The following list represents some of the most exigent challenges faced by many new contractors in the area of manpower resource constraints.
Current Market Challenges to New Market Entrants
- Current MOM dependency ratio of 1 Singaporean : 7 foreign workers. This employment requirement for foreign workers represent a great challenge to new contractors when employing foreign workers. Firms will be required to have a construction-related CPF account in place and must technically be in operation for 3 calendar months before it is allowed to start recruiting foreign workers. New contractor entrants might not have the luxury of time when the urgent need for the construction workers arises.
- New entrants will also need to be either BCA or SLOTS certified before they are allowed to recruit foreign construction workers. This certification usually takes a couple of months to process.
- One-year work permits of foreign workers. New entrants whose projects that last less than a year often have trouble assigning jobs for their workers upon the completion of the project. Some even have problems when repatriating the workers whom they no longer require. This represents additional costs to the contractor as they are liable for the workers pay even if there are no available jobs.
- Lack of accommodation resources. Due to the unusually large influx of foreign workers servicing the marine, process, manufacturing and construction industries, there is currently a severe shortage of MOM-approved dormitories for these foreign workers island-wide. Opportunistic profiteering by dormitory operators in view of the shortage exists.
- Lack of transportation resources. Currently there is also a severe shortage of transportation resources (drivers and vehicles) ferrying the workers to and from the respective job sites.
- Lack of highly skilled workers. Currently most of the foreign workers available are only trained in one specific skill, thus they are unable to multi-task to improve productivity.



