BCA sets out initiatives to support transformation in built environment sector
27 March 2024
On 5 March 2024, the Building and Construction Authority (“BCA”) issued a press release on the initiatives to support transformation in the built environment (“BE”) sector, setting out the following ways in which BCA will partner the BE sector to work towards a more productive, digitalised, and sustainable sector:
- Expansion of the Contractors Registration System to a nation-wide registry: To enable the Government to drive transformation more effectively across the construction industry, BCA will expand the scope of its Contractors Registration System (“CRS”) from a public sector registry to a nation-wide registry of construction firms. BCA will do this by requiring all firms hiring foreign construction workers to register under the CRS.
BCA will also raise the CRS entry requirements to keep pace with the current market conditions to ensure that firms hiring foreign construction workers have the minimum financial capabilities and experience to sustain their operations and deliver projects. The new minimum paid-up capital will be set at S$50,000 for all categories, and the new minimum track record will be set at S$300,000 in total for the past three years for all categories. BCA will give firms time to meet these entry requirements and will announce further details on the changes later in 2024.
- New Energy Efficiency Grant for construction industry: The new Energy Efficiency Grant (“EEG”) will support the cost of energy efficient construction equipment. Companies registered and operating in Singapore with: (1) at least 30% local shareholding, (2) at least one local employee, and (3) group annual sales turnover of no more than S$500 million, will be eligible for support under the EEG.
The EEG will provide two tiers of support: (1) a Base Tier where eligible local construction firms will be able to receive up to 70% of funding support for pre-approved energy efficient construction equipment, up to S$30,000, and (2) an Advanced Tier to support companies that wish to make larger investments to drive greater energy efficiency, up to S$350,000. The energy efficient equipment supported under the Advanced Tier need not be pre-approved, but must demonstrate energy savings above 350t lifetime carbon abatement. The grant amount for this will be based on committed energy savings or up to 70% of the equipment cost, whichever is lower.
BCA targets to launch the EEG by the end of 2024.
- Extension of Productivity Innovation Project scheme: The Productivity Innovation Project (“PIP”) scheme supports investments in automation and productive technologies in the BE sector. To continue supporting construction firms in their adoption of productive and labour-efficient technologies, the PIP scheme will be extended until 31 March 2025.
Applicants must be construction-related companies that are registered and located in Singapore, and the solutions must meet a minimum productivity improvement of 30% for the trade activity and/or process. Further, applicants must not have signed or confirmed a contract with or made payment to a supplier, vendor, or third party in relation to the solution before making an application under the PIP scheme.
- Update on Growth and Transformation Scheme: In 2023, it was announced that the Government set aside S$90 million under Growth and Transformation Scheme, which supports initiatives that build best-in-class capabilities and enable holistic transformation for BE value chains. Since then, funding support has been provided for industry-led initiatives.
Given the continuing rise in constructions costs in the BE sector in Singapore, the above initiatives rolled out by BCA represent a very real opportunity for businesses in the Singapore BE sector to tap into to secure a more productive and sustainable future.
More information on the above and other BE sector transformation efforts is set out in the Annexes to the press release. In particular, Annex A to the press release sets out an update on the Built Environment Industry Transformation Map.
Reference materials
The following materials are available on the BCA website www1.bca.gov.sg: