Speech by SMS Tan Kiat How at the STAS Prefab MEP Day Dinner

Sep 1, 2022

Good evening. I am happy to join you tonight at the inaugural STAS Prefab MEP Day dinner.

Let me start by thanking STAS for your efforts to drive the adoption of prefab MEP in the Built Environment (BE) sector. The activities you have organised today have allowed the community to come together to share best practices, strengthen collaborations, and celebrate achievements.

The COVID-19 situation in Singapore is stabilising and we are learning to live with the virus. Each of us played our part in keeping ourselves and one another safe. 

Our BE sector is also gradually recovering from the impact of the pandemic – thanks to the hard work and support from all of you. It has been a very tough two and a half years for all of you in the BE sector. There are still a lot of challenges ahead of us, but things are stabilising and work is progressing. Every part of the BE sector collaborated closely with one another to keep work going safely during the pandemic. Construction activities are close to pre-COVID levels, and construction demand is estimated to be between S$27 billion to S$32 billion this year. The upper bound of this forecast is 7% higher than the preliminary estimates for 2021.

Driving adoption of prefab MEP

We appreciate that there are still headwinds ahead of us, such as managing cost amidst rising material prices, difficulty in getting skilled workers for certain job roles and meeting project schedules while ensuring safety at the worksites. At the same time, we must learn the lessons from COVID-19 and not lose the momentum to transform our BE sector so that it can become more productive and resilient, and become a sector where younger Singaporeans find attractive and want to stay and build their careers. That is why we have been encouraging the adoption of Design for Manufacturing & Assembly (DfMA) technologies, including prefab MEP.

The use of prefab MEP can bring about many benefits. Take for example, the JTC Woodlands North Coast project, where the MEP installation time on-site was reduced from five days to just half a day, with the use of prefab MEP. The MEP manufacturer of the project, Powen Engineering, also estimated that it saved around 5,000 man-hours by shifting from conventional methods to prefab MEP. In addition, this has helped Powen improve its workplace safety and quality control.

Prefab MEP was particularly useful during the pandemic. Manufacturing the MEP modules in factory-like settings made it easier for many firms to adhere to Safe Management Measures and continue production without significant disruptions.

We will continue to partner STAS to encourage the adoption of prefab MEP across the BE sector. For instance, we recently implemented a requirement to use prefab MEP in developments that are in Government Land Sales (GLS) sites.

Developing a robust prefab MEP ecosystem

We will need to build greater awareness and develop deeper capabilities throughout the BE sector value chain to accelerate the adoption of prefab MEP. For example, consultants need to understand the design considerations to effectively incorporate prefab MEP, which include downstream maintainability of the systems, and builders and specialist contractors need to be familiar with the industry’s best practices for installing MEP modules on-site.

STAS has been instrumental in leading efforts to build these capabilities within the sector. One example is the STAS-BCA course on Modular MEP Design & Prefabrication, which trains our professionals to design, produce, and install prefab MEP systems efficiently. These efforts would not be possible without the support of our industry veterans. Take for instance, Engineer Ong Leng Kak, CEO of Ohmz and Associates Private Limited. He has made significant contributions to the MEP industry for over 30 years, and continues to help young professionals upskill through his active involvement as an auditor of the prefab MEP course. I look forward to the support and contributions of many other industry leaders like Er. Ong.

Suppliers have to play a part by ensuring that the quality of prefab MEP remains high. That is why I am heartened that STAS has stepped up to administer the Prefab MEP Manufacturer Accreditation Scheme (MAS). Accreditation provides assurance to buyers and lifts the overall image of prefab MEP manufacturers.

My congratulations to all of you receiving your accreditations tonight. You have shown exemplary workmanship and deep expertise in your operations.

On our part, the Government will work together with like-minded stakeholders in the sector to promote the adoption of Prefab MEP from trusted partners. For example, developers who wish to tap on our BE Transformation Gross Floor Area (GFA) Incentive Scheme will need to procure their MEP modules from accredited manufacturers.

Reaping greater benefits through digitalisation

We also need to push for greater digitalisation across the value chain to reap the full benefits of DfMA technologies like prefab MEP. Using digital tools across the value chain will allow for closer collaboration amongst stakeholders. This will help us to achieve more productive outcomes while reducing abortive work. I encourage you to work towards equipping workers with digital skills, and re-engineering production processes to facilitate digitalisation.

A greater emphasis on digital skills would also enable the sector to be more attractive to Singaporeans, especially to the younger generation. For instance, there is potential for the industry to integrate new and exciting digital technologies into existing roles, such as using block-chain technologies in supply chain management.

I am confident that STAS will continue to work closely with all of you in this endeavour.

Today, our prefab MEP suppliers are able to meet 100% of our domestic demand. Looking ahead, we are likely to see higher demand for prefab MEP as more projects adopt it. I encourage you to think about how to position yourselves to capture these opportunities to come.

This year’s International Built Environment Week (IBEW) starts from next Monday. I hope to see you there too. BCA will be featuring the latest innovations, and exciting opportunities that lie ahead for the BE sector.

Let me conclude by thanking STAS once again for your contributions to the prefab MEP community. I wish you all a good evening ahead. Thank you.