Speech by 2M Indranee Rajah at the Singapore Contractors Association Limited (SCAL) Lu Ban Dinner
Jul 7, 2025
Thank you very much for inviting me to join you for this year’s Lu Ban Dinner to celebrate the spirit of Lu Ban, the legendary Chinese master craftsman known for his dedication to craftsmanship, innovation, and pursuit of excellence.
Today, the spirit of Lu Ban continues to endure across the Built Environment (BE) sector, as we shape our urban environment to be more liveable, inclusive and sustainable.
We are at an exciting juncture in Singapore's development. Construction demand is expected to go up in 2025, reaching between $47 billion and $53 billion in nominal terms, higher than the $44.2 billion in 2024.
Major projects like Changi Airport Terminal 5 and the Cross Island Line are underway. We recently launched the Draft Master Plan 2025 that outlined our land use plans for Singapore for the next 10 to 15 years. This includes new residential precincts that will take shape at the former Singapore Racecourse site in Kranji and Dover-Medway. And the new integrated community hubs are planned in Woodlands, Yio Chu Kang and Sengkang to bring recreational facilities and amenities closer to home.
These ambitious plans for the next bound of Singapore’s urban transformation present both opportunities and challenges. Projects are becoming increasingly complex and they will require greater expertise from our builders and our contractors. With this strong pipeline ahead, there is an urgent need for us to continue to transform the way we build.
Let me highlight three areas where we can continue to transform and continue to shape Singapore into an endearing home and distinctive global city.
Harnessing Technologies to Build Better and Faster
First, we have to harness technologies to help us to build better and faster.
Over the years, we have made significant strides in Design for Manufacturing and Assembly (DfMA) adoption. Instead of carrying out most of our building construction work on-site, we now fabricate building components in controlled factory-like settings. These components are then transported to sites for assembly, like pieces of a well-designed puzzle. Through everyone’s collective efforts, we have successfully brought the proportion of works built through DfMA from 5% in 2015 to 68% last year, and it is a 14-fold increase.
In the next bound, we need to adopt more Robotics and Automation (R&A) solutions as they mature. This is not science fiction, it is not a scene from a futuristic movie. These robots are already at work on our construction sites today.
In less than 2 years since the first construction robot was deployed in Singapore, we now have 23 different R&A solutions being used across more than 50 construction sites in Singapore. These solutions span the full spectrum of construction work - from structural and architectural works to mechanical, electrical and plumbing installations.
Many early adopters have reaped the benefits of R&A solutions. For example, companies like Teambuild Engineering and Construction, Welltech Construction, and Seng Soon Huat Construction have deployed painting robots across their residential projects to reduce the number of workers they need on site. Deployed in various residential projects, the tile grouting robot, developed by home-grown startup Fabrica.AI, saves manpower while reducing tile grouting time by almost 70%.
We understand that adopting such technologies may require significant upfront investments and entails some amount of risk. This is why we have introduced the new $100 million Built Environment Technology and Capability (BETC) grant earlier this year. The grant co-funds eligible firms to build longer-term capabilities and adopt advanced technologies, including R&A solutions. Since April 2025, the grant has opened for applications. I really want to encourage all of you here today to tap on this support to accelerate your transformation journey.
Greening the Way We Build and our Buildings
Singapore has stated our ambition to achieve net-zero emissions by 2050. With buildings accounting for over 20% of Singapore’s carbon emissions, the BE sector is key to realising Singapore’s net-zero goals.
Our sector has been made good progress in decarbonising our buildings and their operations under the Singapore Green Building Masterplan. But, more can be done upstream at the construction phase to support the overall BE sector’s transformation and decarbonisation efforts.
To do this, our contractors – this means all of you – need to build up relevant capabilities in greener construction methods. These include developing expertise in the use of recycling construction waste, using more sustainable construction materials and methods, and building capability in carbon accounting for construction processes to optimise resource use and identify waste recovery opportunities.
The Government is committed to supporting the BE sector’s sustainability efforts.
To support our construction firms in the adoption of more energy-efficient construction equipment as part of the overall green transition, we have introduced the Energy Efficiency Grant (EEG). The grant provides co-funding support for energy-efficient construction equipment, such as Battery Energy Storage Systems (BESS), electric excavators, wheel loaders and crawler cranes. Since the launch of the grant in December 2024, we have received strong interest from the industry with over 60 firms having applied for the grant.
So I encourage more firms to tap on the EEG to accelerate your green transition.
Building the Next-Generation of Builders
The final and most important area I wish to highlight is workforce development. While technology and innovation are important, they alone cannot build a city. Success depends on having people with the right set of skills, experience, and sense of purpose.
While the BE sector has found it challenging to attract talents to strengthen our ranks as we build our future Singapore, I am heartened to know that many of our construction family businesses, including that of Mr Koh, the host of this Lu Ban Dinner and Mr Quek, Chairman of the Lu Ban Sub-committee, have involved their younger ones in their businesses.
But beyond these efforts, we need more talents in the BE sector. This is why BCA launched the Building Singapore (or “BuildSG”) Industry Branding Campaign. The campaign highlights how the men and women of the BE sector have embraced transformative technologies to shape the way that Singaporeans live, work and play.
One of them is Mr Jerry Law, a senior digital engineering manager at KTC Group. Jerry leads a team that identifies, evaluates and integrates latest technologies into KTC’s construction processes. From the use of Virtual Reality (VR) tools to aid planning, to the use of drones to track construction progress, Jerry and his team helps KTC deliver quality projects on time and on budget, to meet clients’ needs. As Jerry puts it, completing a project gives BE professionals a sense of satisfaction that what they have built form lasting legacies to be shared with future generations for years to come.
So we hope to inspire more Singaporeans to join the BE sector to build our future Singapore.
Beyond branding and public perception, we also need to ensure that we take care of and continue to develop the BE workforce.
First, we must continue to prioritise worker safety and well-being.
I am pleased that SCAL is leading the way through the Environmental, Health and Safety campaign that will take place from 10 to 11 July this year. Firms can look forward to learning journeys and safety innovation showcases by industry peers.
The Government has also made support available for the adoption of safety tech, such as drones and video analytics systems. Let’s protect lives by strengthening our safety culture together.
To meet the needs of today’s workforce, firms will also need to strengthen HR practices and create more career development opportunities. I am glad that SCAL has partnered with the Institute for Human Resource Professionals to support firms in their HR transformation journeys, through the Human Capital Diagnostic Tool (HCDT), HR and Job Redesign masterclasses and various guidebooks.
BCA and WSG have also partnered with SCAL to support firms to upskill mid-career employees to take on a wide range of in-demand roles, through the refreshed Career Conversion Programme for Built Environment Professionals.
I encourage everyone to partner with us to ensure that the BE sector attracts our share of the best and brightest talents for our sector.
Building our Future Together
In conclusion, let me say, from supporting firms through the challenging COVID times, to spearheading transformation and being a strong voice for the contractors, SCAL has been an invaluable partner throughout this journey.
The road ahead will bring both opportunities and challenges. We have ambitious plans for Singapore's next phase of development – projects will become more complex, and the need for us to transform will become more pressing. But I am confident that together, we can overcome any challenge and build a better home for all Singaporeans.
Thank you, and I wish you all an enjoyable evening ahead.