Phone No:

+65 65615366 / / +65 97886514

MON – SAT 8.00 – 18.00


The total construction demand in 2021 is projected to recover to between S$23 billion and S$28 billion, with the public sector contributing about 65% of the total demand. The public sector is expected to drive the construction demand in 2021, to between S$15 billion and S$18 billion with an anticipated stronger demand for public housing and infrastructure projects. Private sector construction demand on the other hand is projected to be between S$8 billion and S$10 billion in 2021. Building and Construction Authority (BCA) projects the bulk of private sector construction demand in 2021 to comprise development of the remaining en-bloc residential sites, major retrofitting of commercial developments as well as construction of high-specification industrial buildings to meet business needs.

Here are some key highlights:

Forecast for 2022 to 2025

BCA also expects a steady improvement in construction demand over the medium term. It is projected to reach between S$25 billion and S$32 billion per year from 2022 to 2025
The public sector is expected to lead the demand and contribute S$14 billion to S$18 billion per year from 2022 to 2025 with similar proportions of demand coming from building projects and civil engineering works. Besides public residential developments, public sector construction demand over the medium term will continue to be supported by large infrastructure and institutional projects such as the Cross Island MRT Line (Phases 2 and 3), the Downtown Line Extension to Sungei Kadut, the cycling path networks, the relocation of Singapore Science Centre, the Toa Payoh Integrated Development, the Alexandra Hospital redevelopment and a new integrated hospital at Bedok.
The private sector construction demand is expected to improve steadily in the medium term to reach between S$11 billion and S$14 billion per year from 2022 to 2025. This is in anticipation of a gradual recovery of the global economy, contingent on the successful deployment and effectiveness of COVID-19 treatment and vaccines as well as easing of lockdown restrictions.

Construction Output

Based on the contracts awarded in the past few years and considering the construction demand forecast for 2021, the total nominal construction output in 2021 is projected to increase to between S$24 billion and S$27 billion, from the estimated S$19.5 billion in 2020. An anticipated improvement in construction demand in 2021 and the backlog of remaining workloads impacted by the COVID-19 during 2020 will support the projected pickup in total construction output.

Accelerating industry transformation through digitalisation

The Alliance for Action (“AfA”) on Digitalising Built Environment, an industry-led and government-supported coalition, has identified digitalisation as an important enabler to help the industry build smarter. One of the initiatives introduced by the AfA is the introduction of a set of data standards for the Common Data Environment to facilitate more seamless information flow for building projects across digital platforms shared by various building professionals and companies along the value chain (see Annex for more information about the Data Standards).
Although 2020 was particularly challenging for the built environment sector, the industry has shown great resilience. The COVID-19 pandemic has necessitated the industry to rethink the way we build to overcome the challenges. BCA will continue to work with our industry partners, led by the trade associations and chambers (TACs), to accelerate industry transformation.

Leave a Reply

Your email address will not be published. Required fields are marked *