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THIS DOCUMENT IS IN DRAFT FORM. The information contained in it is incomplete and is subject
to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
The information that appears in this section has been prepared by Euromonitor and
reflects estimates of market conditions based on publicly available sources and trade opinion
surveys, and is prepared primarily as a market research tool. References to Euromonitor should
not be considered as the opinion of Euromonitor as to the value of any security or the
advisability of investing in the Company. Our Directors believe that the sources of information
contained in this section are appropriate sources for such information and have taken
reasonable care in reproducing such information and we have no reason to believe that such
information is false or misleading or that any material fact has been omitted that would render
such information false or misleading. The information prepared by Euromonitor and set out in
this section has not been independently verified by our Group, the Sole Sponsor, the
[REDACTED], the [REDACTED] or any other party involved in the [REDACTED] and
neither they nor Euromonitor give any representations as to its accuracy and the information
should not be relied upon in making, or refraining from making, any investment decision.
SOURCES OF INFORMATION
We commissioned a report from Euromonitor to conduct an analysis of, and to report on, the
construction industry in Singapore. A total fee of US$110,500 was paid to Euromonitor for the
preparation of the Euromonitor Report. Established in 1972, Euromonitor is the world leader in
strategy research for both consumer and industrial markets. The Euromonitor Report has been
compiled after thorough and diligent research conducted by Euromonitor’s Singapore office. The
market research process was undertaken through a top-down central research and bottom up
intelligence to present a comprehensive and accurate picture of the construction industry in
Singapore. Euromonitor’s detailed primary research involved: (i). secondary research which
involved the review of published sources from government and regulatory statistics and
independent research reports; (ii). primary research which involved interviews with a sample of
leading industry participants and industry experts for latest data and insights on future trends and
to verify and cross check the consistency of data and research estimates; (iii). projected data were
obtained from historical data analysis plotted against macroeconomic data with reference to
specific industry-related drivers; and (iv). review and cross-checks of all sources and independent
analysis to build all final estimates including the size, shape, drivers and future trends of the
Singapore market and prepare the final report.
With both primary and secondary research in place, Euromonitor has utilised both types of
sources to validate all data and information collected, with no reliance on any single source.
Furthermore, a test of each respondent’s information and views against those of others is applied
to ensure reliability and eliminate bias from these sources.
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THIS DOCUMENT IS IN DRAFT FORM. The information contained in it is incomplete and is subject
to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
FORECASTING BASES AND ASSUMPTIONS
Euromonitor prepared the Euromonitor Report based on the following assumptions: (i). the
Singapore economy is expected to maintain steady growth over the forecast period (2020-2024);
(ii). the Singapore social, economic, and political environment is expected to remain stable in the
forecast period; (iii). there will be no external shock (aside from COVID-19), such as financial
crisis or raw material shortage that affects the demand and supply of construction works in
Singapore during the forecast period; (iv). key market drivers such as the government’s continued
regard towards public infrastructure development, policies in relation to housing, workplace skill
development and measures to increase construction productivity growth are expected to boost the
development of the Singapore construction market; and (v). key drivers including Singapore’s
rising GDP growth and the adoption of more advanced construction technology by contractors are
likely to drive the future growth of the Singapore’s construction market.
The research results may be affected by the accuracy of these assumptions and the choice of
these parameters. The market research was completed in August 2020 and all statistics in the
Euromonitor Report are based on information available at the time of reporting. Euromonitor’s
forecast data comes from analysis of historic development of the market, the economic
environment and underlying market drivers, and is cross-checked against established industry
data and trade interviews with industry experts.
1. MACRO-ECONOMIC ENVIRONMENT IN SINGAPORE
Singapore enters a phase of slower growth due to restructuring of the economy
Singapore’s economy registered a CAGR of 5.0% for nominal GDP over the review
period (2014-2019). Since 2011, the Singapore economy has entered a phase of slower
growth as the economy transitioning from manpower-driven growth to productivity-driven
growth. Real GDP growth slowed in 2015 and 2016, due to the weaker global economy and
a protracted slump in oil prices, which affected the domestic oil and gas industry. However,
the economy showed an improvement in 2017 with real GDP growth reaching 3.9%, riding
on the recovery in the global economy and the increase in trade activities. During 2014-
2019, GDP (as contributed by the construction industry) declined at a CAGR of 1.6% to
account for 3.5% of the total nominal GDP in 2019. The drawn-out trade war between the
US and China has had a negative impact on Singapore’s export-oriented economy since
2019. Real GDP expanded by 0.7% in 2019, which is the country’s slowest growth since
2009.
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THIS DOCUMENT IS IN DRAFT FORM. The information contained in it is incomplete and is subject
to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
Table 1 Macro-economic environment in Singapore (historical)
2014 2015 2016 2017 2018 2019
GDP (Nominal) S$ billion 396.9 421.0 437.3 464.9 503.4 507.6
GDP (as contributed by
the construction industry) S$ billion 19.3 20.5 19.8 17.0 17.0 17.8
Source: National statistics published by the Department of Statistics of the Government of Singapore and
the Ministry of Trade and Industry of the Government of Singapore
2. OVERVIEW OF THE CONSTRUCTION INDUSTRY IN SINGAPORE
Classification of construction activities in Singapore
Construction activities in Singapore can be divided into general building works and
civil engineering works. General building works include general construction and major
repair works, as well as other construction works to facilitate or support the construction of
all types of buildings. Civil engineering works typically relate to infrastructure projects,
including construction of the MRT network, airports, roads and bridges. Construction
activities can also be classified as public sector or private sector construction projects.
Public sector projects are construction activities undertaken by the government or public-
sector agencies, while private sector projects are construction works commissioned by
private entities.
High level of subcontracting activities behind tenders awarded to main contractors
Subcontracting is a prevalent practice in the construction industry, whereby main
contractors or developers would bid for projects, and then subcontract different parts of the
construction project to several specialised subcontractors. For large projects, multi-layered
subcontracting is common, with subcontractors further contracting out work to smaller
contractors. There are many subcontractors in the industry, which specialise in different
parts of the construction value chain. As a result, the values of tenders won by main
contractors do not give a complete picture of the work subsequently awarded to
subcontractors.
Public sector outperforms private sector in the review period
Demand for public sector construction works rose, mainly from industrial building
works and civil engineering works, and provided support for the overall industry growth.
Therefore, growth in the construction industry was largely driven by public sector projects
over the review period. Total contracts awarded to public sector construction projects
accounted for 56.8% of all construction contracts in 2019, up from 49.6% in 2014.
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to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
Table 2 Performance of construction industry in Singapore, historical
Source: The BCA as of 8 January 2020
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to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
Healthy construction project pipeline for both private and public sector demand in the
future despite COVID-19
The construction industry is expected to resume robust growth from 2021 onwards,
supported by the recovery of domestic demand and a strong pipeline of projects in the
forecast period. According to the Euromonitor Report, construction demand is forecasted to
hold steady in 2020, with an estimated value that falls between S$28 billion and S$33
billion, compared to S$33.4 billion in 2019. Demand is expected to strengthen beyond 2020,
and could increase to between S$27 billion and S$34 billion per year during 2021-2022, and
between S$28 billion and S$35 billion per year during 2023-2024. However, due to COVID-
19, total contracts awarded and certified payments are expected to be delayed in 2020.
Public sector construction demand over the medium-term will be supported by public
residential projects, the redevelopment of older buildings in strategic areas, such as the
Central Business District, and major infrastructure projects, which include developments at
Jurong Lake District and Changi Airport Terminal 5, and MRT projects such as the
Thomson-East Coast Line, Cross Island Line and Jurong Regional Line. Between 2020 to
2024, certified payments for public sector is expected to register a CAGR of 22.5%,
growing from S$9.5 billion in 2020 to S$21.3 billion in 2024.
The private construction sector is also expected to gradually increase in the medium-
term despite the industry contraction in 2020, boosted by further growth in the other
economic sectors. Projects that are expected to contribute to construction demand from 2020
onwards include redevelopment of en-bloc sale sites, recreational developments at Mandai
Park, Changi Airport new taxiway and berth facilities at Jurong Port, the expansion of the
two Integrated Resorts at Marina Bay Sands, Resort World Sentosa and Tanjong Pagar
Terminal. Between 2021 and 2024, private sector construction demand is expected to
recover from the plunge in 2020, in line with the recovery of the general economy. Between
2020 to 2024, certified payments for private sector is expected to register a CAGR of
11.3%, growing from S$8.1 billion in 2020 to S$12.3 billion in 2024.
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to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
Table 3 Performance of construction industry in Singapore, forecast
Source: Forecast estimated based on the construction demand forecast range released by the BCA in January
2020
2.1 Overview of civil engineering industry
Civil engineering industry benefits from Singapore’s infrastructure development
In transport infrastructure, Singapore is well known for its airport, ports, road
and MRT network. Singapore was ranked first globally by the World Economic
Forum’s Global Competitiveness Index for 2019 for the robustness of its transport
infrastructure. The civil engineering industry of Singapore’s construction industry is
instrumental in delivering Singapore’s infrastructure, and has enjoyed strong growth in
the last few decades thanks to an infrastructure development boom. Civil engineering
certified payments registered a CAGR of 2.7% from 2014 to 2019, supported by a
strong pipeline of transport infrastructure projects, including various Thomson-East
Coast MRT Line contracts.
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to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
Civil engineering contracts registered large swings
The value of civil engineering construction contracts awarded experienced large
swings in the review period, as the timing of infrastructure projects tend to fluctuate.
By July 2014, the LTA had awarded 25 major civil engineering contracts for the
Thomson-East Coast MRT Line at a total contract sum of approximately S$9.9 billion.
However, civil engineering contracts awarded in 2015 fell by 44.7% year-on-year to
S$5.5 billion, due to the rescheduling of major public infrastructure projects from the
fourth quarter of 2015 to early 2016. Consequently, civil engineering contracts
awarded surged by 64.0% in 2016, with the award of more major infrastructure
contracts for the Thomson-East Coast MRT Line and the construction of LTA’s 4-in-1
rail and bus depot, known as the East Coast Integrated Depot. Civil engineering
certified payments growth is expected to pick up pace in the forecast period; however,
it is expected to register a sharp decline in 2020 due to disruptions related to COVID-
19. When activities return to normal, it is anticipated that the government will step up
investments in major infrastructure projects to drive Singapore’s economic recovery.
Public sector infrastructure projects are typically carried out over a period of four to
eight years, and they are expected to create sustained demand for civil engineering
works. According to the estimation of Euromonitor, the civil engineering certified
payments is expected to grow by a CAGR of 15.1% from S$5.7 billion in 2020 to
S$10.0 billion in 2024.
2.2 Overview of general building works industry
General building works’ contribution to construction industry declines
General building works forms an important part of the construction industry in
Singapore and contributed to 73.1% of total contracts awarded for the construction
industry in 2019. However, the value share of general building works in the
construction industry, has witnessed a decline in the review period falling from 79.8%
in 2015 to 73.1% in 2019. Between 2014 and 2019, the value of general building
works contracts declined at a CAGR of 3.2% due to the slowdown in the Singapore
economy and the rollout of major infrastructure projects which has boosted the
importance of civil engineering. According to the estimation of Euromonitor, the
certified payments of general building works is expected to grow at a CAGR of 18.9%
from S$11.9 billion in 2020 to S$23.7 billion in 2024. The outlook for the general
building works beyond 2020 is positive, considering a steady pipeline of new public
housing construction, upgrading works for HDB flats, and several upcoming sizeable
condominium projects. Moreover, major commercial office building projects, industrial
projects such as the Integrated Waste Management Facility, and institutional projects
such as healthcare facilities and educational facilities for Institutes of Higher Learning
(IHL) are expected.
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to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
3 DRIVERS AND CONSTRAINTS IN THE CONSTRUCTION INDUSTRY IN
SINGAPORE
Development of transport infrastructure such as MRT drives civil engineering demand
The civil engineering sector has been driven by the Singapore’s government
commitment to developing the public transport system. Major projects awarded in the
review period include the construction of Thomson-East Coast MRT Line, Changi Airport’s
3-runway system (package 2), and improvement works to the Kranji Expressway and Pan-
Island Expressway. Under the government’s plans to extend the coverage of the MRT
network, construction of the Thomson-East Coast Line, Circle Line 6 and North East Line
extension was started in the review period. In addition, the government has begun planning
for two more new rail lines – the Cross-Island Line and the Jurong Region Line.
Notable public sector projects provide support for general building works
One key growth driver for the general building industry is the number of notable
projects in both public and private sectors. Demand for general building works is closely
related to the national economic development. Demand comes from multiple economic
sectors including real estate, healthcare facilities, industrial facilities, commercial space and
office space. Notable projects in the review period include public housing construction and
HDB upgrading works, healthcare facilities and industrial projects such as the National
Cancer Centre at Outram and the fourth Desalination Plant at Marina East.
Productivity enhancement measures help companies become more productive and take
on more complex projects
Under the Construction Industry Transformation Map launched in October 2017, the
BCA aims to more than double the number of personnel trained in technologies and
innovation. It also plans to make jobs in the sector more highly skilled and attractive to
Singaporeans. Through this framework, the BCA targets to train 35,000 skilled workers in
design for manufacturing and assembly (DFMA), 20,000 personnel in integrated digital
delivery (IDD), and 25,000 in green buildings by 2025.
The BCA also encourages the construction industry to adopt automation and
technology. Under a research and development roadmap released in October 2016, BCA
identified 35 technologies, including robotics, DFMA and 3D printing, to help contractors
change the way they construct buildings and sustain productivity improvements in the long
run.
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to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
Competition for projects push down tender prices
Most projects in the civil engineering sector are public sector works. Players bid for
projects via government tenders, and cost competitiveness is one of the key evaluation
criteria. As a result, players compete to put in the lowest bids possible, which have
contributed to the falling profit margin in the industry. The challenge becomes exacerbated
for smaller players by rising labour prices, making projects even less profitable.
The BCA Building Works Tender Price Index (TPI) provides an indication of
historical movement of tender prices in the construction industry. The TPI reflects changes
in material costs, labour costs and the competition in the market, the risk and profit as these
are factored into contractors’ bids. Since 2015, the TPI has been on a downward trend. This
can be attributed to pressure on bid price for contracts due to growing competition among
construction companies, a slowdown in available building works contracts and a reduction
in private sector building demand.
Table 4 Changes in the BCA’s Tender Price Index (TPI)
Base Year = 2010 2014 2015 2016 2017 2018 2019
BCA’s Tender Price Index 106.8 104.8 98.0 96.7 98.6 99.9
Source: The BCA
Rising costs and longer payment period presents cashflow problems for smaller players
Singapore imports almost all its construction materials, consisting predominantly of
ready mixed concrete, steel bars, granite, concreting sand and cement. As a result, industry
players are susceptible to the fluctuations in the price of raw materials, caused by external
factors that determine pricing and supply of the raw materials. With high operating costs
and a highly competitive landscape, construction companies have been faced with the
challenge of falling profit margins. The impact is felt more by smaller players, as they tend
to take up smaller jobs, and hence lack the economy of scale to absorb rising costs.
The problem of tight cash flow for smaller contractors has deteriorated in 2017 due to
payment period getting longer. Singapore Commercial Credit Bureau reported that in 2017
construction is the only sector that registered a year-on-year rise in the number of slow
payments. A major reason for the increase in late payments is due to over supply in
contractors and a lower number of jobs, resulting to lower tender prices in 2017. When a
main contractor accepts low price projects, they tend to prolong their payments to their
subcontractors.
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cover of this Document.
INDUSTRY OVERVIEW
However, payment behaviours appear to have improved in recent years, along with
improved prospects in the construction industry. According to the Euromonitor Report, the
construction industry saw significant improvements in debt settlement in the second quarter
of 2019 (Q2 2019) compared with the last quarter of 2018 (Q4 2018), due to a healthy
pipeline of activities within the construction industry. Only 16% of construction companies
were more than 90 days delinquent in their debt payments in Q2 2019, versus 35% in Q4
2018. The settlement timeline for construction also decreased to 39 days in Q2 2019, down
20 days from 59 days in Q4 2018.
Despite the rebound in debt settlements, the Singapore Council Credit Bureau has
raised concerns over the slower payment of bills among Singapore companies, which
included the construction industry, largely due to the US-China Trade War tensions. In the
fourth quarter of 2019, these industries and sectors all saw an increase of slower payments
with construction sector increased by 2.5%, from 46.9% in third quarter of 2019 to 49.4% of
construction companies paying less than 50% of the total bills within the agreed terms.
COVID-19 increases operational challenges for companies
Since the circuit breaker measures were lifted on 2 June 2020, construction companies
have adapted their operations to comply with the BCA’s COVID-safe restart requirements.
Examples include contact tracing at work sites, testing of workers for COVID-19 before
heading back to site, installation of artificial intelligence on the lorries, which will trigger an
alarm if workers come too close to one another, staggering the working hours for
employees, segregating workers into different zones at work sites, and ensuring workers
comply with measures such as wearing face masks on work sites. These measures are likely
to incur higher operations costs for contractors, but the costs are alleviated by the funding
support offered through government’s Construction Support Package.
3.1 Value chain & costs
Raw material costs fluctuate with the global economy
The main costs of operating a construction company in Singapore include the
costs of raw materials, machinery and equipment rental, logistics, manpower and safety
costs. While the main cost categories are applicable to both general building works
contractors and civil engineering contractors, the detailed costs may differ among the
two depending on the complexity and requirements of the projects.
As Singapore market depends heavily on imports of these materials, the price
movements of construction materials are driven by global demand and supply which
contractors in Singapore have little influence on. When there is a high level of
construction activities, demand for construction materials would rise and push up
prices.
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to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
Table 5 Changes in Market Prices of Major Construction Materials in Singapore
Unit 2014 2015 2016 2017 2018 2019 CAGR
Cement in bulk S$/Tonne 97.9 93.0 83.0 75.9 78.8 84.6 –2.9%
(Ordinary Portland
Cement)
Steel Bars (16-32 mm S$/Tonne 653.9 501.4 500.5 688.8 751.0 713.9 1.8%
High Tensile)
Granite (20 mm S$/Tonne 22.5 19.7 15.4 16.1 17.4 19.2 –3.1%
Aggregate)
Concreting Sand S$/Tonne 23.3 22.7 18,3 17.1 21.1 28.4 4.0%
Ready Mixed S$/Cubic Metre 111.2 99.5 85.0 81.4 87.1 95.9 –2.9%
Concrete
Source: The BCA
Construction labour costs continues to climb due to tight labour market
Singapore’s construction industry relies on a large foreign workforce. According
to the MOM, Singapore had about 293,300 Work Permit holders in the construction
industry as of December 2019. The construction labour market has tightened in recent
years, as part of the government’s efforts to reshape the sector’s workforce to push for
greater productivity. However, a recent speech by Deputy Prime Minister Heng Swee
Keat in May 2020 suggested that the government recognises that there is a limit to
how far Singapore can go in reducing the need for manual work. It is likely that the
number of foreign construction workers will rise in the forecast period as the
government rolls out large-scale infrastructure projects to boost the economy.
Table 6 Total wage (excluding employer CPF) changes for the construction
industry in Singapore (YOY%)
In % 2014 2015 2016 2017 2018 2019
Total wage (excluding employer CPF)
changes for the construction
industry in Singapore 3.8 3.1 2.1 2.0 2.8 2.6
Source: Survey on Annual Wage Changes, Manpower Research and Statistics Department, MOM
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to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
Cost of leasing or buying construction machinery (one of the major operating
costs of the contractors)
Due to the specialised nature of construction works, special machinery is
sometimes required. The costs of leasing or buying construction machinery is one of
the major costs for construction companies. Contractors commonly lease construction
machinery, as and when required by their projects, as the costs of buying machinery
and maintaining them is typically more expensive than the costs of leasing. Moreover,
smaller contractors are also constrained by the lack of storage space for bulky
machinery. According to the Euromonitor Report, both purchase costs and rental/lease
costs of construction machinery have been on the rise over the years due to inflation
and the increasing complexity of building design requiring more advanced machinery
and equipment. Other contributing factors include projects with tight timelines and
limited construction machinery providers. Due to the costs of storage space, the
number of machinery providers remains relatively stagnant. Coupled with increasing
demand for the machinery, machinery costs are expected to continue rising, creating an
opportunity alternate revenue streams for machinery owners.
Higher construction costs due to COVID-19
During the COVID-19 period, the construction industry has experienced a
shortage of materials and manpower. Import of construction materials from main
supply countries like Malaysia and China was disrupted by movement control and
lockdown measures. Construction companies may have to source raw materials from
suppliers who may charge higher prices due to COVID-19 interruptions. In terms of
manpower costs, the number of foreign workers available for work has reduced as
travel restrictions prevented foreign workers from coming back to Singapore. In
addition, the measures to prevent the spread of COVID-19 transmission in the
construction industry are expected to increase operational costs for contractors.
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to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
3.2 Competitive landscape
Fragmented construction industry saw healthy growth in number of company
formations until 2014
The formation of business entities in construction industry fell steadily every
year between 2014 and 2018, and the number appears to have stabilised in 2019. The
more challenging operating environment since 2015 due to the property market
downturn and delay of MRT projects led to less work being available and as a result it
is less attractive for potential new entrants to enter the industry. At the same time,
there has been an increase in the cessation of business entities in construction industry
in 2015 and 2016. As compared to 2,429 business entities in 2014, only 2,347
business entities ceased operations in the industry in 2019. This corresponds with
improving outlook for the industry and the economy. As of August 2020, 958
companies were registered under the ‘‘Civil Engineering’’ category of BCA’s
Contractor Registration system with less than 10% of which graded A2 or above.
Lack of track record and shortage of local talent are key barriers to entry
In general, there are few hurdles for new players to enter the civil engineering
industry as a subcontractor, as there are no significant capital investment requirements
for subcontractors just starting out. Due to the diverse nature of works in the
construction industry and the widespread practice of subcontracting, subcontractors can
get work from main contractors, even if the subcontractors themselves do not satisfy
the registration criteria for BCA Contractor Registration System. In practice, new
entrants may face barriers in terms of a lack of track record and difficulty in securing
contracts, as the construction industry still relies to a large extent on reputation and
reliability.
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to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
Ranking of leading main contractors for civil engineering works in Singapore
Table 7 Ranking of leading main contractors for civil engineering works in
Singapore based on revenue receipts, 2019
Revenue
Receipts in Market
Rank Company 2019 Share Listed or private Nature of business/enterprise
(S$ million) (%)
1 Company A 177.4 2.2% Private General Building, Civil Engineering, Air-
Conditioning, Refrigeration & Ventilation
Works, Building Automation, Industrial &
Process Control Systems, Communication &
Security Systems, Electrical Engineering,
2 Company B 177.0 2.2% Listed in Korea General Building, Civil Engineering, Curtain
Stock Exchange Walls, Air-Conditioning, Refrigeration &
Ventilation Works, Building Automation,
Industrial & Process Control Systems,
Electrical Engineering, Fire Prevention &
Protection Systems, Mechanical Engineering,
Integrated Building Services
3 Company C 157.6 1.9% Private Civil Engineering, Electrical Engineering
4 Company D 150.2 1.9% Listed in Tokyo General Building, Civil Engineering, Piling
Stock Exchange Works
5 Company E 142.9 1.8% Private Building Automation, Industrial and Process
Control Systems, Solar PV System
Integration, Electrical Engineering,
Mechanical Engineering, Electrical
Equipment, Mechanical Equipment, Plant &
Machinery
Others 7,294.0 90.0%
8,099.2 100%
Source: Euromonitor estimates based on information published by BCA and information gathered
from desk research and trade interviews with leading construction companies in Singapore
Note: audited data if available is usually not industry specific and includes other products/services.
Industry ranking is therefore estimated on publicly available data and the trade opinion survey
(not just the companies themselves). When ranking and shares are being disclosed, the Client’s
entity name and its corresponding market share will be revealed concurrently, for other leading
players, if their market shares are to be revealed, their entity name will then be disclosed on an
anonymous basis.
Based on Euromonitor’s market estimates, the revenue of the Company (including
revenues as either main-contractor or sub-contractor) had market share equivalent to
approximately 1.7% of revenue receipts for civil engineering works in Singapore in
2019.
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to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
3.3 Outlook for infrastructure development in the region
Civil engineering construction companies in Singapore can potentially play a key
role for infrastructure development across Asia. This will be supported by the setting
up of a new Infrastructure Office by the government under the 2018 Budget. The
Infrastructure Office intends to bring together local and international players from
across the entire value chain (including developers, institutional investors, management
and professional services providers) to develop, finance and execute infrastructure
projects. The initiative is expected to provide opportunities and a platform for
Singapore players to play an active role in the region’s infrastructure development.
Future projects in Singapore
The LTA has plans to double the length of the MRT network from 178km in
2013 to 360km in 2030 by building two completely new MRT lines (the Cross Island
Line and Jurong Regional Line) and lengthening existing lines (e.g. Circle Line Stage
6 and the North East Line extension). By 2030, eight in ten Singapore households will
be within a 10-minute walk of a train station. Below are highlights of the future MRT
projects:
• The Cross-Island Line was announced in 2013 and is targeted to be
completed by 2030. It is in planning stages including an engineering
feasibility study and an Environmental Impact Assessment for the alignment
around the Central Catchment Nature Reserve.
• Jurong Region Line is scheduled to be fully completed in 2028, adding 24
stations to the existing rail network. The line is expected to become
available to commuters in three stages from 2026 onwards.
• Circle Line Stage 6 (CCL6) will close the loop for the Circle Line by
connecting Harbour Front Station to Marina Bay Station. As of November
2017, LTA has awarded a total of approximately S$2.3 billion worth of
contracts for the civil construction of Keppel, Cantonment and Prince
Edward Stations, associated tunnels and Kim Chuan Depot extension for
CCL6. CCL6 is expected to be completed in 2025.
• Construction of tunnels to the future Punggol Coast station on the North
East Line extension is awarded in December 2017. Part of the S$ 79 million
contract will involve the construction of a pair of tunnels between Punggol
station and the new Punggol Coast station. Work on the tunnels is expected
to be completed by 2023. With the new station, there will be a total of 17
stops along the North East Line.
– 90 –THIS DOCUMENT IS IN DRAFT FORM. The information contained in it is incomplete and is subject
to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
• Between 2015 and 2018, a total of SGD7.2 billion of contracts was
awarded by the LTA for works on the Downtown Line and the Thomson-
East Coast Line. These expansion plans are designed to extend the
Downtown Line from Expo to Sungei Bedok by 2024 and to open Hume
Station by 2025.
• A proposed new line has been revealed in the Land Transport Master Plan
2040. This new line will supplement the transport network in the north and
northeast regions to serve new and growing developments, as well as
existing towns which currently do not enjoy direct access to the rail
network. The corridor served by the new line could include areas such as
Woodlands, Sembawang, Sengkang, Serangoon North, Whampoa, Kallang
and the Greater Southern Waterfront.
Other than MRT-related projects, the other notable upcoming project in
Singapore include:
• Changi Airport Terminal 5, which is scheduled to start in 2020 and to be
completed around 2030. This terminal double Changi Airport size to cover
more than 2,000 hectares and bring an additional capacity of up to 50
million passengers a year – more than twice the size of any of the other
three main terminals. According to Strait Times article published in Oct
2018, the project is Singapore’s most ambitious attempt, since Changi
Airport opened on July 1, 1981, to cement Singapore’s status as a key
aviation hub for regional and global traffic.
• The Tuas Mega Port is a major milestone in Singapore’s next generation
container terminal development. In addition, there are plans to develop Tuas
Terminal into a maritime hub with storage facilities and commercial
amenities. The project includes four phases, targeted for completion in
2040. The mega port will commence its first phase of operations in 2021,
with two berths for ships.
• The Greater Southern Waterfront Plan, announced in 2013, will transform
Singapore’s southern waterfront, which extends from Pasir Panjang to
Marina East, into a new major gateway and location for urban living.
Development will take place in phases, starting with the former Pasir
Panjang Power District, Keppel Club and Mount Faber in the next 5 to 10
years. The plan will also entail moving port terminals to Tuas, with Pasir
Panjang Terminal slated to move by 2040 in order to free up prime land for
redevelopment.
– 91 –THIS DOCUMENT IS IN DRAFT FORM. The information contained in it is incomplete and is subject
to change. This Document must be read in conjunction with the section headed ‘‘Warning’’ on the
cover of this Document.
INDUSTRY OVERVIEW
Among contracts that have been awarded by LTA in 2018 but have yet to start
work, the most notable project is the construction of the North-South Corridor (NSC),
a 21.5km expressway which will connect towns in the north to the city centre and
features dedicated bus and cycling lanes. The full project is targeted to be completed
in 2026. In December 2019, the LTA awarded the final batch of three contracts, worth
a combined S$954.1 million for the NSC.
– 92 –You can also read
