What happened?

Singapore's construction sector is having its best year in over a decade. Total construction demand reached an estimated S$50.5 billion in 2025, marking the strongest year for the sector in a decade. Looking ahead, BCA expects demand to remain elevated at S$47 billion to S$53 billion in 2026. In our recent article on 4 growth themes to watch in Singapore stocks beyond dividends, we identified Government Spending as one of the structural themes shaping the Singapore market over the next few years. As we wrote then, infrastructure spending is typically stable and countercyclical, with multi-year investments that provide consistent demand for construction, engineering and related sectors. That theme is now showing up more clearly in Singapore construction, where public sector projects account for about 55% of total demand, supported by major projects such as Changi Airport Terminal 5, the Cross Island Line, Tuas Port and new HDB flats. In...