SGHOUSING.COM 新加坡房地产网

Almost a month on, granite supplies from Indonesia are still not back to normal since several Singapore-bound granite barges were seized by Indonesian authorities on suspicion of smuggling sand.

This is despite recent announcements from Indonesia that there is no ban on granite exports to Singapore, said Minister of State for National Development Grace Fu on the sidelines of a Building and Construction Authority (BCA) Green Mark Seminar yesterday.

Indonesia banned the export of land sand to Singapore last month, citing environmental concerns.

However, the construction industry has been kept supplied with both sand and granite aggregates released from the BCA’s stockpile.

But the sand ban and the disruption in granite shipments have caused severe price hikes, largely due to higher transport and logistics costs, said Ms Fu.

Cost of sand has gone up from $25 to $60 per tonne, while granite has increased from $25 to $70.

Sand and granite are used to make concrete, the price of which has also shot up from $70 to $200 per cu m.

The Government has said it will pick up the tab for 75 per cent of the rise in sand costs, although no payment has been made to public sector projects yet.

‘This is because we are working out the details with other public agencies, and looking into the impact of granite on the cost as well,’ said Ms Fu.

The Government encourages private developers to adopt a similar cost-sharing approach.

Meanwhile, contractors The Straits Times spoke to are fretting over cash-flow problems.

‘Compensation should be given progressively and not later, because cash flow is vital to our industry and affects all parties,’ said Singapore Contractors Association president Desmond Hill.

Addressing these concerns yesterday, Ms Fu said it is ‘not appropriate for the Government to step in and dictate a particular formula on how they should share the cost’.

‘This is an issue everyone will have to play a part in and chip in at this difficult time,’ she said.

But she added that the outlook for the industry remains rosy. Major projects ahead, a strong economy and rising property prices spell good news for it, she added.

In the longer term, the BCA will continue to encourage the industry to adopt more sustainable construction methods using alternative materials and look at recycling construction waste too.

Source : Straits Times - 21 Mar 2007