SINGAPORE — A construction company that pulled out of five Build-To-Order (BTO) projects last month in the midst of financial problems is now shutting down its business with the appointment of provisional liquidators.

Greatearth Corporation and related entity Greatearth Construction published a newspaper advertisement on Friday (Sept 3) stating that they are unable to continue in business.

Professional services firm PwC has been appointed provisional liquidators for the firms.

A meeting with the firms’ creditors has been scheduled for Sept 27.

The Housing and Development Board (HDB) said last month that five BTO projects will be further delayed because the two contractors were unable to carry on with the projects due to financial difficulties.

The affected projects are:

• Senja Ridges in Bukit Panjang

• Senja Heights in Bukit Panjang

• Sky Vista@Bukit Batok

• Marsiling Grove

• West Coast Parkview

The delays will affect home buyers of 2,982 units in a total of 13 blocks.

HDB said then that the contractors had run into financial trouble in spite of government assistance they had earlier received, such as advance payments.

Contractors who spoke to TODAY said that Greatearth’s collapse meant that money owed to them by the firm may be lost.

One contractor said he is owed about S$80,000 for projects that his firm completed for Greatearth.

TODAY reported on Thursday that since the Covid-19 pandemic hit Singapore, some construction firms are still losing money on each project that they have taken.

Faced with a severe labour shortage and high cost of materials, many contractors said that they have to work on "dead” projects, knowing full well that they will be suffering huge losses by the end.

The poaching of workers from other companies has also become a serious problem in the industry, they said.