ABSTRACT
Population Population 4.6 mn Urban population 100% Population under 15 19% Population 65 and over 9% Average annual growth rate (2004 to 2007) 2.8% Geography Land area 707 km2 Agricultural area 2% Capital city Singapore Economy Monetary unit Singapore Dollar (S$) Exchange rate (average fourth quarter 2008) to: the pound sterling S$ 2.34 the US dollar S$ 1.49 the euro S$ 1.96 the yen x 100 S$ 1.55 Average annual inflation (1998 to 2007) 0.74% Inflation rate 2.1% Gross Domestic Product (GDP) at 2000 market prices S$ 229.1 bn GDP per capita S$ 52,994 Average annual real change in (GDP) (1998 to 2007) 5.3% Private consumption as a proportion of GDP 39.6% Public consumption as a proportion of GDP 10.5% Construction Gross value of construction output S$ 17.8 bn Net value of construction output S$ 8.4 bn Net value of construction output as a proportion of GDP 3.7%
THE CONSTRUCTION INDUSTRY
Construction Output
Towards the end of 2005, the Singapore construction sector has virtually recovered from the recession that lasted almost 8 years since the Asian Financial Crisis. The construction demand in 2006 registered an increased of 46% reaching S$16.8 billion from S$11.5 billion in 2005. The upsurge continued and the demand in 2007 was S$24.5 billion, another 46% jump year-on-year, compared with 2006. According to Building and Construction Authority’s (BCA) data, the total construction demand for 2008 (based on actual contracts awarded) was S$34.6 billion, approximately 41% higher than 2007. As of now, the figure for 2008 has set a new record high compared to the last industry peak in 1997 at S$24.0 billion. Construction demand from the private sector slowed down considerably from the 3rd Quarter 2008 onwards. This reflected the cautious sentiment prevalent in the market since the onset of the global financial crisis. Public sector works, on the other hand, contributed substantially to the total construction demand for the 3rd and 4th Quarters of 2008. The most prominent being the awards of S$4 billion worth of infrastructure contracts for the construction of Marina Coastal Expressway and Downtown Line from LTA in the 4th Quarter of 2008. The above represents a brief snapshot of the performance of the construction industry for 2008. For 2009, BCA forecasts that the total construction demand is approximately between S$18 billion and S$24 billion, which represent a drop of 31% to 48% against the 2008 preliminary figures. Construction demand from the private sector projects is anticipated to decline drastically by almost 58% to 82% (from S$20.1 billion in 2008 to a mere S$3.6 billion – S$8.4 billion in 2009). Total public sector projects, on the other hand, are anticipated to have better growth with estimated volume of work at approximately S$14.4 billion – S$15.6 billion in 2009. Total construction output in 2007 (in terms of certified progress payment) increased from S$12.9 billion to S$17.8 billion compared to 2006. In tandem with the increase in construction demand, the construction output in 2008 (in terms of certified progress payment) rose further to S$22.4 billion (preliminary figure). The table on the next page shows the value of construction contracts awarded in the public and private sectors.
