Mr Chow Kok Fong, President of Society of Project Manager,

Ladies & Gentlemen.

The construction sector contributes significantly to Singapore’s economy. It grew by 9.8% in 2^nd quarter 98 in contrast to the 1.6% growth for the whole economy. Construction output also remained strong: it increased from 8.9% in 4^th quarter 1997 to 9.1% in the 2^nd quarter of 1998, despite a downturn in the economy. The volume of construction projects reached a record $22.4 billion last year, and is expected to maintain a healthy $18.4 billion this year with the increase in public sector projects.

However, the construction sector has been plagued by a host of irregular practices arising from its heavy dependence on foreign workers from countries such as Bangladesh, India, Sri Lanka and Thailand etc. Many of them are unskilled. This heavy reliance on unskilled foreign workers has resulted in low, even negative productivity growth for the construction industry in the last 5 years. The large presence of foreign workers, especially the unskilled, also brings about social problems.

The Ministry of Manpower has introduced various measures to tackle the irregular practices in the construction industry. These measures include increasing the levy for unskilled foreign workers while reducing that for skilled foreign workers, and the implementation of a new work permit allocation system which is designed to weed out unscrupulous sub-contractors. Further we require at least 20% of foreign workers to attend basic skills testing before they can be employed.

In May this year, the Ministry of Manpower launched the Construction Manpower 21 Study as a further step towards revamping the construction industry. This committee was subsequently merged with the Committee on Practices in the Construction Industry under the Ministry of National Development to form the Construction 21 Committee. This will enable greater synergy to be achieved between the various efforts by different agencies. The objective of the Construction 21 study (or C21 in short) is to achieve a breakthrough in construction productivity, optimise the use of economic resources, set up responsive and flexible organisation structures and management practices, nurture a skilled workforce and reduce foreign labour reliance to support a technologically advanced, high value-added and cost-efficient construction industry in the 21^st century. The Committee is adopting a total system approach to examine the full value chain of the industry in order to come up with such breakthroughs.

The committee comprises representatives from Ministry of Manpower (MOM), Ministry of National Development (MND), Construction Industry Development Board (CIDB), Public Works Dept (PWD), Housing & Development Board (HDB), Productivity & Standard Board (PSB) and the National Trades Union Congress (NTUC). It also includes experts from the industry, that is Singapore Contractors Association Limited, Real Estate Developers Association of Singapore, Singapore Institute of Architects, Institution of Engineers Singapore, Association of Consulting Engineers Singapore, Singapore Institute of Surveyors and Valuers, Society of Project Managers and a good mix of private professionals and academics from NUS, NTU, and the Polytechnics. No effort has been spared in ensuring that the C21 study will result in a comprehensive review of the construction industry.

The C21 Study will map out a vision and role for the construction industry in the 21^st century. The construction workforce of the future must be multi-skilled and highly productive. This is in line with MOM’s vision of Singapore as a talent capital. Only then will we be able to compete with the best in the world. To achieve this, the C21 committee will look at ways to nurture a skilled construction workforce at all levels and prepare them for the future.

The committee will also delve into ways to enhance the professionalism of various players in the construction industry and encourage the practice of partnership among all parties in the construction industry to achieve greater efficiency in construction. It will also explore ways to elevate the image of the construction industry and nurture a sense of pride in work and professionalism among the construction workforce at all levels.

The committee will also look at some of the new and innovative construction techniques and practices in other countries and see how these may best be applied in our context with a view to achieve higher productivity, better quality work and cost efficiency.

As project managers, you have a key role to play too. The proper management of work sites depends on people like yourselves. From visits to various construction sites, we have observed that very often sites that are managed by a team of professional project managers not only have better safety and quality records, but also enjoys higher productivity as workers are better managed and more motivated to their work. Indeed, studies done in Europe and the US show that project managers can add up to 25% more to the value of the project.

As project managers, you have to grapple with real problems at the ground level. You have the responsibility to ensure that the safety of the site is not compromised, and at the same time ensure that the construction of the building is carried out as planned. In carrying out your day-to-day tasks, I would like to urge you to take a total approach in seeing how you can help to improve the construction industry. For example, you could try to actively persuade the architect and contractor to adopt the use of modular components in order to improve buildability. Project managers who are involved in the planning, design and implementation management can see how to minimise manpower, wastage and ensure quality control.

As project managers play a vital role in making the construction industry viable and competitive, there is a pressing need for world class project managers with a high degree of competency and experience. It is indeed heartening to note that the Society of Project Managers membership is drawn from a pool of experienced professionals. I am told that the Society has a varied and balanced mix of professionals, ranging from developers, architects, contractors, engineers, surveyors, and even IT specialists. I am also pleased to note the high standing of the members, with 80% of you possessing at least 10 years of professional experience, and the remaining 20% having no less than 6 years of professional experience.

The Society has grown from an initial membership of 142 members during its inaugural year to a current base of more than 280 members. Notwithstanding, the Society has maintained high standards of membership through its rigorous testing and certification programmes. Such a move ensures that our project managers are keeping to-date with cutting edge technology, and also maintains a high standard of integrity. I am sure that the members of the Society understand the crucial need to constantly upgrade their managerial ability and make this a life-long endeavour. This attitude of life-long learning would serve you well, especially when the economy recovers again as you will then be well-positioned with valuable skills and knowledge. The efforts of the Society in promoting life-long learning is manifested in its series of professional lunch meetings, whereby members from the public and private sectors can gather and exchange ideas on the latest project management approaches and other issues. The Society can indeed help to develop the construction industry, whether through spearheading R&D projects related to construction or through adapting useful construction practices from abroad.

To conclude, the Singapore economy is entering a very difficult phase. Indeed, the worst in more than a decade. We must however see how we can turn this into an opportunity for us so that we become more competitive when the economy improves. The C21 study will help us achieve this. As project managers, you have a key role to play in our efforts to upgrade the construction industry.

On that note, I would like to offer my congratulations on the occasion of your 3^rd Anniversary and may I wish your Society every success. Have an enjoyable evening. Thank you.

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