Better Support for Smaller Construction Firms Facing Financial Strain from Rising Costs and Competition from Foreign Firms

Ms Poh Li San asked the Minister for National Development in view of the rise of business closures in the first seven months of 2026, with the construction industry seeing the sharpest rise in shutdowns, how can the Government better support smaller construction firms which face financial strain from rising costs and competition from foreign firms.

Mr Chee Hong Tat: While data from the Accounting and Corporate Regulatory Authority (ACRA) showed a rise in construction firm closures in the first seven months of 2026, this was attributable in large part to a higher number of defunct companies being struck off by ACRA in the first quarter of 2026. Except for the first quarter of 2026, the number of new construction firms formed has exceeded the number of firm closures in every quarter since 2021.

The Government has introduced various measures to help construction firms, including smaller firms, manage cost pressures and strengthen their competitiveness. These include co-sharing increases in the cost of key construction materials and extending project loans for domestic construction projects undertaken by local firms under the Enterprise Financing Scheme. Smaller firms can also tap on the Productivity Solutions Grant and Built Environment Technology and Capability Grant for co-funding support to build new capabilities, adopt technology and improve business competitiveness.