STRATEGIC RESPONSES OF CONSTRUCTION SMALL AND MEDIUM ENTERPRISES TO THE POPULATION WHITE PAPER 2013

Abstract

The Population White Paper (PWP) 2013 has sparked huge debates both within the parliament and the community since it was released in January 2013. Many have questioned the need to grow our population stipulated in the growth trajectory to 6.9 million by 2030, and the ability of the country to sustain the economic, social and environmental quality for this growth. Although the PWP might sound like bad news for some, it can be good news for others, such as the Small and Medium Enterprises (SMEs) in Singapore, especially in the construction industry. As the population increases, the need for housing, infrastructure, healthcare, recreational spaces, economic facilities also increases. The economic sector responsible for supplying such facilities would be the construction industry to build such facilities for the users. This study focuses on the impact of the PWP 2013 on Singapore's construction industry as perceived by SMEs in the construction industry, and to identify strategic responses that firms can adopt to capitalise on the opportunities created by the PWP. Survey questionnaires and face-to-face interviews were carried out to collect data for this study. A one way t-test was conducted to examine the respondents' perceptions on the future potential of sectors within the construction industry and the effectiveness of strategic responses that they can adopt to gain a competitive advantage over their competitors. Based on the findings, the impact of the PWP 2013 on the construction industry was established. The future potential of sectors within the construction industry was evaluated and the several strategic responses were identified to provide a competitive advantage for construction SMEs in the future. Interviews with three industry experts were conducted to verify the findings from the survey questionnaire and to have greater insight on the research problem. Lastly, a case study was undertaken to gain further insights of the identified sectors and strategic responses. A recommendation on strategic responses was made based on the findings. Recommendations are made to construction SMEs on strategic responses that they can adopt to capitalise on the opportunities created by the PWP 2013.