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Construction Industry Challenges in Singapore

Singapore is the fourth expensive city in Asia ranking to build in. Both the construction industry and government are embracing digital transformation to meet its full potential. But then also there are various challenges faced by the construction sector in Singapore.

Many students are studying construction and Engineering in Singapore educational institutions. Professor assigns engineering assignments, essays, and homework to be done by the students.

Engineering assignments include various engineering-related topics, one of them being construction. I hope this article will help to write assignments on challenges in the construction industry in Singapore.

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Overview of the construction industry in Singapore

In Singapore, the construction industry contributes about 4% to Singapore’s GDP. The construction industry in Singapore has reached SGD 57.4 billion.

The construction industry mainly includes

  • Singapore residential building construction- houses for single and multi-family
  • Commercial building- entertainment, sports, restaurant, office, retail, and Hospitality building
  • Industrial building- pharmaceutical, metal, chemical, and manufacturing plants
  • Institutional building- educational and healthcare construction
  • Infrastructure construction sectors

Singapore infrastructure construction sectors include

  • New construction and maintenance
  • Inland and marine water construction
  • Transportation infrastructure- it includes Railway, tunnel, Bridge, Highway, and airport construction
  • Utility system construction- it includes power, Oil, communication, water, and gas infrastructure

Construction companies in Singapore

There are various companies in Singapore involved in the construction sector. Some of the famous companies are mentioned below

  • Golden energy and resources Limited
  • Great earth construction Pte ltd
  • PAE Singapore Private Limited
  • United Engineers Limited
  • Sysma construction Pte ltd

Challenges faced by Singapore construction industry

Environmental challenge: Singapore Contractors Association (SCAL) said that the biggest challenge is making the construction environment friendly.

Adoption of new technologies such as

  • design for manufacturing and assembly (DFMA)
  • Building information modelling (bim)

These are needed to be in synchronization with the environment.

Singapore construction permits: There are various permits required to build anything in Singapore. You need to take written permission from the Singapore urban redevelopment authority (URA). They require land proposals for approval and review.

Adverse culture: The construction industry is slow in adopting the changing culture in Singapore. Access to new technology, capital, and workers is changing. Investment strategies, financing, and telecommunications are some of the challenges faced due to innovations.

Getting all the licenses: A construction company requires getting all the necessary licenses from the government. They must make sure that the paperwork complies with government acts.

Connecting power supply: Power supply contributes a major part to construction projects. It is required to maintain an account with Singapore power and pay a connection fee.

Access to foreign workers: Access to workers is tough and construction firms require more workers. The Ministry of Manpower in Singapore is trying to focus on hiring local personnel. This will improve their economic power. The ministry has imposed a high levy on foreign workers, therefore; firms cannot hire skilled workers from foreign locations.

Safety: Worker safety is a major issue in the construction industry. Workers are needed to be protected against worker death, workplace accident, illness, and injuries

Stagnant productivity level: The factors hindering productivity are

  • inadequate scheduling and planning
  • Lack of collaboration between stakeholders
  • Idle time wasted on supplies and material to be delivered Lack of communication between managers on the project

Labour shortages: Workers in the construction sector are retiring and ageing out faster. There is a demand for more employees to perceive their careers in construction.

Technology adoption: Business owners need to invest in new technologies. The major amount is invested in emerging technologies. Some upcoming technologies are drones, robots, autonomous vehicles, the internet of things, AR and VR, project management software, and BIM.


Singapore’s construction sector is experiencing nervous financial operations and growing trade conflict. The Singapore government is working to transform the construction industry. Technology adoption and digital transformation will stimulate the growth of the construction sector.

From the above article, we have seen various challenges that the Singapore construction industry faces. Yes, there are many challenges around, but the organizations will come up with innovative solutions to maximize the construction market share.

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