Govt to throw $450 million at construction companies to 'boost productivity'

[makapaaa]

[h=1]GOVT TO THROW $450 MILLION AT CONSTRUCTION COMPANIES TO 'BOOST PRODUCTIVITY'[/h]
Post date:
15 Mar 2015 - 2:42pm








In addition to $335 million in the pipeline announced 5 years ago, the National Development Ministry has recently announced they will pump in a further $450 million funding to increase construction productivity.

The government hopes that Singapore construction firms will adopt productive constructions methods typical in Europe and promises that manpower needs can be cut by half or more.

Unfortunately, the labour productivity of the construction sector has been lackluster over the past 5 years despite the hundreds of millions in funding. Labour productivity growth for construction in Singapore for 2013 and 2014 was -2.6% and -2.3% according to Singstat [Source]. This data contradicts the rose-tinted picture the PAP government claimed of 1.4% growth since 2010 [Source]. The PAP government however incredulously believe that with this new $450 million funding, productivity growth will be at least 2-3% every year until 2020.

The PAP government has also increased the funding limit for adoption of “impactful technologies” of each construction firm from $5 million to $10 million. Singaporean employees of these companies can also receive up to 90% subsidies under the Workforce Training and Upgrading scheme. However a quick check on this scheme revealed that foreigners are entitled up to 40% in funding for PMET courses too. Degree courses in Civil Engineering or any tertiary engineering degrees are also not covered in this scheme [Source].







It is hence unlikely the construction industry will see any further productivity growth with half-hearted measures in place for training. With the continual trend of falling productivity, it is also likely salaries in the construction sector will continue to be depressed and further deter Singaporeans in the high cost environment. The average construction worker typically comes from Bangladesh, India and China. They earn about $700 in basic salary and they are housed in overcrowded dormitories.

Many foreign construction workers have to work overtime to supplement their low basic wage and their overtime working hours are unsupervised by the Manpower Ministry. In 2013, several groups of Indian foreign workers rioted in Little India and many migrant worker support NGOs raised that one of the contributing factors for the anger could have been over poor living conditions and low wages.
Do you think Singapore construction companies can be productive so long they continue to be able to rely on hiring cheap foreign labour? Will throwing another $450 million at companies fix this?

 

[winnipegjets]

I wonder how many of these construction companies are PAP cronies.

Construction companies make big bucks, thanks to government contracts. Yet they have been receiving hundreds of grants over the years to 'improve'. Government continues to let them bring in hundreds of thousands of cheap foreigners to do the work. How can productivity improve? This productivity issue in construction is decades-old problem ...after so long, still like that. Government throws them more money. You wonder why?

 

[Hans168]

better throw money into the ocean
The problem is govt is clueless abt what is productivity and how to make it work......... keep on bringing in cheap bastards hoping productivity will improve....... how often do we see 5 Banglas at worksite with 1 Bangla working and remainder onlooking or supervising??? At least in the past they hv a local as supervisor and there was some value fo work done. NOW?
Govt barking up the wrong tree with our money

 

[Administrator]

better throw money into the ocean
The problem is govt is clueless abt what is productivity and how to make it work......... keep on bringing in cheap bastards hoping productivity will improve....... how often do we see 5 Banglas at worksite with 1 Bangla working and remainder onlooking or supervising??? At least in the past they hv a local as supervisor and there was some value fo work done. NOW?
Govt barking up the wrong tree with our money

Same in car workshop. Last time one mechanic will do the job. Now 2 indian workers will work on one car while the mechanic supervise.

 

[50000]

Same in car workshop. Last time one mechanic will do the job. Now 2 indian workers will work on one car while the mechanic supervise.

the one mechanic became the supervisor.....the govt will tell you that that is upgrading...

 

[tonychat]

How many of the construction companies owners are grassroots members?

 

[frenchbriefs]

dont u love it when construction becomes the backbone of our country?i swear to god iv seen at least 10 condo projects and shopping malls and road building projects in the last 5 years in mountbatten alone.how much more shit do we need?is our economy based on accumulating more and more junk?

 

[Papsmearer]

I wonder how many of these construction companies are PAP cronies.

Construction companies make big bucks, thanks to government contracts. Yet they have been receiving hundreds of grants over the years to 'improve'. Government continues to let them bring in hundreds of thousands of cheap foreigners to do the work. How can productivity improve? This productivity issue in construction is decades-old problem ...after so long, still like that. Government throws them more money. You wonder why?

This is why I question the Worker's Party. why was this not debated in budget hearings? why did they not fight against this. why vote for a budget that got this kind of $450 million crap in it. PAP's policy is if you are sick or unemployed, its your tai chee. But when construction companies not "productive" enough, its suddenly their business to pump money into a private enterprise? WTF. There is one very simple solution if they want to make construction companies more productive. Just tell them their FT workforce will be reduced by 20% every year for the next 5 years until they have zero FTs. U will be shocked at how fast they improve their productivity. Western countries with high wage workforce can put up a building with one fifth the construction crew that one of these idiot companies use. We should be able to do that here too. Construction companies already make so much money. I am not interested in subsidizing them $450 million. they should be paying it out of their own pocket, as the tax payer does not benefit from their increase in productivity. Their profitability is increased and that's their benefit. SO, they can jolly well pony up the money themselves.

 

[Cerebral]

Slowdown in economy is coming and money is being pumped into infrastructure project to boost GDP

 

[melzp]

why the need to rush/produce.? In whose interests?
to rush the construction for the property developers.
Do u know who they are? . Looking at their Ann Rpt, they make $$M every qtrs.
I can tell you why........These selected ones will donate generously to Political Party(parties)
as election is within the horizon...... where is the useless co-driver??? ...............Always in the bush peeing.

 

[50000]

Slowdown in economy is coming and money is being pumped into infrastructure project to boost GDP

spot on.....also to show that they spend the budget for the country else the budget will be lop sided heavy on MINDEF and MHA

 

[50000]

why the need to rush/produce.? In whose interests?
to rush the construction for the property developers.
Do u know who they are? . Looking at their Ann Rpt, they make $$M every qtrs.
I can tell you why........These selected ones will donate generously to Political Party(parties)
as election is within the horizon...... where is the useless co-driver??? ...............Always in the bush peeing.

I'm ok (to a certain extent) IF the jobs are awarded to local companies cause end of the day the money stays in SG hands. The problem is more and more jobs are going to foreign owned construction cos and the money is then leaked out. Worse is those foreign cos that go bust like the one for the MRT line.

 

[winnipegjets]

I'm ok (to a certain extent) IF the jobs are awarded to local companies cause end of the day the money stays in SG hands. The problem is more and more jobs are going to foreign owned construction cos and the money is then leaked out. Worse is those foreign cos that go bust like the one for the MRT line.

Paying foreign workers is also a big leak. Our scholar ministars have no basic understand of simple economics.

 

[Hans168]

Same in car workshop. Last time one mechanic will do the job. Now 2 indian workers will work on one car while the mechanic supervise.

up my points leh.....

 

[Papsmearer]

Slowdown in economy is coming and money is being pumped into infrastructure project to boost GDP

This is the most illogical argument I have heard. Look at where they are spending the most money. Defence is the highest at $13.1 billion. where is the money going? Its going into the economy of other countries like the US and Israel to create jobs for those citizens that make all the Boeing, Lockheed, etc fighters that we buy, as well as all those submarines, frigates, etc. U want to stimulate the economy? Well, u can't do that by spending the country's money overseas. Slowdown in economy should have resulted in slow down in spending, not a record budget.

 

[Confuseous]

Singapore businessmen are among the worst in the world.
And the most spoilt. They and the govt are feeding off each other,
scratching each other's backs.
Everytime there is a problem, run to govt.
Developers cannot sell properties, tell govt to lift restrictions.