The construction scene in Singapore took a hard hit from the COVID-19 pandemic. Supply chains got all tangled up, projects were delayed, and the demand for new developments dropped like a brick (pun intended).

That being said, the industry is showing signs of recovery and rejuvenation, thanks to the solid backing from the government’s projects and the resilience of the industry players.

In this article, we will highlight the underlying trends that will shape the sector and Singapore’s construction industry outlook in the foreseeable future.

4 Leading Construction Trends

The construction sector was among Singapore’s worst-hit industries during the pandemic. The slow productivity in construction work was largely due to substantial labour shortages amid ongoing border restrictions and implementation of stringent safety measures.

Consequently, Singapore’s heavy reliance on low-cost foreign labour for its construction sector has spurred a heightened urgency for construction businesses to integrate digital solutions, fostering adaptability and enhancing efficiency and productivity.

On top of that, in accordance with the new policy – Singapore Green Plan 2030, the government has pinpointed sustainability as a primary focus within the built environment sector.

Accordingly, four prominent trends are poised to mold the industry in the medium and long term. These encompass:

1.      A growing demand for green buildings, manifested through the adoption of eco-friendly building solutions, such as smart sensors for monitoring water and energy usage.

2.      A mounting emphasis on efficient construction practices, with the government advocating for the adoption of the Design for Manufacturing and Assembly methodology. This involves designing construction for off-site manufacturing before final assembly on-site.

3.      A shift towards more inclusive designs, ensuring that the built environment accommodates individuals with diverse needs. Addressing the design requirements for an aging population holds particular significance, given that over a third of Singapore’s population is projected to be over 65 years old by 2035.

4.      Increased incorporation of smart technology through the utilization of Integrated Digital Delivery (IDD). This approach leverages digital technologies to seamlessly integrate work processes and connect stakeholders involved in the same project throughout the construction and building phases.

In a nutshell, the Singapore authorities maintains an ongoing emphasis on sustainable practices, with the implementation of regulations pertaining to the use of prefabrication elements, decarbonization, redevelopment, and environmental protection and management at construction sites.

Breakdown of Construction Projects Pipeline

According to a media release, the Building and Construction Authority (BCA) projected that contracts totaling between $27 billion and $32 billion are likely to be awarded in 2023 – similar to what was observed in the past two years.

The private-sector construction demand is anticipated to be between the range of $11 billion to $13 billion, mirroring the figures from 2022. This projection is tied to the scheduled development of new condominiums and high-specification industrial buildings.

On the other hand, an estimated 60 percent of the overall construction demand for year 2023 is anticipated to come from the public sector, amounting to a range between $16 billion and $19 billion. This is attributed to the upcoming projects such as Build-To-Order (BTO) flats, MRT lines, and water treatment plants.

In the medium term, the Building and Construction Authority (BCA) envisions the annual total construction demand to come in between $25 billion and $32 billion from 2024 to 2027.

During this period, the public sector expects to sustain its ~60% lead in demand, with upcoming projects such as the Cross Island Line and several hospital developments.

Simultaneously, private sector construction demand is anticipated to remain steady, with an annual expected range of approximately S$11 billion to S$14 billion from 2024 to 2027. This outlook is underpinned by robust investment commitments, supported by the resilient economic fundamentals of Singapore.

Building a Comeback

The construction industry in Singapore is poised for stability in the coming years, thanks to various factors such as the digitilisation measures to improve efficiency, Singapore Green Plan 2030 and many more infrastructure projects.

For construction firms that have faced financial challenges, particularly in the aftermath of the COVID-19 pandemic, this phase of stability marks a promising beginning for a potential revival. The sector’s ability to withstand adversity, coupled with a steady influx of projects, creates fertile ground for these companies to bounce back and, subsequently, transform into profitable entities.

Below we ‘drill’ into some of the construction-related stocks in Singapore…

singapore construction stocks undervalued

A quick glance shows that most of them are trading below 1x their book values and have below $100 million market capitalization. On top of that, many of them are still sitting near their 52 weeks low despite the recovery of the construction sector – something that investors can take notice of.

Now, let’s shine the spotlight on three stocks in the list:

Firstly, Tiong Seng Holdings Limited is a construction company in Singapore that has recently announced its intention to sell its leasehold property located at 510 Thomson Road for S$10 million.

Given that the proposed disposal is considered a major transaction under the SGX regulations, an extraordinary general meeting (EGM) was convened on 15 December 2023 and the ordinary resolution passed with flying colours (99% approval).

The company has stated that the rationale for the proposed disposal is to unlock the value of the property and to improve its cash flow and financial position. The company also intends to use the net proceeds from the proposed disposal for its general working capital purposes and/or to fund its business expansion plans.

Next up is BRC Asia – a construction company in Singapore that provides steel reinforcement solutions for various projects, such as buildings, bridges, and tunnels.

The company has state-of-the-art facilities and capabilities, such as the use of digitalisation, automation, and prefabrication technologies. The company also has a strong commitment to sustainability, as it supports the Singapore Green Plan 2030 and adopts green and smart features and standards in its projects.

BRC Asia’s orderbook remains robust, standing at S$1.3 billion as of end 4Q FY2023. It remains a strong proxy for Singapore’s construction sector, given its lion’s market share domestically.

Lastly, we have Sin Heng Machinery, one of the leading heavy lifting service providers in Singapore. The company has a fleet of cranes and aerial lifts that it rents out and trades and it also sells and distributes spare parts for the equipment that it deals with.

The majority of its orderbook is derived from the Land Transport Authority (LTA) and Public Utilities Board (PUB) and these government contracts are longer term and provide good orderbook visibility.

It also possesses a strong financial position with only a meager 0.9% debt/equity ratio and has been on an active shares buyback spree from September to November 2023.


In conclusion, Singapore’s construction industry is currently positioned for stability and expansion after the lessons learnt from the COVID-19 pandemic. With a focus on sustainability, digitalization measures, and a robust pipeline of infrastructure projects, the sector presents promising prospects.

This positive outlook is particularly beneficial for construction companies aiming to recover from temporary financial setbacks including the ones we cover: Tiong Seng Holdings, BRC Asia, and Sin Heng Machinery. While the construction sector may be perceived as dull and uneventful, its underlying stability and consistent demand make it a worthwhile area for investors to explore further.

  • {"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}