Gradual rebound to pre-pandemic levels forecast for Singapore construction in 2022
Public sector infrastructure investment will continue to lead the recovery in Singapore’s construction sector, while global disruption to supply chains, ongoing labour shortages, and cost inflation may persist, threatening the pace of growth.
By Khoo Sze Boon, Managing Director – Singapore, Vietnam and Philippines and Cheryl Lum, Director, Head of Data and Research.
As Singapore emerges from the impacts of COVID-19, the economy is expected to recover this year, although the outlook across different sectors remains uneven.
Our cautiously optimistic outlook for construction is a reflection of predictions for Singapore’s wider economy, which grew by 7.6 percent in 2021 - a rebound from the 5.4 percent contraction in 2020. Meanwhile, sectors such as aviation and tourism may take longer to recover as tourist confidence rebuilds.
Building on last year’s Singapore Budget, the 2022 Singapore Budget set out measures on how Singapore can better position itself to prepare for and capitalise on the challenges and opportunities of the decade ahead.
One key focus relating to the built environment sector is Singapore’s commitment to tackle climate change and achieve its net-zero target by around 2050.
Construction cost escalation forecast
Given the level of uncertainty in the current market, tender pricing is expected to remain volatile in the foreseeable future. A much wider range of pricing has been reflected in some project tenders and the reality will take some time for tender prices to stabilise.
Download our latest market intelligence report to see more economic data and insight, and to read about tender conditions in Singapore.