Government to set up new corporate entity to manage its migrant worker dormitories

Government to set up new corporate entity to manage its migrant worker dormitories

SINGAPORE: A new corporate entity will be set up by the Government to manage its purpose-built migrant worker dormitories, the Ministry of Manpower (MOM) said on Saturday (Oct 1). 

It was previously announced that the ministry will build and own these dormitories, as part of efforts to improve living conditions and support for migrant workers. 

The new corporate entity, called NEST Singapore Limited, will manage the purpose-built dormitories, starting with two upcoming ones at Tukang Innovation Lane in Jurong and Sengkang West.

A ground-breaking ceremony was held on Saturday for the Tukang dormitory, which is expected to be operational by 2025 with 2,400 beds. 

The Sengkang West dormitory is targeted to be ready by 2028, housing 7,200 beds. 

NEST Singapore Limited will be set up in the fourth quarter of 2022 as a Company Limited by Guarantee under MOM with its own board. 

In partnership with the private sector, NEST will bring onboard expertise and insights from within and outside the dormitory industry, including from “non-traditional” operators such as those in hospitality and technology, said a ministry spokesperson at the event.

NEST’s direct involvement in operating the new purpose-built dormitories will support “driving innovation and showcasing standards” in migrant worker housing, as well as allow MOM to grow its dormitory management capabilities, the ministry added in its press release.

It will also help the ministry better design policies, regulations and initiatives for migrant worker housing, said MOM.

Addressing concerns of potential conflict of interest, MOM’s spokesperson said that the existing regulations that apply to all purpose-built dormitories will also be applicable to those operated by NEST. 

“NEST also has not and will not receive any privileged information of PBD (purpose-built dormitory) regulations and standards that will appear to give them an advantage in operating the PBDs. Over the operating period of the PBDs, NEST is also expected to be financially sustainable,” said the spokesperson.