Public sector to support construction demand: BCA

PHOTO: Public sector to support construction demand: BCA

SINGAPORE - Construction demand in Singapore is expected to remain strong this year, between S$26 billion and S$32 billion, boosted by public sector projects, said the Building and Construction Authority (BCA).

Public sector demand is expected to contribute about 53 per cent of overall industry demand, or S$14 billion-S$17 billion, boosted by strong public housing and infrastructure construction works.

Construction firms such as BBR Holdings Ltd, Yongnam Holdings Ltd and crane company Tat Hong Holdings Ltd could benefit.

Major public sector projects to be awarded this year include various contracts for the construction of Singapore's new Thomson train line, and the expansion of the Kallang Paya Lebar Expressway and Tampines Expressway interchange.

However, BCA expects private sector construction demand to moderate to S$12 billion-S$15 billion this year, hurt by slower domestic economic growth and continued global economic uncertainties.

"The private sector is likely to take a more cautious stance in terms of new construction investments. Private residential construction demand is projected to continue to soften in view of the anticipated continual slow economic growth in 2013," BCA said in a statement.