Measures Taken to Restore Manpower Supply to Pre-COVID-19 Levels for Construction Companies

Mr Shawn Huang Wei Zhong asked the Minister for National Development (a) when can construction companies expect the manpower supply crunch to improve and be restored to pre-COVID-19 levels; and (b) what are the measures taken to restore the manpower supply.

The Government has implemented several measures to alleviate the tight manpower situation for construction firms. First, we have made it easier for firms to retain their existing workers. MOM has allowed Work Permit Holders (WPHs) whose work permits are expiring between July and December 2021 to renew their permits for up to two more years. This includes WPHs who are reaching their maximum age and/or maximum Period of Employment. MOM has also partnered the Singapore Contractors Association Ltd (SCAL) to introduce a retention scheme to match interested employers with experienced construction WPHs whose work passes have expired or been cancelled, but who are willing to continue working in Singapore.

Second, we have helped firms to bring in new workers. BCA has worked with MOM to temporarily allow new construction WPHs from the People’s Republic of China (PRC) to obtain their skills certification in Singapore instead of at Overseas Testing Centres in the PRC, from 7 May 2021 until the end of this year. This temporary flexibility has been extended to other approved sources of construction WPHs, on a case-by-case basis.

The industry has also taken the lead through an Alliance for Action (AfA) approach to bring in more workers safely through a tightened end-to-end process. This involves protocols such as a stringent COVID-19 testing regime over a 14-day period for workers in source countries before they depart for Singapore, to minimise the risk of importing COVID-19 cases. From 1 November 2021, the industry can also apply to bring in vaccinated WPHs from countries such as India and Bangladesh. However, longer waiting time for this latter channel should be expected due to high demand.

We will continue to work with the construction industry to bring in more workers safely to meet the needs of key ongoing projects, such as HDB’s BTO projects, in the coming months. However, the industry will also need to reduce its reliance on migrant workers and move decisively away from labour-intensive construction methods for new projects, rather than reverting to pre-COVID-19 norms of building. We encourage firms to take this opportunity to transform, and tap on available incentives such as BCA’s Construction Productivity and Capability Fund (CPCF) and Productivity Solutions Grant (PSG) to improve their productivity, so that the construction industry can be more resilient.