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The government should support our local construction companies more actively

I refer to the news that a S$356 million contract has been awarded by LTA to Taisei Corporation of Japan and the Singapore branch of China State Construction Engineering Corporation for the design and construction of a tunnel between the future Aviation Park and Loyang MRT station.

I comment as a citizen and not as a construction industry person.

Often times, the money involves in construction and infrastructural projects are big money and when such projects are awarded by the government, our collective tax monies are spent.

I accept that currently, our big local construction companies may lack certain technologies, know-how, skills and competency etc and as such, unable to compete effectively against big foreign competitors eyeing local projects and earning our monies.

I hope that the government can stick as much as possible to the practice or even the requirement that foreign companies vying for local projects must partner local construction companies with the objective of enabling our construction companies to learn from them, ie, skill-transfer and not mere tokenism.

I have also considered the possibility of the disparity in the level of technology and know-how of winning foreign companies vs their local partners and pairing them to make a team and bid for projects may inadvertently result in the increase of overall costs.

Even if that is the case, the additional costs (within an acceptable limit) maybe a worthwhile ‘tuition fees’ for us to bear for the time being in the knowledge that our local construction companies have the opportunity to work along side and learn from the industry leaders.

Over time, with their acquired new know-how, technologies and skills, the ‘tuition fees’ that we have spent, we will earn back.

Lastly, every construction company started small and many grow to be big enough to bid for even overseas projects. The Korean, the Chinese and the Japanese construction companies are no different.

I hope to also see the pap government supports our local construction companies more actively either financially or in other meaningful ways so that they are also able to bid and hopefully win overseas projects like the Chinese, the Japanese and the Koreans do.

This will require pap ministars to be more instinctively entrepreneurial than just being book-smart in their world views of things and mindsets. It is something that no ivy league universities can teach.

Think.

Simon Lim

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7 Responses to “The government should support our local construction companies more actively”

  • Flabbergasted:

    Local construction bosses join grassroots and become grassroots patrons etc.

    Most screw ups are “honest mistakes”

    Real growth?

    Need we say more?

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  • Maybe the gahment is supporting local companies?

    Maybe GIC/Temasick has shared in both Taisei Corporation of Japan and the Singapore branch of China State Construction Engineering Corporation?

    Dio bo?

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  • Harder Truths:

    Simon- where have you been the last 45 odd years?

    The construction sector has always employed foreign firms for all major infrastructure projects. This includes PMET’s and all other support staff. This is another way to get FT into $G quickly.

    In the 1970′s and 80′s it was the Malaysians and Ang-Mohs. Then it changed to Taiwanese, Korean and Japanese in the 80′s. In the 90′s onwards it was the India CECA PMET’s and China’s CCP-financed companies.

    Construction in $G was the first to be prostituted to the FT and their companies. The rest of the economy followed after that.

    In the future $G may have McDonalds doing construction. Who knows?

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  • xoxo:

    Simon,what are u saying?
    Most,if not ALL *LOCAL* CONtractor$ are ored7 getting fed as most have GRA$$LLOOT CONnection$?!

    Tendering OPENLY is the best way to bring CODTS AND,TBEREFORE,TAXPAYER BURDEN lower,isnt it?

    Even govt says Sgs must compete for jobs with FTs,and,do you see CONtractors speaking out for sgs?

    Tendering openly is only right.

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  • Sperm:

    What if i say thats out of National Interest?

    Who defines national interest?

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  • Did This Company Help Locals?:

    Have any of the Construction companies bosses help any poor local Singaporeans ? Or re they only interested in buying more Condos. bigger Mercedes car etc. ? Singaporeans die your own farking business.

    Please reveal yourself if you had helped the poor Singaporeans .

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  • Most contractors are PR:

    Most of the local contractors are Permanent residents, they are not Singaporeans and are still foreigners. They bring every possible peoples from their home town to work in Sg. Look around your places, many unwanted and non meaningful projects going on and on for donkeys years. Remove, and than replaced with similar things without adding value. Etc. Our national reserves may be used carelessly.

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