Singapore Government Press Release

Media Division, Ministry of Information and The Arts

36th Storey, PSA Building, 460 Alexandra Road, Singapore 119963.

Tel: 3757794/5

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OPENING ADDRESS BY DR LEE BOON YANG MINISTER FOR MANPOWER AT THE LAUNCH OF CONSTRUCTION MANPOWER 21 COMMITTEE ON SAT, 23 MAY 98, 9.15 AM, PSB BOARDROOM

Good morning ladies and gentlemen.

1. The construction sector is an important contributor to the Singapore economy. Last year, construction output was 8.7% of our total GDP. It is also a major employer of foreign workers. Construction Manpower 21 is an effort to develop a strategy to tackle the manpower and productivity problems confronting the industry.
2. At present, most of the workers in the construction industry are unskilled foreign workers from what we termed the Non-Traditional Sources ie countries such as India, Sri Lanka, Bangladesh and Thailand, etc. Most of the foreign construction workers lack experience in construction work and come without construction skills. This heavy reliance on unskilled foreign workers has resulted in low or negative productivity growth for the construction industry in the last 5 years. The presence of a large population of foreign workers, especially the unskilled, also brings about social problems.
3. The construction industry is further plagued by many irregular practices. For instance, there are labour suppliers who masquerade as sub-contractors. They bring in foreign workers and deploy them to work illegally in other sectors. Some even abandoned the workers after bringing them into Singapore.
4. The Ministry of Manpower has introduced measures to tackle these problems. One example is the new work permit allocation system implemented in Apr 98. Under this system, foreign worker entitlements are allocated directly to main contractors who will apportion them to sub-contractors. This will weed-out the unscrupulous labour suppliers to some extent. We have also with effect from Apr 98 increased the levy for unskilled foreign construction workers. At the same time, we lowered the levy for skilled foreign workers. The aim is to encourage contractors to recruit more skilled foreign workers and to upgrade the skills of their existing workers. As a result, contractors are now sending more workers for skills training and trade testing at the Construction Industry Training Institute. Come August this year, we will implement the basic skills requirement for construction workers. Contractors applying for foreign workers will have to bring in at least 20% foreign workers who have attended the basic skills training course. So far, such training centres have been set up in China, Thailand and Myanmar. More will be set up in other countries over time.
5. At the same time, the Ministry of National Development is planning to legislate for minimum buildability scores in the approval of building plans. Higher buildability will reduce labour requirement and boost productivity. CIDB has been encouraging the industry to adopt more buildable designs. CIDB is also encouraging contractors to invest in mechanisation and innovative methods of construction so as to reduce labour reliance. As a result of these efforts, the buildability scores of projects have improved over the years, mainly in the public sector projects. However, there is still much room for improvement, especially in the private sector projects. MND has recently set up a Committee on Practices in the Construction Industry. The aim is to review the policies, practices and regulations related to the construction industry, with a view to increasing productivity, cost efficiency and reducing the overall dependency on foreign workers.
6. These measures will upgrade the skills level of the construction workforce, improve the buildability of construction projects and deter malpractices in the industry. However, we still need to make a thorough review of the construction industry’s manpower strategy. We need to determine the optimal skills level of the foreign construction workers, the infrastructures to support high buildability and measures which can raise productivity. For this reason, the Ministry of Manpower has decided to carry out a Construction Manpower 21 study. This study will complement MND’s Committee on Practices in the Construction Industry. The aim of Construction Manpower 21 is to achieve a breakthrough in construction productivity, nurture a skilled construction workforce and reduce reliance on foreign labour. We want to develop a technologically advanced and high value added construction industry.
7. We will adopt a partnership approach in the Construction Manpower 21 study. The Committee undertaking the study will be led by Permanent Secretary (Manpower) and will include both public and private sector representation from MND, CIDB, HDB, PWD, PSB, Singapore Contractors’ Association Ltd, Real Estate Developers’ Association of Singapore and Singapore Institute of Architects. Several prominent industry players and academics have also been invited to be part of the study team. By involving experts from both the public and private sector and participants in every aspect of the industry, we hope to come up with an integrated vision for the construction manpower of the future. This will help us to draw up relevant and effective strategies to upgrade the construction workforce and raise construction productivity.
8. I am pleased to launch the Construction Manpower 21 study. I would like to extend a warm welcome to all members of the committee. I am confident that your efforts will produce worthwhile results.
9. Thank you.