Page 5 - SBD2223 eBOOK Final 14Sept2022
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                 SINGAPORE BUILDERS DIRECTORY 2022/2023
 T he COVID-19 pandemic may have sparked an unprecedented crisis in the economy of Singapore, but for the Built
Environment (BE) sector, there is an upside. The pandemic highlighted the urgency for a change in the industry. It surfaced weaknesses and vulnerabilities such as the over-dependency on unskilled foreign labour and the lack of supply chain resilience. The challenges spotlighted the need for the BE sector to step up digitalisation and streamline projects with digital solutions.
After a bruising battle with COVID-19 in the past two years, the BE sector is beginning to see light at the end of the tunnel.
The news of the sector’s recovery was announced at the BCA-REDAS Built Environment and Property Prospects Seminar 2022. The annual flagship seminar on 26 January 2022, saw industry experts giving a preview of the year ahead for the industry.
Based on the Building and Construction Authority (BCA) survey of progress payments, where the nominal construction output is estimated to have almost reached pre-COVID levels, Mr Tan Kiat How, Minister of State for National Development, and Communications and Information was happy to share the encouraging signs in the sector’s recovery at the seminar. He said in his opening speech, “This indicates that construction works are progressing at a steady pace. The inflow of foreign workers has steadily improved. As compared to the period when travel restrictions and tightened entry approvals were in place last year, the current monthly inflow of foreign workers has more than doubled.”
Below are the outlook and opportunities for local and regional built environment, construction, and property sectors, as shared at BCA-REDAS Built Environment and Property Prospects Seminar 2022.
BRIGHT PROSPECTS
LOCALLY
BCA projected that the total value of construction contracts awarded in 2022 would be between S$27 billion and S$32 billion.
Group director of
BCA’s strategic planning
and transformation office
Mr Teo Jing Siong said
the construction sector’s prospects are “bright” and that average annual demand from 2023 to 2026 should be between S$25 billion and S$32 billion.
BCA noted that the projection does not include Changi Airport Terminal 5 development and its associated infrastructure projects as well as the expansion of the two integrated resorts, which would cost roughly S$5 billion to S$7 billion, as their construction timelines are still under review due to the impact of the COVID-19 pandemic.
The BE sector was urged to get over the “humps” of the Omicron variant, as well as supply disruptions over the next few months, before the industry can look forward to long- term growth.
Companies were encouraged to continue adopting innovative technologies, upskilling their workforce, using less foreign manpower and becoming more productive and less reliant on labour-intensive construction.
Of the total construction demand reported by BCA, some 60 percent of them, worth between S$16 billion and S$19 billion, will come from the public sector, amid a strong pipeline
of public housing projects and those under Home Improvement Programme, healthcare developments and infrastructure works such as the first phase of the Cross Island MRT Line.
From the private sector, the construction demand is expected to reach between S$11 billion and S$13 billion in 2022, comparable with the volume in 2021. “Given the latest property cooling measures, residential building demand is anticipated to moderate year-on-year amid more cautious market sentiments,” BCA reported. However, the construction demand for commercial buildings such as hotels and attractions is expected to increase in preparation for inbound tourism revival, and redevelopment of older commercial premises ramped up to enhance their asset values. Additionally, private sector industrial building demand is expected to come from the construction of energy storage facilities and biopharmaceutical manufacturing plants.
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