Construction demand in Singapore dropped markedly in 2015, with the value of both public and private sector contracts booking negative year-on-year growth for the full year.
According to Citi, public construction contracts were unable to cushion the overall demand slowdown last year.
“Despite a significant budgeted increase in public infrastructure, the reality is that any increase in civil engineering contracts has been small compared to the drop elsewhere,” Citi said in a report.
“Besides the well-telegraphed weakness in the residential sector, the prospect of over-supply in the commercial and industrial property space has begun to put the brakes on construction contracts for these two segments,” Citi added.
In its annual Economic Survey released in February, the Ministry of Trade and Industry (MTI) warned that prospects for the construction sector have weakened in 2016.
This was on back of the drop in contracts awarded in 2015 and continued sluggishness in private sector construction demand.
worrying collapse of construction demand in Singapore