Construction among Singapore’s top-performing sectors; up to S$53 billion demand forecast in 2026: SGX

[SINGAPORE] Singapore’s construction sector grew 11.8 per cent year on year in the first quarter of 2026, making it as one of the “strongest-performing sectors of the economy” and “ the fastest-growing major sector in Q1”, said the Singapore Exchange (SGX) on Thursday (Jul 23).

Advance estimates for the second quarter of 2026 indicate a further growth of 6.2 per cent, it added in a market update.

This continued expansion is supported by construction activity across both the public and private sectors, encompassing institutional, residential and industrial developments.

The construction sector’s growth is underpinned by elevated project demand. Following S$50.5 billion in construction demand in 2025, the Building and Construction Authority (BCA) expects between S$47 billion and S$53 billion in project awards for 2026.

For the period covering 2027 to 2030, BCA projects an annual construction demand ranging from S$39 billion to S$46 billion.

From Terminal 5 to MRT extensions

The current cycle is also broader than traditional construction activity, SGX said. The pipeline spans airports, rail infrastructure, healthcare facilities, housing, utilities, commercial developments and digital infrastructure.

Major projects providing visibility across both public and private pipelines include Changi Airport Terminal 5, the Marina Bay Sands expansion, the new Tengah General and Community Hospital, and extensions for the MRT network’s Downtown Line 2 and Thomson-East Coast Line.

“Together, these investments are expanding the transport, industrial and connectivity assets that underpin economic activity, positioning construction as a key delivery channel within the broader Infrastructure, Energy & Connectivity macroeconomic theme,” said SGX.

“Construction demand extends beyond the project site, supporting activity across materials, engineering, logistics, equipment and professional services,” the report added.

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“This reinforces construction’s role as a key transmission channel through which infrastructure investment flows into the broader economy,” it said.

Top market performers

Investor activity in the sector has risen concurrently.

Among the 20 largest Singapore-listed construction value chain stocks by market capitalisation, share prices have increased by an average of 56 per cent over the past 12 months.

Within the same group, the combined year-to-date average daily trading turnover increased by close to four times, SGX said.

According to SGX data, the five strongest share price performers over the past 12 months across the local to international construction value chains were:

• International Cement Group (+252.6 per cent)
• GRC (+175.6 per cent)
• Soilbuild Construction (+128.6 per cent)
• Koh Brothers Eco Engineering (+100 per cent)
• Huationg Global (+89.6 per cent)

“The five companies span construction materials, project delivery and engineering-related activities, illustrating the breadth of investor interest across different parts of the sector,” SGX said.