Singapore’s construction sector is poised for significant growth, with ready-mix concrete (RMC) demand expected to reach 18 million cubic metres by 2027, a 34% increase from 2024’s 13.4 million cubic metres. This surge is attributed to a peak in construction demand anticipated from 2026 onwards, as contracts awarded in the coming months translate into active projects.
The Building and Construction Authority (BCA) forecasts that 2025 will see RMC demand at the higher end of 12.0-14.5 million cubic metres. This aligns with the industry’s historical trend of higher RMC demand in the latter half of the year. Notably, the first five months of 2025 have already seen construction output rise by 9% year-on-year to $12.0b (S$16.4b), indicating robust activity in the sector.
Pan-United Corp Ltd (PANU) and Hong Leong Asia (HLA), key players in the concrete industry, are expected to benefit significantly. PANU, with a 40% market share in Singapore, is well-positioned due to its focus on infrastructure and institutional projects. HLA, with operations in both Singapore and Malaysia, stands to gain from the construction of several rail networks in Malaysia.
The sector’s outlook remains positive, with a well-stocked project pipeline and potential for earnings-accretive mergers and acquisitions. However, risks such as project delays due to bottlenecks in other construction services and work stoppages could pose challenges.
As the Singapore government continues to emphasise workplace safety, incorporating stringent criteria for public sector projects, the construction industry is set to navigate these demands whilst capitalising on the anticipated growth in RMC demand.
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