Incentives and Grants to Help Construction Companies Manage Labour Costs

Mr Louis Ng Kok Kwang asked the Minister for National Development, given the construction sector's heavy reliance on foreign manpower, what are the specific incentives and grants available to help businesses in the construction sector, especially SMEs, to cope with the increase in the foreign worker levy.

To shift the construction industry away from a reliance on foreign manpower, BCA uses a combination of higher foreign worker levy and grants and incentives to encourage the adoption of productive construction methods.

Since 2010, close to $800 million of funding has been made available to firms through the Construction Productivity and Capability Fund (CPCF). The CPCF supports firms in the built environment sector in areas of workforce development and technology adoption. To date, $400 million have been committed to fund projects undertaken by more than 8,000 firms, of which 90% are small and medium-sized firms.

The Workforce Training and Upgrading Scheme, funded through the CPCF, provides up to 90% funding support for firms to upgrade their local employees. Firms can also receive up to 80% funding support to train and upgrade their Basic Skilled R2 workers, to Higher Skilled R1 workers. In addition, there is a suite of scholarship and sponsorship programmes to help firms attract and develop their local workforce.

Besides worker training, companies can also receive funding support to mechanise their operations and adopt productive technologies and processes.

We encourage the industry to continue tapping on the incentives and grants available to improve construction productivity.