Singapore Construction sector struggles to innovate despite generous productivity incentives

Singapore 26 Mar 2015
Singapore Construction sector struggles to innovate despite generous productivity incentives

Construction sector struggles to innovate despite generous productivity incentives

Labour crunch still a key hurdle.

The construction sector struggles to automate in spite of generous research and development incentives from the government, a report by Macquarie revealed.

According to Macquarie, the labour crunch is still a key hurdle as the sector remains intensely dependent on the availability of cheap foreign labour.

“Construction investment is less productivity-enhancing – especially in Singapore, where the construction sector is very labour-intensive. The government has sought to provide incentives for R&D and greater automation in the construction sector – but the availability of cheap foreign labour has constrained automation within Singapore’s construction sector over the past 5 decades, and it will be very difficult for the sector to rapidly climb the productivity/automation ladder,” stated the report.

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