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According to ConsTrack360, the construction industry in Singapore is expected to register a V-shaped recovery during 2021. The ongoing coronavirus pandemic has affected the construction industry growth in Singapore. However, government intervention to push the industry towards digitalization across the value chain is likely to support the growth in the next 4-8 quarters. The expected growth is also likely to be supported by the reviving economic conditions and improvement in investment in the sector.
With the focus of the government to develop the transport and energy infrastructure, Singapore is further expected to drive growth in the construction sector. Under the Land Transport Master Plan 2040, the Land Transport Authority of Singapore made it plans crystal clear to expand the railway network of the country. By 2040, the government plans to construct new lines in Singapore including the Cross-Island Line and the Jurong Region Line. In addition to this, the government is also planning to expand the current network of cycling paths in the country from 440 KM to over 1000 KM in the next decade. These initiatives from the government is likely to boost the growth of the infrastructure construction sector in Singapore.
Construction projects such as North-South Corridor Expressway and Changi Airport Terminal 5 in the pipeline, the overall construction industry outlook in Singapore looks positive. With steady economic growth during the second quarter, is likely to provide support and investment for the construction of infrastructure, especially transport projects in the country.
Despite, the residential sector recorded slow growth in the first two quarters, government initiatives are likely to drive the residential construction sector. For instance, in June 2020, the government proposed to build housing for more than 60,000 migrant workers by the end of 2020.
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