Singapore’s construction demand is expected to reach between $47 billion and $53 billion in nominal terms in 2026, unchanged from the forecast range in 2025.
This will be driven by projects such as the Changi Airport Terminal 5 development, the Marina Bay Sands expansion, the New Tengah General & Community Hospital and the Downtown Line 2 extension, says National Development Minister Chee Hong Tat on Jan 22.
Annual construction demand is projected to range from $39 billion to $46 billion per year between 2027 and 2030, unchanged from the medium-term outlook provided last year for 2026 to 2029.
“But we cannot become complacent,” says Chee in his opening speech at the BCA-REDAS Built Environment And Real Estate Prospects Seminar 2026. “To deliver on our ambitious building plans, we will need to press on with our transformation efforts to save time, save costs and save manpower.”
Productivity Solutions Grant gets new tranche
Chee also announced a new tranche of the Productivity Solutions Grant (PSG), which helps small- and medium-sized enterprises (SMEs) in the built environment sector adopt technologies to boost productivity. The new tranche will take effect from April 1.
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The new PSG tranche will expand support to advanced equipment such as robotic and automation that can achieve up to 50% manpower savings for each construction trade activity; include more pre-approved digital solutions in focus areas such as digital contract management and coordinated regulatory approvals; and raise grant caps to support longer-term adoption of both digital solutions and advanced equipment.
The government has also expanded the list of pre-approved advanced equipment and digital solutions that SMEs can adopt with support from the PSG. This includes construction robots and solutions that streamline work processes, such as for contract management.
The PSG is a Singapore government initiative to support eligible local SMEs in adopting pre-approved tech solutions, equipment and consultancy services. BCA launched the PSG for the built environment sector in April 2020.
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According to Chee, previous tranches of the PSG have benefitted over 1,100 SMEs in the built environment sector. SMEs that have tapped on past tranches of PSG may also apply for the new tranche.
Project managers in focus
Project managers across the built environment value chain play an important role in optimising manpower, costs and time throughout the project lifecycle, says Chee.
To further support project managers in their professional development, BCA and the Project Management Institute (PMI) will be launching an enhanced project manager competency framework in 2H2026.
The enhanced framework will strengthen the existing accreditation to help project managers build skills such as stakeholder and supply chain management, says Chee.
Fostering a pro-enterprise environment
The government has been working with the industry to review policies, rules and processes to cut red tape, support innovative proposals and help businesses to reduce costs and save time, says Chee.
From June 1, the government will extend the listing validity for the Public Sector Panels of Consultants (PSPC) from one year to three years.
The PSPC registers firms that provide consultancy services in five key disciplines: architectural, civil and structural, mechanical and electrical, quantity surveying and project management.
Built environment consultants listed on the PSPC will be able to participate in public sector consultancy tenders. Each discipline is further divided into four panels with respective tendering limits on the value of projects which firms can tender for.
Currently, a firm is listed on PSPC from April 1 to March 31 annually. The annual renewal exercise is from Jan 1 to March 15.
“The extension will help to reduce administrative load on firms by providing firms with more business certainty and minimising the frequency of submissions and renewals,” says Chee. “This will help them to save time and save costs, which they can then use to provide better service to their clients or to pay higher salaries to their staff.”
