Sector must be more prepared for future 'black swan' events

The construction and built environment sector has to be more integrated and resilient to take on future "black swan" events as evidenced by the Covid-19 pandemic, National Development Minister Desmond Lee said yesterday.

These include the highly infectious Disease X that Prime Minister Lee Hsien Loong mentioned in Parliament earlier this month. Adopting more advanced building technologies, driving digitalisation and looking at the approach towards the procurement and management of construction supplies are some ways the sector can become more integrated and resilient, said Mr Lee at a virtual Mid-Autumn celebration organised by the Real Estate Developers' Association of Singapore (Redas).

The construction sector has been one of the hardest-hit industries amid the fallout from the pandemic, shrinking 97.1 per cent from the first to the second quarter. The Government has launched a $1.36 billion Construction Support Package to help cushion the impact.

Property developers have also been granted a six-month extension on the project completion period while eligible individuals have an extra six months to qualify for remission of additional buyer's stamp duty for their second property.

"What we seek to ensure is that no one in the built environment value chain has to bear an undue share of the burden imposed by Covid-19," said Mr Lee.

Redas' president Chia Ngiang Hong described the temporary relief measures as timely in helping the sector.

He said: "However, with progress of construction still relatively slow, we hope the Government will consider extending additional reliefs and flexibility to assist the real estate and built environment sector."

Join ST's WhatsApp Channel and get the latest news and must-reads.

A version of this article appeared in the print edition of The Straits Times on September 30, 2020, with the headline Sector must be more prepared for future 'black swan' events. Subscribe