Singapore’s construction sector is investing heavily in technology, with 28% of expenditure now directed towards digital tools, according to the latest report by Autodesk and Deloitte. This marks a significant 30% increase from the previous year, highlighting the industry’s commitment to digital transformation amidst economic challenges.
Singapore’s construction firms are at the forefront of digital adoption in the Asia Pacific region, utilising an average of 7.3 technologies, surpassing the regional average of 6.2. This positions Singapore second only to India in terms of technology use. The report indicates that businesses with higher digital maturity are experiencing improved project outcomes and financial performance, with a notable reduction in safety incidents.
Jeff Larrick, Senior Director of APJ Construction Cloud at Autodesk, emphasised the importance of this trend, stating, “It is highly encouraging to see construction businesses in Singapore continue accelerating their investment into technology over the last few years, positioning them well to capitalise on opportunities arising from the slew of major local infrastructure projects on the horizon.”
Despite the progress, challenges remain. Economic uncertainty, labour costs, and the cost of raw materials are among the top concerns for Singaporean construction firms. Additionally, the lack of technical skills and budget constraints are barriers to further digital adoption.
Looking ahead, the industry is poised for further growth, with the Building and Construction Authority forecasting construction contracts worth up to $38.5 billion (S$53 billion) in 2025. As digital tools continue to prove their value, Singapore’s construction sector is well-positioned to navigate future challenges and opportunities.
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