New funding framework, manpower scheme to support transformation of built environment sector

Wednesday, 6 March 2019

Singapore, 6 March 2019 - To support the transformation efforts in the Built Environment (BE) sector, Mr Zaqy Mohamad, Minister of State for Manpower and National Development, announced two initiatives during the Ministry of National Development's Committee of Supply debate today.

i. BuildSG Transformation Fund

The BuildSG Transformation Fund (BTF) consolidates existing funding schemes in the areas of Design for Manufacturing and Assembly (DfMA), Integrated Digital Delivery (IDD) and Green Buildings. This will help firms to more easily find relevant funding schemes to support their transformation. The various schemes under the BTF amount to about S$770 million.

This includes the following two schemes which have received top-ups:

Productivity Innovation Project (PIP) scheme - The PIP scheme will receive a top-up of about S$200 million to support firms that adopt solutions offering at least 30% productivity improvement. Firms that can achieve 40% productivity improvement will qualify for more support. The PIP will also help to build up IDD capabilities through funding support for digital solutions to be applied in at least three out of four stages¹ of a construction project.

Public Sector Construction Productivity Fund (PSCPF) - A top-up of S$95 million will be provided to support public sector projects to adopt DfMA technologies. The public sector is expected to contribute about 60% of the projected DfMA demand from 2019 to 2023.

ii. Off-site Construction Special Scheme

A new voluntary Off-Site Construction Special Scheme (OCSS) for eligible DfMA facilities will be introduced to encourage the shift towards DfMA, and reduce the reliance on foreign workers in the long run. This is an interim measure while the Government reviews how to remove the Man-Year Entitlement (MYE) framework for the construction industry, to better align our foreign manpower policies to support industry transformation. BCA will engage the industry as part of the review.

Under the OCSS, DfMA facilities² will be able to employ an allocated number of work-permit holders (WPH) at the MYE levy rates, depending on the facility type and manpower profile. BCA will be engaging eligible companies to explain the details of the scheme, which will be introduced in the second half of this year.

Mr Kenneth Loo, President of the Singapore Contractors Association Ltd (SCAL), said, "We welcome the scheme as it supports industry efforts in the shift towards DfMA. This will help to shift more work from on-site to off-site locations, while raising productivity and lowering cost."

BCA's CEO Mr Hugh Lim said, "Since the launch of the Construction ITM in October 2017, we have made good progress in our ITM focus areas. For example, our DfMA adoption rate reached about 22% by the end of 2018, on the way to our target of 40% by 2020. The top up for the funding schemes and the introduction of the OCSS signal the Government's support for industry transformation, especially in the area of DfMA."

Update on Facility Management industry

As part of the Facilities Management transformation, a tripartite Facilities Management Implementation Committee (FMIC), comprising representatives from various agencies, building owners, service providers and industry bodies, was formed in April 2018. To transform the FM industry from a labour-intensive industry to a productive one that leverages data analytics, predictive maintenance and smart solutions, the FMIC has proposed recommendations in four key areas:

- Design for Maintainability (DfM);
- Smart FM; 
- Procurement; and
- Manpower and Industry Development

BCA will partner the TACs to develop a skills framework to provide better guidance on career progression and training opportunities for firms and individuals for the BE sector, including the FM industry. BCA is also developing an accreditation framework with key industry stakeholders to recognise better-quality FM firms. In addition, BCA is working with A*STAR, IMDA and the International Facilities Management Association Singapore Chapter (IFMA SC) to develop a technology roadmap for the FM industry, which is targeted for launch by the end of 2019. This will help achieve greater productivity and operations efficiency through harnessing the potential of technology.

Annexes

Annex A - BuildSG Transformation Fund (BTF) (32KB .pdf)
Annex B - Off-site Construction Special Scheme (OCSS) (22KB .pdf)
Annex C - Company profile for OCSS (278KB .pdf)
Annex D - Facilities Management Implementation Committee (245KB .pdf)
Annex E - Company profiles for Facilities Management (16KB .pdf)

Relevant links

Construction Industry Transformation Map
Public Sector Construction Productivity Fund (PSCPF)
Productivity Innovation Project (PIP) scheme
BuildSG Transformation Fund (BTF)

Footnotes:
¹ These four stages in a construction project are design, pre-fabrication, construction and facility management.
² These include (a) Integrated Construction Prefabrication Hubs (ICPHs); (b) Prefabricated Prefinished Volumetric Construction (PPVC) / Prefabricated Bathroom Units (PBUs) / Prefabricated Kitchen Units (PKUs) fitting out facilities; and (c) Prefabricated Mechanical, Electrical and Plumbing (MEP) fitting out facilities.

Portable document format version of the media release is also available (676KB .pdf).