Speech by SMS Tan Kiat How for The Launch of JP Nelson Equipment Pte Ltd's New Office
Jul 30, 2024
Introduction
A very good afternoon to everyone. Thank you for inviting me to join you this afternoon at the launch of JP Nelson Equipment Pte Ltd’s new office.
As a leading supplier of construction equipment, JP Nelson is an important industry stakeholder.
The construction industry is transforming
After the severe disruptions caused by the pandemic, the construction industry is now undergoing exciting transformations to better position itself for the future. Global trends such as technological advancements and a heightened focus on sustainability are driving these changes.
Launched in 2022, the Built Environment Industry Transformation Map (BE ITM) is a strategic roadmap that aims to transform Singapore’s built environment sector, by addressing challenges and opportunities posed by rapid urbanisation, climate change and the digital revolution.
It brings together the previous transformation plans for the Construction and Facilities Management industries into a single cohesive framework encompassing the entire value chain, from design and construction to facilities management. By integrating efforts across the value chain, stakeholders can reap greater outcomes.
The BE ITM has three key thrusts.
First, fostering closer collaboration across the entire value chain, right from the upstream planning and design phase, through Integrated Planning and Design (IPD).
This fosters collaborations and synergies across project parties, as projects are becoming increasingly complex.
Second, encouraging the adoption of robotics and automation (R&A) to enhance construction productivity through Advanced Manufacturing and Assembly (AMA). This will not only improve productivity, but also improve safety and working conditions.
Third, building Sustainable Urban Systems (SUS). This involves constructing and maintaining our buildings in more environmentally-friendly ways, as part of broader climate change mitigation and adaptation efforts.
Let me speak more about the need for productivity and sustainability in the construction sector today.
Businesses can play an important role
Suppliers like JP Nelson play an important role in the built environment sector’s transformation journey. For example, you support our efforts to improve site productivity through the adoption of technology.
One of our key strategies is to shift construction work to high-tech, off-site facilities that produce precast building components – we call this Design for Manufacturing and Assembly (DfMA).
I understand that JP Nelson provides various cranes and equipment, which are used in lifting and handling of these precast components.
For the next bound of transformation, we want to raise the productivity of the remaining on-site works. This could involve greater usage of innovative robotics and automation (R&A) solutions as mentioned earlier.
I encourage our equipment suppliers to work with us on this push for R&A.
JP’s greening efforts
Beyond improving productivity, we also need to create a greener and more sustainable BE sector.
I am heartened to learn that JP Nelson plans to electrify about 30%-40% of your company’s local equipment in the coming two years.
Today, JP Nelson is launching a diverse suite of green construction equipment and machinery.
This includes Singapore’s first Electric Vehicle-operated Zoomlion Crawler Crane, as Mr Lim had mentioned in his speech earlier.
Moving towards electrification can reduce the carbon emissions from such construction equipment by about 50%, compared to conventional diesel equivalents.
Electrified construction equipment also allow for a more pleasant environment for workers and surrounding stakeholders, as they are cleaner and quieter. With automation and remote operation, electrified equipment also have the potential of creating a safer environment for workers.
I look forward to the introduction of more electrified equipment in the sector.
Government’s support for green construction
The Government is also doing our part to encourage green construction.
At this year’s Committee of Supply, we announced that the Energy Efficiency Grant (EEG) will be expanded to cover new sectors, including construction.
The EEG for construction will provide two tiers of support:
(i) a Base Tier where eligible local construction firms will be able to receive up to 70% of funding support for pre-approved energy efficient construction equipment, up to $30,000; and
(ii) an Advanced Tier to support companies that wish to make larger investments to drive greater energy efficiency, up to $350,000.
We plan to launch the grant for the construction industry by the end of the year. More details will be announced in due course.
In addition to the EEG, we are encouraging construction companies to adopt environmentally sustainable business practices under the public sector’s sustainability movement, or “GreenGov.SG”.
We have recently increased the weightage of sustainability considerations in our tender evaluation process for larger public sector construction projects.
For construction projects with a minimum estimated procurement value of $50 million, we have set aside up to 5% of evaluation points for firms which have demonstrated sustainability-related considerations, when evaluating bids for construction projects.
Some examples of good sustainable practices include adopting decarbonisation technologies, using low-carbon construction materials, and also achieving relevant sustainability certifications.
All other things being equal, this means that firms that have demonstrated sustainable practices will have a higher chance of being awarded projects.
This signals the Government’s commitment to the importance of low-carbon construction practices and the use of more sustainable products in our supply chains.
Growth opportunities in a low-carbon economy
While the Government is making greater efforts to encourage the adoption of sustainable practices, the private sector is also placing greater emphasis on such practices. Let me share some recent trends.
A recent study by ACRA and NUS showed that larger listed companies are becoming increasingly committed to mitigate climate change. Over 90% of such companies have now assigned official roles or formed committees to deal with the risks and opportunities presented by climate change issues.
This changing mindset will also mean that such companies will increasingly demand greener and more sustainable products and services.
This in turn presents significant growth opportunities for our companies, including those in the construction industry. We should therefore continue to work together to review our practices, adjust and reposition our products and services, to capture these upcoming opportunities.
Conclusion
We are feeling the impact of climate change here and now, and it is imperative that we proactively take concrete and practical measures to pave the way towards achieving our emission targets.
While the Government can drive changes in policies, incentives and programmes, we will need the collective support of all our partners, to achieve our goals. I look forward to seeing more transformative initiatives within the construction industry in future.
Once again, let me congratulate JP Nelson on the opening of your new office. May you continue to push the boundaries of sustainability and innovation and be a thought leader in sharing your expertise with other stakeholders in the industry.
I wish you every success. Thank you.