As a highly open trading economy, Singapore is especially susceptible to global uncertainties including declines in global trade and lower commodity prices. Lower oil prices, weaker shipping trade and lower profitability in the semiconductor market is causing the Singaporean economy to slow.
The construction market is expected to slow down in 2017, but a higher level of public spending will give the sector some comfort.
Government spending will continue its focus on civil engineering and public housing works. The deep sewerage tunnelling project includes 60km of new sewerage and 40km of tunnels connecting water treatment systems under the city. Upgrades to MRT lines, including signalling systems and new sleepers, are also underway.
With its open trading stance, a growth in US protectionism and any slowdown in China will affect Singapore. The 2017 outlook is for further slow growth, notwithstanding the hurdles placed by these factors.
The government will continue to dominate construction demand, and private sector investments are likely to remain stable or reduce as demand for private properties is stagnant. Changi Airport’s third runway and terminal five development will continue to be one of the largest projects in Singapore for the foreseeable future.