FOREIGN CONTRACTORS ON PUBLIC PROJECTS

Maj Fong Sip Chee asked the Minister for National Development (1) to provide a full list of the foreign contractors in Singapore who have been awarded tenders for public projects; (2) the total value of these public projects; and (3) has there been any tangible result in the transfer of technology to local contractors.

Mr Teh Cheang Wan: In the last three years up to December 1984, more than 60 construction contracts were awarded to foreign contractors by the public sector. The total value of these contracts is about $3.6 billion. These contracting firms are either fully foreign-owned or have a foreign equity interest of 51% or more. A list of these contractors is attached (see Appendix I) (Cols. 343 - 344). Appendix I - LIST OF FOREIGN CONTRACTORS AWARDED PUBLIC SECTOR CONSTRUCTION CONTRACTS IN THE LAST 3 YEARS (1982-1984) (Cols. 343 - 344)

Feedback from local contractors has indicated that they have been benefiting from working closely with their foreign counterparts, They are learning new skills in many areas of construction technology and are acquiring experience in new and more effective project management methods, especially in the area of costing and purchasing, planning and scheduling and works supervision. Their association with foreign contractors has also allowed them the opportunity to study other forms of organisational structure and corporate management styles. The knowledge gained is found to be useful for gearing up their own organisations to be more effective in their operations.

A study carried out by the Construction Industry Development Board in 1984 shows that the transfer of technology is most evident and significant in project management and supervision. In addition, many Singapore contractors have also acquired new skills especially those required in more complex civil engineering works such as MRT tunnelling. Our efforts to promote transfer of technology are producing results. In the presence of foreign competition, our contractors have also been spurred to put knowledge gained into effect quickly in order to be more productive and competitive in the market.