SHORTAGES of manpower and building materials seen in the early days of recovery from the Covid-19 pandemic have faded. However, construction costs have risen sharply and are likely to increase further.

The good news in the construction sector is that industry players are not seeing any shortage in either manpower or building materials now, and China and India will continue to be the main source of foreign labour for the sector, said consultancy AECOM executive director for cost management Hyacinth Tan.

However, while the number of work permit holders allowed has increased after the pandemic, skilled labour shortage continues to be a major constraint, and this has placed upward pressure on overall construction costs, said Turner & Townsend.