SPEECH BY MINISTER CHEE HONG TAT AT BCA-REDAS BUILT ENVIRONMENT AND REAL ESTATE PROSPECTS SEMINAR 2026

Good morning, I am happy to join you today at the BCA-REDAS Built Environment and Real Estate Prospects Seminar 2026. Let me begin, by wishing all of you a Happy New Year.

The theme of today’s seminar, “Unlocking Enterprise Growth in the Built Environment: Policies, Partnerships, and Innovation”, outlines the direction for the Built Environment sector, or BE sector in short.

Collaboration and innovation are key to shaping a more productive and competitive BE sector. Enabling our BE sector to unlock new growth opportunities will in turn help us to continue shaping Singapore into a more liveable and sustainable home for all.

Please allow me to start by providing an update on the housing market outlook for 2026. The Government has been monitoring the housing market closely and taking proactive steps to ensure that housing remains affordable and accessible to Singaporeans.

On the public housing front, we have maintained a strong supply of BTO flats to meet the strong housing demand. In 2025, we delivered about 19,600 flats across 28 projects.

This year, HDB will launch 19,600 BTO flats, with 4,000 having shorter waiting times of less than three years. This will cater to households who need a flat urgently, such as young couples looking to settle down and start their families.

Between 2025 and 2027, we earlier announced that HDB will launch about 55,000 BTO flats, which is around 10% more than our earlier commitment of 50,000 flats.

If the demand remains strong, HDB has the capacity to further increase the BTO supply, going beyond our 55,000 target from 2025 to 2027.

I have asked HDB to get ready for this scenario, and to activate the plans upon my decision. So this is not just “Build To Order” (BTO); this is “Build To Minister’s Order”.

But jokes aside, the sustained ramp up in BTO supply in recent years has helped to improve our housing situation. Application rates are coming down and more first-time buyers have been able to successfully book their flats within a few tries.

For instance, the median application rates for first-timer families applying for 3-room and larger BTO flats have dropped from nearly 7 times in 2020 to between 1.1 and 1.9 times in 2025.

We are also starting to see some signs of stability and moderation in the HDB resale market, as homebuyers shift their demand from the resale market to the BTO market. In 4Q 2025, HDB flat resale prices remained stable compared to the previous quarter – the first such occurrence since 1Q 2020.

We expect the moderation in price growth to continue this year, supported by the robust BTO supply, and a larger number of BTO flats reaching the end of their Minimum Occupation Period, or MOP in short, and entering the resale market.

13,500 BTO flats will reach MOP this year, compared to 8,000 last year. This number will increase further to 15,000 next year and 19,500 in 2028.

We have also been ramping up the supply of private homes. This year, we expect about 12,000 units of private housing to be launched for sale by developers, including en-bloc redevelopment sites and ECs. This is more than 50% higher than the number of units launched in 2024 and is broadly similar to 2025.

The Government will also continue to release more land under the Government Land Sales (GLS) programme. For the first half of 2026, close to 4,600 private housing units will be released under the Confirmed List, which is almost 50% more than the average half yearly supply over the past decade.

About 4,600 units will also be released under the Reserve List. We can expect these units to be launched for sale in the next 1 to 2 years.

In total, the private housing pipeline will increase to more than 57,000 units across different locations, which will cater to broad-based demand.

The increased supply has helped to moderate the growth in private housing prices, with the price increase in 2025 being the smallest since 2020.

Looking ahead, the Government will closely monitor economic and property market conditions, and take necessary actions to ensure a stable and sustainable property market. We also urge potential home-buyers to be prudent and exercise caution, as the global economic outlook remains uncertain and there are dark clouds in the horizon.

Now, let me turn to the overall construction demand outlook for 2026.

This year, we expect construction demand to reach between $47 billion and $53 billion in nominal terms, driven by key projects such as the Changi Airport Terminal 5 development, the Marina Bay Sands expansion, the New Tengah General & Community Hospital and the Downtown Line 2 extension.

For the medium-term outlook between 2027 and 2030, annual construction demand is projected to range from $39 billion to $46 billion per year. This presents opportunities for our BE firms, given the strong growth trajectory of our construction sector.

But we cannot become complacent. If we continue business-as-usual, we will soon run into resource constraints, which will then adversely impact the ability of our sector to seize new growth opportunities.

To deliver on our ambitious building plans, we will need to press on with our transformation efforts to save time, save costs, and to save manpower. Not just the Government or industry doing this on our own, individually, but all of us doing this together as an ecosystem. The Government is committed to continue supporting the industry on your transformation journey. Please allow me to highlight some of our key initiatives.

First, we must leverage the new capabilities that new hardware – such as technology and digital tools – can bring. Many BE firms have reaped benefits by being early adopters of new technologies. By accelerating and scaling up the adoption of technology, we can build better, faster, safer and with fewer resources.

I am happy to announce a new tranche of the Productivity Solutions Grant, or PSG in short, which helps our BE SMEs to acquire proven technologies to boost productivity. The new tranche will take effect from 1st April 2026. Previous tranches of PSG have benefitted over 1,100 SMEs in the BE sector. To give one example, with the support from PSG, Novaars International implemented an AI-powered façade inspection system, which provided 30% manpower and time savings.

We have also expanded the list of pre-approved advanced equipment and digital solutions that SMEs can tap on the PSG to acquire. This includes construction robots and solutions that streamline work processes, such as for contract management.

SMEs that have tapped on past tranches of PSG may also apply for the new tranche, to unlock productivity gains in new areas. We do this because we want to help as many companies as possible. So, I encourage all of you to apply; even if you have benefitted from PSG previously, you can apply for it.

Secondly, technology alone is not enough. We must also transform the software – relooking at our processes and practices to improve how we design, deliver and manage our projects. A key enabler is collaborative contracting, which provides mechanisms for project parties to resolve issues upstream, share risks and savings, and better manage and save on costs, time and manpower.

For public sector construction projects, BCA has included a set of collaborative clauses under the Public Sector Standard Conditions of Contract. Early adopters, such as the Ministry of Health’s Punggol Field Nursing Home project, have reaped the benefits, completing ahead of schedule. This was possible through early risk identification and the setting of clear response timelines between project parties.

These project parties, including contractors and consultants, have since shared with us that they will continue to implement collaborative contracting in future projects.

For more complex construction projects, BCA has also adapted the NEC4 contract form for the industry’s adoption in Singapore. In October 2025, JTC awarded Singapore’s first NEC4 target cost contract, which allows project parties to share cost savings and also, to share overruns, if these were to occur. This was awarded to Eng Lam Contractors, for its CleanTech Park project.

Beyond construction projects, the facilities management (FM) sector has also been embracing collaborative contracting.

I am glad to share that BCA has awarded the region’s first NEC4 FM contract to C&W Services for the BCA Braddell Campus in November 2025.

This marks a significant shift in getting building owners and FM companies to work together to deliver mutually beneficial outcomes.

With collaborative contracting, the relationship is no longer just an arms-length transaction but it is a partnership where parties can work hand-in-hand to achieve win-win results.

We have seen some good examples and are going to make further progress. And one of the things that we will do is encourage more agencies, more companies to take part in this. This is something BCA and MND will focus on. So we have more than 20 ongoing and upcoming projects across the public and private sectors adopting collaborative contracting for construction or FM, with more in the pipeline. So over time, I am confident that more projects will start to adopt collaborative contracting.

Firms with more comprehensive transformation plans may also tap on BCA’s Built Environment Technology and Capability grant to build up capabilities in areas such as technology, enterprise and manpower.

Now the third area is that productivity gains must be anchored in our people. As the late Dr Liu Thai Ker said, to build a city, we will need people who have the heart of a humanist, the mind of a scientist, and the eye of an artist to turn our bold vision into reality.

Beyond possessing these three qualities, Dr Liu also embodied the soul of public service. He was always thinking deeply about how to improve society and how urban development could bring tangible benefits to people’s lives.

He applied this approach not just in Singapore, but also, in many cities around the world – translating bold ideas into practical solutions that brought jobs, amenities and green spaces closer to communities, and made cities more liveable and inclusive.

To continue the good work of our pioneers like Dr Liu, we need to continue grooming talents with the aptitude and skills to work across disciplines, and foster a more collaborative culture where stakeholders are able to partner one another to solve problems together.

Project managers across the BE value chain play an important role in optimising manpower, costs and time throughout the project lifecycle.

[Announcement] To further support project managers in their professional development, BCA and the Project Management Institute (PMI) will be launching an enhanced Project Manager competency framework in the second half of 2026, to keep pace with the evolving needs of the industry.

The enhanced framework will strengthen the existing accreditation with the Society of Project Managers, to help project managers build the right competencies, such as stakeholder and supply chain management, through structured training, and provide them with credentials that are recognised both locally and internationally.

Through this, we will develop a pool of reliable and skilled project managers who can competently help our BE firms deliver projects on schedule, within budget and resources, and also align with quality and safety requirements. I strongly encourage project managers to plan your professional development based on the enhanced competency framework.

Another key initiative is the Built Environment Culture for Appreciation, Respect and Empathy (BE CARE) Charter, developed by the Taskforce for Architectural and Engineering Consultants led by Minister Indranee Rajah and Mr Chaly Mah, Chairman of Surbana Jurong. The Charter sets out best practices for project teams to develop a cohesive and collaborative culture amongst project parties.

Since its launch in September 2025, over 47 firms have committed to the Charter and with more in the pipeline.

One of the earliest adopters is GuocoLand, who worked with its project partners to agree on the values that would guide their project interactions, and established a feedback channel for project staff and these improved the culture and working environment between project parties.

GuocoLand will also be introducing an incentive programme this year to recognise project consultants that demonstrate technical excellence and deliver quality projects collaboratively, in the spirit of the BE CARE Charter.

The other day, I had a chance to meet with some of our consultants together with my colleagues and one of the feedback they gave us was that today, after the project is completed with government agencies and with public sector agencies, the public sector agencies will rate the consultants. We’ll give them a score but consultants don’t have a chance to rate the public sector agency. So to be fair, this has to be a two-way street. As a Minister, I do want to know how our public sector agencies are working with the industry and those public sector agencies who consistently have poor ratings, I will ask them why and how do you improve.

I think that will help foster a fairer system and that will also help to encourage the adoption of best practices and levelling up the entire industry. These initiatives, individually, may not be big enough, or impactful enough to move the needle. But if we look at them collectively as an ecosystem, and if you do them consistently, across different parts of the ecosystem - with government agencies, our professional firms, our developers, our contractors - I hope by bringing all these together, it can make a difference. I hope it can help us to raise productivity, and I hope it can help us to enable the BE sector to save time, to save costs and to save manpower.

If I may say in Chinese, 省时间，省金钱，省人力： 省省省，能省则省.

Now, the Government will deepen partnerships with the industry to uplift sector productivity to unlock more opportunities for our BE firms and professionals.

This is not an easy task to achieve. But similar to the approach that we took for the Equities Market Review, in my capacity as MAS’s Deputy Chairman, we have to think out of the box and take some calculated risks in testing out new ideas.

To be candid, we may not necessarily succeed when we try. There is a chance we may fail. But I’m quite clear, if we don’t try because we are afraid of failure, then our chances of success will be zero. If we take risks and we try, there is a chance that we may be successful or at least some of the initiatives may succeed.

To further support the BE sector’s transformation journey, the Government will continue to work in close partnership with all of you to review our policies, rules, and processes to cut red tape, to support innovative proposals and to help businesses to reduce costs and save time.

From 1st June 2026, we will extend the listing validity for the Public Sector Panels of Consultants, or PSPC in short, from one year to three years. BE consultants listed on the PSPC will be able to participate in public sector consultancy tenders, with four panels classified by project value banding.

The extension will help to reduce administrative load on firms by providing firms with more business certainty and also to minimise the frequency of submissions and renewals. So instead of doing it every year, you do it once every three years.

This will help our firms and our professionals to save time and save costs, which we can then use to provide better service to your clients or to pay higher salaries to your staff so they are better able to improve talent attraction and retention.

I am thankful to the industry for the strong support and constructive feedback, and I would like to encourage everyone to please continue to share your suggestions, and your feedback with the MND family - with myself and my colleagues. Just as we are not done with building Singapore, we are also not done reviewing rules and processes to support innovation, to improve productivity and to achieve business growth.

Let me conclude by thanking REDAS for partnering with BCA to organise this Prospects seminar for the past 36 years.

The future of our built environment sector lies not in individual excellence, but more importantly, in our collective ability to innovate, collaborate, and push for a more productive sector. Together, we have the tools, we have the talent, and we have the vision and the courage to not just build structures, but to build a thriving and resilient ecosystem.

Thank you very much everyone.