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More Singapore contractors, consultants venturing abroad and securing projects: BCA
MORE Singapore contractors and consultants are venturing overseas and securing projects there, as the latest Construction Export Survey by the Building and Construction Authority (BCA) showed.
They secured 594 overseas projects in 2015 compared to 289 projects in 2014, said the Construction Export Survey 2016, in which more than 1,400 Singapore construction and consultancy firms were surveyed.
The survey, which is now in its 13th edition, showed that 38 contractors and 62 consultancy firms secured projects in 2015, compared to 22 contractors and 26 consultancy firms in the preceding year. In 2015, S$1.74 billion of contract value was secured in overseas markets, which included Myanmar, India, Malaysia, Thailand, Indonesia and the UAE.
While the number of construction projects secured overseas rose, the total value of overseas contracts remained stable - this indicated that projects secured in 2015 were mainly of smaller value than those in 2014.
The majority of the overseas construction projects involved renovation and interior works (41 per cent) as well as building construction works in the residential and hospitality sectors (12 per cent), the survey said. Singapore consultancy firms too continued to thrive in China, India, Cambodia, Indonesia, Malaysia, Myanmar and Vietnam, making up 87 per cent of the total number of overseas consultancy projects in 2015.
Top four consultancy services provided were architectural (38 per cent), civil and structural (11 per cent), mechanical and electrical engineering designs (10 per cent), as well as master planning (10 per cent). The overseas demand for such services was mainly in mixed developments and residential developments.
These firms also provided more landscape designs and new consultancy services such as feasibility studies and consultancy training, comprising 14 per cent of all the types of overseas consultancy services provided.
"The rise in new consultancy services indicates a shift in demand in the international markets and that Singapore consultancy firms are adapting to evolving international market demands and have positioned their services accordingly," it noted.
The survey also showed firms face concerns like uncertainty of payment collection, economic and political risks, lack of market information and difficulties in finding overseas partners when they venture abroad.
BCA group director for international development Koh Lin Ji said: "BCA understands that breaking the initial barrier is crucial for subsequent internationalisation efforts.
"Hence, we actively reach out to established players, as well as small and medium enterprises, to help them achieve their first steps in internationalisation."