National Day Rally 2013

[Behappyalways]

construction hard to play....sometimes they get lots of contracts but lose money.....cost overrun, building mat up and etc....so unless you have the niche and know whether the contracts can make money...if not better don't touch this sector......

The govt gonna earn $$$ from selling land, earn $$$ from revising plot ratio......The developers gonna earn $$$ from developing the land.....The bankers going to earn $$$$ from lending $$$$ to home buyers and developers.......The construction guys gonna earn $$$$ from construction......The building materials guys gonna earn $$$$ from selling the materials..............

Good reasoning bro, so I carry on from here,
after TOP owner need to renovate ...contractors gonna make $$$ .... buy new furniture, electrical product, kitchen ware...suppliers gonna make $$$.....next looking for new tenants....housing agent gonna makes $$$.....everyone must pay GST, so in the end Govt goona to make the most $$$.

So bottom line, Construction sector is the GDP booster, and once the changi , paya lebar airbase and PSA, tanjong pagar, kepple mega projects kick-off, our SG economy going to hit 2 digits Growth...hehe, still on paper only.

[countonme]

for sure the infrastructure growth story w attract a lot of foreign money flowing into Sg. The Myanmar generals fmly, China money from the dealings will all come here. But what are these money gonna contribute to the productivity of the economy? Or are they jus park in the property? What is the next driving engine for the economy? This is a more important question to be answered.

[CityFarmer]

Official statement from Ministry of National Development on Paya Lebar Air Base...

Taller buildings possible around Paya Lebar Air Base

SINGAPORE — Towns in the north-east and east of Singapore such as Toa Payoh, Hougang, Sengkang, Punggol, Bedok and Tampines could see a lifting of the existing height restrictions when the Paya Lebar Air Base moves out.

In a reply to TODAY, a Ministry of National Development spokesperson said that the air base currently imposes height limits on surrounding developments in order to ensure navigational safety for aircraft.

The MND added that the redevelopment of the land, which will free up about 800 hectares of land in a central location, will allow the creation of new residential areas, parks, schools and community facilities as well as new employment clusters to bring more jobs closer to home for our residents living in the northeast and east of Singapore.

There is also potential to introduce new transport corridors across the land currently occupied by the Air Base, enhancing connectivity for residents living in the area to commute to the city and the western part of Singapore, the spokesperson said.

http://www.todayonline.com/singapore/tal...r-air-base

[Ben]

construction hard to play....sometimes they get lots of contracts but lose money.....cost overrun, building mat up and etc....so unless you have the niche and know whether the contracts can make money...if not better don't touch this sector......

I agree. One example is Poh Lian construction, a subsidiary of UniFiber. The company has been winning contracts but mismanagement and costs overrun led to its collapse, affecting some incomplete HDB flats. HDB could not access its financial strength accurately when it awarded the contract to them.

Another example is Alphine Bau GmbH, the main contractor for three MRT stations on the Downtown line. It filed for insolvency due to mounting losses suffered in Europe. Alpine Bau is the second largest construction company in Austria, and apparently it is also winning a numbers of contracts globally. The overaggressive bidding of contacts led to unprofitable jobs. Similar to HDB, LTA could not make an accurate assessment when they award the job to Alpine. Or was it based on lowest bidder gets the job?

[weijian]

construction hard to play....sometimes they get lots of contracts but lose money.....cost overrun, building mat up and etc....so unless you have the niche and know whether the contracts can make money...if not better don't touch this sector......

I agree. One example is Poh Lian construction, a subsidiary of UniFiber. The company has been winning contracts but mismanagement and costs overrun led to its collapse, affecting some incomplete HDB flats. HDB could not access its financial strength accurately when it awarded the contract to them.

Another example is Alphine Bau GmbH, the main contractor for three MRT stations on the Downtown line. It filed for insolvency due to mounting losses suffered in Europe. Alpine Bau is the second largest construction company in Austria, and apparently it is also winning a numbers of contracts globally. The overaggressive bidding of contacts led to unprofitable jobs. Similar to HDB, LTA could not make an accurate assessment when they award the job to Alpine. Or was it based on lowest bidder gets the job?

How about companies that gain indirectly from the construction boom, eg. providing services and materials to the construction industry, thereby is a proxy to the construction industry. They may have less upside, but also much less downside.

Some examples are PanUnited which provides RMC (ready made concrete) and cement, and VICOM's subsidiary SETSCO which provided non-destructive testing support.

[pianist]

Does vicom non destructive testing used un the construction industry?

[Dividend Warrior]

Paya Lebar Airbase size is about Tampines/Bedok (incl Bedok Reservoir). It is Huge.
With the airbase relocated, the flight path will be altered and many private estates such as Joo Chiat, Telok Kurau, Tg Katong etc. may see changes in the next masterplan.

why is that?

No more height restrictions.

Can build taller buildings.

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construction hard to play....sometimes they get lots of contracts but lose money.....cost overrun, building mat up and etc....so unless you have the niche and know whether the contracts can make money...if not better don't touch this sector......

I agree. One example is Poh Lian construction, a subsidiary of UniFiber. The company has been winning contracts but mismanagement and costs overrun led to its collapse, affecting some incomplete HDB flats. HDB could not access its financial strength accurately when it awarded the contract to them.

Another example is Alphine Bau GmbH, the main contractor for three MRT stations on the Downtown line. It filed for insolvency due to mounting losses suffered in Europe. Alpine Bau is the second largest construction company in Austria, and apparently it is also winning a numbers of contracts globally. The overaggressive bidding of contacts led to unprofitable jobs. Similar to HDB, LTA could not make an accurate assessment when they award the job to Alpine. Or was it based on lowest bidder gets the job?

How about companies that gain indirectly from the construction boom, eg. providing services and materials to the construction industry, thereby is a proxy to the construction industry. They may have less upside, but also much less downside.

Some examples are PanUnited which provides RMC (ready made concrete) and cement, and VICOM's subsidiary SETSCO which provided non-destructive testing support.

Maybe ST Kinetics?