Desmond Lee
Singapore
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Every one of 3,698 lines we hold for Desmond Lee, in date order, each linked to its source. Free to read, in full, without an account. Page 43 of 74.
“Madam, I had said both at COS as well as just moments ago that we are looking at making significant changes to the foreign manpower strategy for the construction sector. We have steadied the sector for it. They recognise that this is going to be painful. But we will make some significant moves starting from next year, including doing away with the MYE framework, moving to one in which it biases towards more productive offsite work. And there are opportunities then for Singaporeans to come into the sector. And not just raise the wages of the foreign workers. But even those foreign workers working offsite will have to be more skilled to operate the machinery and, therefore, the wages will have to be higher – because they are more productive and more skilled. But the same time, we will also tighten on the dependency ratio ceiling. We are studying how to make those moves to push the sector to be more lean. We are pushing on multiple fronts, not just on worker numbers and quotas; not just in making it expensive to construct. But it has to be more productive and command better salaries. The Member spoke earlier about a proposal that his colleague Mr Gerald Giam did not yet make to this House. So, I thank him for his clarification. It is a proposal, I presume, we will be expecting shortly. And I presume MOM will be looking forward to that. But I remember the Member saying in his speech that it is important to retain the existing foreign workers in Singapore. I am fully in agreement with him. My colleague from MOM will also agree.”
“We will keep them in our sector, keep them here, to supplement the core of Singaporeans that we want to build for the sector. And I seek the Members' support for this.”
“I thank the Member for clarifying that his proposal is to replace general foreign workers – the R1 and R2 workers who do the building onsite – with Singaporeans. And he is focusing principally on those who are doing food delivery. Our approach is different. Our approach is different. Our approach is in recognition that the processes need to be significantly re-orientated. The processes need to be changed and enhanced in order to create a good job for Singaporeans – a job which commands the level of productivity and skills that warrant the kinds of pay that I think the Member is talking about. He does not have a figure but he is talking about increasing the pay until a threshold where Singaporeans come in. Whereas for him, he thinks if you increase the pay, Singaporeans, including delivery drivers and riders, will do the jobs that current workers from India, Bangladesh and other source countries are doing, as they are. But what we are saying is that, yes, we need to pay the Singaporean more, but the job has to be different and it is not just as the Member suggests – architects, engineers or consultants but even builders. Even builders. But that requires mechanisation and automation. I visited once an Integrated Construction and Prefabrication Hub (ICPH), which is a precast hub yard. They are actually building rooms, building panels for construction and Singaporeans are doing those jobs. But it is very different from the kind of job that the Member envisions Singaporeans will be doing. So, it is a different strategy. At the end of the day, even as we automate, even as we increase productivity – as both Mr Leong Mun Wai and Assoc Prof Jamus Lim say we should – there will still be a need for some foreign workers. We hope they will be more skilled.”
“Unlike some other countries, Singapore needs to preserve jobs and capabilities by staying connected to the world. We will continue to carefully monitor the economic situation as well as the global health situation and make adjustments as necessary. Mdm Deputy Speaker, in conclusion, the amendments before the House today are an important part of our overall support package for our construction sector in view of the manpower crunch brought about by the pandemic. I thank Members and all our industry stakeholders for their strong support for these measures.”
“And he makes a number of other points and I am tussling over whether to spend more of this evening, during the Second Reading to address them. But he talks about cooling the property market by increasing the ABSD and then taking that money to pay for the cost increases and then using the money also to fund more HDB rental flats. I wanted to address them but I think it may be better if the Member raises a Motion, puts up his ideas, sets out his sums as to how much more ABSD he wants to raise. Is it for Singaporeans? Is it for PRs? Is it for foreigners? And how much does he think it will yield? And how much will it go in addressing all the strategies that he has set out in his speech earlier? Finally, in response to the Leader of the Opposition, I just wanted to clarify whether he supports bringing in foreign workers at this time, bringing in more workers, in order to keep the flow of manpower to the construction sector going? Because he spoke to many contractors who were concerned about the current situation. And does he then support bringing in more foreign workers or does he want to freeze the growth of foreign workers into Singapore? Madam, I would like to say that I agree with Prof Hoon Hian Teck. He made a good speech. He said that our approach has to be adaptive and strike a balance between two imperatives: saving lives and protecting livelihoods. That is a truism. But, indeed, these are complex, dynamic and fast-changing trade-offs that we have had to consider in managing this pandemic. Minister Lawrence Wong explained how the Multi-Ministerial Task Force has sought to steer us through all of this uncertainty in his Ministerial Statement earlier today.”
“What we are saying is that because the costs have increased beyond their expectation at the point in time when they bidded for these contracts, should we or should we not pass legislation to facilitate the sharing of these additional costs? A framework which nudges dialogue and discussion but, beyond which, we put in an adjudicatory framework to ensure that costs are fairly shared. These are abnormal times calling for superhuman efforts to keep Singapore going. This is so, even in the construction sector, but especially in this sector, which is so interwoven, which touches Singaporeans' lives on almost every front: building of your homes, building of your roads, building of your public transport, building of the facilities, including the medical facilities that are so critical in the fight against COVID-19. And so, I ask Mr Leong Mun Wai, because I seem to get the sense from him that he does not support this Bill, does not support bearing some of the burden that Singapore contractors are suffering under, does not support bringing in foreign workers in order to help the sector cope during this period. Because I recall him saying, "Do not bring in foreign workers. Let the contractors take this time during this crisis to learn how to live with less foreign workers." I hope I was mistaken but perhaps the Member could confirm: does he support this Bill? Does he support the need to help the whole sector during this time? Does he support the need to alleviate the suffering and pain that the construction sector is under, which will then have knock-on effects on home buyers, property buyers and companies and businesses who are waiting for their properties? So, that is critical.”
“We award to Singaporeans in ITE, Polytechnic and University, scholarships for young, bright, energetic, Singaporeans who want to venture into this sector, into architecture, into building, into M&E, into the digital space for construction. We pay the bulk of the scholarship, more than 80% of their studies. The industry pays up to 20%. And they are bonded to the Singapore firm in order for Singaporeans to be injected into these firms and to grow with these firms. And so, all these are efforts that are publicised, these are efforts that are known that we talk about in this House. I would invite Mr Leong Mun Wai to come and have a chat with us so we can tell him a bit more about these efforts and we hope he will support them wholeheartedly in growing a strong local core in our construction sector. But that is multi-year work. It involves changing mindsets, it involves changing the way firms work, the way firms work with other firms, it involves the Government. But I think that, at the crux of it today, this Bill, essentially, is about this crisis that we are facing. So, yes, in the mid to long term, we will put in a lot of effort, as we have done over the last few years, to transform our construction sector end-to-end. But in the meantime, what is this House asked to decide at the end of this night? And that is our sector, construction firms, Singapore firms, construction firms which are faced with a severe manpower crunch, asked to deliver projects, that notwithstanding all the support the Government has given on various fronts that I have articulated, they are short of workers.”
“Old timers who have seen how construction has moved from 2D to 3D using automation; and young entrants, being very excited that the construction sector is becoming far more high-tech, digitalised, connected, interconnected, multi-disciplinary. All this work is happening at great speed but we are pushing hard. And about productivity, Assoc Prof Jamus Lim felt that productivity in the sector had not improved despite efforts. As a result of the efforts over the many years, both regulatory efforts, for example, when we pushed up the buildability score, builders have to meet with certain buildability score before they are allowed to build GLS sites with preconditions of productivity and methods of construction before you can develop the land. All these efforts, including the grants in the Construction Productivity and Capability Fund (CPCF), the new Growth and Transformation Scheme, our PIP scheme – all these are a suite of measures. Regulatory, land-sale related, skills upgrading, grants, grants for individuals, grants for firms and, now, grants for the whole alliance of the value chain. All these are efforts to transform our sector. But because the construction sector is a long value chain, it does take time, it does take resolve and no one firm can do it on its own. As for Mr Leong Mun Wai's sense that there are no efforts to bring Singaporeans into this sector, apart from asking him to read Minister of State Tan Kiat How's speech outlining those efforts, precisely those efforts, just a few months ago, I would also share that we have a BCA Industry Scholarship year after year.”
“0, since 2017, where we brought developers, contractors, consultants, academics and unionists all together to work on, it is not just the price or the availability of foreign manpower, but ensuring that we digitalise the whole sector, that we put in significant investments in technology, that we fund, grant, support and train our sector, in order to design for manufacturing and assembly, that is, bring into Singapore, into our construction sector, a whole new way of construction that is far more productive, that involves advance precast that can be done off-site. And I would ask both Members, Assoc Prof Jamus Lim as well as Mr Leong Mun Wai, to look at and read our ITM and tell us whether they fully support it. In fact, during the Committee of Supply (COS) this year, both Minister of State Tan Kiat How and myself took pains to explain again our efforts to transform the sector and create good local jobs for our graduates, for our diploma holders and our ITE certificate holders, in order to push the sector forward. Mr Leong's point that the Government makes no effort to push productivity in the construction sector, that we do not create local jobs or create opportunities for Singaporeans, befuddles me. I was just exchanging notes with Minister of State Tan Kiat How because, during COS, that was really the gist of what we were saying. And if the Member would read and re-read Minister of State Tan Kiat How's speech, he gave example after example of Singaporeans who were describing their journey into the construction sector, seeing how the sector has evolved, how technology has created a niche for them, enabled them to build more productively.”
“BCA will also continue to engage industry stakeholders on their concerns, including on availability of credit that Mr Henry Kwek mentioned. But all of these are short-term stop-gap measures – foreign worker levy rebates, cost-sharing, grants. These are all measures to help stop the bleed, as I said. Fundamentally, as I have said repeatedly, both here in this House and also in other settings, we need to work closely with the industry to continue our multi-year effort to transform the sector to become more productive, to grow good local jobs, to reduce overall reliance on low-skilled foreign manpower, for longer term resilience and sustainability. And in that regard, I would, in a way, like to thank both Assoc Prof Jamus Lim and Mr Leong Mun Wai for supporting the efforts that we have been undertaking since 2017 to push for a holistic transformation of the construction sector, from end-to-end. Assoc Prof Jamus Lim emphasised that by raising the cost of foreign workers, that, in his view, will push employers and contractors to spend more on capital investments to be more productive. Well, we agree with him to an extent but, actually, go a lot further than that. If you look at the Industry Transformation Map (ITM) for the construction sector, both 1.0 and 2.”
“In any event, in order to manage the overall tender prices for both public and private sectors, I had mentioned earlier in my speech that the agencies are working with the private sector to work on both public and private construction procurement projects going forward. Because what we have seen during this crisis is that contractors are buffering up for uncertainty because they do not know what twists and turns there are in the road ahead, as many of them had found to their detriment in the last year. And, therefore, tender prices, as a whole, for both the public and private sectors, we see an increase. With such a contract in place, if we can reach an agreement, it will enable contractors to be assured that uncertainty will be cost-shared between the client and the contractor. And we hope that will then provide more assurance to contractors as they bid for new contracts, whether it is a BTO project, whether it is a public sector infrastructure project or whether it is a private sector project. So, all in, to put in clauses in our standard contracts to enable there to be some fair cost-sharing for uncertainty. I speak broadly. The details will follow as the agencies and our partners reach precise language. Mr Yip Hon Weng asked the Government to consider more measures to help contractors, such as enhancing the Jobs Support Scheme for the sector, further reducing the foreign worker levy and providing additional time for project completion. As I have mentioned earlier, we have already intervened significantly and put together a suite of support measures to help the construction industry to cope with the challenges brought about by the COVID-19 pandemic. We will monitor the impact and review if additional support is required as the situation evolves.”
“Mr Kwek also suggested postponing the construction phase of new projects, given the reduced supply of manpower. This is, indeed, something we are looking into for public sector projects. But we need to calibrate this carefully. We need to deliver homes and infrastructure, such as public transport. And we also want to ensure that there is a pipeline of work for our construction sector, so that we retain capacity during this crisis. Mr Kwek also rightly pointed out that we need to prepare for potential further restrictions on construction works, given the fluidity of the current COVID-19 situation. I would like to reassure the Member that BCA is working with the relevant agencies on contingencies and drawer plans. I also thank the Member for acknowledging the hard work put in by our officers in helping the industry through this crisis. It has been a difficult time for them and also for the sector as a whole. We will certainly continue to support and encourage our officers as they persevere with these efforts. I will take this opportunity to address the query by the Leader of the Opposition about the impact of the COTMA amendment Bill on BTO prices. It is important to set into context. The Bill relates to construction contracts before October 2020; so existing contracts. And those BTOs that have already been sold are already sold. The prices will not change. Likewise, for new BTO contracts, we do not price HDB BTOs to recover construction costs or land costs. Certainly, it will cost more as a whole but this is not a factor in determining the price that we set for BTO prices.”
“But we must consider the COVID-19 situation in these countries, as well as the construction industry’s demand for workers from such sources. Adding more sources may not necessarily be the solution, as the pandemic seems to be worsening globally. Regarding Mr Henry Kwek’s suggestion to set up forward operating bases, BCA is actively in discussion with trade associations and industry partners who are exploring upstream ways to ensure the health and safety of the foreign workers that they recruit, while meeting Singapore’s more stringent public health stance. In addition, Mr Kwek suggested increasing the allowable age for foreign workers from 50 to 55, and to 60 with regular medical reviews. He also asked whether workers can be allowed to work longer if they can have more rest due to the decreased work intensity during weekdays. To clarify, MOM already allows existing Work Permit holders to renew their work permits with their current employers up to the age of 60. For workers above the age of 50 who wish to change employers but are unable to do so due to the age limit, MOM will assess appeals on a case-by-case basis. As for working longer hours, it is important for workers to get sufficient rest for their well-being and their safety. And that is why the Employment Act stipulates that the normal hours of work should not exceed 44 hours per week. In addition, employers must not make their employees work for more than 12 hours a day, including overtime, with a limit of 72 hours of overtime in a month. Extending working hours beyond this could lead to fatigue and compromise workers’ safety. Moreover, we all know they have been through an extremely difficult time last year and, still, they are subject to stringent safe management measures.”
“We had earlier provided a 12-month extension of the PCP and ABSD remission timeline for commencement and completion and a six-month extension to the remission timeline for sale, to account for delays due to COVID-19. We will continue to monitor the impact of the COVID-19 pandemic on various stakeholders, including developers, and take further steps as necessary. Mr Louis Ng referred to BCA’s recently announced scheme to temporarily allow new China construction Work Permit holders to enter Singapore to work first, and then, take their skills certification test locally, instead of in China. He asked if the Government could consider introducing similar temporary exemptions for other countries. To provide some context, BCA had earlier consulted the industry on possible measures to help alleviate the manpower crunch in the construction sector. SCAL, the contractors association, had suggested exercising flexibility on the skills entry requirements, in particular for PRC Work Permit holders, as they are highly skilled in key trades, such as carpentry and structural works, as compared to workers from other countries. Taking this feedback onboard, BCA worked with MOM to roll out this temporary flexibility to help facilitate the entry of PRC Work Permit holders. BCA will discuss with the industry to assess if this approach can be extended to workers from other approved source countries and examine carefully this proposal. Mr Louis Ng and Mr Henry Kwek asked whether the Government can consider new sources from which to recruit construction Work Permit holders. We are prepared to consider various options to alleviate the current manpower crunch facing the whole sector.”
“But I do agree with the Member that we need to adopt an even stronger collaborative posture during this crisis. As I have said during the opening speech, at this time in the sector, where there are many interlocking relationships of many stakeholders, if one goes down, the entire project is in peril, and we all have to lean forward and help one another. This applies to both Government agencies as well as private developers. In fact, when the crisis started last year and construction work had to be shut down for some months, we formed a working group comprising Government agencies and trade associations like SCAL and REDAS. At the start, we met every day digitally, then on a weekly basis; and now, we still meet once a month to better understand the situation on the ground, the dynamic situation, as it evolves, to flag issues up and to work together to resolve them practically. We have also asked Government agencies to lean forward to help contractors through this difficult period. Several agencies have gone above and beyond our previously announced measures to help contractors, such as granting even more extensions for contractors to complete their projects. Notwithstanding this, we are looking at ways to simplify the process for public sector projects, similar to what we have done for the non-manpower prolongation cost claims, as well as the additional extensions of time, where direct disbursements and extensions were given respectively, without the need for extensive or prolonged negotiation. Mr Henry Kwek suggested extending the Additional Buyer’s Stamp Duty (ABSD) remission timeline for developers, to relieve pressure on them, too.”
“Mdm Deputy Speaker, I thank all the Members for their comments, their ideas, both to tackle the immediate situation that is confronting our construction sector and the impact on home buyers, but also the suggestions that Members have made in regard to the mid- and long-term future of construction here in Singapore. Let me address the issues raised. Mr Louis Ng was concerned about public sector expenditure and about fiscal prudence. The pandemic has, indeed, driven up manpower costs for contractors. So, we need to share some of this burden. But in doing so, I agree with him that agencies will need to maintain fiscal discipline. When adjudicating claims, the Assessors will take into consideration the amount of support that has already been provided, such as foreign worker levy rebates and other forms of support, in determining what a just and equitable outcome of manpower cost-sharing should be. Mr Yip Hon Weng spoke about the need to engage developers and contractors to better understand their difficulties and not just press them to complete their projects as if it was business as usual. And he had given some examples he heard anecdotally about the agencies using a template to press contractors. I seek the Member's support to provide specific details so that we can look into these concerns that have been raised. Based on what we know so far, the only template our agencies had been circulating to contractors is one with regard to prolongation cost submissions. In fact, the agencies are pressing the contractors to submit their claims for prolongation costs, because these agencies want to lean forward to help these firms cope with the non-manpower related cost increases in these projects. So, perhaps, for us to check the facts.”
“We will continue to work with the industry to quicken the pace of transformation. These structural changes will be painful, but they are necessary to ensure that the industry as a whole can emerge more resilient and more productive from this crisis. Mdm Deputy Speaker, I beg to move. [(proc text) Question proposed. (proc text)]”
“This alliance approach seeks to uplift the entire value chain because, given the heavy interdependencies between different segments of the value chain in construction, it is difficult for any one firm to effect significant transformation entirely on its own. We plan to roll out the Growth and Transformation Scheme with a few alliances first, starting in the second half of this year. We have also extended the Construction Productivity and Capability Fund, or CPCF, by one year until March 2022, and will maintain the enhanced co-funding support of 80% under the Productivity Innovation Project, or PIP scheme. This will support our industry in its recovery from COVID-19 and help our firms minimise disruptions to their operations by leveraging DfMA and IDD technologies and other innovative, productive processes. In addition, we will review our foreign manpower levers for the construction sector. As previously announced, we intend to remove the Man-Year-Entitlement (MYE) framework in the near future and replace it with a system that incentivises more productive off-site work. We are also studying the reduction of the construction Dependency Ratio Ceiling, or DRC, to support more manpower-lean construction. We will continue to consult our industry partners before making any major moves. Mdm Deputy Speaker, let me conclude. This Bill will facilitate more equitable sharing of the increase in foreign manpower costs brought about by COVID-19 amongst parties to existing contracts. Taken together with our other measures, it will help alleviate the significant stresses that the construction industry is currently facing due to the manpower crunch. But even as we deal with these near-term challenges, we must keep our eyes on the future.”
“That is why we want to work with the construction industry to press on with on-going efforts to transform the sector and accelerate the pace of change, even as we put in place measures to support the industry during these difficult times. This latest disruption in inflow of migrant workers has shown how vulnerable the construction industry is, because of our over-reliance on low-cost migrant workers. We must build greater resilience in our sector, create more good, productive local jobs and move decisively away from manpower-intensive construction methods. We have already started this transformation some time back, with the launch of the Construction Industry Transformation Map in 2017. At MND's Committee of Supply debate in March this year, we had announced a suite of initiatives to partner the industry in accelerating the pace of transformation. For example, we will adopt a value chain approach to drive transformation through the new Growth and Transformation Scheme. The scheme recognises that the construction industry works through value chains. It will, therefore, support alliances of firms all along the value chain, from developers and consultants to builders and contractors. Each alliance will develop a business plan to achieve ambitious outcomes in productivity and digitalisation. This would be through the use of productive methods of construction, including Design for Manufacturing and Assembly (DfMA), and technology, such as Integrated Digital Delivery, or IDD, as well as efforts to enhance sustainability, workforce development, including the creation of local jobs, business growth and strategic collaboration.”
“Mdm Deputy Speaker, allow me to say a few words in Mandarin. (In Mandarin): [Please refer to Vernacular Speech.] To prevent COVID-19 from spreading and to safeguard public health, the Government has to strengthen border controls. Because of that, the construction industry is facing a very severe foreign manpower shortage. The Government has already put in place various measures to address the manpower shortage and to support construction firms. These include the recent increase in Foreign Worker Levy rebate and further extension of time for eligible public sector construction projects. At the same time, we are aware that there is a need to provide support for existing construction contracts where parties may not have adequately priced in this unexpected increase in foreign manpower cost for their construction works. The proposed amendments to the COVID-19 (Temporary Measures) Act aim to allow parties, such as contractors, to apply to adjust the contract sum for their projects in view of the foreign manpower cost increases. An assessor will examine each case and determine whether the contract sum needs to be increased. However, contractors must first try to negotiate with their clients before applying for this relief. I call upon all parties to negotiate in good faith before triggering this process. (In English): Madam, I have spoken about many of the measures that the Government has implemented to support our construction industry through this pandemic. But the reality is that these are just stop-gap measures to try to staunch some of the bleeding. They are not sustainable in the long run.”
“Moreover, many of the developers and contractors in the construction sector have long-term relationships. At the end of the day, all stakeholders are part of the same built environment eco-system and, on a project, all parties seek to deliver on that project. And for this eco-system to thrive and grow, stakeholders need to step up to help one another during these challenging times. We encourage all parties affected by the pandemic to negotiate with each other in good faith, before triggering the adjudicatory process set out in this Bill. We have, anecdotally, seen such "give and take" in the sector already. For example, some developers we know have given their contractors an extension of time beyond what had been mandated in the existing COTMA for the completion of on-going projects. Some have also provided advanced payments and increased the frequency of progress payments to aid contractors’ cashflow and to keep projects going. The new Division 2 of the Bill sets out the processes of the relief framework. Section 79F details how a party can apply for an adjustment to the contract sum. For example, parties who wish to seek relief must apply to the Registrar to appoint an Assessor who can then determine the adjustment. The new section 79G explains how an Assessor will determine an adjustment. For example, the Assessor must seek to achieve an outcome that is just and equitable in the circumstances of the case. The Assessor must also consider matters and principles that will be prescribed in the subsidiary legislation. For example, in arriving at a just and equitable decision, the Assessor should take into account all the facts, including the loss suffered or benefit obtained by any contractual party, such as levy rebates.”
“This provides a relief framework that will allow parties, such as contractors, to apply to adjust the contract sum for their projects, to take into account increases in foreign manpower cost due to COVID-19. The new section 79B defines the scope of the contracts covered by this framework. First, it will apply to contracts for construction works. These are contracts of longer duration that generally involve structural works and are most likely to be affected by the foreign manpower crunch. Second, it will apply to construction contracts entered into before 1 October 2020. Parties may not have fully priced in foreign manpower cost increases before this date, as there had been substantial Foreign Worker Levy waivers and rebates provided by the Government up to that point. And third, it excludes contracts that have been completed or terminated. The new section 79C sets out the scope of the relief. This specifies the period subject to relief, which will be from 1 October 2020 to 30 September 2021, or any extended date as may be prescribed, to tie in with the current end points of relief periods under Part 2 and Part 8B of the Act. It also makes clear that the purpose of the adjustment is to take into consideration the increasing foreign manpower costs of Work Permit holders incurred due to COVID-19 during the relief period. Additionally, it states that a party must have made a reasonable attempt to negotiate a contract sum adjustment with the other party, before he can apply for an Assessor to determine the adjustment. This is an important point. Construction projects involve many parties, often in long interlocking contractual value chains, and if one goes down, the entire project may be put at risk.”
“In January this year, we had also set up a task force, led by BCA and comprising Government agencies, consultants, as well as trade and professional associations representing developers, contractors, quantity surveyors and architects. The task force is studying how to enhance our standard construction procurement contracts in both the public and the private sectors to mitigate the impact of the current pandemic as well as future crises. For example, we have received feedback that contractors have been buffering for risks in their current tender bids for uncertainty, which has resulted in an increase in tender prices for new contracts. This is understandable as they are worried about unanticipated cost increases due to unexpected developments, twists and turns, during the course of the pandemic. Our new construction contracts ought to enable more equitable risk and cost sharing during pandemic events and crises of this nature. Everyone along the value chain will need to step up and share the burden of uncertainty and help one another get through these challenging times together. At the same time, there is still a need to provide support for existing construction projects, where parties may not have adequately priced in the unexpected increase in foreign manpower costs. That is why we are introducing the COVID-19 (Temporary Measures) (Amendment No 3) Bill this evening. The Bill seeks to facilitate sharing of the increase in foreign manpower costs between project parties. This is to ensure that no one single stakeholder group in the construction industry bears a disproportionate share of the burden imposed by COVID-19. Let me now take Members through the key features of this Bill. Clause 3 of the Bill introduces a new Part 10A to COTMA.”
“First, we have granted an additional 49-day Extension of Time (EOT) for eligible public sector construction projects, on top of the 122 days or four months of EOT already provided under COTMA last year on a universal basis. This gives contractors more time to complete their projects. Second, contractors working on eligible public sector projects with an awarded contract sum of up to $100 million will receive 0.1% of their awarded contract sum for every month of delay as payment for non-manpower related qualifying costs under COTMA. There is no need to provide further detailed substantiation for their claims. Third, we have increased the existing Foreign Worker Levy rebates for Work Permit holders from $90 per worker per month to $250 per worker per month, for the period May to December 2021. Measures such as these will help firms to cope. But the crux of the current problem is limited inflow of workers. Hence, fourth, we will temporarily allow new PRC construction Work Permit holders to enter Singapore to work first and take their skills certification tests locally, instead of in China. This will allow firms to continue bringing in workers for their projects even though some Chinese Overseas Training Centres had halted operations due to the pandemic. In addition, we have been proactively working with industry associations and firms to explore other ways to resume the inflow of construction Work Permit holders from other source countries safely. We will continue to work with them on additional measures to help alleviate the tight labour situation.”
“Part 8C of COTMA will also allow developers whose projects face construction delays to seek relief on the date of delivery of possession. For home buyers, Part 2 of COTMA prohibits developers from withholding or forfeiting any part of the booking fee paid by home buyers under the Option to Purchase during the relief period, or terminating agreements for sale and purchase of the property because the home buyer was not able to make payment. We also capped the late payment interest and charges under agreements for sale and purchase of property, to protect home buyers. In addition, under Part 8C of COTMA, where the developer has extended the delivery date, home buyers may also seek reimbursement from the developer, up to a specified cap, if they incur certain out-of-pocket expenses due to a delay in delivery of the unit by the developer. For HDB flat buyers, HDB has been progressively updating home buyers who have been affected, on the revised completion dates. For those who are unable to make alternative housing arrangements, HDB has assisted them with Interim Rental Housing flats. Now, the manpower situation will be further exacerbated by the recent tightening of our border measures with Bangladesh, India and other countries. As both Ministers Lawrence Wong and Gan Kim Yong have explained earlier today, we have to tighten our border controls to better protect Singapore from heightened COVID-19 risks. And we should expect these stringent measures to be in place for some time, given the worsening situation overseas. In response, we have recently announced more support measures to help the construction industry.”
“For example, we had previously shared that more than eight in 10 of on-going HDB BTO projects have been delayed by about six to nine months beyond the Estimated Completion Dates originally indicated to flat owners during project launches. Barring any unforeseen circumstances, we are expecting a further delay of three months, arising from the recent border measures. We are faced with a difficult balancing act – the more we need to tighten border measures for everyone’s safety, the greater the impact will be on construction timelines, on projects and on home buyers. We had, therefore, intervened significantly since last year to assist the many stakeholders across the value chain that have been affected by rising costs and delays. Let me outline some of these. For construction firms, we introduced a $1.36 billion Construction Support Package last year to help our contractors bear part of the additional costs they had to incur due to construction delays and Safe Management Measures. We had also assisted firms with Foreign Worker Levy rebates and waivers, as well as wage subsidies via the Jobs Support Scheme or JSS, to relieve some of their burden from manpower costs and help keep local jobs. Under Part 8 of the COVID-19 (Temporary Measures) Act (COTMA), we established a mechanism for firms to seek relief from additional rental costs that are incurred due to construction delays caused by COVID-19. And under Parts 8A and 8B of COTMA, we legislated a universal extension of time of four months and mandated the sharing of non-manpower prolongation costs between project parties. For developers, we had earlier provided a 12-month extension of the Project Completion Period and Additional Buyer’s Stamp Duty remission timelines for completion, to account for delays due to COVID-19.”
“Mdm Deputy Speaker, I beg to move, "That the Bill be now read a Second time." Madam, I will first set the context for this urgent Bill before going through its key features. I thank Members for your patience this evening. Our construction industry continues to face significant headwinds due to the COVID-19 pandemic. While most construction work has resumed since August last year, the inflow of migrant workers who form the main bulk of the workforce has remained constrained due to the global impact of the pandemic. We have recently tightened our border control measures with a number of countries, including Bangladesh and India, which are our main sources of construction Work Permit holders. While this was necessary to safeguard public health, it has made the shortage of manpower in the sector even more severe. Compared to pre-COVID-19 levels, the number of construction Work Permit holders has dropped by about 15%, and the number is projected to fall in the months ahead given the on-going COVID-19 situation. In tandem, construction manpower costs have been rising. Based on MOM's data on construction Work Permit holder salaries, median wages in March this year were 15% to 30% higher compared to pre-COVID-19 levels due to competition for the limited supply of workers within the sector. This has affected both new as well as on-going projects. We have also implemented various Safe Management Measures to keep workers safe and reduce the risk of COVID-19 transmission. These are important public health precautions, but they also inevitably impact productivity. This, together with the on-going manpower shortage, has, unfortunately, led to project delays.”
“The number of individuals who have been charged for animal cruelty offences under the Animals and Birds Act since 2016 is provided in Table 1. Of these cases, 22 individuals have been convicted as of April 2021, and 11 of them have been sentenced to imprisonment. The types of animals involved in these cases are primarily cats and dogs.”
“We recognise that many single unwed parents are in the situation not out of choice, but out of circumstance. MND announced at the Committee of Supply debate in March 2020 that we will assist single unwed parents who approach HDB with their housing needs, and that each case will be assessed holistically. For those who are in stable employment and can afford to buy a flat, we will allow them to buy up to a 3-room flat in a non-mature estate. For those who have insufficient finances and need a place to stay, we will continue to consider them for public rental if it is in their child’s best interests, taking into account inputs from social workers if necessary. Between 2017 and 2019, HDB received an average of about 50 requests from single unwed parents to purchase a new flat from HDB. About 70% of these requests were rejected. Following MND’s announcement, HDB received about 200 such requests from single unwed parents in 2020. About 30% of these requests were rejected. The top reasons for rejections were not submitting the necessary documents for assessment and insufficient budget to buy a flat.”
“Temporary workers’ quarters (TWQs) are required to comply with the relevant codes and standards for temporary buildings. For example, under the Building Control (Temporary Buildings) Regulations, temporary workers' quarters (TWQs) are required to comply with requirements for lightning protection and ventilation. For TWQs exceeding one storey in height, a Professional Engineer (PE) is required to design the TWQs in accordance with the relevant codes and standards, which includes requirements for structural design and construction materials. The PE is required to supervise the works to ensure that the TWQs are built according to the PE’s design and BCA’s requirements. BCA conducts inspections on completed TWQs located at or near construction sites to ensure that they are built in accordance with the building regulations. Similarly for fire safety, a Qualified Person (QP) must ensure that the design of the TWQs is compliant with the relevant codes and standards, and supervise the works to ensure that the works are carried out in accordance with the designs and the relevant codes and standards. Upon completion, QPs must also ensure that the fire safety systems are operationally ready. BCA and SCDF can take enforcement action against any party who contravenes the respective Regulations. In April 2021, a temporary steel structure collapsed and damaged an adjacent unoccupied TWQ. Investigations are currently on-going. BCA is not aware of any other safety incidents involving TWQs in the last three years. SCDF is not aware of any major fire incidents in TWQs in the last three years.”
“HDB provides two illuminated block signages and two non-illuminated signage plates to every residential block, precinct pavilion and multi-storey car park. The signages are designed in accordance with the Singapore Standards SS 599 “Guide for Wayfinding Signage in Public Areas” to ensure visibility, even from a distance, and are installed at appropriate heights such that they are visible from ground level. In fact, the text height adopted for HDB’s illuminated block signages at residential blocks is 300 millimetres, which is larger than the minimum text height of 150 millimetres recommended by the Singapore Standards. As part of their role to manage and maintain common property in HDB estates, Town Councils may also make changes to block signages in response to ground feedback or as part of their repairs and redecorations cyclical works.”
“Seniors who purchased a 2-room Flexi short-lease flat may return the flat early to HDB under certain circumstances, for example, moving in to stay with family for mutual care and support or demise, and receive compensation based on the value of the remaining lease. The median amounts received by such seniors since the introduction of short-lease 2-room flexi flats, broken down by the remaining lease, is shown in Table 1.”
“Seniors who participated in the Lease Buyback Scheme (LBS) may return the flat early to HDB under certain circumstances, for example, moving in to stay with family for mutual care and support or demise, and receive compensation based on the value of the remaining lease. The median amount received by such seniors since the introduction of the LBS scheme, broken down by flat type and remaining lease, is shown in Tables 1 and 2 respectively.”
“The allocation of flats in Build-To-Order (BTO) exercises serves to meet the housing needs of different buyer groups – first-timer (FT) and second-timer (ST) families, seniors, and singles. Given Singapore’s limited land and resources to build new flats, we need to prioritise the allocation of BTO flats among these different groups. Generally, applicants with greater housing need enjoy priority in HDB's flat allocation system. For instance, FT families receive an extra ballot chance compared to ST families, and FT families expecting a child or who have a child aged 18 years old or younger can qualify for priority under the Parenthood Priority Scheme. The eligibility criteria and allocation quotas for HDB's priority schemes are published on the HDB InfoWEB. HDB also strives to ensure that the needs of vulnerable groups are met, thereby keeping our public housing estates inclusive. For instance, public rental tenants who are able and wish to buy their own home enjoy priority under the Tenants' Priority Scheme. All applications are put through a computerised balloting process to allocate queue numbers to flat applicants. At every sales exercise, rigorous audits and checks are carried out. These include checking applicants' eligibility, auditing the computer balloting process and counter-checking ballot results before publishing them. These steps ensure that the balloting process remains robust and fair to all applicants. MND and HDB will continue to conduct regular reviews of our public housing policies to ensure that they meet the evolving needs of society.”
“There are currently about 31,000 1-room and 31,000 2-room Public Rental flats. We have sufficient supply for households who need these flats. For the Parenthood Provisional Housing Scheme (PPHS), there are about 110 2-room, 570 3-room, and 60 4-room flats. The supply of PPHS flats is limited and depends on the availability of vacant flats, such as those in vacated blocks that are not immediately needed for redevelopment. We have been working to provide a more stable supply of PPHS flats and will continue to study how we can provide more options for families who need temporary housing while waiting for their new flat to be completed.”
“Between 2011 and 2020, HDB added an average of 1,780 new units to our stock of rental flats every year. After accounting for the clearance of old rental flats, the average net increase in rental units was 1,640 annually. HDB will continue to build rental flats in the next few years, to gradually renew our stock of rental flats. There are currently about 1,600 rental flats under construction, which will be completed progressively by around 2025.”
“The Singapore Food Agency (SFA) and HDB have tendered out a total of 16 Multi-Storey Carpark (MSCP) sites for commercial urban farming across two tenders. The second tender closed recently on 23 March 2021. SFA and HDB consider multiple factors when identifying suitable MSCP sites for commercial urban farming. These include the utilisation rate of the MSCPs, the loading which the rooftops at each site can bear, the availability of water and electricity supply, as well as the current and future developments plans for the surrounding HDB blocks. This allows us to open up alternative urban spaces for food production without compromising residents’ needs for parking spaces and to ensure that urban farms situated on MSCP rooftops are safe and have access to adequate supporting infrastructure. Agencies will evaluate the first two tenders and gauge the level of industry interest, before deciding on future plans.”
“NParks launched the Gardening with Edibles Programme in June 2020 to encourage Singaporeans to grow edible plants at home. This is part of our efforts to involve the community in the transformation of Singapore into a City in Nature. To date, close to half a million seed packets have been distributed to households across Singapore. The seeds are mostly for leafy greens such as kang kong and xiao bai cai, and fruited vegetables such as tomato and lady’s finger. These plant species were chosen because they are easy to grow, fast-growing, and are commonly used in our local cuisine. NParks has also distributed seeds which are more challenging to grow, such as capsicum, radish and zucchini, to experienced gardeners who have attended its virtual gardening masterclasses. All selected plant species are generally suitable to be grown along common corridors, or in outdoor gardens such as the community gardens in our public housing estates.”
“HDB will continue to work with experts and partner agencies to look into how other such dementia-friendly features can be incorporated into new developments, as well as in existing estates through upgrading programmes.”
“HDB estates and precincts are designed to be inclusive and accessible to residents of all ages, including seniors. For new developments, Universal Design (UD) and barrier-free design principles have been incorporated to enable residents, especially the elderly, to move around their neighbourhood with ease. Existing developments are upgraded with senior-friendly features such as ramps and resting points through upgrading programmes like the Neighbourhood Renewal Programme (NRP). Senior-friendly facilities such as elderly fitness corners and community gardens are also planned and provided for where possible. HDB recently announced the “Designing for Life” roadmap, which sets out how HDB will plan and design both new and existing estates to provide a high quality living environment that can support residents’ overall health and well-being across different life-stages. This includes catering to residents with dementia. For instance, one way to create a neighbourhood that is more accessible to residents with dementia is to facilitate wayfinding by making the environment more easily recognizable. For the Nee Soon pilot, the Town Council introduced features such as clear wayfinding markers, large block numbers and using easily recognisable colours to demarcate different zones in the neighbourhood. On HDB’s end, it has also started designing and developing estates and precincts to strengthen their sense of identity, with certain features to facilitate easier recognition of places and aid in wayfinding, such as larger font sizes for signs and block numbers, and the use of icons, motifs and colours.”
“Town Councils are responsible for the maintenance and upkeep of common property, including refuse chutes. Town Councils engage their own Pest Control Operators to ensure that HDB common areas, including the refuse chutes, remain free of vectors and pests. The effectiveness of the fumigation of refuse chutes depends on how it is carried out by the Town Councils’ Pest Control Operators. The refuse chute flushing system is installed in HDB blocks to clean the interior of the chutes. The flushing system is designed based on NEA’s Code of Practice on Environment Health (COPEH), which requires the system to wash the refuse chute to be activated manually. Manual flushing allows cleaners to activate the flushing system only after ensuring that the chute is clear of refuse. This prevents water from mixing with remnant refuse in the chute, which may result in heavier refuse which is harder to clear, and cause odour and hygiene issues. The sterilisation of refuse chutes is done separately from the flushing. If Town Councils wish to modify the refuse chute flushing system for existing refuse chutes, including through adding an automated sterilisation system, they can engage specialist contractors to propose appropriate technical designs. The relevant Government agencies such as HDB, NEA and PUB will then review the proposed designs to ensure that the automated system can function alongside the original flushing system and that it complies with the relevant regulatory provisions.”
“This will help NParks to better determine the pruning required to improve tree stability. With this comprehensive tree management programme, NParks has reduced the number of tree failure incidents by almost nine-fold, from 3,100 in 2000 to 339 in 2020. However, even with these efforts, it is not possible to completely prevent tree-related incidents. Even healthy and structurally-sound trees can still be affected by exceptionally strong winds or heavy rainfall. Nonetheless, NParks will continue to review its tree management programme to ensure that it remains robust and comprehensive, and that our trees do not pose a safety hazard to the public. Lastly, I thank the Member for her suggestion to rope in the public to help NParks in these efforts. Recognising potential tree hazards requires assessing the health and structural integrity of trees. This is best carried out by trained personnel with the requisite experience and expertise, as this requires a good understanding of tree anatomy and physiology, including the various ways that disease and decay can manifest in trees. Nevertheless, members of the public who spot some obvious hazards, such as a snapped branch hanging from a tree after a storm, or a dead tree following a period of severe drought, or who have feedback on public trees, can contact NParks via its hotline, 1800-471-7300, or through the OneService mobile application. NParks will follow up on the feedback to inspect the trees.”
“NParks has a rigorous tree inspection and maintenance regime that is aligned with the Best Management Practices of the International Society of Arboriculture. Regular tree inspections are carried out by trained inspectors every six to 24 months, depending on the location and size of the tree. Trees that are close to areas with high pedestrian or traffic activity are inspected more frequently. Over the years, NParks has strengthened its tree inspection regime in response to changing weather patterns. For instance, when tree inspections were first introduced, trees along expressways and major roads were inspected once every 12 to 18 months. Since 2012, the frequency of these checks has increased to once every six to 12 months. As a precautionary measure in response to changing weather conditions, NParks also introduced an annual in-depth inspection for trees of more than four metres in girth since 2016, which is over and above the Best Management Practices of the International Society of Arboriculture. Besides tree inspections, NParks has other measures to mitigate the risks of tree failure due to strong winds and heavy rains. First, NParks prunes trees regularly to remove weak, dry or overgrown branches, to improve their structure and balance, and ability to withstand severe weather conditions. It also undertakes targeted crown reduction and pruning of trees prior to seasons of wet weather. Second, NParks is progressively replacing storm-vulnerable tree species with hardier species. Third, NParks uses technology to analyse risks and improve inspection processes. For instance, it is piloting modelling techniques to understand the impact of adverse environmental conditions, such as strong winds, on the structural integrity of trees.”
“The Keppel Club site will be redeveloped for public and private housing. HDB and URA will plan for a diversity of land uses, including spaces that are open to the public. For example, the redeveloped site will be connected to green and recreational spaces such as Labrador Nature Reserve, Berlayer Creek and Keppel Bay, and enjoy connectivity to the nearby Telok Blangah and Labrador Park MRT stations. Agencies will continue to involve Singaporeans and key stakeholders, to plan for the Keppel Club site and the Greater Southern Waterfront together. We will share more details when ready.”
“As part of our efforts to transform Singapore into a City in Nature, we are adding 1,000 hectares of green spaces over the next 10 to 15 years that will include new parks, gardens and park connectors. This target does not include skyrise greenery. In addition to these green spaces, we are aiming to increase our skyrise greenery footprint from 133 hectares today to 200 hectares by 2030. Under NParks’ Skyrise Greenery Incentive Scheme, building owners and developers can apply for financial incentives to retrofit their existing buildings with rooftop and vertical greenery. To date, 268 building projects have benefited from this Scheme, with close to $9 million disbursed. NParks continues to encourage building owners to apply for the Scheme through various engagement channels. For example, NParks organises regular sharing sessions and publishes newsletters to update industry stakeholders and building owners on the Scheme, including latest innovations in skyrise greenery design. Building owners can also find out more about skyrise greenery through a dedicated online portal and tap on training courses and technical guides provided by NParks. NParks also works with professional and industry associations, such as the Landscape Industry Association of Singapore and the Singapore Institute of Landscape Architects, to promote the Scheme and encourage their members to incorporate skyrise greenery into their building designs and developments.”
“Helping families to secure their first home is a key priority for MND and HDB. As such, we have put in place various measures to improve the chances of first-timer families in their flat applications. Besides allocating more flats to first-timer families, HDB also gives them two ballot chances instead of one. First-timer families who have been unsuccessful in two attempts for BTO flats in the non-mature estates are given an additional ballot chance at their subsequent application for a BTO flat in the non-mature estates. As a result, virtually all first-timer families would be successful within their first three tries for a BTO flat in the non-mature estates. In 2020, HDB received about 230 appeals from first-timer families with more than two unsuccessful attempts in BTO or Sale of Balance Flats (SBF) exercises. Many had applied for a flat in the mature estates, where flats are more limited in supply. Some had also not proceeded to book a flat, despite having the chance to do so. We encourage flat applicants to consider flats in the non-mature estates where application rates are generally lower and to book a flat when they are invited to do so. First-timer families who have more specific preferences for location or flat attributes can also consider buying a resale flat on the open market and can receive up to $160,000 in housing grants. In planning the BTO flat supply, HDB adopts a comprehensive approach, taking into consideration factors such as the prevailing economic and housing market situations, as well as long-term demographic and population trends. HDB will continue to monitor the housing market closely and calibrate the supply of public housing to ensure that the supply remains responsive to the housing needs of the population.”
“On a case-by-case basis, HDB may waive the cost incurred, for example, for elderly tenants with medical conditions.”
“Over the last five years, the average number of vacant rental flats was about 8,000. Currently, about one third of the vacant rental flats are set aside for purposes such as to rehouse existing tenants who will be affected by redevelopment and for operator-managed residences such as MSF’s shelters. The remaining are meant for new rental tenants. However, more than half of these flats will need to be spruced up before they can be let out to new rental tenants. Given the severe labour crunch in the construction industry, the pace of sprucing works has slowed down. HDB is working on measures to speed up the sprucing works and to facilitate key collections as quickly as possible. The vacancy period of flats meant for allocation ranges from two months to over a year. The main factors affecting the vacancy period are the time required to spruce up the flat, the level of demand by new tenants for flats at the flat location and the time taken by tenants to move in, especially those affected by redevelopment of existing rental blocks. Under the Tenancy Agreement, tenants need to return the flat to HDB in a clean and tidy condition. If there are belongings left behind in a vacated flat, HDB will first try to contact the ex-tenants and their next-of-kin. If they cannot be contacted, HDB will leave a notice on the flat door for a few weeks to seek a response from the ex-tenants or their next-of-kin, before helping to remove the belongings. Over the last five years, HDB has assisted in the removal of unwanted belongings from about 30% of flats following the termination of tenancy. The cost incurred is deducted from the tenants’ deposit, as it goes beyond maintenance, which HDB pays for on a goodwill basis.”
“In the last five years, about 4,600 public rental households moved to home ownership, or about 2% of rental households per year. Among these households, 36% moved to their own homes less than five years after they entered public rental, 32% in five to 10 years, and the remaining 32% after more than 10 years. Less than 10% moved to home ownership within three years as households in public rental would generally need some time to stabilise their social or financial situation before purchasing a home. In addition, more than three quarters of the rental households who achieved home ownership bought subsidised BTO flats, which typically have a waiting time of at least three years. Over the same time period, about 440 young adults aged 35 or younger who were previously occupiers in a public rental flat went on to rent another flat when they formed their own family nucleus. We will continue to support public rental tenants to buy their own homes by providing generous grants and one-to-one guidance from HDB’s Home ownership Support Team. We will also continue to work closely with MSF and other partners under the Community Link initiative to provide coordinated support to uplift families with children staying in public rental flats.”
“Anyone facing sudden housing distress and who is in need of immediate shelter should approach a Social Service Office, a Family Service Centre, or call the ComCare hotline to seek help from a crisis shelter.”