Speech by Minister Desmond Lee at the Singapore Contractors' Association Limited (SCAL) Lu Ban Dinner
Jul 11, 2022
I am happy to join you at the Lu Ban Dinner this year; thank you for inviting me. It is really great to see so many people from the construction sector coming together.
Supporting Recovery
Even as we progressively get used to living with COVID-19, I know that as a sector, we have gone through a lot over the last two years and many of you have faced one of our greatest crises we have ever known. Construction shut-downs, worker quarantine, supply chain disruptions, escalating material costs, SMMs, manpower shortages, cashflow difficulties, legal uncertainties, and more.
Many firms and workers suffered greatly during those dark periods of uncertainty. But SCAL and our industry partners, both main contractors and quite a number of small sub-contractors, worked very closely with the Government to gather feedback and to support the industry through the pandemic.
When COVID-19 first struck, we had virtual meetings almost every day. Those were meetings where we discussed practical issues and concerns. The discussions were frank and candid and in the spirit of wanting to overcome challenges, and raised all kinds of issues – big and small – that our firms faced on the ground, and discussing how we can effectively and practically address them.
Then, as we passed the height of the pandemic, we kept the conversations going; shifting our focus to the deep lessons learnt from this difficult crisis that hurt so many people. So that we can transform our industry into one that is more resilient, high-tech and productive. SCAL also stepped up to partner us on various initiatives. Together, we had set up the SCAL Construction Manpower Exchange, or SCMX, to better retain existing workers. SCAL also started the Pre-Departure Preparatory Programme overseas to bring in workers safely so that our industry had the manpower to keep going. All these initiatives played an important part in cushioning some of the impacts COVID-19 had on all of us.
It has not been easy for anyone, but with these shared experiences, and a common resolve to overcome our shared difficulties, we have emerged stronger and more united than before as a sector.
The construction industry has been showing some signs of recovery, and work is progressing steadily. But we know that we are not out of the woods yet, and many firms are still suffering. There is still a lot of uncertainty ahead of us. The pandemic is still making its way around the world. And the places we get our supply from, some are still under lockdown. We should remain vigilant, especially as we see an uptick in COVID-19 cases in Singapore recently. All of us should continue to keep our business continuity plans warm, so that we can respond swiftly to any escalating situation. Beyond the pandemic and public health, the geopolitical conflict in Europe and supply chain disruptions have also placed cost pressures on our firms. We are monitoring the supply situation very closely, and I encourage all firms, whether you are a main contractor, or a sub-contractor, to continue supporting each other.
Charting the Way Forward
Even as we grapple with the immediate challenges, we will need to continue working closely together – the next six months to one year will be very uncertain. We have done a lot of work together for the past two years, I hope it puts us in a better situation for what may be ahead of us.
We know of progressive firms that have managed to stay resilient and highly adaptable even during the pandemic. They made good use of digital tools to collaborate seamlessly when physical meetings could not be conducted due to COVID-19. Others that embraced Design for Manufacturing and Assembly (DfMA) technologies were able to minimise the impact of manpower shortages. For example, I visited the Avenue South Residence project earlier this year. The project team from UOL and United Tec Construction made good use of technology and DfMA to work around the issues brought about by COVID-19, and are on track to deliver the project on time.
Such examples underscore the need for us to collectively accelerate the way which we transform and improve so that we can stay agile and resilient during tough times. My colleagues in BCA have embarked on a refresh of our transformation strategies with the industry, and I am encouraged to know that SCAL has been actively involved in this process. We will share more about our refreshed strategies later this year. But more than just strategies on paper and speeches, we want to make sure we work with you on the ground to realise the potential and make sure you gain the benefits of these plans.
Call for Industry Leaders to Drive Transformation
I am sure all of you here have your own stories to tell, about your experience with the pandemic and the valuable lessons you have drawn from it. As inspiring leaders in the construction industry, I strongly encourage everyone to lead the transformation on three fronts:
First, building trust and strong partnerships with our industry partners. The Built Environment (BE) sector has a very long value chain where all of us are dependent on one another. So all of us will need to band together and collaborate for win-win solutions. For a start, consider how we can implement more progressive procurement practices for fairer risk- and profit sharing. This is to ensure that no single party is disproportionately affected in future crises. Based on our experience during COVID-19, when one segment of the value chain is in trouble, all the others will, in some way, be impacted too. I would also encourage main contractors to form strong partnerships with our sub-contractors. As you take on more and more projects together, the familiarity and trust can lead to growth and stability for all partners.
Next, adopting a growth mindset. Transformation is not only for big firms, which is often the misconception. We fully appreciate that our sub-contractors and other smaller firms contribute uniquely to the BE ecosystem. I urge everyone to keep finding opportunities to develop niche capabilities to stay relevant even in times of disruption. One good example is Techniques Air-Conditioning & Engineering Pte Ltd, an SME which specialises in prefabricated Mechanical, Electrical and Plumbing systems. The project teams in Techniques have shared how the use of prefab MEP systems and digital solutions such as Building Information Modelling (BIM) and automation have enabled this small company to deliver quality projects in a faster and less manpower-intensive manner.
Lastly, investing heavily in our people. People are at the heart of our transformation journey, and we need to attract and retain talented people in our sector. This has been the challenge for our sector for many years. I know that some of you have partnered us in initiatives, such as offering scholarships and sponsorships to students and participating in career conversion programmes. I encourage everyone to multiply your existing efforts to offer more rewarding careers, to inspire more people to want to contribute meaningfully to the Built Environment sector.
Conclusion
Let me conclude by saying a few words about Lu Ban, the namesake for tonight’s event. Lu Ban was a Chinese structural engineer, inventor, carpenter during the Zhou dynasty. Today, many remember him as the Chinese deity of carpentry and the patron of builders and contractors. Tonight, as we gather for the Lu Ban dinner, let’s continue to propagate the spirit of innovation, and progress towards a more resilient, productive and sustainable BE sector. Thank you very much and have a good evening.