Singapore's construction demand is projected to reach $22 billion to $28 billion this year, down from a record high of $34.6 billion last year. -- ST PHOTO: JEROME MING
SINGAPORE'S construction demand is projected to reach $22 billion to $28 billion this year, down from a record high of $34.6 billion last year.
Data released by the Building and Construction Authority (BCA) on Wednesday showed that the bulk of this year's demand will come from the public sector.
Construction demand for public sector projects such as major roads and MRT projects will rise to between $17 billion and $19 billion this year.
Other public sector projects include new Housing Board flats, redevelopment of the Pathology Education Research Building of the Singapore General Hospital, the National Heart Centre and the new International Cruise Terminal.
Private sector construction demand will drop between $5 billion and $9 billion this year.
For the first time, the BCA released a three-year construction demand forecast, which shows that average annual construction demand should range between $20 billion and $27 billion in the next two years.
This projection is significantly above the average annual construction demand of $13 billion from 1998 to 2006, it said, National Development Minister Mah Bow Tan said on Wednesday morning that public sector demand for construction services will remain strong in the next few years.
To help spur the industry, the Government will focus on two areas of immediate concern - the decreased construction demand and the liquidity squeeze, he said.
It will bring back some of the smaller public sector projects, of up to $50 million in value, that were earlier deferred to ease the pressure on construction resources.
It will also bring forward other suitable new projects in the pipeline. The details, said Mr Mah, are being finalised and will be announced during next week's Budget statement.
The Government has also put in place several measures to help businesses access credit financing, given that companies are facing a credit squeeze amid the financial turmoil.
Mr Mah also said it is imperative for the construction industry to continue to attract new entrants to join the sector, retain staff and upgrade their skills as there remains a healthy level of sustained workload.
The BCA is working closely with the industry and relevant agencies to introduce career and training opportunities available in the industry to new local entrants.
