Dormitory operators raise concerns about higher costs

Dormitory operators raised concerns about higher costs from improved standards for new migrant worker dormitories, while employers expressed uncertainty about its impact on their bottom line.

Migrant worker groups welcomed the move to impose the standards on smaller dorms, but felt some of the changes were underwhelming.

Centurion Corporation, which manages eight dorms under the Westlite brand, said specifications like separated sewage lines for each block will lead to higher costs.

While these standards will apply first to two new purpose-built dorms (PBDs) that the Government will build and own, the firm said operators will still bear higher costs when leasing PBDs.

"We believe the increase in cost will have to be borne by the ecosystem as a whole, shared between dormitory operators, employers, Government and the end consumers," it said in a statement.

The firm will also have to review and determine the extent to which its existing dorms can be retrofitted to meet the new requirements.

Mr Eugene Aw, director of RT Group, which manages several factory-converted dorms, said installing an en-suite toilet in every room will be a major challenge. He estimated that one toilet could cost about $30,000 and require an overhaul of the piping and sewage system. Multiplied over 20 to 30 rooms, this would be a sizeable amount for smaller operators.

Dormitory Association Singapore president Johnathan Cheah, who is also managing director of S11 Dormitories, said the association will help the industry to transition to the new standards. It will also conduct a study on the living habits of workers to make adjustments to the current dorms.

Mr Hooi Yu Koh, chief executive of construction firm Kori Holdings, is willing to pay a bit more for his workers to have a better living environment, but the cost increase has to be reasonable.

He currently pays about $350 a month for each of his 170 workers living in PBDs. If the price per worker is below $400 a month, he would have no issues with moving his workers to a new dorm.

Mr Hooi also noted that it is still unclear how much employers would need to pay for workers to live in the improved dorms.

Mr Alex Au, vice-president of migrant rights group Transient Workers Count Too, said it is good that the new standards will apply to smaller dorms. But the new cap of 12 workers per room is underwhelming, he said, calling for a cap of four residents per room.

"Pre-Covid-19, many rooms already had 12 people, though there were rooms with 16 or 20 people. If this contributed to the spread last year, how is it going to be any different this year or next year?"