Singapore Construction "Building momentum, extending the runway" Chur

Research evidence excerpt

Singapore Construction "Building momentum, extending the runway" Chur

Global Research

7 July 2026ab

Sponsored Research

Singapore Construction Equities

SingaporeBuilding momentum, extending the runway

Construction

Calvin Chur

This time is different; Initiating coverage on Singapore construction Analyst SponsoredAfter two years of post-Covid recovery and a strong start to the upcycle, two questions calvin.chur@ubs.com

remain: 1) how much further can it extend, and 2) who are the main beneficiaries? We +65-6495 3992

believe the sector is supported by structural tailwinds, including policy backing for long- Michael Lim

term infrastructure spending, enabled by the Significant Infrastructure Government Analyst

Loan Act's (SINGA) S$90bn borrowing capacity, and equity market reforms impacting michael-h.lim@ubs.com

construction names. Based on our analysis of prior cycles, Building Construction +65-6495 5902Authority (BCA) guidance, project pipeline, and industry interviews, we believe contract Grace Lim Research

awards should remain elevated through 2027e and actual work done should continue Economist

rising in 2028-29e. While stocks have re-rated, we still see upside. We initiate coverage grace-k.lim@ubs.com

with a Buy rating on Pan-United and a Neutral rating on Soilbuild. +65-6495 5965

Multiple structural tailwinds could extend the upcycle

We see the longer-term construction backdrop as favourable, supported by a confluence

of structural drivers. These include: 1) a demographic shift towards DINK and SINK

households, driving household formation and residential demand (c30% total contract

value); 2) Singapore's move towards a "super-aged" society, with the government

already planning to add 13.6k beds from 2025-30 potentially costing up to S$10bn; 3)