BMI View: Singapore's construction sector will grow at a subdued pace over the coming years particularly due to the slowdown in residential construction as property prices continue to fall. However, continued public investment in transport infrastructure will prevent construction growth from slowing down significantly.
Latest Updates And Structural Trends
We revised lower our 2016 construction growth forecast to 1.5% (versus 2.6% previously) as a result of a weak domestic economic growth environment, which is compounded by slowing activity in residential construction.
Over the next decade through to 2025, the Singapore government's continued commitment to invest in public infrastructure such as transport and non-residential infrastructure will support construction activity.
In the transport segment, railways will be leading growth given its significant share within the segment as the government expands on its existing train lines, aiming to double the city-state's rail network from 178km in 2013 to about 360km by 2030.
|e/f = BMI estimate/forecast. Source: Singapore Department of Statistics, BMI|
|Construction industry value, SGDbn||19.53||19.87||20.70||21.72||22.88||24.08||25.33|
|Construction Industry Value, Real Growth, % y-o-y||2.46||1.51||2.44||2.43||2.84||2.76||2.68|
|Construction Industry Value, % of GDP||5.0||4.9||4.9||4.9||4.9||4.9||4.9|
Singapore's score on the Infrastructure RRI increased modestly to 64.0 in Q316 (versus 61.7 in Q216).
The industry's Rewards has risen slightly, but given our expectations that growth in the construction sector will be subdued, it is ranked at 11th out of 32 countries in the region.
In terms of its Risks score, Singapore's stable political and regulatory environment continues to be a boon for the construction sector and enables it to retain first place position.
|Risk/Reward Index||Rewards||Industry Rewards||Country Rewards||Risks||Industry Risks||Country Risks|
The Singapore Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.
BMI's Singapore Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Singaporean infrastructure and construction industry.
- Benchmark BMI's independent infrastructure industry forecasts for Singapore to test other views - a key input for successful budgetary and planning in the Singaporean infrastructure market.
- Target business opportunities and risks in the Singaporean infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in Singapore.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).
BMI Industry View
Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).
Industry SWOT Analysis
Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.
BMI Industry Forecasts
Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:
Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).
Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.
The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).
BMI’s Infrastructure Risk Reward Index
BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.
An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.
The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.
*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.