A crucial upgrade in the company’s BCA registration status opens doors to significantly larger public sector projects.
Ocean Sky’s largest project-to-date: C921 – MRT Downtown Line Stage 2: Rochor & Little India
Investors scanning Ocean Sky International Limited’s recent financial results announcement may have overlooked a transformative development tucked away between the standard financial statements. Besides returning to black (PBT), the Catalist-listed construction and property development company recently secured a crucial upgrade to its Building and Construction Authority (BCA) registration status that dramatically expands its ability to bid for public sector projects.
This development represents a potential step-up in Ocean Sky’s growth trajectory that merits closer investor attention.
Effective 7 February 2025, Ocean Sky’s civil engineering subsidiary has been upgraded under the CW02 Civil Engineering Workhead from C1 to B1 status in the BCA’s Contractors Registration System. While this technical classification change might seem mundane at first glance, its implications for the company’s business development are substantial.
The upgrade elevates Ocean Sky’s tender limit for public sector construction projects from S$5 million to S$50 million – a tenfold increase that significantly expands the company’s addressable market. This achievement represents the culmination of Ocean Sky’s long-term efforts to strengthen its track record, technical expertise, and management capabilities to meet BCA’s enhanced registration requirements.
The timing of this upgrade coincides with the BCA’s forecast that construction demand will remain robust throughout 2025, projecting total demand between S$35 billion and S$39 billion, which is higher than pre-COVID levels in 2019. This demand is expected to be supported by public sector projects such as Changi Airport Terminal 5 (T5), the expansion of the Marina Bay Sands Integrated Resort, public housing development and upgrading works, high-specification industrial buildings, educational and healthcare facilities, Mechanical and Engineering contracts for the Thomson-East Coast Line Extension (TEL) and Cross Island Line (CRL), as well as infrastructure projects like the Woodlands Checkpoint extension and the Tuas Port development.
With its newly acquired B1 status, Ocean Sky is now positioned to compete for a wider range of projects, particularly mid-sized public sector contracts that were previously beyond its reach.
Road & Drainage Diversion and External Works for Paya Lebar Quarter (PLQ)
Ocean Sky operates in Singapore’s competitive construction industry through its wholly-owned subsidiary Ang Tong Seng Brothers Enterprises Pte Ltd (“ATSB”), which consistently generates more than half of the Group’s revenue.
ATSB, established in 1981, has built a reputation for delivering detailed and high-quality engineering services including earthwork, roadwork, drainage work, basement work, and structural works involving demolition and underground infrastructure, as well as other general building works. Key projects successfully completed include C921 – MRT Downtown Line Stage 2: Rochor & Little India, with a project value of S$36 million, Nexus International School, Paya Lebar Quarters (PLQ), Bulim Square, Woodsville Bus Interchange, Nanyang Polytechnic, Temasek Polytechnic, ITE College Central, ITE College West, data centres, hospitals, as well as various HDB and condominium projects.
The BCA registration upgrade opens a new chapter of potential growth for Ocean Sky’s Construction and Engineering business. The ability to bid for public sector construction tenders with contract values of up to S$50 million substantially increases the company’s room for growth.
However, the operating environment in the construction industry remains challenging. Construction materials and labour costs remain high amid persistent inflationary pressures. The company continues to focus on enhancing productivity and operational efficiency while building its orderbook for sustainable growth.
Savvy investors may want to keep an eye on Ocean Sky, and recognise the growth potential unlocked by this registration upgrade. Beyond its construction operations, Ocean Sky also continues to develop its Property Business, seeking suitable property development and investment opportunities in Singapore and the Asia Pacific region.
To keep these insights at your fingertips, subscribe and share our update.
