SINGAPORE - The Building and Construction Authority (BCA) has projected that Singapore will see between $47 billion and $53 billion in construction contracts awarded in 2025, as demand for construction services experiences a significant uptrend this year.

This marks a substantial increase from the anticipated $44.2 billion in contracts for 2024. BCA credits this growth to the initiation of major public infrastructure projects and enhanced developments in both public and private housing sectors. National Development Minister Desmond Lee has urged for increased collaboration among developers, consultants, and builders to harness the opportunities presented by these expansive projects.

Key initiatives fueling construction demand in 2025 include significant upgrading works for public housing, the much-anticipated construction of Changi Airport Terminal 5, and the expansion of iconic venues like Marina Bay Sands. These developments are poised to be cornerstones in achieving BCA’s forecast.

Looking further ahead, BCA estimates that total construction demand will stabilize at an average annual figure between $39 billion and $46 billion from 2026 to 2029. Notably, upcoming projects like the third phase of the Cross Island Line and the Downtown Line extension to Sungei Kadut are expected to play a vital role in sustaining this demand.

However, post-2030 construction activities might see a dip after the completion of Changi Airport Terminal 5, prompting authorities to encourage a transformation within the industry. This includes an urgent push towards digitalization, automation, and the integration of robotics in construction processes to enhance productivity.

In a bid to streamline project approvals, the CoreNet X platform has been introduced by government authorities. Mr. Lee announced exciting changes slated to take effect from October, where all new projects with a gross floor area of at least 30,000 square meters will be required to make regulatory submissions through this centralized platform. Complete migration to the platform for ongoing projects will be mandated by October 2027.

CoreNet X aims to significantly simplify the approval process by reducing the necessary stages to just three, minimizing the bureaucratic complexities that previously plagued construction project submissions. This initiative is anticipated to slash approval times by approximately 20%.

As stakeholders adapt to this new system, Mr. Lee highlighted that practical exposure through real live projects would prove invaluable, outweighing traditional workshops and training sessions. Since the soft launch of CoreNet X in December 2023, an impressive 28 projects involving 72 firms have opted in for voluntary submissions, showcasing the platform's potential.

Feedback from the industry has been predominantly positive, with developers expressing optimism about the improved efficiency. However, concerns about learning curves prompted authorities to extend relief measures, including a six-month extension for stamp duty remissions and timelines for project completions.

To support smaller companies navigating these changes, financial assistance through grants, covering up to 50% of training and software costs related to CoreNet X, has been expanded. Industry leaders like Melvin Tan, president of the Singapore Institute of Architects, emphasize that early coordination and consolidated efforts through CoreNet X could mitigate disputes and enhance project clarity.

While there are still challenges ahead, such as the need for supplementary submissions in certain cases, proactive engagement from the authorities suggests a promising path forward for Singapore's construction landscape.

As construction demand ramps up and major projects shape the skyline of Singapore, all eyes will be on the innovative solutions that could redefine the future of building in the Lion City! Dare to watch how this industry undergoes transformation in the coming years!