Tech advances will bring S'poreans back to construction services, says ISOTeam chief

Robots can take over manual work, with humans to manage them, he believes

- Kang Wan Chern Deputy Business Editor

For decades, Singapore's construction and building maintenance sector has relied heavily on low-wage foreign workers.

But with rising costs, tighter quotas and local workers unwilling to enter the industry, such a model of operation will not be sustainable for long.

Within the next 10 to 15 years, robots could take over more labour-intensive tasks, creating room for skilled locals to take up higher-value “buildtech” roles as the availability of cheap foreign labour dwindles.

That, at least, is the view of Mr Anthony Koh, co-founder and chief executive of Singapore-listed building maintenance firm ISOTeam.

The company was founded in 1998 and last traded on the Catalist at 8.8 cents, giving it a market capitalisation of $61.7 million. It reported profits amounting to $5.1 million for the year ended June 30, down by around 21 per cent year on year.

“Cheap labour won't last forever,” Mr Koh, 59, told The Straits Times in an interview.

“Twenty years ago, we had workers from China dominating construction here. Now it’s zero. Malaysians are leaving the industry, while Indian and Bangladeshi workers are getting more expensive. One day, they will leave for better jobs too.”

Employing foreign labour is already getting more onerous.

The additional costs of hiring foreign workers, such as worker levies and dorm accommodation, are now more than daily wages.

Foreign worker quotas in the construction sector have been tightened, with the local-to-foreign worker ratio adjusted from 1:7 to 1:5 in 2024. At the same time, local workers are shunning the industry in favour of higher-value jobs elsewhere.

“We're maxed out on quotas, but no locals want to do the physical work. Zero,” Mr Koh said.