysia, had more than 300 personnel based in Singapore alone.
Employees disclosed to CNA that the company had delayed payment of May salaries, citing pending liquidation. Retrenchment notices provided to staff indicated that severance packages would be calculated at two weeks’ salary per year of service. Surveyors, in particular, expressed concern, as their income is heavily reliant on overtime and allowances, with junior staff reportedly earning under S$1,000 per month and senior surveyors between S$1,000 and S$1,500.
The firm is not unionised. Several affected individuals have sought assistance from the National Trades Union Congress (NTUC) and the Tripartite Alliance for Dispute Management (TADM).
In a statement responding to media queries, Ms Marilyn Chew, Executive Secretary of the Shipbuilding and Marine Engineering Employees’ Union (SMEEU), confirmed CCIC Singapore’s non-union status. Nonetheless, NTUC’s affiliated unions, including SMEEU, are extending support to affected workers.
This support includes facilitating claims through TADM and offering access to NTUC’s Employment and Employability Institute (e2i), which provides job matching, career coaching, and skills upgrading. Additional resources include the SkillsFuture Jobseeker Support Scheme, offering up to S$6,000 over six months, contingent on participation in job-seeking activities, as well as the Union Training Assistance Programme to subsidise training costs.
CNA has reached out to CCIC Singapore, its parent company in China, and Singapore’s Ministry of Trade and Industry for further comment.
Details of US Sanctions and Alleged Violations
CCIC Singapore, established in 1989 and registered at Singapore Science Park, counts major energy companies such as Shell, BP, Total, and Exxon Mobil among its clients. Its parent organisation, CCIC, is a Chinese state-owned enterprise under the supervision of the State Council’s State-Owned Assets Supervision and Administration Commission.
The US Treasury Department sanctioned the company for allegedly helping Iranian military-linked entity Sepehr Energy conduct oil shipments to China. In 2024, CCIC Singapore is reported to have inspected a 2 million-barrel transfer of Iranian oil and likely falsified documents to present sanctioned cargo as Malaysian crude.
The US government asserts that proceeds from Iran’s illicit oil trade support ballistic missile development, drone production, and terrorism financing. The imposed sanctions freeze any US-linked assets and prohibit business interactions with US entities or the financial system. Companies majority-owned by sanctioned entities are also automatically blocked.
Employee Discontent Over Communication and Support
Displaced workers said they were unaware of the company’s alleged violations until clients began cancelling job orders shortly after the sanctions were announced. Employees voiced frustration over inconsistent internal messaging and the absence of leadership engagement during the crisis.
Internal communications show that on 14 May, employees received an email stating that CCIC’s headquarters was committed to supporting operations, with plans to establish a new entity under which staff would be transferred with no disruption to roles or pay. This was followed by another email a day later instructing staff to disregard the earlier message, citing an “internal restructuring initiative” but maintaining that salaries and claims would be honoured.
On 16 May, department heads were asked to identify key staff as the company began preparations for downsizing. They were informed that frozen bank accounts meant retrenchment benefits could not be paid. By 23 May, employees were notified that salary disbursement would also be delayed and that the managing director was heading to Beijing for high-level discussions.
Retrenchment notices were formally issued on 30 May, indicating that benefits would only be fully paid upon completion of the liquidation process, estimated to conclude by 30 June 2026.
Employees have questioned why the firm’s Singapore-based assets could not be liquidated to meet payroll obligations and criticised the lack of support from the parent company in China. One employee expressed disappointment in the leadership, saying, “When your children are in trouble, rightfully, the parents should rescue them. Why aren’t the HQ rescuing us?”
-CNA
