Efficiency and innovation in Hong Kong’s construction sector through modular integrated construction methods.
Hong Kong is witnessing a growing demand for sustainable construction techniques as the city strives towards its goal of achieving carbon neutrality by 2050. Among these techniques, modular integrated construction (MIC) is emerging as a key tool to achieve this objective. (main pic: Yau Lee Holdings modular integrated construction: Fire Services Department Pak Shing Kok Married Quarters.)

Conrad Wong Tin-cheung, vice-chairman of Yau Lee Holdings, a leading building contractor in Hong Kong, highlighted the advantages of MIC, stating, “Modular integrated construction is a trend that is becoming our company’s core competency.” He further elaborated on the business case for sustainable practices, saying, “We are trying to build a business case and demonstrate that you have to be green… and that doing good means doing well.”
MIC involves the assembly of free-standing modules in a factory (what we call volumetric construction), complete with finishes, fixtures, and fittings, which are then transported to the construction site for installation. This method not only requires less electricity and labour but also significantly reduces material waste and project completion time. According to Hong Kong’s Construction Industry Council, adopting MIC can shorten the total construction time by about 30 per cent on average, while also minimising waste.
The Hong Kong government first promoted modular integrated construction in 2017 as part of its initiative to increase housing supply. In his first policy address in October 2022, Chief Executive John Lee Ka-chiu urged the Housing Authority to apply the MIC method to reduce waiting times for public rental housing. He announced that at least 50 per cent of the city’s public housing projects starting from 2028 should adopt the MIC approach, with the non-governmental Hong Kong Housing Society also planning to implement MIC in more projects.

Yau Lee Holdings is leading the charge in Hong Kong’s adoption of modular integrated construction. In September 2018, the company was the contractor for the first high-rise concrete building project using the MIC method in the city. The 17-storey Fire Services Department’s married quarters at Pak Shing Kok in Tseung Kwan O, completed in 2021, has 648 units. The use of MIC in this project led to a 53 per cent reduction in construction waste, a 25 per cent decrease in on-site air pollution, and a 70 per cent reduction in on-site water and electricity consumption, compared with traditional building methods. It also resulted in a 50 per cent reduction in skilled labour and accelerated the construction schedule by around four months.
Currently, Yau Lee is working on seven modular integrated construction projects worth HK$20 billion, including about 20,690 units, such as a public housing development at Tung Chung Area 99. Wong emphasised the importance of efficiency in the industry, stating, “As a practitioner, we really need to focus on how we can be more efficient in designing, constructing, maintaining, and operating our buildings.”
The pursuit of carbon neutrality in Hong Kong requires a focus on decarbonizing the city’s buildings, which account for about 90 per cent of electricity consumption and 60 percent of greenhouse gas emissions.
“The industry is becoming more environmentally conscious. The government already has a carbon-neutral road map for the whole of Hong Kong, and the construction sector [has] to do our own duty. Green is gold, carbon is diamond. So, whenever you can actually reduce carbon emissions, that is a business case,” said Wong.