Singapore’s construction industry is forecast to record growth of 20.3% in real terms in 2021, following a contraction of 35.9% in 2020.
The industry is expected to continue to record high growth in H2 2021, though this will be due to the large contractions in the corresponding period in 2020, with the output of the industry in 2021 expected to be 10.5% lower than in 2019. The publisher expects the construction industry to surpass its pre-pandemic real output by the end of 2022. According to the Singapore Department of Statistics (DOS), the construction industry’s value add grew by 23.5% between January and September 2021.
An outbreak of Coronavirus (COVID-19) in early September 2021 led the government to enforce Stabilization Phase restrictions on September 27th, 2021, under which the government mandated working from home and restricted domestic travel and activities. The phase ended on 21st November 2021, and the government has eased some restrictions, with the daily number of new COVID-19 cases beginning to fall.
To support individuals and businesses affected by the one-month extension of tighter measures under the stabilization phase, a SGD640 million (US$485.5 million) package of support measures was announced by the government in October 2021, providing support to sectors including food and beverage (F&B), retail, cinemas, museums, tourism and arts education.
Under this, the government provided 25% wage support under the extended Jobs Support Scheme (JSS) for these sectors to the 21st November 2021 and will provide 10% wage support from the 22nd November to the 19th December 2021. The government also increased Foreign Worker Levy rebates for Work Permit Holders from SGD90 (US$68.3) per worker per month to SGD50 (US$37.9) until December 2021.
While most construction work has resumed in Singapore since August 2020, public health considerations have necessitated strict border controls, and thus the restricted inflow of migrant workers to the construction sector continues to constrain project progress, with labor costs increasing and project schedules delayed. To address labor shortages in the construction industry, the government rolled out the worker retention scheme to help the retention of work permit holders in September 2021.
The scheme will last for six months until February 28th, 2022. In November 2021, to support the construction industry, the Building and Construction Authority (BCA) allowed contractors to apply for a time extension and include provisional sums for anticipated pandemic-related expenses for which the extent or cost is unknown at the time of tender. This will aid contractors in mitigating project risks.
The construction industry is projected to register an annual growth of 15.4% in 2022, before expanding by 4.6% over the remainder of the forecast period (2023-2025), supported by investment on commercial space, transport infrastructure, renewable energy and residential works. Primary drivers of forecast-period growth include the government’s plans to invest SGD100 billion (US$75.8 billion) to develop transport infrastructure over the next nine years to 2030, and efforts to expand solar capacity to 1.5-gigawatt peak (GWp) by 2025. However, the uncertain global impact of the Omicron variant of COVID-19 poses a potentially significant downside risk to the construction industry’s outlook.
The publisher’s Construction in Singapore – Key Trends and Opportunities to 2025 report provides detailed market analysis, information and insights into Singapore’s construction industry, including:
- Singapore’s construction industry’s growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Singapore’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
This report provides a comprehensive analysis of the construction industry in Singapore. It provides:
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Singapore, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using the publisher’s standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the publisher’s critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3.1 Economic Performance
3.2 Political Environment and Policy
3.4 COVID-19 Status
3.5 Risk Profile
4 Construction Outlook
5 Key Industry Participants
6 Construction Market Data
For more information about this report visit https://www.researchandmarkets.com/r/yimgdg
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