Chart of the Day: Take a look at Singapore’s construction history

Timing projects is key.

PM Lee announced several projects in the construction pipeline in his National Day Rally on Sunday, revealing further developments in parks and railways.

Projects will keep construction pipeline buoyant, revealing a long-term positive for Singapore’s construction sector with key developments in Jurong Lake District and planned MRT line construction.

According to a report by DBS, key projects in the immediate term include Project Jewel, Changi Airport Terminal 4, Thomson Line and HDB flats, with the Singapore-Malaysia High-Speed Rail and other MRT lines supporting construction demand in the longer term.

DBS adds that with more contracts available,the onus is on construction companies to add to their order books. But competition has been keen and low tender prices are not helping margins in a high labour, material and subcontracting cost environment. If project activity is low, competition will be keener since players have ample capacity to take on additional jobs.