Circular No: M&P/140/06/WM
20 June 2020
Results of survey on financial impact to construction companies due to COVID-19
We thank members who have responded to our survey on the financial impact due to COVID-19. Your inputs are valuable in providing insights and data for SCAL to put up recommendations to Government for further financial support to companies.
A summary of the survey and key findings are as follows:
a) The survey was conducted from 19 May to 1 June 2020, with a total of 135 respondents.
b) Main contractors made up 34% of respondents, and subcontractors the remaining 66%.
c) Main contractors indicated that salary accounts for 71% of total monthly cash expenditure, compared with 59% for subcontractors.
d) Taken together, the Job Support Scheme (JSS) and foreign worker levy rebate provided 46% wage support for main contractors, compared with 52% for subcontractors.
e) The JSS and levy rebate together helped to defray about a third of total monthly cash expenditure for both main contractors (33%) and subcontractors (31%).
f) 84% of respondents indicated that if work does not resume after Circuit Breaker, they can sustain at most 3 months.
g) About 15,000 employees from these companies face the risk of losing their jobs, including almost 3,700 Singapore citizens and Permanent Residents.
h) Respondents suggested further financial assistance from the Government to defray foreign worker accommodation and transport costs, extension of the JSS and waiver of the foreign worker levy beyond August.
Thank you, and stay safe.