BMI View: Growth in Singapore ' s construction sector will be relatively muted over the coming quarters as a weak residential real estate market and continued tight labour conditions weigh on the sector. That said, the sector will continue to receive some support from the government ' s infrastructure projects in areas such as transport and water.
Latest Updates And Structural Trends
Headwinds such as a weak residential property market and continued tight labour conditions will weigh on Singapore's construction sector, which informs our forecast for an average annual growth rate of 2.9% from 2016 to 2025.
Changi Airport Group announced on August 15 that it awarded a SGD1.1bn contract to a joint venture formed by Hock Lian Seng Infrastructure and Sembcorp Design and Construction. This is for the second package of works for the development of a three-runway system at Singapore Changi Airport. We believe that Singapore airport infrastructure sub-sector will experience significant growth over the coming years as the government expands the airport to cater to growing demand of air travel.
The focus of the Singapore government will likely remain on improving water security through building more desalination plants, and this segment is likely to outperform over the coming years.
|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||26.75||28.23||30.06||32.00|
|Construction Industry Value, Real Growth, % y-o-y||2.46||1.51||2.43||2.42||2.84||2.76||2.68||3.11||3.05||3.99||3.93|
|Construction Industry Value, % of GDP||5.0||4.9||5.0||4.9||4.9||4.9||4.9||4.9||4.9||5.0||5.0|
Singapore's score on the Infrastructure RRI remained at 62.8 out of 100 in Q117 as in Q416.
Regarding Industry Rewards, Singapore is ranked at 17th out of 22 countries in the region due to our expectations that growth in the construction sector will be subdued.
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.
|Geography||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.