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On 22 January 2026, Singapore’s Building and Construction Authority (BCA) announced that the total nominal value of construction contracts to be awarded in 2026 is expected to remain between S$47 billion and S$53 billion, broadly in line with 2025. Preliminary figures show that actual construction demand in 2025 reached S$50.5 billion.

This strong performance is supported by several major projects, including:

• Changi Airport Terminal 5 (T5) Development
• Marina Bay Sands Integrated Resort Expansion
• Tengah Integrated and Community Hospital
• Downtown Line Stage 2 Extension and Thomson–East Coast Line Extension, among other key infrastructure developments

Looking ahead, annual construction demand from 2027 to 2030 is projected to range between S$39 billion and S$46 billion, reflecting the continued resilience and growth potential of Singapore’s built environment sector and creating sustained opportunities for industry players.

Expanded Support for Robotics and Automation Adoption

Against this backdrop, BCA announced a new round of the Productivity Solutions Grant (PSG), which will be implemented from 1 April 2026 to 31 March 2031.

The enhanced scheme will significantly broaden support for companies adopting advanced equipment such as robotics and automation technologies, including:Remote-controlled machinery, Inspection and imaging devices, Painting, concrete levelling and tile-grouting robots.

In addition, more digital solutions related to contract management and regulatory approval workflows will be included, helping firms strengthen their overall digital capabilities.

To further accelerate transformation, the government will raise the funding cap, providing up to 50% in subsidies for approved digital and automation solutions.

Key enhancements include:

• The funding cap for pre-approved digital solutions will increase from S$30,000 over three years to S$50,000 over five years.
• A new cap of S$300,000 over five years will be introduced for pre-approved advanced equipment, reflecting the higher upfront investment required and enabling SMEs to undertake larger-scale, productivity-enhancing upgrades.

(Small and medium-sized enterprises that have previously benefited from earlier PSG schemes may reapply under the new round and, subject to the applicable caps, submit multiple applications over the next five years.)

With construction demand remaining strong and policy direction clearly aligned towards digitalisation and automation, Singapore’s construction market is becoming increasingly attractive to foreign companies.

When evaluating market entry, however, firms should look beyond project opportunities alone. Understanding the local market structure, regulatory environment, and development pace is equally critical.

In practice, whether a project can be successfully delivered often hinges on operational realities:
licensing requirements, regulatory pathways, and compliance processes directly affect timelines, cost control, and risk exposure.

To address these frequently overlooked yet vital factors, we have compiled practical guidance to help companies fully understand Singapore’s regulatory landscape before entering the market, and to provide professional assessments and recommendations on licensing and readiness.

Overall, while demand in Singapore’s construction sector remains stable, the industry is rapidly shifting toward higher efficiency and lower reliance on manpower.

For companies, recognising policy signals is only the first step. The real advantage lies in closing the gap between strategic insight and on-the-ground execution—only then can this structural opportunity truly be captured.

Conclusion

If you are planning to enter the Singapore construction market, or would like to learn more about licensing requirements and the latest policy developments, please contact us to arrange a consultation.
The professional team at SIG Global will guide you through key regulatory thresholds and operational pathways, helping your business establish a strong and compliant foothold in Singapore.