Construction demand stays

THE level of construction demand in Singapore is likely to be sustained over the next two to three years, with up to $52 billion worth of contracts expected to be awarded between 2010 and 2012.

THE level of construction demand in Singapore is likely to be sustained over the next two to three years, with up to $52 billion worth of contracts expected to be awarded between 2010 and 2012.

Giving the outlook for the construction industry at a seminar on Wednesday morning, Senior Minister of State for National Development Grace Fu said the Building and Construction Authority (BCA) has projected that the value of construction contracts to be awarded this year will be between $21 billion and $27 billion, and between $18 billion and $25 billion for 2011 and 2012.

Mrs Fu said the construction sector enjoyed strong double-digit growth for the third consecutive year in 2009, achieving a record level of on-site construction activity or output of about $30 billion. This was driven by exceptionally strong construction demand in the earlier two years. But the global financial crisis had a considerable impact on the construction industry last year, especially on private sector demand.

‘In 2008, we saw a record high of $35.7 billion worth of contracts awarded. This moderated to $21 billion in 2009, out of which 64 per cent were public sector contracts. The government had supported the sector by advancing $1.3 billion worth of small and medium-sized projects,’ she said at the opening of the Construction and Property Prospects 2010 seminar organised by BCA and the Real Estate Developers Association of Singapore (Redas).

Going forward, she said the Government will continue to invest in infrastructure works. Public sector works will include large public infrastructure projects such as the Downtown Line Stage 3 and various major road works. She added that the industry can look forward to more tendering opportunities in building projects, including the construction of new HDB flats to meet the ongoing demand for public housing, upgrading and development of new educational and healthcare facilities, and major industrial projects such as the LNG Terminal, Fusionopolis 2A and Seletar Aerospace Park.

To sustain and grow the industry in the medium term, she urged the industry go beyond traditional construction. ‘It must move into the cutting edge of technology and build capabilities in the key growth area of Green Buildings,’ said Mrs Fu.

SOURCE: straits Times