SINGAPORE - Property and construction group TA Corporation has signed a memorandum of understanding with a local steel fabricator to set up a joint venture company that will design, develop, manufacture and distribute Prefabricated Prefinished Volumetric Construction (PPVC) modules.

Ta Corporation will hold 80 per cent of the proposed joint venture, while Kong Hwee Iron Works & Construction will own the remaining 20 per cent.

Under the terms of the agreement, the proposed joint venture will manufacture PPVC modules in Johor, Malaysia, said TA Corporation in a statement on Friday.

PPVC is a technology that can significantly speed up construction works and greatly increase productivity.

"Room-sized units complete with internal finishes, fixtures and fittings are prefabricated in factories and then transported to construction sites for installation and assembly to form modular apartments. With the bulk of the installation activities and manpower moved off-site to a factory controlled environment, the quality of the finished products and site safety will improve," said TA Corporation.

The use of PPVC has been mandatory for selected non-landed residential Government Land Sale sites since Nov 1, 2014.

Mr Neo Tiam Boon, chief executive and executive director of TA Corporation, said: With more projects using PPVC in future, developers and contractors will be able to benefit from economies of scale and savings in labour costs.

"Coupled with our existing pre-cast concrete manufacturing plant in Johor, Malaysia, our proposed joint venture business will enable the group to further enhance productivity in construction - both for our own property development and construction projects as well as to fulfil the growing demand for solutions to improve labour productivity and operational efficiency in the construction industry."