Prices and Adequacy of Bed Space in Migrant Worker Dormitories

Mr Liang Eng Hwa asked the Minister for Manpower (a) whether prices of bed space in migrant worker dormitories have increased; (b) how have prices changed between pre-COVID-19 pandemic and today; and (c) whether the supply of bed space is able to meet the demand from businesses.

The average monthly rental price of dormitory beds has increased from $272 pre-COVID-19 to $316 for new contracts signed in September 2022. This is caused by a number of factors. First, dormitory operators face higher operating costs, which have risen in line with broader inflationary pressures.

Second, there has also been strong demand for bed spaces at migrant worker dormitories. As the economy recovers from COVID-19, employers have been hiring more migrant workers to catch up on projects that were delayed by the pandemic. The number of Work Permit holders in the Construction, Marine and Process (CMP) sectors has increased by 23% since January 2022 and is almost 10% higher than pre-COVID-19 levels.

Employers can consider options, such as applying to build more construction temporary quarters and factory converted dormitories. However, as the numbers of workers in Singapore are already significantly higher than pre-COVID-19, they cannot keep rising. Employers should secure housing for their workers before their arrival in Singapore and take into account their ability to house new workers before they take on more projects.