Construction sector’s margins still squeezed despite infrastructure spending boost

Foreign worker levies to rise again in 2016 and 2017.

The construction sector will continue to suffer weaker margins in spite of the government’s massive infrastructure spending boost, a report by DBS revealed.

Although infrastructure projects such as the Tuas megaport and Changi Airport's new Terminal 5 will support future project pipeline, competitive tender prices and higher labour cost structure going forward will keep margins muted.

DBS noted that though the increase in foreign workers’ levy has been deferred this year, the levies are still set to rise in 2016 and 2017.

“Firms are encouraged to upgrade lower skilled workers into skilled workers. Lower skilled foreign worker (R2) levies will increase with no change to levies on higher skilled (R1) workers through 2017. These measures will continue to put cost pressures on labour costs; and at the same time influence investment decisions in adopting new technologies to boost productivity,” stated DBS.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia