More construction firms set up than wound up despite pandemic

Covid reliefs may have helped delay day of reckoning, say observers; for most sub-sectors, cessation rates were lower in 2020 and 2021 than in pre-Covid years

Janice Heng

Published Mon, Mar 21, 2022 · 05:50 AM

Construction

Singapore

DESPITE pandemic-related challenges, more construction firms were formed in the last two years than were wound up, according to figures compiled by data platform Handshakes.

Sectoral relief under the Covid-19 (Temporary) Measures Act (Cotma) might have helped firms hang on, said observers. With the last few relevant provisions under Cotma having just expired or expiring soon, cessations may see a spike - though this may not be that great, as the sector's prospects have improved, they added.