Dr John Keung, CEO, BCA,

Ladies and Gentlemen,

Good evening,

Continued Bright Construction Outlook

1 The construction sector has finally turned around, after a prolonged downturn which lasted five long years. In fact, it has been one of the star performers of the economy in the first quarter of this year, growing by 7% on a year-on-year basis. Going forward, the sector is expected to expand strongly, with construction demand projected to reach between $17 billion and $19 billion this year.

World-Class Built Environment

2 This recovery heralds an exciting time for the industry, which has a vital role in the shaping of Singapore as a vibrant and dynamic global city. Together with the industry, BCA’s (Building and Construction Authority) vision is to develop a world-class built environment for our people, one that is characterised by three key elements: environmental sustainability, construction sustainability and barrier-free accessibility. Let me elaborate on these three key elements of the Singapore of the future.

A Sustainable Built Environment

3 Environmental sustainability has gained increasing prominence and public attention in recent months. There is greater awareness of the need to make better use of the world’s scarce resources and to minimise the impact of our developments on the environment. In Singapore, we have made considerable headway in promoting the development of green and sustainable buildings.

4 Since 1 April, new public buildings and existing ones undergoing major retrofitting are required to be Green Mark certified. For example, HDB’s recently launched “Eco-Precinct” public housing project at Punggol, has attained a Green Mark Platinum award. When applications closed, there were more than four applicants for every flat. This shows that there is strong public support and demand for an eco-friendly living environment among Singaporeans.

5 The industry has also responded positively to the Green Mark Incentive Scheme, which BCA launched last December. So far, nine projects have been approved under the scheme.

6 This evening, a record 27 buildings will receive the various Green Mark awards, including four Platinum awards. This brings the total number of Green Mark buildings in Singapore to 60. I am especially happy to note that for the first time, private sector buildings have attained the Green Mark Platinum awards, the highest green building accolade here. These include City Developments’ City Square Mall and Oceanfront@Sentosa Cove, as well as Xilinx Asia Pacific Headquarters building, the first industrial project to win the Platinum award.

7 The strong support for the Green Mark awards indicates that developers and building owners are convinced that green buildings make economic sense, and there is demand for such products. This is because buyers are convinced that they can reap the benefits of energy savings, water savings and better indoor environmental quality.

8 On the research and development (R&D) front, the National Research Foundation has identified clean energy as a new strategic area and has set aside $170 million over the next five years to support R&D in this field. This includes the application of clean energy technologies such as solar panels and fuel cells. At the same time, the MND Research Fund for the Built Environment, which was launched early this year, has received a total of 63 proposals from both public and private sectors, with 40 proposals related to sustainable development and energy efficiency. Among these, 13 proposals have been selected for funding support.

9 We can do more and move faster. Going forward, we want to push for a wider adoption of green building technologies and are considering the imposition of minimum requirements on environmental sustainability. These requirements could be modelled after the basic Green Mark standards, and be applicable to both new buildings and existing ones undergoing major retrofitting. BCA is currently working out the details and will announce them in due course, after consultation with the industry.

Sustainable Construction

10 As part of our commitment to evolve a more environment-friendly built environment, we are also promoting sustainable construction. Sustainable construction involves the use of materials that are recyclable and are readily available from many sources. This will enhance our supply resilience of essential construction materials. The recent supply disruption in concreting sand and granite from Indonesia is a wake-up call to the industry to diversify our supply sources and switch to sustainable construction as much as possible.

11 The industry has started to open up alternative supply sources of sand and granite, and must continue its diversification effort. Supply diversification will inevitably involve some risks. To encourage the industry to import from more sources, BCA is currently formulating a scheme to co-share some of these risks. BCA will release details of the scheme to the industry in due course.

12 At the same time, we must aim to be less dependent on concrete. We can do so in several ways. First, switch to non-concrete alternatives such as structural steel, glass, dry wall systems and metal claddings. BCA is working with relevant agencies to review the existing regulatory requirements to facilitate greater use of structural steel.

13 Second, explore the use of suitable substitutes for sand and granite in the production of concrete. Just in the case of Newater, can we find an alternative for sand and granite which is economically viable and readily available, a “NewConcrete” perhaps? One innovative solution uses copper slag and recycled coarse aggregates as substitutes for sand and granite to make concrete-like products. The challenge is to continue to find ways to bring down the cost to make such products commercially viable while enhancing its structural strength.

14 Public agencies are taking the lead in adopting sustainable construction. For example, BCA is currently working with HDB and NParks to try out copper slags and other recycled material for non-structural works such as linkways and park connectors. HDB is using steel frames and metal claddings to reduce the concrete requirement for its lift upgrading projects by as much as 90%. JTC’s Fusionopolis project has also used structural steel extensively to cut down its concrete needs by almost 70%. Likewise, structural steel is used considerably for the construction of the Supreme Court Building, one of the Best Buildable Design award winners this evening.

15 With the right mix of promotion and regulation, I am confident that we can reach the level of sustainable construction enjoyed in countries such as Japan, the United States and the United Kingdom. BCA targets to reduce the industry demand for concreting sand and granite by 30% to 50% within five years.

Barrier-Free Built Environment

16 The third key element of a world-class built environment and a truly distinctive global city is to develop a comprehensive barrier-free or elder-friendly built environment.

17 BCA is working with relevant government agencies to ensure that accessibility within our built environment is greatly enhanced over the next five years. For example, HDB is working with the Town Councils to make all public housing precincts barrier-free by 2011, and will be completing its Lift Upgrading Programme for all eligible blocks by 2014. LTA has also put in place its accessibility programme to improve the accessibility of public streets and public transport systems.

18 To encourage owners of private sector buildings to carry out barrier-free related upgrading works for their existing buildings, BCA, in partnership with MCYS, has launched the BFA Accessibility Fund on 1 April this year. About $40million has been set aside for this Fund and we encourage building owners to make full use of this incentive.

19 Tonight, we will also be recognising the efforts of the owners of 7 buildings under the inaugural Universal Design Awards. This new award is a collaboration between BCA, the Singapore Institute of Architects, and the Handicaps Welfare Association. It is heartening to note that the winning projects comprise various building types, including commercial, institutional, residential buildings and also a MRT station.

Conclusion

20 This evening, we are here to honour the outstanding accomplishments of the industry in terms of quality, buildable design, environmental sustainability and universal design. These are the key attributes that will characterise our built environment, and the key attributes that the industry must be committed to deliver.

21 I am pleased to know that we will be honouring 65 noteworthy projects. I congratulate all the winners for their achievements.

22 I wish all of you a pleasant evening. Thank you.

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