Demand for public sector construction is expected to grow from $16b to $19b.
The Building and Construction Authority (BCA) projects the total value of construction contracts to be awarded this year to range between $26b to $31b.
According to a press release, the projected higher construction demand is due to an anticipated increase in public sector construction demand, which is expected to grow from the $15.5b in 2017 to between $16b and $19b this year.
“Public construction demand is expected to be boosted by an anticipated increase in demand for institutional and other buildings such as healthcare facilities, and civil engineering works as well as a slate of smaller government projects that have been brought forward in response to the slowdown in the previous years,” BCA said.
Meanwhile, the private sector’s construction demand is similarly expected to improve from $9b in 2017 to between $10b and $12b in 2018.
For 2019 to 2022, BCA anticipates a steady improvement in construction demand over the medium term.
Demand is projected to reach between $26b and $33b per annum for 2019 and 2020. This is even expected to pick up between $28b to $35b for 2021 to 2022.
The public sector is expected to lead demand with building projects and civil engineering works. Private sector construction demand will also be boosted by the redevelopment of en-bloc sale sites and the spill-over benefits generated by the improved performance and outlook in other economic sectors.