Construction sector to grow 12% in 2024, outpacing GDP growth four times

GDP for 2024 is expected to grow by 2% to 3%.

Singapore’s construction sector to rise 12% in productivity in 2024, outpacing the anticipated 2% to 3% GDP growth up to four times, Turner & Townsend reported.

Construction volume for the year is anticipated to reach between S$32b to S$38b, boosted by government-backed initiatives and major state projects, such as Changi Airport Terminal 5 (T5) and Tuas Port.

Recent built environment incentives like the enhanced Contractors Registration System (CRS), Productivity Innovation Project (PIP), Future Energy Fund, and Energy Efficient Grant are also driving activity.

The Singapore government is expected to contribute 55% of domestic construction projects, whilst the private sector is set to contribute 45%.

In addition, Singapore’s construction market is also benefitting from investment in digital infrastructure and the launch of the NEC4 contract by the Building Construction Authority (BCA) despite global economic uncertainty and geopolitical instability.

On the flip side, the departure of construction workers during the pandemic highlights the labor squeeze and rising costs to secure talent.