Distinguished guests,

Ladies & Gentlemen,

Good evening.

Thank you for the invitation to join you at the SPM's 7th Annual Dinner.

State of the Construction Sector and Future Directions

2 In the earlier part of the year, there were encouraging signs that our local construction industry was finally turning the corner. In August, statistics collated by the Building & Construction Authority showed that volume of construction orders had leveled off from its downward trend and is expected to reach $14.6b this year. Tender prices have stabilized and started to creep up.

3 However, more recent estimates from the Ministry of Trade & Industry for the third quarter of the year show that the construction sector remains weak. This is partly due to the slower progress payments being made from contracts that were awarded over the past two years. Any pick-up in the construction sector in the coming year will hinge largely on the overall economy. In particular, we will need to be wary of the unfolding events around us. The after shocks from the Bali bomb blasts, Middle East situation and the possible war in Iraq, could easily derail any prospect of a sustainable recovery.

4 Amid such uncertainties, it is important that the construction industry takes a long-term view and remains on track to be a world-class builder as envisaged by the Construction 21. The ERC Construction Workgroup has recently released its report and has urged our local firms to consider venturing overseas to take advantage of the huge opportunities especially in India and China.

Overseas Marketing Networks

5 BCA and IE Singapore are already assisting Singapore firms to source for overseas opportunities and bring together business partners. Singapore's professional institutions can assist in these efforts by forging ties with their overseas counterparts. I understand that the SPM has tied up with its counterparts in China and Australia to collectively promote best practices in the project management profession. In addition, the Society has started initiating contacts with its Japanese and European counterparts as well.

6 While the interest from our local building practitioners to venture overseas continues to grow, it is equally important that our construction industry improves and expands technical and managerial capabilities locally. And above all, in our drive to develop an external wing, the industry must also build up, brand-name that is synonymous to premium quality.

Singapore's Brand Name

7 Singapore has the reputation of being a well-planned, well-managed and efficient city-state. This is due in big part to our physical infrastructure that has consistently been ranked amongst the best in the world. All of you in this ballroom have contributed to this. For it is your project management expertise which has transformed plans to reality. It is also a critical success factor in our reputation for quality.

8 Just last month, I led some of our local construction players to India on a business mission. I was heartened that the Indian counterparts that I came into contact with had only good things to say about us. They were impressed with the professionalism of our firms and our ability to deliver quality building projects. Consequently the demand for Singapore's expertise in township and industrial park development is strong.

Making Quality a Singapore Brand Name

9 We must continue to enhance the value of our services by establishing a reputation for quality in all our projects. Having a good Singapore brand is critical if our companies want to be internationally competitive.

10 The entire value chain for building development in Singapore must work together to assure quality from project design to delivery. At the design stage, aesthetics must be founded on design functionalities, good quality specifications and careful detailing. Lessons learnt from past projects should feed into future projects. This will help ensure our designs are regularly improving and the knowledge base and expertise are built up. IT and knowledge management can be utilised to develop this area.

11 The quality of delivery should extend to project implementation. Many of our companies already have ISO 9000 certification. The challenge is to build on this and set targets for continuous improvements. BCA's CONQUAS system for workmanship quality assessment can provide a good benchmark for companies. CONQUAS, and its latest enhancement -the Quality Mark for Good Workmanship for individual dwelling units - can become the Singapore construction sector's brand-name for superior workmanship quality.

12 Some of our players are taking the lead to adopt best practices to ensure that their developments are quality-driven. Although the Quality Mark scheme was only launched on 1st July this year, four of our leading developers (CDL, Allgreen, Capitaland and Wing Tai) had already committed close to 2,000 of their apartment units to achieving the minimum standards set under the scheme. This also means that their project partners such as the design consultants, contractors and project managers have been roped into the quality drive. For example, some contractors, in partnership with their developers, have developed quality management processes which incorporate supervision and inspection aimed at ensuring good quality design and construction.

13 All these quality initiatives are driven, to a large extent, by rising consumer expectations. As part of the holistic approach to quality promotion, efforts should also be made to educate our consumers so that expectations do not reached unrealistic levels. BCA has worked with CASE and REDAS to produce the Home Buyer's Guide for Building Quality. This guide provides tips on acceptable quality finishes, fittings and components. This should help consumers to know what level of quality to expect.

14 The industry should persevere in its pursuit of better quality. BCA is currently promoting the adoption of best practices in quality control processes in various construction trades that are prone to construction defects. Examples of such problematic areas are water-proofing, marble and granite finishes and ceramic tiling. The adopted practices will provide simple and practical ways for designers to improve their detailing and contractors in achieving high quality workmanship.

Conclusion

15 If these efforts can be expanded and sustained over the next few years, I am confident our international reputation for construction quality can be translated into a Singapore brand for our construction and real estate players. This will be an invaluable competitive edge in the export markets. I hope that everyone here will play an active part in creating this quality culture.

16 It now leaves me the pleasure to congratulate the Society of Project Managers on its 7th anniversary. I wish all of you here an enjoyable evening.

Date : 15 Nov 2002

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Last updated on 18 May 2006