Machines instead of humans: A country resorts to smart engineering to combat rising construction costs
In the years following the pandemic, Singapore transformed into a vast construction site. Mega-projects were launched simultaneously, from the $8 billion Las Vegas Sands development to the new terminal at Changi Airport, scheduled to open next year. Alongside these, the Tengah General and Community Hospital, one of the country's largest public health projects, is under construction and will add 4,000 beds by 2030. With this momentum, Singapore’s Building and Construction Authority (BCA) raised its forecasts last January, estimating that construction demand would reach S$53 billion this year (about $42 billion), an increase of nearly 15% over previous estimates. Alex Saez, partner and managing director of engineering consultancy Condall in Asia Pacific, said the sector has not stopped growing since overcoming the pandemic, according to an extensive CNBC report seen by Al Arabiya Business.
Costs are escalating relentlessly
Although a construction boom usually reflects healthy economic activity, the other side of the coin is costs that are skyrocketing at a rate that ranks among the highest globally.
Engineering consultancy Turner & Townsend has warned of increases of up to 5% this year, driven by supply chain disruptions, particularly in cement and ready-mix concrete, along with long waiting periods for electrical and plumbing components, and rising prices for the semiconductors used in them. Added to this is the shortage of skilled labor. Even professional jobs such as engineers and technicians seem scarce, as Koh Si Boon, the company's general manager in Singapore, confirms, noting that capacity gaps continue to disrupt timelines and quality of execution, especially in specialized contracts. To counter this, the BCA is preparing to launch an additional training program for project managers this year.
Double hats... one worker with multiple roles
Analysts at CGS International are observing an accelerating trend of training workers to perform additional tasks, known as double hatting. This involves one worker taking on more than one role, with the aim of addressing labor shortages and improving efficiency. According to analysts, many engineers are now receiving training on digital tools that reduce routine work and allow them to focus on implementation and field monitoring. Singaporean company Soilbuild asserts that it is replacing labor-intensive construction with a new style of high-specification industrial buildings, supported by off-site prefabrication. At the same time, the reliance on technology is expanding to address the skills gap. ISOTeam has resorted to using drones and artificial intelligence systems to inspect building facades. They are currently working on developing drones that can wash and paint facades without the need for scaffolding, reducing risks and increasing productivity. Although investing in these technologies is costly, CGS analysts assert that it will ultimately translate into increased profits. Starting next April, the government will provide new financial support to small businesses to fund investment in robotics and automation, in a move that the BCA says is capable of achieving up to 50% savings in labor. Several companies in Singapore have begun using computer vision technologies from OpenSpace to track project progress, and PlanRadar software for scheduling and defect detection, amid a significant increase in demand for these tools. But Ko of Turner & Townsend believes it goes beyond simply acquiring digital tools. He said: "Companies will need to rethink how they use technology to serve their business objectives... Some are actually entering a digital revolution that is completely reshaping their business models." A robot that draws and paints 7 times faster than a human worker
For its part, Legend Robot provides a vivid example of the automation boom. Its machines are capable of painting interior walls, treating floors, and installing tiles with an efficiency seven times greater than that of a human worker, as the robot completes about 1,500 square meters per day compared to only 200 meters for a human worker. The cost of a single robot ranges between $70,000 and $120,000, according to marketing director Jason Liang, who confirms growing demand in Singapore, China, the Middle East and Europe.
The peak is yet to come
CGS International estimates that the industry has not yet reached its peak, as the firm raised its forecast for peak profits to 2028-2029 instead of 2027-2028, with expectations of corporate profitability growth between 16% and 41% from 2026 to 2028.
Singapore is planning a decade of development, including new parks, residential areas, and additional metro lines. With land scarce, the decision of "what to build... and what to leave behind" is becoming increasingly difficult.
But rising construction costs are directly reflected in the cost of living. Jonathan Dennis-Jacob of Cistri noted that private housing prices have become prohibitively expensive, with Singapore being ranked last year as the most expensive city for the ultra-wealthy.
However, it is noted that projects are often delivered on time and within budget, as they are managed according to actual needs and not political motives, which gives them a unique discipline.
A city is built... and artistically crafted
From the perspective of Win Kam, director of the architectural firm Morrow, Singapore has moved beyond the construction phase to sculpting and greening the city, while Charo Kokati of Safdie Architects believes that the authorities are handling each project carefully to ensure its harmony with the surrounding neighborhoods and the integration of sustainability principles such as rainwater harvesting. She added: "These efforts to provide a comfortable living environment are unparalleled... it is difficult to find a similar model anywhere else."
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