$2b Worth Of Public Projects To Be Pushed Back

Source : The Straits Times, Nov 13, 2007

Govt will also take measures to further relax use of foreign workers, expand contracting capacity.

SEVERAL public projects in the pipeline worth some $2 billion are to be pushed back by at least two years to 2010 and beyond, as part of a government move to ease pressure on construction resources in Singapore and the capacity crunch.

The Government will also further relax employment of foreign workers and take measures to expand the contracting capacity in the construction industry, said the Building and Construction Authority (BCA) in a statement on Tuesday night.

A list of public projects slated for 2008 and 2009 has been identified for postponement. They include the Ministry of Health's National Addiction Management Centre, and Cluster C of the Ministry of Home Affairs' Changi Prison Complex.

But BCA said that essential public sector projects that are "strategic and required for Singapore's continued economic growth, or needed to meet key social needs, such as public housing," would not be affected.

"The postponement of these projects that are worth at least $2 billion in total would help to ease pressure on construction resources in Singapore," said the BCA statement.

"In particular, this is expected to reduce the demand for additional construction manpower required in the next two years by 20 to 40 per cent."

The authority said Singapore's recent strong economic growth has produced a spike in local construction activities. Building demand is expected to reach between $19 billion and $22 billion this year, and is likely to sustain at this high level in 2008 and 2009.

The bulk of the construction activities and resources in the next two years is expected to be concentrated on mega projects such as the Integrated Resorts, Marina Business Financial Centre, Downtown MRT Line and petrochemical plants.

"The sharp increase in construction demand coincides with a global surge in construction activities, especially in China, India and the Middle East. Thus, there is great pressure on construction resources and our local building capacity," said BCA.

One the mega projects have been completed, more construction resources and capacity will be available for other new projects beyond 2009.

In the meantime, to ensure adequate construction manpower, BCA said some measures have already been introduced to expand supply of workers, such as increasing the testing capacity of BCA's Overseas Testing Centres at the source countries, and expanding the list of acceptable foreign qualifications for qualified site supervisors.

Several manpower policies have also been relaxed to facilitate the entry of foreign workers at various levels, such as the exemption of experienced foreign workers from man-year entitlement requirements, the increase in the Dependency Ratio and quota for S-passes, etc.

"BCA will monitor the manpower situation closely and the Government will further adjust its manpower policies if necessary," said the authority.

BCA is also working with developers and builders in the industry to expand the capacity of existing firms - both local and foreign - in Singapore.

It is exploring the possibility of attracting new foreign contractors, in particular, those in the top-tier and specialist trades, to come to Singapore.

Additionally, BCA will make more easily available and in a timely manner, all the essential information on the construction sector, such as construction demand and prices of building materials.

This will enable the industry to better estimate costs and help reduce uncertainties in construction tenders, it said.