Speech by MOS Zaqy Mohamad at the Association of Consulting Engineers Singapore 48th Anniversary Gala Dinner

Thursday, 21 March 2019

I’m delighted to be here at the Association of Consulting Engineers Singapore (ACES) Anniversary Gala Dinner for the first time. 

Need for transformation 

The theme for tonight’s dinner, “Engineering beyond Bicentennial” is aptly chosen. Our skyline has transformed greatly since Sir Stamford Raffles landed in Singapore 200 years ago. We have indeed transformed from mudflats to metropolis.

We have created many engineering marvels in Singapore such as the Pinnacle @ Duxton, Marina Bay Sands and the Singapore Sports Hub. This has only been possible with an effective corps of consulting engineers who brought their expertise to these projects, as well as ACES which has played a key role in developing, guiding, and advocating for the profession.  

But our journey does not stop here.  Going forward, the role of a consulting engineer will remain crucial. Building designs are constantly evolving to meet our changing infrastructure needs. For example, building designs now need to take into account sustainability, productivity and maintainability considerations upfront.

Infrastructure projects are also becoming more complex as Singapore becomes increasingly built-up. For example, we are building higher and deeper while finding ways to overcome site constraints. At the same time, the fourth industrial revolution is fundamentally changing the way we build. Construction is becoming more manufacturing-like, with building components manufactured off-site, before they are transported and assembled on-site.

One new threat is global climate change. As we talk about heavier rainfall, many of the engineering considerations in the years ago may not hold. Moving forward, we need to rethink some of these engineering considerations, including rising sea levels and how it affects Singapore – as what Minister Lawrence Wong spoke about in Parliament recently. 

Construction Industry Transformation Map 

Taken together, we have been finding ways to improve our construction practices to tap on technologies that can help us work more efficiently and productively. We launched the Construction Industry Transformation Map (ITM) in October 2017 to prepare our industry and the workforce for the future. 

I’m also happy and glad that ACES has been a strong partner of the Government for the Construction ITM. In fact, ACES has put together an ITM action plan to support our industry transformation efforts. 

Digital technologies 

One of the goals in your action plan is to be at the forefront of technology. ACES has been very supportive of the digitalisation efforts in the construction sector, which is in line with our efforts to encourage more built environment firms to go digital, through initiatives such as BCA’s Integrated Digital Delivery implementation plan.

For instance, ACES has organised initiatives such as gathering a group of Building Information Modelling (BIM) specialists – or BIM Guru as some of us call it – to spearhead BIM initiatives for its members.  The group is currently looking beyond BIM to explore digital solutions for key processes such as site inspection. 

ACES, including members of BIM Guru, has hosted an inaugural seminar in collaboration with BCA last July. Various speakers were invited to share their work and experiences on adopting BIM and Integrated Digital Delivery, with about 70 participants present; and I understand that there are plans for another session soon, so please sign up.

ACES can also encourage your members to be even bolder and more forward-looking in adopting technology. I look forward to more initiatives from ACES on this front.

Also, as what Er. Chua mentioned earlier, we are aware that some firms, particularly the smaller firms, may face challenges in adopting new technology, particularly due to the costs involved. 

We recently announced BCA’s BuildSG Transformation Fund (BTF), which consolidates all funding support available in the areas of Design for Manufacturing and Assembly, Integrated Digital Delivery as well as green buildings. With the BTF, firms and individuals will be able to more easily find the funding schemes that are most relevant to support technology adoption and their overall transformation. Do approach my BuildSG colleagues in BCA to find out more about the resources available to support you in your transformation journey. Rest assured this is the goal of the Government – to support your transformation and meet the future needs of the industry. 

As there is also a need to ensure that we have a sufficient pool of professionals trained to support our digitalisation efforts, we introduced the Professional Conversion Programme (PCP) for BIM Professionals last year. This helps attract mid-career switchers to join the built environment sector and equip them with essential BIM skills. We encourage you and your firms to leverage on the PCP and help augment the pool of qualified BIM professionals in the sector.

Collaborative contracting 

Aside from this, another key initiative under ACES’ action plan to support the Construction ITM is to encourage collaborative contracting. At last year’s dinner, Minister for National Development, Lawrence Wong shared that we are working with the various industry associations to develop the contract form provisions for collaborative contracting. 

We have made good progress on this. Following consultations with the industry, BCA has developed a set of collaborative contracting clauses, which are designed to promote mutual trust between contract parties. The clauses can be used with the standard contracts which are currently adopted by public agencies for construction projects. 

For example, one clause concerns the appointment of a Built Environment professional to oversee the project and proactively manage issues that emerge during the duration of the project. Should any disputes arise, the professional can also help to resolve it via mediation, provision of expert opinion or determinations where required. Another provision requires parties to give advance notice on matters that could have an impact on the project delivery or contract sum. This will allow parties to jointly develop solutions to avoid potential downstream issues.

At the same time, employers are also able to provide bonuses when certain targets, such as early completion of works, are fulfilled. This will encourage parties to collaborate and work towards achieving cost savings. 

As a start, JTC launched a tender last October to pilot these collaborative consulting clauses in the Punggol Digital District. We are working to identify more projects that can adopt these clauses and benefit from them. We also encourage ACES to share your feedback to help us continue to refine the collaborative contracting model. 

Internationalisation 

With the transformation of our industry, our firms will be in a good stead to go overseas and seek new opportunities. While we are cautiously optimistic that we will have a healthy level of construction demand over the next three to five years, the reality is that there is only so much we can build here. For the future, our companies need to look at internationalisation as well to grow. 

Based on BCA’s 2017 Internationalisation Survey, an average of $2.55 billion of construction projects were secured overseas in the last three years by local firms. 

Singapore companies also have a strong presence overseas. For example, CapitaLand is well-known for its Raffles City developments in China. Its serviced residence business, Ascott, has a presence in more than 100 cities. Ascendas-Singbridge and Sembcorp are also synonymous with industrial park developments in China, India and Vietnam. Our engineering firms are also active in countries in the region including Myanmar and Indonesia, securing commercial, residential, institutional and civil engineering projects. This is very encouraging because it shows that we have the expertise and talent to compete both locally and abroad.

With Southeast Asia expected to become the fourth largest economic region in the world by 2030, there are advantages for our Singapore firms to team up to enter overseas markets, in the region and beyond. In addition, with a rising middle income class and growing awareness of environmental sustainability, there is good demand for quality townships and green buildings in the region. 

As Finance Minister Heng Swee Keat said at the recent Lianhe Zaobao Budget 2019 Business Forum, economic transformation cannot be achieved by the Government alone. Our trade associations and chambers best understand the needs of the industry, so they should play a leading role in the industry’s development and help create collaboration opportunities among firms. 

ACES can contribute to this by facilitating partnerships between consultants and other complementary service providers to tap on one another’s strengths. I take Er. Chua’s point earlier to go out there and hunt as a pack. Such collaborations can help integrate solutions and provide more value-add to overseas clients. 

For instance, one project which ACES can explore is our Government-to-Government project between Singapore and the Indian state of Andhra Pradesh on the development of their new capital city in Amaravati. The 200km2 greenfield city offers many engineering consultancy opportunities like ground engineering, high rise building design, commercial complexes and necessary infrastructure such as roads, storm water drainage system, and social infrastructure. My colleagues at BCA’s BuildSG office would be happy to discuss and see how we can help ACES to take up these opportunities.

Other areas that ACES can work on include partnering the unions, Institutes of Higher Learning and firms to ensure that training programmes for workers are aligned with the industry’s transformation plans, as well as organising overseas trips for firms to better understand the overseas markets.   

In conclusion, Singapore has come a long way in our development journey, and ACES has been, and will continue to be an important partner. We look forward to furthering our partnership with you as we jointly implement the Construction ITM to transform the industry. 

On that note, let me extend my congratulations to ACES on your 48th anniversary. I am confident that ACES will continue to grow from strength to strength.

At the same time, I would also like to congratulate the winners of the Lifetime Achievement Award, Young Consulting Engineers of the Year Award and ACES Gold Medal Award. I hope these awards will motivate you to do even better and advance the profession further. 

Together, we can transform the built environment sector, and build a resilient economy with firms that can thrive locally and compete globally, and create good jobs for Singaporeans.

Thank you very much. Have a wonderful evening.