Singapore’s construction market, led by public construction, is recovering

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In Korea, Singapore is known as an environment where Korean startups in related fields can enter due to its active support for startups in the fintech and bio sectors and its open economic structure.

The areas that Singapore has recently supported policy are eco-friendly, low-carbon, and smart cities, and if you are an environment-related startup, you can consider entering Singapore.

(Picture 1 : Trend of contract amount by year in Singapore construction industry)

Singapore’s construction market declined year-on-year in 2020 due to the influence of COVID-19. However, Singapore’s construction market is recovering in 2021 as it showed an increase year-on-year.

The Building and Construction Authority (BCA) predicted that construction demand will continue to occur in the mid-term, with the public sector leading the main demand at $14 billion to $18 billion annually and the private sector at $11 billion to $140.

The Singaporean government announces “Green Plan 2030” and presents practical tasks in five areas: △ Green Government, △ City in Nature, △ Energy Reset, △ Green Economy, △ Resistant Future, and △ Sustainable Living, among which Cross Island MRT Line is the main content.

In addition, by announcing BCA Green Mark 2021, which has strengthened the existing Green Mark system, the standard for eco-friendly certification has been raised, and more than 80% of buildings have been converted to green through Singapore Green Building Masterplan (SGBMP) as part of Green Plan 2030.

Singapore has been supporting the establishment of a K-Startup Center and the operation of 700 billion won venture funds since 2018, and discussions on entering startup exchanges and strengthening joint venture funds were held in November last year.

According to this trend, the possibility of technology-competitive startups in the field of smart buildings and smart cities centered on low carbon and eco-friendly environments is expected.

Hebronstar

Seong Wook Kim / Associate Consultant