TECHNOLOGICAL CAPABILITY OF LOCAL CONTRACTORS

Maj Fong Sip Chee asked the Minister for National Development (1) if he is satisfied that foreign contractors are conversant with our laws and conventions in the construction industry; (2) since most of the works have been sub-contracted to local contractors, if he will agree that this fact is sufficient proof that local contractors do have the technological capabilities to undertake these projects in the first instance; and (3) is he aware that some of these foreign contractors have unjustifiably and deliberately withheld legitimate payments to local sub-contractors.

Mr Teh Cheang Wan: Foreign contractors, when they start their activities in Singapore, do take the trouble to acquaint themselves with our laws, statutory requirements and practices. They do this with the help of local partners, by employing or engaging the services of the right professional people, or through experience gained in initial small projects. Many foreign contractors who have been here for many years are as familiar with our laws and practices as our local contractors. I am glad to say that there have been no unpleasant incidents so far arising from foreign firms being ignorant of our laws or taking them lightly.

Similarly, to the best of my knowledge, there have been no complaints on foreign contractors withholding legitimate payments to local sub-contractors. In any case, sub-contractors can always have resort to legal redress.

Public contracts are awarded on a tender basis. A local contractor cannot expect to get a job simply because he can do it, if his price is high. While there are local contractors who work as sub-contractors to foreign contractors, the reverse also happens, ie foreign contractors working as sub-contractors to a local contractor. Generally, our contractors have yet to acquire fully the technical know-how to undertake single-handedly complex projects such as MRT tunnelling, land reclamation and wharf construction. Even so, elements of complex jobs can be and are handled by local contractors who, in the process, acquire the necessary experience and skills, The more enterprising and professional contractors also often team up with foreign partners to successfully tender for projects and learn in the process.