Homepage
PR Newswire
Spore construction sector has been on a tear this year, after years in the doldrums. It is benefiting everyone from upstream (building materials) to the main contractors down to the service providers (dorm providers).
However comparing to 3Q23 (which also coincided with end of MOM's heightened safety period) , there is an obvious slow-down for BRC Asia (upstream player). Will it eventually translate downstream? Or would the normalization of project offtakes be a better overall outcome?
Business Update for the Third Quarter ended 30 June 2024
In the previous quarter, growth in the construction sector was also driven by the public sector, where there were higher certified progress payments (+18.5%) and an increase in contracts awarded (+8.9%).
On the other hand, both certified progress payments and contracts awarded contracted for the private sector, declining 4.7% and 43.7% y-o-y respectively, in the first quarter of 2024 (“1Q2024”). For the private sector, this decline in certified progress payments was led by the private industrial (-13.2%) and private institutional and others (-25.8%) building works and, for contracts awarded, this contraction was led by private residential (-16.6%) and commercial (-94.2%) building works.
Going forward, although we continue to expect a steady pipeline of projects to be launched and awarded, particularly from the public sector, project offtake from ongoing projects had remained generally disappointing over the last 6 months.
https://links.sgx.com/FileOpen/3Q2024%20...eID=814380
However comparing to 3Q23 (which also coincided with end of MOM's heightened safety period) , there is an obvious slow-down for BRC Asia (upstream player). Will it eventually translate downstream? Or would the normalization of project offtakes be a better overall outcome?
Business Update for the Third Quarter ended 30 June 2024
In the previous quarter, growth in the construction sector was also driven by the public sector, where there were higher certified progress payments (+18.5%) and an increase in contracts awarded (+8.9%).
On the other hand, both certified progress payments and contracts awarded contracted for the private sector, declining 4.7% and 43.7% y-o-y respectively, in the first quarter of 2024 (“1Q2024”). For the private sector, this decline in certified progress payments was led by the private industrial (-13.2%) and private institutional and others (-25.8%) building works and, for contracts awarded, this contraction was led by private residential (-16.6%) and commercial (-94.2%) building works.
Going forward, although we continue to expect a steady pipeline of projects to be launched and awarded, particularly from the public sector, project offtake from ongoing projects had remained generally disappointing over the last 6 months.
https://links.sgx.com/FileOpen/3Q2024%20...eID=814380
I am not a certified financial advisor and so nothing of what I say should be construed as financial advice. Please consult a certified financial advisor for advice instead.