Table of Contents

Secondary sector

Construction

Building with visions

According to GlobalData (2024), Singapore has recorded a market size of USD

25.4 billion in its construction market with anticipation that it will achieve an AAGR more than 4% during 2025-2028. The market is primarily focused on commercial, industrial, infrastructure, and residential construction. The key contributors to the Singapore construction market include:

  1. Samsung Group
  2. Penta-Ocean Construction Co Ltd
  3. Shanghai Urban Construction (Group) Corp
  4. Chip Eng Seng Corporation Ltd
  5. Temasek Holdings (Private) Ltd

 

In terms of the country’s demand for construction in the private sector, Singapore is forecasted to achieve demand between SGD 14 billion and SGD 17 billion in 2024 based on its residential projects and the redevelopment of commercial premises including industry-based facilities (viAct, 2024). On the other hand, the country’s demand for construction in the public sector consisting of public housing and allied infrastructure projects is also projected at a value between SGD 18 billion and SGD 21 billion. This is derived from the upcoming public sector projects such as Housing and Development (HDB) new Built-To-Order (BTO), infrastructure works for the future Changi Airport Terminal 5 (T5), the new Brickland MRT station on the South-North Line, and the developments of Tuas Port along with other road enhancement and drainage improvement projects. The steady improvement in the country’s demand for construction is further supplemented by the Building and Construction Authority (BCA) of Singapore, which projected that demand would reach between SGD 31 billion and SGD 38 billion per year throughout the forecast duration from 2025 to 2028 (BCA, 2024). However, it is worthwhile to note that the value of construction contracts awarded in Singapore has suffered significantly due to the COVID-19 pandemic outbreak in 2020, which has left the market at a state of uncertainty (Statista, 2023). Nonetheless, Singapore has reported an increasing contribution of GDP from the construction industry since 2020, indicating an economic growth in the industry.

Manufacturing

Driving innovation in manufacturing fashion

Since the country’s independence in 1965, the manufacturing industry has been a key driver of Singapore’s economy. According to Hirschmann (2023), the manufacturing industry contributes more than 20% to the country’s gross domestic product (GDP), which adds up to around SGD 131.93 billion in 2023. The manufacturing industry in Singapore is known for its low-cost and labor-intensive production through the use of industry-related automation. In fact, the manufacturing industry in Singapore is ranked second worldwide when it comes to automation density. Some of the critical components that drive the country’s economic growth include:

  1. Semiconductors
  2. Nanotechnology
  3. Micro-electromechanical system (MEMS)
  4. 3D Printing
  5. Automation

 

Based on the findings from Statista (2024), the value added in the Singaporean manufacturing market is estimated at around USD 68.76 billion in 2024 with a compound annual growth rate (CAGR) of 2.30% between 2024 and 2028. 

Subsequently, output of the industry is predicted at USD 274.40 billion in 2024 with a CAGR of 4.68%. Singapore’s position as an excellent platform for foreign companies looking to enter the ASEAN region is supported by the ITA (2024), highlighting on the platform’s capabilities to remain competitive in the fourth industrial revolution of Industry 4.0 with its advanced manufacturing technologies.

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