Construction in Macau - Key Trends and Opportunities (H2 2021)

Macau’s construction industry contracted by 15.4% in 2020, due to the disruption caused by the Coronavirus (COVID-19) pandemic. In the first half of 2021, however, the industry has begun to recover, supported by several government relief packages, which includes the MOP5 billion (US$624 million) e-coupon scheme to increase consumption, and financial assistance to SMEs and low-income residents through an eight-measure scheme. The construction industry of Macau is expected to register moderate growth in 2021, supported by public and private sector investments in housing, healthcare, transport, energy and tourism infrastructure projects. However, the rising pace of COVID-19 transmission in mainland China could pose a possible threat to the growth of Macau’s construction industry, which may lead to a fall in investment.

the publisher expects the construction industry to register growth of 1% in real terms in 2021, following a 15.4% year-on-year (Y-o-Y) decline in 2020. Growth this year will be supported by the government’s focus on investing on public infrastructure projects to drive economic growth. Planned expenditure on public infrastructure works this year amounts to MOP18.5 billion (US$2.3 billion), including projects in the transport, institutional and public housing sectors. In a positive development, the government announced various incentives and stimulus measures to revive the struggling tourism sector. These measures include an investment of MOP7.2 billion (US$908.6 million) to revive the tourism and retail sectors, announced by the government in March 2021. A downside risk for the tourism industry is the fall in inbound tourists and overnight visitor arrivals from China, due to the ongoing lockdown and travel restrictions in the country, which is the main source of tourist flows into Macau.

The construction industry is expected to register an annual average growth of 5.6% between 2022 and 2025, supported by investment on transport, housing, institutional and commercial infrastructure projects. Some of the projects that will be executed over the forecast period include the fourth Macao-Taipa cross-harbor bridge project, public housing projects, the central laboratory building in the future Islands hospital and an athlete training center project. In another positive development, the total value of domestic loans awarded to the private sector for construction and public works continued to rise in the first half of this year. According to the Statistics and Census Service (DSEC), it registered a Y-o-Y growth of 14.2% in H1 2021, rising from MOP120.4 billion (US$15 billion) between January and June 2020 to MOP137.6 billion (US$17.3 billion) between January and June 2021, following an annual growth of 20.5% in 2020.

the publisher’s Construction in Macau - Country Briefing (H2 2021) report provides detailed market analysis, information and insights into Macau’s construction industry, including -

• Macau’s construction industry's growth prospects by market, project type and construction activity
• Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Macau’s construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in Macau. It provides -

• Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Macau, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies.
• Assess market growth potential at a micro-level with over 600 time-series data forecasts.
• Understand the latest industry and market trends.
• Formulate and validate strategy using the publisher's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.