Singapore's construction industry set for 4.1% growth amid rising investments

In Singapore, the construction industry is experiencing a significant growth trajectory, expected to increase by 4.1% in 2025. This growth is primarily driven by rising investments in commercial, housing, and transport infrastructure projects. The Building and Construction Authority (BCA) predicted a strong construction demand for the year, estimating the total value of construction contracts to range between SGD47 billion and SGD53 billion, approximately translating to $34.5 billion to $38.9 billion. Particularly, notable projects such as the Changi Terminal 5 expansion, the Marina Bay Sands expansion, and the biomedical hub development are anticipated to significantly contribute to this growth. Additionally, 2024 saw a remarkable increase in the construction sector, with the total value of construction contracts issued rising by 29.5% year-on-year (YoY). Progress payments, another important metric of active construction, elevated by 10% YoY in the same period. This remarkable performance in a prior year sets a strong foundation for further developments and investments in the upcoming year. The continued strength of the construction market suggests potential opportunities for various stakeholders within the sector, as strategic planning and governmental policies proactively support growth. Looking ahead, the construction landscape in Singapore is expected to maintain growth in subsequent years, with forecasts extending through 2029. Supporting avenues for this expansion include investments directed towards renewable energy projects. A significant aspect of the government’s partnership with US tech firm Microsoft aims to deploy at least 2GW-peak of solar energy by 2030, seamlessly aligning with the country's goal of reaching carbon neutrality by 2050. This integration of renewable energy not only addresses environmental sustainability but also introduces an economic dimension to the construction field by broadening project scopes. Furthermore, recent contracts awarded signify investment towards sustainability. In January 2025, Singapore's Energy Market Authority (EMA) confirmed a $1 billion contract with PacificLight Power to construct a hydrogen-compatible natural gas power plant located on Jurong Island, scheduled for completion by 2029. Additionally, a SGD18.3 billion cable project authorized by the Australian government to transmit energy from Australia to Singapore is on the horizon. This ambitious undertaking aims to complete a 4,300 km undersea cable project by 2030, integrating cross-border energy solutions and reinforcing Singapore’s position in regional energy markets. In conclusion, the construction industry in Singapore is set to grow steadily, driven by significant investments, forecasts affirming continual development, and transformative projects that align with both economic and environmental objectives.