BCA sees S$47b–S$53b construction contracts in 2026, led by Changi Airport Terminal 5

Singapore’s construction sector is expected to see robust activity in 2026, with between S$47 billion and S$53 billion worth of construction contracts likely to be awarded, according to the Building and Construction Authority (BCA).

The outlook is underpinned by several large-scale developments, including Changi Airport Terminal 5, the Marina Bay Sands Integrated Resort expansion, and major hospital and rail infrastructure projects, BCA said on 22 January 2026.

BCA noted that the sustained demand in 2026 would be supported by additional construction packages for the Changi Terminal 5 Development and the Marina Bay Sands IR2 expansion.

Mega projects driving growth

Other major contributors include the New Tengah General and Community Hospital, the Downtown Line 2 Extension, and the Thomson–East Coast Line Extension.

The projected demand follows a strong performance in 2025, when an estimated S$50.5 billion in construction contracts were awarded.

This was higher than the S$44.6 billion recorded in 2024, reflecting an uptrend driven largely by institutional developments and housing projects, according to BCA.

Looking further ahead, BCA expects total construction demand between 2027 and 2030 to range from S$39 billion to S$46 billion annually.

Over the medium term, demand will continue to be supported by residential construction, including Build-To-Order flats, as well as education and healthcare infrastructure.

Planned developments include the redevelopment of the National University Hospital at Kent Ridge, new junior colleges, and the upcoming Singapore University of Social Sciences city campus.

Risks from global uncertainty and one-off projects

Despite the positive outlook, BCA cautioned that the sector remains exposed to external risks.

It said unforeseen global economic developments could affect construction demand, particularly once major projects are completed.

BCA highlighted that the Changi Airport Terminal 5 project is a one-off development, and industry demand could moderate after its completion.

In such a scenario, construction activity may revert to levels seen before the Covid-19 pandemic.

Minister urges industry transformation

Speaking on 22 January, National Development Minister Chee Hong Tat urged construction firms to accelerate transformation efforts to manage rising demand.

He was addressing industry leaders at the BCA-REDAS seminar held at the Raffles City Convention Centre.

Mr Chee called on firms to scale up the use of technology and digital tools to save time, costs and manpower.

He warned against complacency, saying that business-as-usual practices could result in resource constraints.

“If we continue business-as-usual, we will soon run into resource constraints, which will adversely impact the ability of our sector to seize new growth opportunities,” he said.

New productivity grants and digital adoption

To support the industry, Mr Chee announced several initiatives aimed at boosting productivity and strengthening professional capabilities.

The first is a new tranche of the Productivity Solutions Grant, which will take effect from 1 April.

The grant will help built environment firms adopt digital solutions and advanced technologies to improve productivity.

Small and medium-sized enterprises can receive support for up to 50 per cent of the cost of adopting approved solutions.

The current tranche of the grant runs from April 2023 to March 2026.

More than 1,100 firms have benefited from the scheme so far, Mr Chee said.

One example cited was engineering consultancy Novaars International, which used grant support to deploy an artificial intelligence-powered facade inspection system.

The system resulted in labour and time savings of about 30 per cent, according to Mr Chee.

The list of approved equipment and digital solutions has also been expanded.

It now includes construction robots and systems that streamline processes such as contract management.

Firms that have previously benefited from the grant will be eligible to apply for the new tranche.

The second initiative involves strengthening project management capabilities within the sector.

BCA and the Project Management Institute will launch an enhanced framework for project manager accreditation in the second half of 2026.

The updated framework aims to keep pace with the evolving needs of the built environment industry.

Under the framework, project managers will receive training in areas such as stakeholder engagement and supply chain management.

They will also be awarded credentials that are recognised both locally and internationally.

Mr Chee said project managers play a critical role in optimising labour, cost and time across a project’s life cycle.

The initiative aims to build a pool of reliable professionals who can deliver projects on schedule, within budget, and in line with quality and safety standards.

Honouring planning legacy and talent development

Mr Chee also paid tribute to Dr Liu Thai Ker, who died on 18 January at the age of 87.

Dr Liu, widely regarded as Singapore’s first master planner, was instrumental in planning 20 of the city-state’s 24 Housing and Development Board towns.

Mr Chee said Dr Liu exemplified the spirit of public service and cross-disciplinary excellence.

To ease administrative burdens, Mr Chee announced that the listing validity for the Public Sector Panels of Consultants will be extended.

From 1 June, the validity period will increase from one year to three years.

Consultants on the panel are eligible to participate in public-sector consultancy tenders.

Currently, firms must renew their registration annually to remain listed.

Mr Chee said the change would reduce administrative work and costs for firms.

He added that the savings could be channelled towards better services, higher salaries, and improved talent attraction and retention.

Mr Chee also called for greater fairness in the Consultants’ Performance Appraisal System.

Under the current system, public-sector agencies assess consultants’ performance every six months during a project.

High scores improve a firm’s chances of securing future tenders, while poor scores can result in temporary delisting.

Mr Chee suggested that consultants should also be allowed to rate public-sector agencies.

He said this two-way feedback mechanism would encourage better collaboration and accountability.

Housing supply ramped up amid strong demand

Addressing housing demand, Mr Chee said the Government has significantly increased the supply of new homes.

About 19,600 Build-To-Order flats will be launched in 2026.

This includes around 4,000 units with shorter waiting times of less than three years.

Between 2025 and 2027, the Housing and Development Board is expected to launch about 55,000 BTO flats.

This exceeds its earlier commitment of 50,000 units, Mr Chee said.