BMI's newly-released Singapore Infrastructure Q207 Report forecasts that the industry is likely to grow at an average of 1.44% over the 2007-2011 period. The construction industry in Singapore was valued at SGD6.61bn (US$4.15bn) in 2006 and accounted for about 3.16% of GDP.
The Singapore government is improving in the state's public transport system, with the aim of increasing its usage. Meanwhile, several other infrastructure sectors are recording an increase in construction activity. The country is to see the biggest tri-generation power plant, which will produce electricity, steam and chilled water from a single integrated system. Schering-Plough Ltd, a wholly owned unit of The US-based pharmaceutical company Schering-Plough Corporation, and TPGS Green Energy (a joint venture between Singapore-based Tuas Power Ltd and Gas Supply Pte Ltd) are developing the project. Singapore opened its fourth and largest recycle water plant, the Ulu Pandan NEWater plant, which is able to meet 10% of the country's water demand.
Several research projects - both public and private sector - have been selected by the Environment and Water Industry Development Council to receive funding from the government.
Some of the main companies operating in the construction industry in Singapore include SembCorp Engineers & Constructors, Evan Lim, Jurong Engineering, CapitaLand and Lum Chang Building Contractors.
However, the industry suffers from certain downside risks that affect ongoing construction activity. The government is trying to enforce higher standards and accountability for domestic construction work. Further, there is tough competition between small and medium-sized contractors for contracts. The construction industry is over-reliant on foreign labour, compared to other sectors.
In the BMI's Business Environment Ranking matrix, Singapore receives a score of 28 which ranks the country ninth of the 14 states included in the Asia region. According to BMI forecasts, the construction industry is to reach SGD7.09bn (US$4.73bn) by 2011.