Public sector projects to spur construction industry this year

SINGAPORE — A regular flow of public sector projects is expected to sustain the demand for construction contracts this year, which will reach between S$29 billion to S$36 billion in value, said the Building and Construction Authority (BCA) today (Jan 8), but which would represent a marked decrease from the strong demand seen in 2014.

The expected decrease is mostly from private sector demand - to between S$11 to S$15 billion, from S$18 billion last year, amid a slowdown in private home sales.

Projects in 2014 included the Sengkang General and Community Hospitals, the Tampines Town Hub project and various major contracts for the Thomson-East Coast MRT line and the upcoming Changi Airport development.

Speaking at the BCA-REDAS Built Environment and Property Prospects Seminar this morning Mr Lee Yi Shyan, Senior Minister of State for National Development and Trade & Industry, noted that construction productivity has improved by about 1.2 per cent per year from 2010 to 2013.

But he hopes to see more efficiency, and urged the industry to use methods that will achieve higher manpower savings while raising the quality of components.