Construction sector to get enhanced nationwide contractors’ registry, energy efficiency grant

A NEW energy efficiency grant for the construction sector, an enhanced Contractors Registration System (CRS), and extended support for sector productivity improvements are in the works, the government announced on Tuesday (Mar 5). 

The current registration system will be enhanced as the “sole gateway” for firms hiring foreign construction workers, said Minister for National Development Desmond Lee, rather than function as one of three gateways.

The other two are Building and Construction Authority’s (BCA) Builders Licensing Scheme and Singapore List of Trade Subcontractors administered by the Singapore Contractors Association Ltd.

As paid-up capital and track record requirements vary across these gateways, some firms may find it easier to access foreign construction workers under certain gateways, said BCA. 

“There are currently about 11,000 firms registered under CRS. We estimate that up to 7,000 more firms may register under CRS after the implementation of the requirement for all firms that hire foreign construction workers (regardless of source) to be registered,” said a BCA spokesperson.

BCA plans to raise the minimum paid-up capital and track record requirements to keep pace with market conditions.

A NEWSLETTER FOR YOU

Tuesday, 12 pm

Property Insights

Get an exclusive analysis of real estate and property news in Singapore and beyond.

Sign Up

The minimum paid-up capital required under the new system is S$50,000 for all categories, while the minimum track record will be S$300,000 in total for the past three years for all categories. 

This is to ensure that the registered firms have the minimum financial capability and experience to sustain their operations and deliver the projects, it said.

The government will also extend the grant to the construction industry by the end of 2024, Second Minister for National Development Indranee Rajah announced.

This grant co-funds investments in energy-efficient equipment.

To be eligible, companies must be registered and operating in Singapore with at least 30 per cent local shareholding, and with at least one local employee and group annual sales turnover of no more than S$500 million.

The grant will be disbursed in two tiers of support. At the base tier, firms will get up to 70 per cent of funding support for pre-approved energy-efficient construction equipment up to S$30,000. The advanced tier support is for companies eyeing larger investments in higher energy-efficient equipment, of up to S$350,000.

The built environment sector has moved towards hitting three key targets announced earlier under the Singapore Green Building Masterplan or “80-80-80 in 2030”.

Based on gross floor area (GFA), about 58 per cent of Singapore buildings are now “green” – that is, certified with a Green Mark, ahead of the target to green 80 per cent of buildings by 2030.

A new Mandatory Energy Improvement, to be introduced by end-2024, will require new owners of energy-intensive buildings to carry out energy audits and improve building energy use intensity. 

The government has also set a target of 80 per cent for new developments, based on GFA, to be Super Low Energy buildings from 2030. Currently, more than 7 per cent of new developments have been certified as such.

Best-in-class green buildings should achieve 80 per cent improvement in energy efficiency (compared with 2005 levels) by 2030. The current level is at 71 per cent improvement in energy efficiency over 2005 levels.

The government will further extend the Productivity Innovation Project (PIP) scheme for construction companies to March 31, 2025, to nudge more of them towards investing in transformative technologies.

Proposed solutions must meet a minimum productivity improvement of 30 per cent of the trade activity and/or process. “Over the last six years, the PIP scheme has supported 78 firms with S$37.4 million of funding in investments,” said Indranee.

The PIP scheme co-funds up to 70 per cent of the costs of adopting productive solutions, capped at S$10 million. It covers Integrated Digital Delivery systems, Robotics and Automation, and Design for Manufacturing and Assembly technologies.