Singapore’s construction industry has shown excellent performance so far this year. Backed by determined government stimulus efforts the sector is outperforming global growth rates thanks to the country’s unique business environment. For 2010, BMI estimates that the industry will be valued at US$11.66bn. This has been revised down from US$12.97bn last quarter as a result of changes to official figures. Forecasts have increased however on the back of strong performance with industry value set to rise to US$17.64bn by the end of the forecast period in 2014.

Forecasts were based on:

The official statistics agency down rating of its estimates for the construction industry from 2006 onwards. This has had the effect of boosting current growth rates. As a result the industry is showing remarkable resilience moving into 2010. Current estimates indicate 18% year on year growth for the first half of the year.

Major project developments remained thin on the ground. Key news was the move by Sembcorp Industries to strengthen its position in the water infrastructure sector with the completion of a SGD$266mn (US$192mn) acquisition of Cascal, a NYSE-listed water services firm.

The announcement that infrastructure development work was likely to require an increase in immigration to the island state by as much as 100,000 this year. Immigration remains a sensitive issue in the country and as a result the announcement indicates a high level of anticipate demand.

Construction industry growth is forecast to average 9.28% year on year until the end of the forecast period. Infrastructure industry growth is expected to drive growth increasing as a percentage of total construction value from 36% this year to 43% by 2014. The infrastructure sector will almost double from US$5.93bn in 2010 to US$9.90bn by 2014.