Projected construction demand for this year is expected to fall between $18 billion and $23 billion, down from its earlier forecast of between $28 billion and $33 billion in January.
The Building and Construction Authority (BCA) has lowered its forecast for projected construction demand for this year to between $18 billion and $23 billion, down from its earlier forecast of between $28 billion and $33 billion in January.
The downward revision follows a mid-year review of construction contracts awarded in the first half of 2020 as well as upcoming private and public sector projects expected for the rest of 2020.
In a release issued on Thursday (17 September), BCA attributed the revision to “a drop in private sector construction demand, and postponements in the award of some public sector projects from 2020 to 2021, as contractors and suppliers have asked for more time to assess the impact of Covid-19 on resource management and project implementation timelines”.
This year, construction demand in the public sector is forecasted to stand at between $11 billion and $14 billion, down from $19.03 billion in 2019. Demand in the private sector, on the other hand, is forecasted to stand at between $7 billion and $9 billion, down from $14.5 billion last year.
BCA expects construction demand to recover to some extent from 2021.
“This will be supported by public residential developments and upgrading works, developments at the Jurong Lake District, construction of new healthcare facilities and various infrastructure projects such as the construction of the Cross Island MRT Line,” it said.
It noted that it is important for the construction industry to remain vigilant “to prevent a resurgence of COVID-19 cases, which could bring the sector to a halt again”.
It added that it will “continue to lean forward to provide assistance to the construction industry in various ways, including financial assistance to help our firms tide through this very challenging period brought about by COVID-19”.
An update on the projected construction demand for next year and 2022 will be provided by BCA in early 2021.
Victor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this or other stories, email firstname.lastname@example.org