The total construction demand or value of construction contracts in 2017 is projected to be higher than last year, driven by an increase in public sector construction demand.
Private sector construction demand, however, is likely to remain subdued in view of the current slowdown in the property market amid continued economic uncertainty.
The value of construction contracts to be awarded this year is estimated to be between $28 billion and $35 billion, higher than the preliminary estimate of $26.1 billion for 2016. About 70 per cent of the total demand is expected to come from the public sector. Projects this year include:
These projections were announced at this year’s BCA-REDAS Built Environment and Property Prospects Seminar. Close to 500 industry professionals had gathered to learn about the outlook for the industry over the next few years.
The Guest-of-Honour, Senior Minister of State for Home Affairs and National Development Mr Desmond Lee, urged industry professionals to focus their minds on upgrading and becoming more productive and competitive during challenging times.
SMS Lee also said that the government will continue to support the industry by rolling out more public sector projects, bringing the estimated total construction demand to between $26 billion and $37 billion per annum over the next four years.
Measures have also been put in place to encourage firms across the built environment sector to explore new growth opportunities. Internationalisation in particular, was highlighted for its strong potential to increase industry growth, as Singapore firms are highly valued for their expertise, versatility and quality performance.
“In fact, Singapore contractors have clinched an average of $1.7 billion in overseas projects in the last three years,” said SMS Lee.
Internationalisation is one of the key areas that the new Built Environment cluster sub-committee under the Council for Skills, Innovation and Productivity (CSIP) will be exploring when it develops its Industry Transformation Map for the sector. SMS Lee and Mr Lim Ming Yan, CapitaLand’s President and Group CEO, will be co-chairing this committee.
At the same time, firms should ride on the continued healthy pipeline of public sector projects and make full use of government funding to upgrade their capabilities, adopt best practices, and change the way they build. Enhanced competency will help local firms to compete more effectively in regional markets for continued business growth.
“Companies that are prepared to change, innovate and transform to stay at the forefront of technological innovation, process re-engineering, and productivity improvement are more likely to sustain their growth and competitiveness despite the headwinds under challenging economic conditions,” said BCA CEO Dr John Keung.
