Sustained Public Sector Demand to Support Construction in Singapore for 2019

Feb 2019

The Building and Construction Authority (BCA) of Singapore is projecting that the total construction demand (value of construction contracts to be awarded) in 2019 will range between SGD 27 billion (USD 20 billion) and SGD 32 billion (USD 23.5 billion), compared to the preliminary estimate of SGD 30.5 billion  (USD 22.4 billion) worth of contracts awarded in 2018.

The projections are supported by sustained public sector construction demand, which is expected to reach between SGD 16.5 billion (USD 12 billion) and SGD 19.5 billion (USD 14.3 billion) in 2019, contributing to about 60% of the projected demand for this year. Public construction demand is expected to be boosted by major infrastructure projects and a pipeline of major industrial building projects.

The private sector’s construction demand is expected to remain steady at between SGD 10.5 billion (USD 7.7 billion) and SGD 12.5 billion (USD 9.2 billion) in 2019, supported by projects including the redevelopment of past en-bloc sales sites concluded prior to the second half of 2018 and new industrial developments.

Construction demand in 2018 was within forecast due to strong demand from institutional building and civil engineering projects, continued positive growth in the manufacturing sector and more private residential redevelopment projects from en-bloc sales in 2017 and the first half of 2018. 

BCA expects a steady improvement in construction demand over the medium term. Demand is projected to reach between S$27 billion and S$34 billion per year for 2020 and 2021 and could increase to between SGD 28 billion (USD 20.6 billion) and SGD 35 billion (USD 25.7 billion) per year for 2022 and 2023. The public sector is expected to contribute SGD 16 billion (USD 11.8 billion) to SGD 20 billion (USD 14.7 billion) per year from 2020 to 2023 with similar proportions of demand coming from building projects and civil engineering works, driven by public residential developments and big infrastructure projects such as the Cross Island Line, developments at Jurong Lake District and Changi Airport Terminal. 

(Sources: Building and Construction Authority, Singapore; Straits Times)

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