Singapore’s construction sector is experiencing significant growth, with the Building and Construction Authority (BCA) forecasting construction demand to range between S$47b and S$53b in 2026. This surge is supported by major projects such as Changi Airport Terminal 5, the Marina Bay Sands expansion, and the New Tengah General & Community Hospital. The BCA also anticipates annual construction demand to average between S$39b and S$46b from 2027 to 2030.
The sector has been a standout performer in Singapore’s economy, expanding by 11.8% year on year in the first quarter of 2026 and continuing to grow by 6.2% in the second quarter, according to advance estimates. This growth is attributed to both public and private sector activities, including institutional, residential, and industrial developments.
The construction industry’s impact extends beyond project sites, with the Singapore Department of Statistics highlighting output multipliers of up to 2.248x for building construction. This indicates the sector’s role in stimulating broader economic activity through materials, engineering, and logistics.
Recent corporate activities reflect ongoing momentum. Boustead Singapore reported an engineering order backlog of approximately S$840m, whilst Volare Group AG increased its stake in BBR Holdings to 14.69%. Koh Brothers Eco Engineering also announced a proposed transfer to the SGX Mainboard, underscoring its significant expansion.
As Singapore continues to invest in infrastructure, the construction sector remains a vital channel for economic activity, with implications for both local and international markets.
