Singapore’s construction sector plays a vital role in shaping the nation’s infrastructure and supporting economic growth. From skyscrapers to highways, this industry relies on a steady workforce to deliver projects on time and within budget.
However, due to a shortage of local manpower, foreign workers form a significant portion of the construction workforce. To manage this reliance effectively, the Ministry of Manpower (MOM) has established clear rules on hiring and managing foreign workers — primarily through work permits.
Whether you’re a business owner, contractor, or HR manager, understanding these regulations is critical to avoiding penalties, ensuring compliance, and maintaining smooth operations.
Work permits are designed to regulate the employment of foreign workers in Singapore’s construction industry while maintaining a balance between local employment opportunities and foreign labor needs.
Key objectives of MOM’s policies include:
- Ensuring fair employment practices
- Controlling the number of foreign workers in the sector
- Maintaining workplace safety and productivity
- Protecting both employers and employees through clear legal frameworks
By following these rules, companies can avoid penalties and create a sustainable, well-managed workforce.
Foreign workers are essential in bridging the labor gap for Singapore’s construction sector. Their contributions include:
- Filling manpower shortages: Many Singaporeans prefer other industries, leaving gaps in construction roles.
- Providing specialized skills: Some projects require technical expertise not readily available locally.
- Keeping projects cost-effective: Foreign labor often helps manage operational costs and improve project timelines.
By employing foreign workers, construction companies help drive economic growth while ensuring infrastructure projects are completed efficiently.
To hire foreign construction workers legally, employers must meet specific criteria set by MOM. Some key requirements include:
Workers can only be hired from MOM-approved countries such as Malaysia, China, Non-Traditional Sources (NTS), and North Asian Sources (NAS).
Employers must adhere to foreign worker quotas, which limit the number of permits based on the number of eligible local employees. Additionally, a monthly foreign worker levy applies for each permit holder.
At least 10% of foreign construction workers must be Higher-Skilled (R1) before hiring or renewing Basic-Skilled (R2) workers.
Employers must provide medical insurance and purchase a security bond to safeguard the worker’s welfare.
Employers are responsible for ensuring proper accommodation and safe working conditions, complying with the Workplace Safety and Health (WSH) guidelines.
Compliance with MOM’s regulations not only protects employers legally but also:
- Builds a stable and skilled workforce
- Reduces risks of fines, permit cancellations, or business suspension
- Improves workplace safety and productivity
- Strengthens your company’s reputation within the industry
- Work permits are mandatory for all foreign construction workers.
- MOM enforces strict rules on source countries, quotas, levies, and skill levels.
- Employers must provide insurance, security bonds, and safe living conditions.
- Staying compliant ensures smoother project delivery and better worker management.