The 2026 Vision”: Navigating Singapore's Construction Industry Future Through Regulatory Agility and Emerging Trends
- Shoyab Ali
- Mar 7, 2024
- 7 min read
Updated: 3 days ago
The aspirational outlook of Singapore’s construction industry is known all across the globe. As the industry transitions beyond post-pandemic recovery and into a phase of structural maturity, 2026 represents a convergence point, where regulatory reforms introduced since 2024 begin translating into measurable operational change.
The year 2026 marks the beginning of a number of visionary restructurings that can alter the future of its construction industry. Here, we take a look into the regulatory agility introduced by Singapore and how these policies are accelerating technology adoption across worksites, in line with emerging industry trends.
Forecasting Future Trends: Insights into the Construction Industry's Path Ahead
While the following projections were published during 2024, their relevance extends directly into 2026, as they form the baseline upon which Singapore’s construction pipeline, manpower planning, and technology investments are currently being executed.
Continued Growth Anticipated in the Construction Yield
The Building and Construction Authority (BCA) projected the demand in the sector in 2024 to range between S$32 billion to S$38 billion leading to an output of S$34 billion to S$37 billion. With a steady demand its projected reach for the years from 2025 to 2028 is between S$31 billion to S$38 billion per year.
By 2026, this stable multi-year demand outlook has enabled contractors to move beyond short-term execution strategies toward long-term investments in automation, digital delivery, and AI-enabled site intelligence.
The Public and Private Sector Demand Split
The above forecast generates an interesting figure for the private sector players in the construction sector. The demand for the private sector was projected to be at S$14 billion to S$17 billion for 2024. In the forecast for 2025 - 2028, the demand in the private sector alone is anticipated to be S$12 billion to S$15 billion per minimum. These demands were expected out of residential projects, redevelopment in commercial premises and from industry-based facilities as well.
The public sector in 2024 was expected to reach a demand of S$18 billion to S$21 billion generated through public housing and allied infrastructure projects. The forecast for 2025 – 2028 stands at S$19 billion to S$23. This is derived through the public sector projects such as Housing and Development Board’s (HDB) new Built-To-Order (BTO), infrastructure works for the Changi Airport Terminal 5 (T5), additional Cross Island MRT Line contracts (Phase 2) and Tuas Port developments along with other major road enhancement and drainage improvement works.
By 2026, these mega-projects are no longer in planning stages alone but are actively shaping procurement expectations – especially around digital compliance, safety accountability, and real-time reporting.
It's noteworthy that the forecasted public-private demand split until 2028 appears promising and stable, poised to drive a significant transformation in Singapore's construction industry. In this journey BCA continuously mapped their efforts under Built Environment Industry Transformation Map to strengthen resilience against future disruptions.
This sustained public-private balance is particularly significant in 2026, as it provides the predictability required for firms to scale advanced construction technologies such as industrialised construction, smart infrastructure monitoring, and digitally governed safety systems.
The vision for Singapore’s construction future culminating in 2026 has led to a series of regulatory alterations – many introduced in 2024 – that now serve as operational baselines rather than transitional policies.
Viewed together, these regulatory shifts signal a deeper structural intent rather than isolated compliance updates. By 2026, Singapore’s construction ecosystem is expected to operate in a more data-driven, connected, and technology-assisted manner – where safety, productivity, and accountability are embedded into daily operations rather than enforced retrospectively. This sets the context for understanding why regulatory agility and technology adoption are increasingly inseparable in Singapore’s construction strategy.
Here are 5 key regulatory changes that need to be noted -
1. Reduction in Foreign Worker Quota by the Ministry of Manpower (MOM)
The migrant worker employment in the country depicted in terms of Dependency Ratio Ceiling (DRC) was reduced from 1:7 to 1:5. It means that effective from January 1, 2024 for every 5 work permit holders being employed in a project there must be 1 local employee.
This was done with the motive to reduce reliance on foreign labour and for companies to adopt technology for their work.
By 2026, this reduced quota has become one of the strongest catalysts for automation, digital workflows, and AI-enabled site supervision, as firms seek productivity gains amid constrained labour supply.
2. Off-site Levy Scheme for Construction Work Permit Holders
Implemented from January 1, 2024, BCA had introduced the Off-site Levy Scheme. This move aimed to back the Built Environment sector in embracing advanced technologies like Design for Manufacturing and Assembly (DfMA) for enhanced productivity. Full time workers with working time of at least 35 hours a week or having worked at least 80% of their working hours in DfMA facility could opt for off-site levy scheme.
The motive behind this change was the adoption of updated technological systems or the use of AI for construction.
By 2026, this shift is increasingly complemented by IoT-enabled prefabrication facilities and Edge AI systems, enabling real-time quality checks, productivity monitoring, and safety oversight.
3. Compulsory Occupational Safety and Health Training for CEOs and Board Directors
Key stakeholders across Singapore's critical sectors, including construction, were required to participate in a Workplace Health & Safety (WSH) program. This initiative underscores a commitment to building an enduring workplace safety culture and set of well-being practices for sustained future growth. The aim is to make the fatal injury rate below 1 per 1,00,000 workers by 2028.
Singapore is focusing on the use of technology to identify the root causes of prime accidents at worksites such as fall from height, vehicle collisions, slip, trips & falls to name a few.
By 2026, this leadership-level accountability has accelerated the shift from reactive incident response to predictive, technology-driven risk management, particularly for high-risk activities such as work-at-height and vehicle movement.
4. Technology Use to meet Workplace Health & Safety (WSH)
With effect from April 1 2024, there were many changes made in the Workplace Health & Safety standards in the construction sector. The Safety Disqualification Framework (SDQ) extended to the construction tenders not using the Price Quality Method (PQM) as well. PQM under this current guideline is used to assess all public sector construction tenders which fall under BCA work heads (CW01 & CW02) and has an estimated cost of $3 million and above.
In the quality component of PQM, the mandatory attribute of safety was included based on the measures of MOM. It required the tenderers to propose innovative methods of ensuring workplace safety. However, from April 2024, the new criteria was applicable to project tenders > S$1 million and not using PQM. It formulated 5% of the total evaluation score for tenders in comparison to 3% being considered before April 2024 for PQM using projects. In case of projects not using PQM, it included 5% of the total evaluation score.
The next important alteration made is the mandatory use of Electronic Permit to Work (e-PTW) to ensure safety while being sustainable in its approach among projects exceeding $3 million .
5. Installation of Video Surveillance System (VSS) to ensure Worksite Safety
It was from June 2024, that every construction site who stands at a project value of $5 million and above needed to mandatorily install VSS where high-risk work activities are being carried on. The intention behind this rule was to ensure WSH, ensure appropriate surveillance and detect causes for incident occurrence at the workplace.
By 2026, the implications of mandatory VSS deployment extend beyond basic surveillance and post-incident review. Construction sites are increasingly leveraging AI-powered video analytics and Edge-based processing to interpret live visual data in real time, enabling early detection of unsafe acts, near misses, and high-risk conditions before incidents occur. In large and complex worksites, this capability is further augmented through AI-powered drones, which provide mobile visibility across elevated structures, large perimeters, and blind spots that fixed cameras cannot consistently cover. Together, these technologies are shifting worksite safety from reactive monitoring to proactive, intelligence-led risk prevention.
Looking Ahead: What the 2026 Vision Truly Represents
Looking at the trends and regulatory changes introduced since 2024, the underlying motivation becomes increasingly clear. Singapore is not merely responding to immediate industry pressures; it is systematically laying the groundwork for a technology-first construction ecosystem.
The convergence of stable demand forecasts, balanced public-private investment, and progressively stringent safety and manpower regulations points toward a future where digital compliance, real-time visibility, and intelligent automation become foundational to construction delivery. From procurement expectations shaped by mega-projects to leadership accountability in workplace safety, the industry is being guided toward proactive risk management and operational transparency.
By 2026, technologies such as AI-powered video analytics, IoT devices & sensors, Edge AI processing, and AI-powered drones are no longer emerging concepts but practical enablers supporting safer worksites, optimised resource utilisation, and informed decision-making across project lifecycles.
In this context, solutions like viAct AI-driven platform align naturally with Singapore’s broader built environment vision. By supporting real-time risk detection, connected safety workflows, and Integrated Digital Delivery (IDD), such technologies help construction stakeholders not only meet regulatory expectations but also build resilience for the next phase of industry evolution.
As Singapore’s construction sector moves firmly into 2026, success will increasingly depend on how effectively organisations translate regulatory intent into intelligent, connected, and future-ready site operations – turning compliance into capability and vision into execution.
Captivated by the possibilities of viAct's AI-powered
video surveillance system (VSS)?
Also Read
Comments