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Mideast tensions to push construction costs, delivery risks higher: Linesight

Gerine Tang Yi Qian
Gerine Tang Yi Qian • 5 min read
Mideast tensions to push construction costs, delivery risks higher: Linesight
According to the firm’s mid-year Apac construction market insights report, released June 24, construction cost inflation across the region remained elevated in 1H2026 as key commodity prices continued to rise. Photo: Bloomberg
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Supply chain disruptions triggered by geopolitical tensions in the Middle East are driving up construction costs and extending equipment lead times across the Asia Pacific (Apac), with project delivery risks climbing to their highest level since July 2022, says global construction consultancy Linesight.

The consultancy says recent conflict in the Middle East has pushed the Global Supply Chain Pressure Index (GSCPI) to 1.82 this year, the highest reading since July 2022, with procurement challenges exacerbated by longer lead times and higher costs.

According to the firm’s mid-year Apac construction market insights report, released June 24, construction cost inflation across the region remained elevated in 1H2026 as key commodity prices continued to rise. Copper, a critical material for construction and infrastructure projects, saw prices rise by 9% to 18% q-o-q across Apac markets in 1Q2026. Prices are expected to increase by a further 1% to 6% in 2Q2026, though Singapore and Malaysia are likely to experience increases at the lower end of the range, notes Linesight.

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