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Hong KongHong Kong Economy

Chronic labour shortages threaten Hong Kong's infrastructure building boom

Chronic lack of construction workers could derail major infrastructure projects - and the economic benefits such schemes will bring Hong Kong

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Construction workers can earn HK$1,100 to HK$1,300 a day.  Photo: Felix Wong
Eddie Lee

On paper, the government's construction plans look impressive. An array of massive infrastructure projects such as the bridge to Zhuhai and Macau and the airport's third runway are on their way.

But on the ground, it is a different story. A chronic shortage of skilled workers in the construction industry could end up delaying completion of these multibillion-dollar projects by years, industry insiders fear.

The Development Bureau, responsible for implementing public sector infrastructure projects, said the city's total construction expenditure - both public and private sector - last year reached HK$200 billion. The Construction Industry Council has forecast Hong Kong's annual overall construction expenditure will remain at between HK$170 billion and HK$240 billion in the next few years.

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But the infrastructure spending binge will run into the bottleneck created by the tight manpower situation. The council - established by the government in 2007 to reform the industry - forecasts a shortage of 10,000 to 15,000 skilled labourers in the coming years.

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The bureau concedes there could be serious problems ahead. "Labour shortages may affect the progress of construction works and may even lead to deferrals to the commencement of worthwhile infrastructure projects," it said, warning that the local economy could be caught in a vicious circle.

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