Singapore is experiencing one of its most active periods of construction in years. A series of large-scale infrastructure and development projects, such as a new terminal at Changi Airport and extensive expansions in healthcare and transport infrastructure, is driving strong demand for construction work in 2026. Contract awards for the year are expected to total between S$47 billion and S$53 billion, maintaining an elevated level of activity compared with recent years, tells CNBC.com.
This sustained pipeline has put pressure on an industry that already operates with some of the highest building costs in the world. Consultancy forecasts point to cost increases of roughly 5%, fueled by tight supply chains, labor constraints, and rising material prices. Singapore’s relatively small workforce and a shortage of specialized construction staff mean builders are competing fiercely for skilled labor, which in turn pushes wage costs higher.
To cope, construction firms are embracing technological solutions and innovative work practices. The sector is increasingly using robots and drones to improve efficiency, reduce reliance on manual labor, and cut project timelines. Drones are now common on many large sites, performing tasks such as aerial surveying, progress monitoring, and site safety inspection, which speeds up data gathering and can help catch errors early. Robots equipped for specific tasks, such as facade cleaning, painting, or repetitive assembly work, are being used to offset labor shortages and improve productivity. According to industry observers, these automated tools are helping firms work more efficiently and manage costs more tightly amid the boom.
The government and industry bodies are supporting this shift by expanding grants and productivity programs that encourage robotics, automation, and digital solutions across small and medium builders. By lowering the barrier to adopting advanced equipment, these measures aim to cut manpower needs and strengthen competitiveness in one of Asia’s busiest construction markets.
In short, Singapore’s booming construction market is being shaped by both ambitious projects and a pressing need to innovate, bringing labor-saving technologies such as drones and robots into the mainstream as cost and efficiency drivers.