SINGAPORE (THE BUSINESS TIMES) - Boustead Singapore expects some design-and-build projects to face potential delays due to containment measures worldwide as well as possible "significant" disruptions to the global supply chain amid the coronavirus pandemic.
Where applicable, project schedules will be reviewed with clients and it will assess any government support and temporary relief measures for businesses, the mainboard-listed infrastructure-related engineering and technology group said on Tuesday (April 7).
Strict containment measures have been put in place in countries where the Boustead group operates major subsidiaries with sizeable teams, such as Singapore, Australia, China, India, Indonesia, Malaysia and the UK.
Boustead Singapore's major subsidiaries have thus either already started telecommuting arrangements or are prepared to do so.
However, for mainboard-listed Boustead Projects, a 53 per cent-owned subsidiary of Boustead Singapore, telecommuting arrangements will not be practicable at its design-and-build project sites.
Boustead Projects said in a separate bourse filing that its principal design-and-build subsidiary, Boustead Projects E&C, will suspend non-essential construction activities from April 7 to May 4 at all of its construction sites in Singapore, except where exempted by the authorities, and only resume full operations when the Republic's "circuit breaker" ends.
Boustead Projects' group headquarters at Edward Boustead Centre in the Ubi area will also be closed during the "circuit-breaker" period.
Meanwhile, four of the five coronavirus cases from the Seletar worksite cluster have been discharged, Boustead Projects said on Tuesday.
The remaining case has recently tested negative for Covid-19, but remains hospitalised.
Boustead Projects had in February halted construction at Seletar Aerospace Heights and a neighbouring facility, after being informed of its first confirmed coronavirus case at the Seletar cluster. The five cases are workers with the company's subcontractor.
On Tuesday, Boustead Singapore and Boustead Projects both said that the extent of the Covid-19 pandemic's impact on their financial performance and operations for FY2020 and FY2021 cannot be determined at this time.
Boustead Singapore noted that the group continues to maintain a healthy balance sheet, net cash position and order book backlog, in addition to multiple lines of potential financing.
As at 9.12am on Tuesday, shares of Boustead Singapore gained 0.5 cent or 0.9 per cent to trade at 58.5 cents, while Boustead Projects shares rose one cent or 1.6 per cent to 63 cents.
The latest advisory from Singapore's Building and Construction Authority (BCA) states that all building works shall cease when the "circuit breaker" work suspension is in force, except those deemed essential, such as the maintenance of the structural safety and integrity of building works; maintenance of security of project sites; and environmental protection of project sites which includes vector control.
The provision of lift and escalator (L&E) maintenance services also fall within the scope of essential services so they can continue, BCA said. However, all new L&E installation works must cease from April 7 to May 4.
