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SGX listed construction-related companies rose on average 7% over the past three months till 5 May 2026, moderating from the previous quarter (26%). Infrastructure companies (-3%) were the biggest laggard over the past three months, due to concerns over margin compression from diesel/bitumen price surge from the Middle East conflict.
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We remain OVERWEIGHT on construction-related companies. We believe the Singapore construction sector remains relatively insulated from the Middle East conflict, as labour and raw material supplies remain available. Companies with higher exposure to public sector contracts are poised to benefit from the BCA’s guidance of S$50bn contract awards in 2026e, 61% higher than the historical 20-year average.
Medium-term outlook supported by construction projects’ visibility.
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BCA projected construction demand to be S$39-46bn yearly from 2027-2030e, 37% higher than the 20-year historical average of S$31bn yearly. Key project tenders include the Cross Island MRT Line Phase 3 expansion, Integrated Waste Management Facility Phase 2, Greater Sentosa Master Plan infrastructure works, and Woodlands Checkpoint redevelopment Phase 3.
Diesel price surge increases cost pressures
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