Between $16 billion and $19 billion in public sector construction projects will be awarded by the government this year, in a bid to help local firms amid the construction industry slump, said Second Minister for National Development Desmond Lee on Thursday (11 January).
According to media reports, Lee made the announcement in a speech at the BCA-REDAS Built Environment and Property Prospects Seminar 2018.
“The last few years have been challenging for the property and built environment sectors. We have seen a drop in construction demand and many firms have felt the pressure,” said Lee.
Lee, who is also Minister for Social and Family Development, added that the government will “help firms ride out the downturn” by continuing to lead the demand for construction projects in the coming years.
Projects expected to be awarded this year include additional major contracts for infrastructure projects such as the North-South Corridor, national water agency PUB’s deep tunnel sewerage system, and various healthcare facilities.
Some $15.5 billion in public construction projects were awarded in 2017.
Lee said that construction demand this year is expected to reach between $26 billion and $31 billion, and hit about $35 billion by 2022. Overall, the Building and Construction Authority (BCA) expects construction demand to increase over the next five years.
The construction sector contracted 8.1 per cent year-on-year for the full year in 2017.
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