Singapore's construction industry 2005
The construction industry is set for a turnaround within three years as development of Singapore's integrated resorts gets underway, says the Singapore Contractors Association.
In the meantime, major players are actively tapping on huge overseas markets such as the Middle East to grow their businesses.
But some appear to shy away from China and India.
The construction industry is on the road to recovery with an estimated 5 to 10 percent growth this year and some key players have been actively venturing overseas to boost their bottomline.
The association says the Middle East market can offer returns of up to 20 percent but contractors are less optimistic about India and China.
There are concerns about operating in these countries as business dealings can be rather complicated.
Simon Lee, Executive Director, Singapore Contractors Association, said: "Sometimes we don't know the designer, developer. Being a small member along the value chain, we may be exposed to more risks. If we go in a group, we take the project right from the beginning, say even at the development stage, that means we do have a certain amount of control so that minimises the risks."
Such difficulties aside, the association says the Singapore brand and expertise are valued abroad.
Not only do overseas markets recognise the brand as representing a high standard of construction, they also find that Singapore firms offer better rates than Western contractors.
But to venture abroad, contractors need to have the financial muscle to take on projects in those markets.
So the Contractors Association says only the big players can afford to do so.
The majority of local contractors will still be focusing their resources on the Singapore market.
Even though construction firms are now faced with a shrinking local market, the association says there is still potential for growth.
It expects the industry to recover in 3 years time with many contractors hopeful of participating in the construction of two integrated resorts worth some S$5 billion. - CNA /ch
By Derek Cher, Channel NewsAsia / 10 May 2005
In the meantime, major players are actively tapping on huge overseas markets such as the Middle East to grow their businesses.
But some appear to shy away from China and India.
The construction industry is on the road to recovery with an estimated 5 to 10 percent growth this year and some key players have been actively venturing overseas to boost their bottomline.
The association says the Middle East market can offer returns of up to 20 percent but contractors are less optimistic about India and China.
There are concerns about operating in these countries as business dealings can be rather complicated.
Simon Lee, Executive Director, Singapore Contractors Association, said: "Sometimes we don't know the designer, developer. Being a small member along the value chain, we may be exposed to more risks. If we go in a group, we take the project right from the beginning, say even at the development stage, that means we do have a certain amount of control so that minimises the risks."
Such difficulties aside, the association says the Singapore brand and expertise are valued abroad.
Not only do overseas markets recognise the brand as representing a high standard of construction, they also find that Singapore firms offer better rates than Western contractors.
But to venture abroad, contractors need to have the financial muscle to take on projects in those markets.
So the Contractors Association says only the big players can afford to do so.
The majority of local contractors will still be focusing their resources on the Singapore market.
Even though construction firms are now faced with a shrinking local market, the association says there is still potential for growth.
It expects the industry to recover in 3 years time with many contractors hopeful of participating in the construction of two integrated resorts worth some S$5 billion. - CNA /ch
By Derek Cher, Channel NewsAsia / 10 May 2005
posted by Steev @ 8:13 AM
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