The aspirational outlook of Singapore’s Construction Industry is known all across the globe. The year 2024 marks the beginning of a number of visionary restructuring that can alter the future of its construction industry. Here, we take a look into the regulatory agility introduced by Singapore in line with the upcoming trends in the sector.
Forecasting Future Trends: Insights into the Construction Industry's Path Ahead
Let’s begin with understanding the trends forecasted by Singapore about its construction sector with regards to the year 2024.
Continued Growth Anticipated in the Construction Yield
The Building and Construction Authority (BCA) projected the demand in the sector in 2024 to range between S$32 billion to S$38 billion leading to an output of S$34 billion to S$37 billion. With a steady demand its projected reach for the years from 2025 to 2028 is between S$31 billion to S$38 billion per year.
The Public and Private Sector Demand Split
The above forecast generates an interesting figure for the private sector players in the construction sector. The demand for the private sector is projected to be at S$14 billion to S$17 billion for 2024. In the forecast for 2025 - 2028, the demand in the private sector alone is anticipated to be S$12 billion to S$15 billion per minimum. These demands are expected out of residential projects, redevelopment in commercial premises and from industry-based facilities as well.
The public sector in 2024 is expected to reach a demand of S$18 billion to S$21 billion generated through public housing and allied infrastructure projects. The forecast for 2025 – 2028 stands at S$19 billion to S$23. This is derived through the upcoming 2024 public sector projects such as Housing and Development Board’s (HDB) new Built-To-Order (BTO), infrastructure works for the future Changi Airport Terminal 5 (T5), additional Cross Island MRT Line contracts (Phase 2) and Tuas Port developments along with other major road enhancement and drainage improvement works.
It's noteworthy that the forecasted public-private demand split until 2028 appears promising and stable, poised to drive a significant transformation in Singapore's construction industry. In this journey BCA would continuously map their efforts under Built Environment Industry Transformation Map to strengthen resilience against future disruptions.
The vision for the future of Singapore based in the year 2024 has led to some regulatory alterations that need to be fulfilled to be a part of this dynamic construction sector.
Here are 5 key regulatory changes that need to be noted -
1. Reduction in Foreign Worker Quota by the Ministry of Manpower (MOM)
The migrant worker employment in the country depicted in terms of Dependency Ratio Ceiling (DRC) has been reduced from 1:7 to 1:5. It means that effective from January 1, 2024 for every 5 work permit holders being employed in a project there must be 1 local employee.
This has been done with the motive to reduce reliance on foreign labour and for companies to adopt technology for their work.
2. Off-site Levy Scheme for Construction Work Permit Holders
Implemented from January 1, 2024, BCA have introduced the Off-site Levy Scheme. This move aims to back the Built Environment sector in embracing advanced technologies like Design for Manufacturing and Assembly (DfMA) for enhanced productivity. Full time workers with working time of at least 35 hours a week or having worked at least 80% of their working hours in DfMA facility can opt for off-site levy scheme.
The motive behind this change is the adoption of updated technological systems or the use of AI for construction.
3. Compulsory Occupational Safety and Health Training for CEOs and Board Directors
Key stakeholders across Singapore's critical sectors, including construction, are now required to participate in a Workplace Health & Safety (WSH) program. This initiative, to be fulfilled before March 1, 2024, underscores a commitment to building an enduring workplace safety culture and set of well-being practices for sustained future growth. The aim is to make the fatal injury rate below 1 per 1,00,000 workers by 2028.
Singapore is focusing on the use of technology to identify the root causes of prime accidents at worksites such as fall from height, vehicle collisions, slip, trips & falls to name a few.
4. Technology Use to meet Workplace Health & Safety (WSH)
With effect from April 1 2024, there are many changes made in the Workplace Health & Safety standards in the construction sector. The Safety Disqualification Framework (SDQ) extends to the construction tenders not using the Price Quality Method (PQM) as well. PQM under current guideline is used to assess all public sector construction tenders which fall under BCA work heads (CW01 & CW02) and has an estimated cost of $3 million and above.
In the quality component of PQM, the mandatory attribute of safety is included based on the measures of MOM. It requires the tenderers to propose innovative methods of ensuring workplace safety. However, from April 2024, the new criteria is applicable to project tenders > S$1 million and not using PQM. It would formulate 5% of the total evaluation score for tenders in comparison to 3% being considered before April 2024 for PQM using projects. In case of projects not using PQM, it still includes 5% of the total evaluation score which is not present in the current regime.
The next important alteration made is the mandatory use of ePTW i.e., Electronic Permit to Work to ensure safety while being sustainable in its approach among projects exceeding $3 million.
5. Installation of Video Surveillance System (VSS) to ensure Worksite Safety
It is from June 2024, that every construction site who stands at a project value of $5 million and above need to mandatorily install VSS where high-risk work activities are being carried on. The intention behind this rule is to ensure WSH, ensure appropriate surveillance and detect causes for incident occurrence at the workplace.
Looking into the trends and regulatory changes made for the year 2024 in the construction industry of Singapore, could you locate the underlying motivation?
Well, it is quite evident that all the upcoming trends and the regulatory agility introduced in the country is to foster a technologically advanced system of working. Whether it is increasing portfolios, ensuring a steady growth, promoting workplace safety or enabling an AI based Video Surveillance System (VSS), it is innovative technology that is going to revolutionise the future.
viAct's innovative solutions offer a transformative approach to enhancing safety, productivity, and efficiency within the construction industry of Singapore. By leveraging AI-powered video analytics, viAct enables real-time monitoring, proactive incident detection, and seamless integration of safety protocols. This not only mitigates risks and prevents accidents but also optimizes workflow management, ultimately driving substantial improvements in project timelines and resource utilization. It facilitates an integrated digital delivery (IDD) system that provides connectivity among all stakeholders. With viAct's solution, Singapore's construction sector can achieve its ambition for 2024 and head while embracing a new era of innovation, sustainability, and excellence.
Captivated by the possibilities of viAct's AI-powered
video surveillance system (VSS)?
Also Read
Comentários