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Scal said the construction sector has been facing a serious labour crunch since 2020, after many migrants workers returned home amid the pandemic.ST PHOTO
On 23 April 2021, Singapore Contractors Association Limited (Scal) sounded warnings that home buyers will have to endure a longer wait time for the completion of Housing Board Build-To-Order (BTO) flats and private apartments as a result of the border restrictions on travellers from India. Curently, the construction sector is already facing delays which have seen projects knocked back by between nine and 12 months due to a labour crunch brought about by the Covid-19 pandemic.
Just the day before, the Government announced that long-term pass holders and short-term visitors with recent travel history to India will not be allowed entry or transit through Singapore, with the new rule taking effect from 24 April 2021. Those who have previously obtained approval from the authorities to enter the country may also have their approvals revoked.
Education Minister Lawrence Wong, who is co-leading the multi-ministry task force tackling Covid-19, said it will have a major impact on the construction sector.
Just the day before, the Government announced that long-term pass holders and short-term visitors with recent travel history to India will not be allowed entry or transit through Singapore, with the new rule taking effect from 24 April 2021. Those who have previously obtained approval from the authorities to enter the country may also have their approvals revoked.
Education Minister Lawrence Wong, who is co-leading the multi-ministry task force tackling Covid-19, said it will have a major impact on the construction sector.
The construction sector will face further delays to building and housing projects already hampered by the pandemic.
The move to ban long-term pass holders and short-term visitors from India from entering Singapore will have a major impact on the construction, marine and process (CMP) sectors here, said Education Minister Lawrence Wong on Thursday (April 22) "I seek Singaporeans' patience and understanding. If certain projects were to be delayed further, please understand why this has happened and know that we are doing this because of public health reasons. We hope that everyone will cooperate."
The construction sector, especially, will face further delays to building and housing projects already hampered by the pandemic. Hence, the Government is looking at how it can provide additional support for local small and medium-sized enterprises and contractors that will be hurt by the new restrictions.
The construction sector, especially, will face further delays to building and housing projects already hampered by the pandemic. Hence, the Government is looking at how it can provide additional support for local small and medium-sized enterprises and contractors that will be hurt by the new restrictions.
Singaporeans will inevitably be paying for higher construction costs if the situation is not resolved soon," said Singapore Contractors Association Limited (Scal) in a statement. It noted that the cost of labour and materials has escalated by 30 per cent to 50 per cent. "This tightening will adversely affect the inflow of construction workers and will negatively impact the timeline of construction projects and cause further delays," said the construction association.
Singapore Contractors Association Limited (Scal) have warned that some companies may be forced to close and it will adversely impact some 100,000 residents working in the construction sector. Wee Hur Construction’s director for tender and contracts Sua Chen Shiua said: “We’re hoping the Government can grant us more time to complete our projects so it can relieve some pressure on us and also enforce that all stakeholders share the (increased) expenses instead of contractors taking the biggest hit.”
"This presents a big challenge for the government as they consider implementing property cooling measures after private property prices rose 2.2% last year. Property cooling measure may cause a knee jerk reaction in the market that may last around 6 months or more where buyers hold back from buying properties if for example there is an increase in ABSD by 5% which may inevitably lead to a systemic impact of the construction industry and Singapore's overall economy" says Kiwi Lim from Huttons Asia.
Singapore Contractors Association Limited (Scal) have warned that some companies may be forced to close and it will adversely impact some 100,000 residents working in the construction sector. Wee Hur Construction’s director for tender and contracts Sua Chen Shiua said: “We’re hoping the Government can grant us more time to complete our projects so it can relieve some pressure on us and also enforce that all stakeholders share the (increased) expenses instead of contractors taking the biggest hit.”
"This presents a big challenge for the government as they consider implementing property cooling measures after private property prices rose 2.2% last year. Property cooling measure may cause a knee jerk reaction in the market that may last around 6 months or more where buyers hold back from buying properties if for example there is an increase in ABSD by 5% which may inevitably lead to a systemic impact of the construction industry and Singapore's overall economy" says Kiwi Lim from Huttons Asia.
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Extracted from Straits Times news article on 23 April 2021
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