Singapore’s projected construction demand for 2020 has been revised to S$18 - $23 billion, from the earlier forecast of S$28 - $33 billion released in January 2020, announced the Building and Construction Authority (BCA) today.
This downward revision is due to a drop in private sector construction demand, and postponements in the award of some public sector projects from 2020 to 2021, as contractors and suppliers have asked for more time to assess the impact of Covid-19 on resource management and project implementation timelines.
However, the country’s construction demand is expected to recover to some extent from 2021, according to BCA. This will be supported by public residential developments and upgrading works, developments at the Jurong Lake District, construction of new healthcare facilities and several infrastructure projects such as the construction of the Cross Island MRT Line.
“It is important that the construction industry remains vigilant to prevent a resurgence of Covid-19 cases, which could bring the sector to a halt again,” stated BCA, adding that it will provide an update on the projected construction demand for 2021 and 2022 in early 2021.
BCA further emphasised that it will continue to assist the local construction industry in various ways, including financial assistance to help firms tide through this challenging period brought about by Covid-19.