Singapore’s construction industry and its ethical dilemma

Singapore's skyline, marked by gleaming skyscrapers and cutting-edge infrastructure, represents a modern city-state's relentless pursuit of progress.

Yet, this success is underpinned by an uncomfortable reality: the nation's construction industry is heavily dependent on a migrant workforce from less developed countries. These workers, drawn by the hope of a better life, often find themselves trapped in a cycle of debt and exploitation.

The Hidden Costs of Development

For many migrant workers from countries like Bangladesh, India, and Myanmar, the journey to Singapore begins with a hefty fee paid to recruitment agents—fees that can range from S$7,000 to S$10,000.

This amount, equivalent to more than a year’s salary, means that these workers effectively spend their first year in Singapore working for free as they struggle to repay their debts. With an average daily wage of around S$16, or S$400-500 per month, their meagre earnings leave little to save after basic living expenses.

This economic model, while advantageous for Singapore’s construction industry, raises serious ethical concerns. The reliance on cheap, indebted labour from less developed countries enables the industry to thrive while offering little in return to the workers who sustain it. However, recent events underscore the fragility of this model.

The political turmoil in Bangladesh, which led to many Bangladeshi workers returning home and companies struggling to replace them, is a clear sign that a reflection is needed.

The COVID-19 pandemic has already taught us the harsh lesson of over-reliance on foreign labour. Are we not to learn from that episode? The recent difficulties in securing Bangladeshi workers, compounded by the near-total internet shutdown in their country, highlight how vulnerable Singapore's construction industry is to external disruptions.

Moreover, this is not the first time Singapore has faced such challenges. In the past, Thai workers, who once made up the bulk of migrant labour in Singapore’s construction sector, left the country because we didn’t pay them enough to stay. This historical precedent, coupled with the current situation, suggests that the industry is at risk of repeating the same mistakes.

A Question of Ethics and Sustainability

Singapore's construction industry, in many ways, appears to be caught in a trap of its own making. As local workers have been almost entirely excluded from the industry, the nation’s reliance on foreign labor has deepened. However, this reliance comes with a troubling implication: the industry's success is, to some extent, predicated on the continued underdevelopment of the countries that supply its workforce.

If these source countries were to prosper, as is the hope of many of their citizens, Singapore's construction industry could face a crisis. With rising standards of living and better opportunities at home, workers would have little incentive to endure the harsh conditions and low pay in Singapore. The industry, which has not developed a viable alternative or integrated local workers, would find itself without the cheap labour it depends on.

This reality suggests that there may be an unspoken preference for these countries to remain underdeveloped, ensuring a steady stream of low-wage workers to fuel Singapore’s growth. Such a stance, if true, poses a significant ethical dilemma and reflects poorly on the sustainability of the current model.

The recent struggles to replace departing Bangladeshi workers and the lessons from the pandemic should prompt a serious reconsideration of this reliance. Singapore must reflect on its past experiences and move towards a more sustainable and equitable approach to labor in the construction industry.

The Paradox of High Construction Costs

Despite the reliance on cheap labour, Singapore’s construction costs remain among the highest in the world.

According to the latest International Construction Market Survey, the cost of building in Singapore averages US$3,138 per square meter. This is comparable to Paris, where construction costs are about US$3,200 per square meter, and workers earn S$24.99 per hour—a stark contrast to the S$1.50 per hour that a Bangladeshi worker in Singapore might earn. Even Sydney, a city with enforced minimum wage standards, has lower construction costs at US$3,016 per square meter.

This paradox raises an important question: if Singapore is relying on low-paid migrant workers, why are its construction costs so high?

The high costs could be attributed to several factors, including the price of land, materials, compliance with stringent regulations, and profit margin for the construction companies.

However, it also begs the question of why Singaporeans are not employed in these roles with fair wages. Given the high costs of construction in the country, surely there is room to pay local workers a dignified wage and reintroduce them into an industry that has long relied on foreign labour.

The Future of Singapore’s Construction Industry

As Singapore’s reliance on foreign labour becomes increasingly precarious, the industry must face the possibility of a future where its traditional sources of workers dry up. If the economies of these source countries improve, Singapore may find itself without a ready supply of labour, especially as local workers have been largely marginalized in the industry.

The construction industry in Singapore must confront this potential crisis and consider the need for reform.

To those who doubt the ability of Singaporeans to adapt to construction jobs, it's important to consider recent news of university graduates signing up for bus driving positions that offer S$5,000 a month. This clearly indicates that it's not the difficulty of the work but rather whether the job offers sufficient pay.

Additionally, many migrant workers receive just a few months—or even less—of training before being certified as professional construction workers, a process that Singaporeans could likely find easier to undertake.

Therefore, the issue isn't whether it's impossible for locals to take on these roles but whether construction companies are willing to pay higher wages for their labour.

Ethical labour practices, higher wages, and efforts to reintegrate local workers are not just moral imperatives but necessary steps to ensure the long-term sustainability of the industry.

Singapore's progress should not come at the expense of others' suffering or through the perpetuation of global inequalities. Instead, the nation must seek a model of development that is inclusive, fair, and sustainable for all.

In this light, the industry must also reconsider its cost structures and explore how to make construction not only more efficient but also more equitable. By doing so, Singapore could ensure that its development is truly progressive, benefiting not just the wealthy and the powerful, but everyone involved in building the nation’s future.