The Russia-Ukraine Conflict's Effect on Singapore's Construction Sectors

Living & Lifestyle

Published on: March 25th, 2022
5 minutes read

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As the conflict between Ukraine and Russia escalates, how will Singapore's building sector be affected? The cost of energy is one key area that will greatly impact the renovation industry. Pump prices for petrol and diesel are expected to rise. Also, electricity rates will be increasing for businesses.

Gan Kim Yong, Minister for Trade and Industry, said that with various countries imposing sanctions on Russia and disrupting supplies, global prices of energy and other products are set to rise.

Ukraine-Russia Causing Building Material Cost To Increase

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The manufacturing and construction sectors may be affected by these disruptions, particularly through price increases. The price increase in the costs of energy would lead to an increase in the costs of material fabrication, negatively affecting the construction sector.

Building materials like cement may be affected by rising crude oil prices, leading to a possible increase in borrowing costs. Transportation costs will also go up, pushing up prices for raw materials and thus increasing the cost of construction.

As raw materials become more expensive, developers may be forced to increase the costs of their projects, making stakeholders and clients pay more for their work.

Singapore Youths Share Their Thoughts on Singapore Imposing Sanctions On Russia

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Following various countries that have imposed sanctions on Russia, Singapore's government has imposed unilateral sanctions on Russia. These include export controls on items used as weapons in Ukraine.

The Minister of Foreign Affairs, Dr Vivian Balakrishnan, mentioned that Singapore would block certain Russian banks and financial transactions connected to Russia.

Local youths have shared their opinions on these sanctions. Lee Qian Qian, a 20-year-old student, mentioned that it is a bold move as Singapore has always been neutral on the geopolitical issue. She felt that Singapore might be targeted after imposing sanctions on Russia.

Another youth, Caleb Lian, said the sanction might not be enough to stop Russia’s invasion of Ukraine, as the UN's attempts at similar methods in the past were not successful.

(Article originally posted on Builders.sg)