CONSTRUCTION INDUSTRY DEVELOPMENT BOARD (Assistance to local maintenance contractors)

Mr Ng Kah Ting asked the Minister for National Development how many maintenance contractors seeking business in the public sector are registered with the Construction Industry Development Board (CIDB); how many of them are local and what is the range of their paid-up capital; and what assistance will CIDB give to the local companies to upgrade themselves in order to compete with foreign companies that have the latest equipment and other technological paraphernalia to outbid for public sector jobs.

The Senior Parliamentary Secretary to the Minister for National Development (Mr Lee Yiok Seng) (for the Minister for National Development): Mr Deputy Speaker, Sir, I am answering on behalf of my Minister.

Sir, maintenance work can be classified under three broad categories:

(a) Maintenance of building and civil engineering facilities;

(b) Maintenance of mechanical and electrical installations; and

(c) Cleaning and housekeeping.

As at 30th June 1987 there were a total of 1,809 contractors registered with the CIDB for public sector projects under various categories of work. They provide a mix of construction, installation and maintenance services. 1,586 of them or 87.7% are local contractors. Their paid-up capital range from $10,000 to $1.5 million. Of the 1,809 contractors, 714 are building contractors, 713 are M & E contractors and the remaining 382 are general services contractors.

CIDB administers two incentive schemes which help local contractors to upgrade themselves and to compete with foreign contractors. They are:

(a) The Investment Allowance Scheme which helps local contractors to upgrade through mechanization by providing them with tax allowances up to 50% on their investment expenditure in approved types of construction plant and equipment.

(b) The Preferential Margin Scheme which gives local contractors a preferential margin of up to 5% to make them more competitive over their foreign counterparts when tendering for public sector projects. The Scheme also encourages foreign firms to form join ventures with local construction firms.

The CIDB also publishes the Annual Construction Maintenance and Retrofitting Report which provides market information for maintenance contractors. From August 1987, the Board will introduce a new category in the Registry of Public Sector Contractors called the Comprehensive Maintenance Contractors for companies which can provide a range of maintenance services. This new registration will encourage local firms to widen the scope of maintenance services and, in so doing, upgrade the level of expertise in providing maintenance management.

Mr Ng Kah Ting (Punggol): Mr Deputy Speaker, Sir, can the Senior Parliamentary Secretary inform the House what is the total volume of business carried out each year by these contractors in the various activities mentioned, and what is the total labour force of these contractors?

Mr Lee Yiok Seng: In 1986, the maintenance market is as follows: public sector, about $330 million; private sector, about $186 million, making a total of $516 million for last year. The breakdown of these works are in three areas: building and external work is about $180 million; cleaning and housekeeping is about $170 million; maintenance and mechanical and electrical plants and equipment, etc, is about $165 million.

Mr Ng Kah Ting: Sir, I think the Senior Parliamentary Secretary has not answered the second part of the question, ie, what is the total labour force that these contractors employ?

Mr Lee Yiok Seng: Sir, up to 1986 the total construction labour force in Singapore is about 60,000 and about 30,000 workers including 1,300 professionals are employed in Building Management and Maintenance Services. 12.00 pm

Mr Deputy Speaker: Order. End of Question Time. Ministerial statement.

Pursuant to Standing Order 21 (2), Written Answers to Questions Nos. 19 to 26 remaining on the Order Paper are reproduced in the section, 'Oral Answers to Questions Not Reached' (Cols. 1419 - 1424)