Singapore's construction sector - recovering from COVID-19
Singapore's construction sector was among its worst-hit industries during the COVID-19 pandemic, with many developers placing their projects on hold or scaling back on developments. The pandemic restrictions on travel also resulted in a labor shortage for the construction sector, which is heavily reliant on foreign labor from neighboring countries such as Bangladesh, India, and China. This sector also faced a shortage of building supplies such as steel and concrete, as the pandemic disrupted the global supply chain.Despite the growth of the construction sector in Singapore in 2021, there are still significant challenges to overcome in the industry. Although travel restrictions have been lifted, there is still a shortage of manpower, exacerbated by the increase in costs of hiring foreign labor. To mitigate this, the Singapore government has taken steps to reduce the reliance on foreign labor, such as reducing the migrant worker dependency ratio ceiling. However, how realistic that is, remains to be seen, as the number of residents in construction is far lower than that of foreigners. Furthermore, the construction sector faces rising building material costs, with the market price of steel in Singapore reaching a ten-year high in 2021. This would further increase costs incurred by construction projects.