Companies in Singapore, that traditionally rely on migrant workers from Bangladesh and India, have been exploring different options following travel restrictions to curb the spread of coronavirus in the country.
Since May 2, Singapore barred entry or transit for visitors with recent travel history to Bangladesh, Nepal, Pakistan and Sri Lanka. The move came amid a series of measures taken to tighten Singapore borders as the Covid-19 outbreak in India worsens and Singapore clocked more local coronavirus cases in recent weeks.
According to CNA, companies have started to explore the options, while expecting project delays and disruptions for the time being.
Education Minister Lawrence Wong, who co-chairs the Covid-19 multi-ministry task force, had acknowledged that this will have an impact on industries such as construction, and that many small- and medium-sized enterprises in Singapore and contractors will be affected.
The Building and Construction Authority on 26 Apr said that it will grant more flexibility for firms to bring in workers from China although this will not make up the shortfall.
A manager in the construction industry, who only wanted to be known as Alan, said, "The cost of hiring workers from China will "shoot up" as demand increases."
"As it is, the daily rate for a Chinese worker is about S$200 to S$300 per day. With this move, don't be surprised that the cost will go up 30 per cent to 40 per cent more for each worker. However, I also think many companies will hold back on hiring more Chinese workers, as they don't have the budget to. And this will lead to more project delays," he said."
This daily rate includes costs such as housing, levies and insurance for the worker, which the company has to pay. The daily rate for workers from India or Bangladesh is about S$120 to S$150 now, up from S$70 to S$80 in the past.
Kenneth Loo, COO of Straits Construction, said that the situation is "very tight", and manpower was short before the travel restrictions kicked in. He estimates that there is a 30 to 40 per cent shortage of workers currently.
He added that while workers from China can fill some gaps, fewer are willing to come to Singapore as economic opportunities in China improve.
"I think we have no choice, we are still looking," he said in response to a question on whether they are sourcing for workers from other countries.
On 23 April, the Singapore Contractors Association Limited (SCAL) said that the labour crunch has already caused delay of construction projects for nine to 12 months, while the cost of labour and materials has escalated by 30 per cent to 50 per cent.
"Some companies may be forced to close and it will adversely impact about 100,000 residents working in the construction sector," said the association, adding that there will be project delays.
Christine Sun, OrangeTee senior vice president of research & analytics, said that the shortage is likely to be in the short to mid-term.
"The situation may start to stabilise when more people are being vaccinated and travel restrictions are eased again," she said. "Some affected homeowners may need to adjust their wedding or family planning."
Landscape Industry Affected
Companies in the landscape industry also said that they face a lack of workers, with some telling CNA that they have had to turn down projects.
Julian Shi of Nature Landscapes said that they have had migrant workers resign or return on leave in the past months but have had difficulty replacing them. The company is now trying to hire about 20 to 40 foreign workers.
"We are not looking at alternatives for the time being. Our present solution is to adapt with the limitation in resources. We are working with service buyers to extend project timelines," he said.
Edmund Toh, managing director of ET Landscape and Services said that the company has been trying to hire foreign workers since December. They initially tried to get workers from Myanmar but the coup in February put a stop to that. They are now trying to get workers from Vietnam.
Last week, the Landscape Industry Association (Singapore) sent out a notice to service buyers to say that it supports the tighter border controls and appealed to them to postpone non-essential work so that their workers will not "burnout".
Chairman Goh Eng Lam said that their companies will be working with the Ministry of Manpower and other agencies to seek other sources of foreign manpower.
Workers from India and Bangladesh do essential work such as grass cutting and tree works, he said. He thinks there will be a 15 to 20 per cent shortage of workers in the coming months.
Mind Workers' Health
Assistant Professor Laavanya Kathiravelu from Nanyang Technological University's School of Social Sciences, whose work has centred around migrant labour from South Asia, said that a few other industries might be affected. These include the F&B industry, shipyard and manufacturing industries, as well as companies that engage in repairs and maintenance work.
"These are all areas of our economy that rely heavily on South Asian migrant labour," she said.
She said that migrant workers who are still working in Singapore are being expected to take on heavier workloads and longer working hours as a result of this labour shortage.
"This has caused issues of overwork among some of the population. This, in turn, may lead to deteriorating mental health as well as increasing the desire to return to the home country as a result of being unable to handle increased demands by employers," she added.
Goh also warned against "overloading" landscape workers, asking service buyers to consider the workers' personal and mental health.
"We cannot take things for granted (and think) that they are superman," he said. "If they do not have enough rest or fall sick, it's going to make matters worse."