Speech by Minister Desmond Lee at Launch of the Hong Leong-Sunway Integrated Construction and Prefabrication Hub
Jul 21, 2023
1. Good afternoon. I am very delighted to join you for the launch of the Hong Leong and Sunway Integrated Construction and Prefabrication Hub, or ICPH.
a. This is the sixth ICPH established in Singapore, and also the largest in terms of size and production capacity.
b. It can produce up to 100,000 cubic metres of precast components per year, enough to complete about 17 blocks of flats.
c. I congratulate Hong Leong and Sunway on this significant achievement.
d. Like many of you, I’m looking forward to a tour of the facilities later.
Enhancing Local Resilience and Standardisation
2. But before that, let me say a few words about our strategic plans for the precast industry and the wider Built Environment (BE) sector.
3. ICPHs enhance the local resilience of our construction industry.
a. The supply disruptions we experienced during the pandemic underscore the importance of maintaining some precast production capabilities locally.
b. Building up our ICPH capabilities has allowed us to localise the production of critical components.
c. This makes our supply chains more resilient so that construction works can continue, even if imports are disrupted.
4. The Government is taking the lead to harness the capabilities of ICPHs for our building projects, such as HDB’s public housing projects.
a. For instance, the Hong Leong - Sunway ICPH is the first ICPH that can produce the full range of components used in HDB’s projects, enabling it to potentially support upcoming BTO projects across the island.
b. This is because its floor-to-floor height of about 15 metres enables it to produce larger volumetric components. These include Prefabricated Bathroom Units (PBUs) and household shelters.
5. With the large number of BTO projects underway or in the pipeline, HDB is also exploring greater standardisation of precast components.
a. This allows its builders to procure components of standardised dimensions and connection details from more sources.
b. If one source gets disrupted, builders can easily switch to alternative sources and be assured that the new components will fit into their building plans.
6. These efforts will benefit precasters too.
a. Standardisation can speed up the production process by reducing the downtime required for change of moulds or manual adjustments.
b. It also allows precasters to reap economies of scale and lower their production costs, enabling the industry to further develop capabilities in emerging areas.
Improving Productivity and Creating New Opportunities through Robotics and Automation
7. The precast industry will be a key driver in supporting the transformation of the entire BE sector. This will significantly change the way we plan and build construction projects.
8. One important area is in the adoption of robotics and automation in the construction process.
a. This approach is known as Advanced Manufacturing and Assembly under our refreshed BE Industry Transformation Map. By doing so, we can enhance productivity and reduce our reliance on manpower.
9. ICPHs already play a crucial role in improving the productivity of our BE sector.
a. Compared to an Open Precast Yard of a similar size, an ICPH is much more productive. This is especially important given our land and manpower constraints.
b. Many of our ICPHs are also using automation to produce consistent, high-quality Large Panel Slabs (LPS), which are used in our building projects.
10. We want to push for even more automation in precast production. I am happy to hear that the Hong Leong - Sunway ICPH showcases exciting innovations in automation, such as the largest Automated Storage and Retrieval System in Southeast Asia.
a. Through the use of cranes and mechanical arms, precast components are automatically moved from the production line to storage racks, resulting in a remarkable 80% increase in labour productivity.
11. This will also create good jobs for Singaporeans. Increased automation and digitalisation will benefit our workers by opening up opportunities for them to move from more physically-demanding roles to higher-skilled jobs that pay better.
12. Our engineers can take the opportunity to upskill in various competencies, such as designing for automation.
a. An example of a talented Singaporean engineer who has done so is Ms Yeung Hei. As a Design and BIM Manager in Sunway, she oversees the implementation of Building Information Modelling for the company.
b. I understand she was also responsible for setting up and integrating the various automation processes for this ICPH. Well done!
13. The use of automation in ICPHs also creates a safer and betterwork environment for our engineers and production workers.
a. For instance, skilled workers can control and monitor the equipment that carries out physically demanding tasks, in a clean, air-conditioned control room.
b. This can help attract a new generation of talent into the construction industry.
Future of Precast Industry
14. Let me wrap up with some thoughts on the future of the precast industry.
15. Looking ahead, we expect construction demand from both the public and private sector to be stable, at $25 billion to $32 billion annually from 2024 to 2027.
a. For the public sector, we have a robust project pipeline including the construction of more BTO flats, and public infrastructure like MRT works and water treatment plants.
16. Amidst this steady pipeline of projects, the demand for precast will increase as we continue to push for Design for Manufacturing and Assembly (DfMA) as the default method of construction.
a. For instance, BCA enhanced the Buildability Framework in April 2022 to require all large building projects to adopt DfMA technologies.
b. In addition, changes to the foreign worker levy framework will take effect from January next year. These changes include reduced levy rates for off-site workers, which will incentivise the shift of construction work to productive facilities like ICPHs.
17. The Government will also continue our efforts to intensify our local construction capabilities by developing Integrated Construction Parks, or ICPs.
a. ICPs bring construction facilities like aggregate storage yards and ICPHs closer together in the same area. This allows us to achieve greater efficiencies in our land use and the production of construction components.
b. Last September, I announced the development of the first ICP at Jurong Port. BCA is also planning for the development of more ICPs around Singapore, such as here in the Pulau Punggol Barat area.
c. Facilities like this ICPH will benefit from the integration and co-location of synergistic construction facilities within an ICP. We will share more about our plans when ready.
Conclusion
18. Once again, I offer my heartiest congratulations to Hong Leong and Sunway on the successful launch of your ICPH. I also want to thank all the firms who have, over the years, abided by us, kept faith with us in our journey to embrace greater digitalisation and automation in the construction sector. I look forward to your partnership to bring our Built Environment sector to greater heights.
19. Thank you.