Construction firms find formal qualifications for workers a stumbling block

Singapore

MARKET watchers and practitioners agree that increasing productivity in the construction sector is a move in the right direction, but some question the need for formal qualifications, which ultimately pushes up costs.

Deputy Prime Minister Tharman Shanmugaratnam announced on Thursday night that construction firms will have to have at least 10 per cent of their Work Permit holders qualified as Higher Skilled (or R1) workers by 2017. This will be phased in over the next two years, with firms required to upgrade 5 per cent of their workers by end-2015, and another 5 per cent by end-2016. Those that fail to meet the targets will face curbs on hiring.