Proposal to Subsidise Small Sub-contractors in Built Environment Sector to Bring In Foreign Manpower

Mr Kwek Hian Chuan Henry asked the Minister for National Development whether the Ministry will consider subsidising small sub-contractors and specialists in the built environment sector to bring in foreign manpower to lower the cost of bringing in workers from non-traditional source countries.

The Government has put in place a wide range of support measures to help construction firms cope with the disruptions brought about by COVID-19, particularly those related to manpower shortage. These support measures are available to all construction firms, including sub-contractors and specialist builders.

For instance, the Government recently announced that the $250 Foreign Worker Levy rebate for all Work Permit Holders in the Construction, Marine Shipyard and Process (CMP) sectors will be extended until 31 March 2022. In addition, the waiver of Foreign Worker Levies for all migrant workers during their entry Stay-Home Notice period and the residential onboarding programme at MOM’s Migrant Worker Onboarding Centres will be extended until 31 December 2022.

The Government has also extended the relief period under Part 10A of the COVID-19 (Temporary Measures) Act until 31 March 2022. This allows contractors to seek a determination from an Assessor to adjust their contract sums to address the increase in foreign manpower salary costs due to COVID-19.

These support measures are meant to be temporary and will be reviewed as the sector continues to recover and as we shift towards living with COVID-19. In this regard, we are encouraged to see signs of recovery. For instance, BCA has observed that industry-level certified progress payments have almost reached pre-COVID levels. The manpower situation has also been improving. In November and December 2021, a monthly average of about 18,000 S Passes and Work Permit Holders from the CMP sectors entered Singapore, compared to a monthly average of 3,000 CMP workers between May and October 2021 when travel restrictions and tightened entry approvals were in place. We will continue to work with firms to bring in workers safely to meet the needs of the industry in the coming months.

We encourage firms to take this opportunity to transform their businesses and work processes, such as by adopting automation and digitalisation to improve productivity and reduce reliance on labour intensive methods of construction. Firms can tap on available incentives such as BCA’s Construction Productivity and Capability Fund and Productivity Solutions Grant.