(MENAFN- ACN NewsWire) Singapore's construction industry set to outpace the country's GDP growth rate this year
SINGAPORE, Sept 4, 2024 - (ACN Newswire) - Construction growth in Singapore sees a 12 percent rise in productivity in 2024, outstripping the country's modest overall GDP growth rate of 2-3 percent four times over, according to global professional services company, Turner & Townsend[1].
With construction volume anticipated to reach between S$32bn to S$38bn by the end of 2024[2], Turner, and Townsend's Singapore Market Intelligence cites a series of government backed initiatives and major state projects, such as Changi Airport Terminal 5 (T5) and Tuas Port, are key contributors boosting demand.
Recent built environment incentives including the enhanced Contractors Registration System (CRS), the Productivity Innovation Project (PIP), the Future Energy Fund and Energy Efficient Grant are supporting activity. By year-end, the Singaporean state is expected to contribute to 55 percent of domestic construction projects while the private sector is poised for a contribution of 45 percent.
Despite ongoing global economic uncertainty and geopolitical instability, the construction market in Singapore is also benefitting from investment in digital infrastructure and the launch of the NEC4[3] contract by the Building Construction Authority (BCA). The latter providing favourable conditions and extensive options for collaborative contracting.
While the overall growth trajectory is positive for the domestic construction sector, there are still challenges to navigate principally the availability of skilled labour. The departure of many construction workers during the pandemic continues to highlight the labour squeeze and increasing costs to secure the right talent.
Khoo Sze Boon, Managing Director, Turner & Townsend in Singapore, said:
“Construction demand in Singapore is on course to surpass last year by a significant margin which is positive for our domestic economy. The industry's overall positive outlook stems from the series of ongoing government initiatives connected to the built environment including robust schemes to promote funding, foster technological advancements, ensure ease of doing business, and boost sustainable green initiatives.
“While challenges persist, such as manpower shortages and rising costs, optimism around collaborative contracting schemes and the digitization of processes will further improve productivity. We believe now is the time for our industry to really embrace collaborative contracting which will offset rising construction costs and transform the construction sector for the better to ensure long-term resilience.”
[1] GDP growth according to the Ministry of Trade and Industry Singapore , Construction growth according to Building Construction Authority , calculated based on 2024 demand forecast of $38bn over the 2023 demand of $33.8bn.
[2] According to the Building Construction Authority as of 15 January 2024
[3] NEC4 contract is a suite of contracts for effective project management and collaboration
About Turner & Townsend
Turner & Townsend is a global professional services company with over 12,000 people in 49 countries. Collaborating with our clients across real estate, infrastructure and natural resources sectors, we specialise in major programmes, programme management, cost and commercial management, net zero and digital solutions.
We are majority-owned by CBRE Group, Inc., the world's largest commercial real estate services and investment firm, with our partners holding a significant minority interest. Turner & Townsend and CBRE work together to provide clients with the premier programme, project and cost management offering in markets around the world.
We are passionate about making the difference, transforming performance for a green, inclusive and productive world.
Notes to Editors
The full report is available on the Turner & Townsend website: Home - SGMI 2024 (turnerandtownsend)
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