As government relief measures taper off, more exits can be expected in Singapore’s construction sector – a sector that was hit hard by the Covid-19 pandemic but where the worst of the impact may not yet be reflected. A total of 1,951 construction companies exited the sector last year, according to data analysis firm Handshakes’s study of information from Acra. This consists of companies that faced compulsory winding up, were struck off, or wound up voluntarily. The number of exits is lower than for 2018 and 2019 – when 2,178 and 2,306 companies exited the sector, respectively. “I believe the calm in the exit numbers is largely attributable to the reliefs from the Singapore government and the government’s efforts to support the construction industry,” said Derek Loh, a partner at TSMP Law Corp. A S$1.36 billion Construction Support Package was also announced as part of the Fortitude Budget last year. These measures will come to an end this year, added Withers KhattarWong partner Spring Tan. “Those companies who did not manage to get their act together will not survive.”... Continue Reading