Chart of the Day: Construction sector is biggest loser in stiffer expat rule

Its $25b value supported foreign worker demand.

According to DBS, tightening foreign labour supply till 2015 is a bane for the construction sector. Despite increases in the DRC and levies, increased construction values from 2010 to 2012 have remained above S$25bn which supported a steady demand for foreign construction workers.

However, strong construction demand has resulted in construction becoming one of the two sectors that had contributed the most to the increase in the foreign labour workforce.

"Levies for less skilled Work Permit holders will be increased by S$150 between July 2013 and July 2015, while steeper levy increases of S$300 will be imposed on workers hired outside a company's Man-Year Entitlement," DBS said.