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New rules to grow higher skilled workforce in construction sector

SINGAPORE — The Ministry of Manpower (MOM) and the Building and Construction Authority (BCA) today (Oct 30) announced several new measures to help the construction sector grow its pool of higher skilled (R1) workers, amid ongoing efforts by the Government to restructure Singapore’s economy and reduce reliance on low cost labour.

Construction workers working at a construction site. TODAY file photo

Construction workers working at a construction site. TODAY file photo

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SINGAPORE — The Ministry of Manpower (MOM) and the Building and Construction Authority (BCA) today (Oct 30) announced several new measures to help the construction sector grow its pool of higher skilled (R1) workers, amid ongoing efforts by the Government to restructure Singapore’s economy and reduce reliance on low cost labour.

Under the new rules, construction firms will have to upgrade 10 per cent of their basic skilled (R2) work permit holders to R1 status over two years, between Jan 1 next year and Dec 31, 2016. This will pave the way for a subsequent requirement for all firms to have a minimum of 10 per cent R1 workforce from Jan 1, 2017.

Construction firms with at least 15 per cent of their workforce qualified as R1 workers already will be exempted from the upgrade requirements, MOM and BCA spokespersons added during the sidelines of the Singapore Productivity Awards Ceremony today.

Along with the new rules, the overnment is also moving to allow more flexibility for construction firms to upgrade their workers and retain experienced ones. Part of this initiative is to allow work permit holders to be hired by another firm without having to leave Singapore when their current permits expire.

Meanwhile pathways for firms to upgrade workers will be expanded. From Sept 1 next year, R2 workers will qualify for R1 status once they pass a skill assessment test and earn S$1,600 per month or more. This is in addition to existing pathways that also require workers to have between four to six years of experience working here.

Currently Singapore has over 10,000 construction firms that hire around 300,000 workers. Of these, 15 per cent are R1 work permit holders.

Official data shows that about 60 per cent of all firms already meet the 10 per cent requirement that will take effect in 2017, and around 80 per cent of the remainder will only need to upgrade one or two of their workers.

Upgrading a worker to R1 status will however cost around S$1,000 for the necessary training and test programmes. This will likely impact smaller firms, but the BCA noted that the amount is co-shared by the Government by up to 80 per cent provided that the worker passes his test.

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