Construction Equipment
Singapore
Overview
2004 2005 2006 (estimated)
Total Market Size 343 494 585
Total Local Production 331 458 534
Total Exports 1005 1377 1500
Total Imports 1017 1413 1551
Imports from the U.S. 208 296 330
Footnote: exchange rates used:
2004: US$1 = S$1.63
2005: US$1 = S$1.66
2006: US$1 = S$1.56
The above statistics are unofficial estimates
Figures are in millions of US$
Singapore’s strong economic growth has led to an improvement in the performance of the construction sector. In 2006, the construction industry’s share of the national GDP is likely to increase. Its contribution to the national GDP is projected to stabilize at around 4.0% to 5.0%. According to the Building & Construction Authority (BCA), which is the government statutory agency set up in 1984 to oversee the development of the construction industry, 2006 will be another good year for the Singapore construction industry. Based on anticipated demand, the industry should see up to US$10.7 billion worth of projects awarded by both the public and private sectors. Private sector demand is expected to generate US$5.8 billion worth of projects. Public sector construction demand is projected to hit US$4.9 billion for 2006. This means that there is still a tremendous scope for the supply of construction and earthmoving equipment to the local construction industry. Due to limited domestic production of construction equipment and minimal local assembly, the market is dominated by imports.
Major new projects such as the Integrated Resorts (casinos) and the Business and Financial Centre contributed to strong construction sector growth. Public sector projects include the US$4.4 billion Deep Tunnel Sewerage System project (Phase 1 to be completed by 2008, Phase 2 by 2015), the US$4.19 billion Circle Line project to be completed by 2010, the US$1.25 billion Changi Water Reclamation Plant project to be completed by 2008, the US$1.13 billion Kallang/Paya Lebar Expressway project to be completed by 2007, the US$938 million Changi Airport Terminal 3 project to be ready by 2008, and the 1,848 units 50-story high Pinnacle@Duxton. Major private sector projects include the US$469 million giant oil storage terminal on Jurong Island, and the two multi-billion dollar petrochemical plants by Shell and ExxonMobil.
Given the numerous multi-billion dollar construction projects to be undertaken, the Singapore construction industry is expected to remain buoyant for at least the next couple of years.
Best Products/Services
With the thrust in infrastructure development, heavy construction equipment, such as tunnel-boring machinery and earth moving equipment, and specialized equipment for high-rise construction will likely be in demand.
Opportunities
The various new projects to be undertaken will provide great opportunities for U.S. firms to supply construction and earthmoving equipment to the local construction industry.
Resources
Singapore Government Offices
Building & Construction Authority
Housing & Development Board
U.S. Commercial Service, Singapore Contact
NG Haw Cheng, Commercial Specialist
Email: Hawcheng.Ng@mail.doc.gov