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SINGAPORE – Projected construction demand for this year declined by $ 10 billion, following a review of awarded contracts and upcoming public and private sector projects by the Building and Construction Authority (BCA).
The previous forecast of $ 28 billion to $ 33 billion in January this year is now revised to $ 18 billion to $ 23 billion, BCA said in a press release on Thursday (September 17).
The downward revision is due to a drop in construction demand from the private sector.
Some public sector projects have also been postponed from this year to the next as contractors and suppliers have requested more time to assess the impact of Covid-19 on resource management and project implementation schedules, BCA said.
This year’s forecast for public sector contracts is $ 11 billion to $ 14 billion, while the private sector is $ 7 billion to $ 9 billion.
In 2019, the value of public sector contracts was $ 19.03 billion, while that of private sector contracts was $ 14.5 billion, totaling $ 33.52 billion after rounding the figure.
However, construction demand is expected to recover somewhat from 2021, BCA added.
Public residential developments and improvement works, developments in the Jurong Lake district, construction of new healthcare facilities, and various infrastructure projects, such as the construction of the Cross Island MRT line, will support demand.
BCA noted that it is important for the construction industry to remain vigilant to prevent a resurgence of Covid-19 cases, which could halt the sector again.
BCA will provide an update on projected construction demand for 2021 and 2022 early next year.
On Thursday, National Development Minister Desmond Lee said in a Facebook post that the construction industry has realized the need to build capacities for sustainable business development.
He noted that a new planning and coordination regime for business continuity and the role of technology and digitization in building long-term industry resilience were some of the questions raised by participants in a leadership webinar co-organized by the BCA and the Joint Committee of the Construction Industry. on Wednesday.
“Despite the restart, the industry still faces challenges,” he said. “The silver lining is that we expect demand to pick up somewhat next year, and there will be a portfolio of public sector projects coming online next year.”
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