Singapore: Construction and the financial impact of COVID-19

WOBO is currently aware of the need to regenerate the construction industry and review activities in the global market.  David Gibson identified an article by Turner and Townsend which is made available for your information and consideration

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Like the rest of the world, COVID-19 has had a rippling effect on Singapore’s construction costs. While construction activity remains low, tender prices are expected to increase as the market responds to the new COVID-19 safe re-start measures, supply chain disruption and continuing labour shortages.

By Khoo Sze Boon, Managing Director – Singapore and Cheryl Lum, Director, Head of Data and Research

During the pandemic, Singapore’s government introduced a series of support measures as part of its COVID-19 Act to help enable construction projects to get back on track in a phased approach. However, there remains a significant degree of uncertainty over the severity and duration of the COVID-19 crisis.

While disruption and delays are inevitable, understanding the longer-term impacts on projects once the Act ends in October 2020 is a key industry concern. It remains to be seen if there will be an extension to the prescribed period of the Act.

The Ministry of Trade and Industry (MTI) has published data that reveals the Singapore economy contracted by 13.2 percent on a year-on-year basis in Q2 2020. While the construction sector contracted by 59.3 percent on a year-on-year basis in Q2 2020, due to the circuit breaker measures which resulted in the suspension of almost all construction worksites, as well as manpower disruptions arising from the additional measures implemented to curb the spread of COVID-19……

www.turnerandtownsend.com/en/perspectives/singapore-construction-and-the-financial-impact-of-covid-19/

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