Terminal 5 is a project undertaken by Changi Airport Group, the Civil Aviation Authority of Singapore, and the Ministry of Transport.
The project was paused in May 2020 to review its design as the pandemic decimated the aviation industry.
The airpot says that the new T5 will be linked to the other terminals at Changi Airport, allowing the expanded Changi Airport to be operated as a single, integrated airport for ease of transfer between different terminals with airfield operational efficiency.
New facilities, such as navigation aids, airfield lighting systems and a fire station will also be constructed.
The number of passengers transiting through Changi Airport crossed 40 per cent of pre-pandemic levels last month.
The Government is hopeful it will hit a target of 50 per cent by year-end.