SINGAPORE: Singapore construction activities is booming, with both infrastructure and private residential projects seeing a surge.
According to data from RICS (Royal Institution of Chartered Surveyors), there has been a notable increase in workload across various sectors.
Singapore Business Review (SBR) reports that private residential works have seen a significant uptick, with a positive balance of +8 among survey respondents. This uptrend is mirrored in infrastructure projects, which have seen an even more substantial increase, with a positive balance of +59.
Subcategories within the construction sector such as social projects (including schools and hospitals), ICT, energy, water, waste, and transport have also witnessed promising growth.
However, not all segments of the construction industry are experiencing growth. Agribusiness and private non-residential workloads have seen negative figures, standing at -17 and -4, respectively. Despite these setbacks, overall prospects for the sector remain positive.
Looking ahead, the construction sector is poised for further expansion, with optimistic expectations over the next 12 months. Private, non-private, and infrastructure expectations all remain firmly positive, with net balances of +12, +4, and +54, respectively.
Despite the positive outlook, there are challenges that need to be addressed. The cost of materials has seen a sharp increase, with a positive balance of +83. This surge in material costs is coupled with heightened competition (+79) and skills shortages (+79).
Across the region, there is also a noticeable deficit in skilled trades (+62), managers (+54), and Quantity Surveyors (+52). /TISG
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