Sector Overview
Construction is the backbone of Singapore's physical development and the largest single employer of foreign workers on Work Permits. The sector supports a pipeline of public and private projects spanning HDB Build-To-Order (BTO) flats, MRT expansion lines, Changi Airport Terminal 5, and commercial developments across the island.
Unlike most other sectors in Singapore's economy, construction is almost entirely dependent on foreign labour for its manual and semi-skilled workforce. The sector's reliance on Work Permit holders reflects both the physically demanding nature of the work and the limited supply of local workers willing to enter the industry — a dynamic that has persisted for decades and shows no signs of structural change.
The construction workforce is managed through a unique system called Man-Year Entitlement (MYE), which ties the number of foreign workers a contractor can employ to their active project portfolio. This system, administered by BCA and MOM jointly, creates a direct link between construction demand and workforce allocation that doesn't exist in other sectors.
Following the severe disruption of COVID-19 — which saw construction output drop 35.9% in 2020 and the workforce contract to roughly 290,000 — the sector has undergone a sustained recovery. By 2025, workforce numbers have exceeded the pre-pandemic level of 364,000 recorded in 2019, driven by pent-up project demand and the government's accelerated infrastructure programme.
Construction Workforce Size (2016–2025)
The construction workforce hit its lowest point in mid-2021 at approximately 280,000 workers, as border restrictions prevented the entry of replacement workers and ongoing projects faced severe manpower shortages. The recovery accelerated from 2022 onwards, supported by government measures including dedicated quarantine facilities for incoming workers and expedited Work Permit processing. The sector's workforce now stands above pre-pandemic levels, though industry participants report that labour availability remains tight relative to the volume of ongoing projects.
Sub-sector Breakdown
Construction encompasses a range of specialized activities, each with different workforce profiles and manpower supply dynamics. General building (residential and commercial) remains the largest sub-sector, but civil engineering and infrastructure work has grown significantly as MRT expansion and public infrastructure projects ramp up.
| Sub-sector | Workers (est.) | % of Total | YoY Change |
|---|---|---|---|
| General Building | 152,000 | 40.2% | +3.8% |
| Civil Engineering & Infrastructure | 98,000 | 25.9% | +6.1% |
| Specialist Trades (M&E, Piling, etc.) | 78,000 | 20.6% | +4.5% |
| Renovation & A&A Works | 35,000 | 9.3% | +2.1% |
| Others | 15,000 | 4.0% | +1.8% |
Construction Work Permits: New Issuances vs Expiries (2020–2025)
The permit flow chart reveals the dynamics behind net workforce change. In 2020 and 2021, new issuances collapsed while expiries continued — creating the workforce deficit that defined the pandemic's impact on construction. From 2022 onwards, new issuances consistently exceeded expiries, producing the net workforce growth visible in the trend chart above. The narrowing gap between issuances and expiries in 2025 suggests the catch-up phase may be approaching equilibrium. For context on how construction temporary work compares to other sectors, see our temporary workers analysis.
Safety & Compliance
Construction consistently accounts for the highest share of workplace fatalities and injuries among all sectors in Singapore, despite significant improvements over the past decade. The Workplace Safety and Health (WSH) Council reported 18 construction fatalities in 2024, representing approximately 40% of all workplace fatalities nationally.
MOM's enforcement approach combines regular inspections, Stop Work Orders (SWOs) for serious safety violations, and debarment of contractors with poor safety records from hiring additional foreign workers. The sector is also subject to mandatory safety training requirements — all construction workers must complete the Construction Safety Orientation Course (CSOC) before commencing work on any site.
These safety dynamics have direct implications for manpower supply. Contractors with strong safety records receive preferential treatment in MYE allocation and work permit processing, creating a financial incentive for safety compliance beyond the humanitarian imperative.
Workforce Outlook
BCA's construction demand forecast projects sustained high demand through 2028, driven by public housing acceleration (35,000 BTO flats per year through 2025), Cross Island MRT Line construction, Jurong Lake District development, and the Long Island coastal protection project. This sustained pipeline suggests continued strong demand for construction manpower.
However, several policy shifts may affect workforce dynamics. The progressive increase in foreign worker levies (construction basic levy rising to S$700/month in 2025), push toward automation and Design for Manufacturing and Assembly (DfMA), and tightening of the MYE allocation framework all point toward a policy direction that favours a smaller but higher-skilled construction workforce over time.
For manpower supply firms, this means growing demand for workers with specialized skills and safety certifications, rather than undifferentiated general labour. The gap between demand and available skilled labour represents both a challenge and an opportunity for the industry.
Data Sources
Construction workforce data is compiled from multiple sources:
- Ministry of Manpower (MOM): Foreign Workforce Numbers (quarterly) — provides the total count of valid Work Permit holders in the construction sector.
- Building and Construction Authority (BCA): Construction Industry Transformation Map data and annual construction demand outlook — provides sub-sector breakdowns and forward-looking projections.
- Workplace Safety and Health Council: Annual WSH statistics — provides safety performance data for the construction sector.
Sub-sector distribution estimates are derived from BCA contractor registration data cross-referenced with MOM workforce figures. These are approximate and should be treated as indicative.
Industry Definitions
Construction Sector (MOM definition): Includes all establishments primarily engaged in building construction, civil engineering construction, and specialized construction activities including demolition, site preparation, electrical installation, plumbing, and finishing works.
Work Permit (Construction): Foreign workers in the construction sector are subject to specific levy rates and a Man-Year Entitlement (MYE) system that determines the number of Work Permits a contractor can apply for based on their project portfolio.
Man-Year Entitlement (MYE): A system unique to the construction sector that allocates foreign worker quotas to contractors based on the value and duration of their construction projects, as assessed by BCA.
CoreTrade / Multi-skilling: MOM schemes that allow experienced construction workers to receive higher-skilled status, which carries a lower foreign worker levy for their employer.
Recommended Citation
Integras World Research. (2026). Construction Workers in Singapore: Industry Data & Trends. Retrieved from https://integrasworld.com/data/construction-workforce/