Speech by SMS Desmond Lee at Singapore Contractors Association Limited Human Resource Forum

May 19, 2016

A very good morning to all of you and thank you for inviting me to the SCAL HR Forum. I understand that this is the second time that SCAL is holding the HR Forum but SCAL is a very active association, every month there is some activity going on to empower and strengthen its members.

Vision of an integrated, skilled and technologically advanced BE sector 

Let me start by giving a sense of the sector. Our built environment sector expanded by 6.2% in the first quarter of this year, which is higher than the 4.9% growth in the previous quarter.

Amidst the backdrop of a challenging global economic climate, construction demand in Singapore over the next two years, 2017 and 2018, is expected to be relatively healthy. I use the term ‘relatively’ because I think the firms feel the pressure, not just in Singapore but worldwide, because the economic conditions around the world are not so healthy. Nevertheless, we expect, in Singapore, over the next two years, between $26 billion to $35 billion in construction demand for each of the next two years, and more than half of this demand is likely to come from the public sector. So there will be public sector lead demand.

By adopting more productive construction methods and more integrated building processes, our sector is ready for significant transformation. It is important for me to share this in a forum like this because you are the HR managers, you lead in mind-set change as well in your firms, and so we all need to collectively get a sense of what this transformation is all about.

We always talk about transformation but why exactly do we need to undergo this. Briefly, four important motivations.

One, we need to be much more productive in our sector, to reduce our reliance on foreign, low-skilled manpower, which is not sustainable in the long term, and we all know that.

Two, through greater use of technology with higher productivity, we actually create more good jobs and in fact, new opportunities for Singaporeans, including younger Singaporeans, in the sector. In fact last year, there was a productivity race and a BCA productivity expo and when I spoke to young people in polytechnics and ITE, when you talk to young people they tend to be focused on their phone, they are connected to the rest of the world through technology. When you talk about the opportunities that technology offers to them, because they are in the built environment sector, they are studying in ITE, polytechnics, BCA Academy, learning the skills and technology for a career in our sector. You bring them through the exhibition and say, look this is how you use 3D, to build virtually, and then build in reality. You start to see their eyes light up because they are of the technology generation and we create new opportunities for them, and certainly, new opportunities for Singaporeans.

The third reason is that by up-skilling and adopting technology, our Singaporean firms become more competitive, not only locally, but also abroad if they venture overseas. We want our firms to be competitive around the world, and that comes through enabling ourselves to be more productive and to take on board cutting edge technology.

Four, by building smartly, using technology and prefabrication, we reduce noise and inconvenience to those who live and work near construction sites. Whether it is city or neighbourhood redevelopment, whether it is a new commercial, industrial or residential development, in Singapore it is likely to be an infill site, it is likely to be a site surrounded by people living, working and playing. So by adopting these types of technologies, we work in a way that reduces disamenity to people in the immediate environment and that can only build goodwill for our sector and give people a very good impression that this is the construction of the future. 

Now what will our built environment sector look like in the future, and this is just from our point of view. We need all of us to collectively share in this vision. 

If all the stakeholders in the sector can come together, move forward in a common direction, I think it is a sector that can be even more integrated, higher skilled, and technologically advanced. Contractors should be able to choose from a whole range of cutting edge technologies to build faster. You will need to have fewer workers on-site. You will create less impact on the surrounding environment and the people. Productive construction methods across Design for Manufacturing and Assembly (DfMA), such as PPVC, Cross Laminated Timber and Structural Steel, will allow us to maximise work that is done off-site, it will improve quality, and achieve much higher productivity than ever before.

But this transformation cannot be achieved by our contractors alone. Our architects, our engineers and other consultants will need to work closely with you, assisted by technology.

For instance, the various stakeholders can collaborate using the Virtual Design and Construction (VDC) methods, which simulates the building process in the virtual world before a building is constructed. In many other countries, in the US and all, many of the bigger firms have their own virtual design studio. In Singapore, in BCA Academy, we provide a studio that firms can use. If you are not yet sure that you are able to embrace the technology, go and book it and try it. I visited it on its opening and we saw consultants, we saw contractors working together with the client to build in the virtual world and then build on the ground. This can really harness productivity, it can allow abortive work to be avoided and there can be a meeting of minds before you actually go and start building.

The second one is Building Information Modelling or BIM. We talk about BIM and we extol it in tea sessions and coffee breaks, I sometimes hear from consultants, I hear from contractors that there is some uncertainty, they are not sure and they wonder what this can harness. BIM supports VDC in a very big way, it is a basic building block. It is not easy for us who are used to paper and 2D graphics and plans to move into the 3D world, but imagine the opportunities it presents to all of us. It provides a common platform for our consultants and contractors to work together more closely and seamlessly.

All in all, VDC, together with BIM, will enable stakeholders in our construction value chain to make informed decisions early, resulting in a more efficient building process.

That is the ideal and we can get there, the key is to overcome mind-sets, to embrace it, to try it out, to have an attitude, to wanting to use for the benefit of your firm, for your workers, for your employees and for the sector. The question that comes up next is: How will we get there?

Attracting and retaining local talent through good HR practices is key 

The answer is that while technology and systems are important, quality and motivation of our people in the construction sector is really key. This is why good HR management is important for our firms to attract and to retain talented people in the sector.

I am encouraged that our construction firms think the same way too. For example, I understand that Samwoh Corporation Pte Ltd has been conducting regular face to face discussions with employees in addition to using traditional survey forms. This more personable mode of getting feedback not only shows that the firm takes employees’ feedback seriously, but has the added advantage of sussing out new perspectives from their employees.

Another firm is HSL Constructor Pte Ltd which adopts pro-family practices. For example, I understand the firm has a playroom at its office, so that parents can leave their children at the playroom temporarily in the event that there is no alternative childcare arrangement.

I am also encouraged to know that another seven SCAL member-companies will be signing BCA’s HR pledge a little later on, and I welcome more to come on board.

Developing a higher skilled workforce

Having a sufficient talent pool in the sector is only the first step. We need to develop our people, hone their skills, so that they can be equipped with the right tools to realise their potential. We sometimes take for granted this constant refrain in Singapore about upskilling, reskilling, mastery of skills, but actually I am not aware of any other country in the world which has a national movement that encourages learning all through life. Learning, relearning, mastery of skills, to better our ability to work individually and as a firm. Let us make good use of this competitive advantage for our benefit.

One example is the BCA-Industry Joint scholarship and sponsorship programme. This is something that can be done part-time, so please do go for it and encourage your people to do it. This BCA-Industry Joint scholarship and sponsorship programme is an example of how companies can work with us to build up a talent pool for you.

This is a win-win situation for the students and the sponsoring companies as the students can intern at their sponsoring company during their study, and also work there when they graduate. BCA tells me that there is good progress. We have attracted more than 2,000 students and jobseekers through this programme. But I think we can still do more.

We encourage you to send your workers, foremen and supervisors for training. In fact, you can do so at very affordable rates. Please tap on our existing Workforce Training and Upgrading Scheme. I know we have many schemes, but I am sure that if you give BCA a call, a friendly consultant will be there to help you find value for you, for your firm and for your workers. Through training and motivation, we can continually improve the skills of our employees so that they can be more even more effective at the workplace.

Conclusion

We will work with SCAL and the entire industry to walk this journey with you to transform our built environment sector together. We received some very good feedback from SCAL about upgrading, about the sector, and we have gone back, crunched the numbers, we have looked at it and we have adapted and adjusted the policies based on SCAL’s feedback. We have been consulting SCAL, and we will work closely with you to address various concerns you have raised.

As the entire sector of contractors, consultants and developers needs to move together for the transformation to succeed, we are committed to working with all the stakeholders to take the built environment sector to the next level. It is not just us asking contractors to move with us, we also want consultants, architects, engineers, to move on this journey together. It is not something that any one profession can undertake alone.

I wish all of you a fruitful session for the rest of today, and lots of learning, sharing and improvement. Thank you.