Strong growth for Singapore’s construction sector
23 August 2023
The construction sector in Singapore has grown by 6.6% since Q2 2022, led by an expansion of output in both public and private sectors, according to a market report from Global construction consultant, Linesight.
With the exception of manufacturing, all other construction sectors experienced growth. Construction output is expected to expand by 5.4% in real terms in 2023, with this growth being driven by investments in renewable energy, transport, housing and industrial projects.
The sector still faces challenges, such as high interest rates and labour shortages. Although the job vacancy rate in the construction sector decreased to 2.4% in Q1 2023 from 4.5% in Q1 2022, it remains almost twice as high as pre-Covid levels. According to the report, the sector is adopting digital technologies and fostering a collaborative approach to navigate these challenges.
There is a continued focus by the Building Construction Authority (BCA) on sustainable practices and the authority is implementing regulations related to use of prefabrication elements, decarbonisation, redevelopment and environmental protection and management at construction sites.
A key construction market in Singapore is the building of data centres. According to the report, Singapore data centres had a market value of US$1.6 billion in 2021 which is projected to grow at a 5-year compound annual growth rate (CAGR) of 16%.