To The Moon

Singapore's construction demand is projected to reach between $47 billion and $53 billion in nominal terms for 2026, maintaining the same forecast range as for 2025.

This sustained demand will be fueled by major projects including the development of Changi Airport Terminal 5, the expansion of Marina Bay Sands, the construction of the New Tengah General & Community Hospital, and the Downtown Line 2 extension, according to National Development Minister Chee Hong Tat on January 22.

Looking further ahead, annual construction demand is anticipated to range from $39 billion to $46 billion each year from 2027 through 2030, consistent with the medium-term outlook provided last year for the period of 2026 to 2029.

"However, we must guard against complacency," Chee stated in his opening address at the BCA-REDAS Built Environment And Real Estate Prospects Seminar 2026. "To successfully execute our ambitious building agenda, we must intensify our transformation initiatives to achieve greater efficiencies in time, cost, and manpower."

Productivity Solutions Grant Receives New Funding Round

Chee also announced a new tranche of the Productivity Solutions Grant (PSG), a program designed to assist small- and medium-sized enterprises (SMEs) in the built environment sector with adopting productivity-enhancing technologies. This new funding round is scheduled to take effect from April 1.

The government has additionally broadened the catalog of pre-approved advanced equipment and digital solutions eligible for PSG support. This expanded list now incorporates construction robotics and solutions that optimize workflows, such as those for contract management.

The PSG is a Singapore government initiative aimed at supporting qualified local SMEs in implementing pre-approved technological solutions, equipment, and consultancy services. The Building and Construction Authority (BCA) first launched the PSG for the built environment sector in April 2020.

According to Chee, earlier tranches of the PSG have already benefited more than 1,100 SMEs within the sector. SMEs that have utilized previous rounds of the grant are also eligible to apply for the new funding.

Spotlight on Project Managers

Chee emphasized the critical role that project managers play across the entire built environment value chain in optimizing the use of manpower, costs, and time throughout a project's lifecycle.

To further bolster the professional development of project managers, the BCA and the Project Management Institute (PMI) plan to launch an enhanced project manager competency framework in the second half of 2026.

This refined framework will strengthen the existing accreditation system, helping project managers cultivate essential skills in areas such as stakeholder engagement and supply chain management, Chee noted.

Fostering a Pro-Enterprise Environment

The government has been collaborating with industry stakeholders to review policies, regulations, and procedures with the goal of reducing bureaucratic hurdles, supporting innovative proposals, and helping businesses lower costs and save time, Chee said.

Effective June 1, the government will extend the listing validity period for the Public Sector Panels of Consultants (PSPC) from one year to three years.

The PSPC registers firms that provide consultancy services across five key disciplines: architectural, civil and structural, mechanical and electrical, quantity surveying, and project management.

Consultants listed on the PSPC are eligible to participate in public sector consultancy tenders. Each discipline is further categorized into four panels, each with specific tendering limits on the project value that firms can bid for.

Currently, a firm's listing on the PSPC is valid annually from April 1 to March 31, with the renewal period running from January 1 to March 15 each year.

"This extension will alleviate the administrative burden on firms by offering greater business certainty and reducing the frequency of submission and renewal processes," Chee explained. "This will allow them to save time and cut costs, resources that can be redirected towards improving client service or offering higher salaries to their employees."