Written Answer by Ministry of National Development on measures to prevent delays in the construction of HDB flats as a result of the increase in cost of building materials arising from supply chain disruption and the ongoing geopolitical crisis

Apr 5, 2022

Mr Gan Thiam Poh: To ask the Minister for National Development what measures have been put in place to prevent delays in the construction of HDB flats as a result of the increase in cost of building materials arising from supply chain disruption and the ongoing geopolitical crisis.

Answer:

1          Arising from the COVID-19 pandemic, tightened border controls for foreign workers and supply chain disruptions, we earlier updated that ongoing projects were delayed by about 6 to 12 months beyond their original Estimated Completion Dates (ECDs). HDB is in the process of informing flat buyers of the extent of delays that have materialised. Nevertheless, HDB has worked closely with contractors to mitigate the extent of the delays. For ongoing projects, we expect that most flat buyers will be able to move into their new homes within 4 to 5 years after booking their flats, barring any unforeseen circumstances. The current median waiting times of projects launched in 2020 and 2021, after factoring in delays due to the COVID-19 pandemic, are about 4.5 years and 3.8 years respectively.

2          We have not observed any significant further disruptions to the supply of construction materials arising from the Ukraine-Russia conflict thus far, and the progress of BTO projects has not been affected. Nonetheless, over the last quarter, the prices of steel rebars and Ready-Mix Concrete (RMC) have increased by about 17% and 7% respectively.

3          HDB has worked with its contractors to enhance their existing stockpiles of building materials by procuring them in advance to mitigate potential disruptions. HDB is also closely monitoring the prices of the construction materials and has worked hard to strengthen the resilience of our public housing programme. HDB has been providing extensive assistance to help contractors complete ongoing BTO projects in a timely manner, without affecting safety and quality. For instance:

a.    To help with the higher cost of materials, HDB has extended the period of protection against steel price fluctuations, and supplied contractors with more concreting materials at protected prices.

b.    To tackle manpower shortages, HDB has worked with firms to safely recruit workers from various countries and co-shared the cost of bringing in the migrant workers.

4          With the pandemic situation stabilising, the situation in the construction industry has started to show some signs of improvement. Nonetheless, with new uncertainties such as the ongoing geo-political crisis and potential supply chain disruptions, HDB is closely monitoring the prices of key construction materials and remains ready to extend further assistance as necessary. With the various assistance measures put in place, HDB is working hard on the ground to minimise delays to our existing BTO projects while leaning forward to support homebuyers who may be affected by the delays. HDB remains committed to its mission to deliver public housing to Singaporeans, and will spare no effort to recover as much of the delays as possible and to keep our BTO programme on track.