Construction in Singapore - Key Trends and Opportunities to 2024
Prior to the Coronavirus (COVID-19) outbreak, GlobalData expected Singapore's construction industry to grow by 2.9% in 2020. However, with the emergence of the pandemic and the stringent measures taken by the government to contain the spread of the virus, the construction industry is now set to contract by 17.8% in 2020. The country's construction industry recorded an unprecedented contraction in the second quarter of 2020, a period during which there was a complete halt of all construction activity, except for work on some essential projects during the "circuit breaker" period of 7th April to 1st June 2020. Construction value-add shrank by 54.7% on a year-on-year (y-o-y) basis in the second quarter, and by a whopping 95.6% on a quarter-on-quarter (q-o-q) seasonally-adjusted annualized basis, according to the advanced estimates released by the Ministry of Trade and Industry (MTI). The effects of the circuit breaker measures were also reflected in the overall economic data, with the economy officially entering into a recession during the second quarter of 2020. The economy shrank by 12.6% on a y-o-y basis, and 41.2% on a q-o-q seasonally-adjusted annualized basis in Q2 2020.
The near two-month "circuit-breaker" marks the nadir of the crisis, with construction activities restarting from 2nd June in a gradual process, contingent on approval from the Building and Construction Authority (BCA). The BCA has allowed construction works to resume gradually in phases, with priority given to critical and time-sensitive projects such as the MRT, Deep Tunnel Sewerage System tunneling project and residential renovation works. In June 2020, the BCA approved over 5,400 home renovation projects to resume work. On June 13th, the BCA announced that it had approved the restart of 19,000 suspended home renovation projects, and allowed the resumption of work on all other types of renovation projects from June 15th. Moreover, the BCA approved more than 300 construction projects to resume work, and is working with construction firms to resume another 250 construction projects. To support the industry's recovery, the government has announced a SGD1.36 billion Construction Support Package for companies in the construction industry. This includes a SGD525.8 million construction restart booster to support construction firms in meeting additional compliance costs due to enhanced social distancing measures. A total of SGD793 million has also been set aside for the co-sharing of prolongation costs for public sector projects, with Government Procurement Entities (GPEs) bearing this cost, capped at 1.8% of contract sum for public sector construction contracts and tenders that closed before 1st June 2020
This report provides detailed market analysis, information and insights into Singapore's construction industry, including -
This report provides a comprehensive analysis of the construction industry in Singapore. It provides -