In the near term, SJ Group expects upward pressure on global oil prices, leading to higher fuel costs for plant and machinery, particularly in the piling and excavation trades. Rising freight and logistics costs are also expected to increase the cost of imported materials into Singapore, it adds.
Construction costs in Singapore are expected to rise by 2% to 5% in 2026 as the Middle East conflict leads to higher material, freight and energy costs, according to the Singapore Construction Market Review and Outlook 2026 by SJ Group.
Prices for some construction materials have already risen by between 5% and 15% since the outbreak of war, as disruptions to global supply chains drive oil prices higher, says SJ Group, formerly known as Surbana Jurong. Oil prices have surpassed US$100 ($128) per barrel — the highest level in over two years.
