Considering the market for Singapore facility management has been subjected to a high growth rate, REM Times lists down some of the trends that are driving it.
Known to be one of the most mature markets in Asia-Pacific, Singapore’s built environment has witnessed steady growth this year. And this along with the emphasis on outsourcing non-core operations has translated into a steady growth in the Facilities Management (FM) industry as well. As per reports online, the FM market is anticipated to record a CAGR of 5.2% from 2022-2027.
Key Market Trends
Outsourcing Non-Core Operations
Some of the key driving factors have been the government regulations on safety measures, & environmental concerns to follow green practices, and also the ability to adapt to technology rather quickly. Known for its development and sophistication, there are increasing opportunities to leverage facility management and corporate real estate in new ways.
In terms of the end-user demand, the public sector's contribution toward the facility management market in Singapore is primarily driven by the government's constrained budgets that lead to the continuous outsourcing of essential facility management services.
Considering the market for Singapore facility management has been subjected to a high growth rate due to the rise in demand for people with improved requirements and innovations happening in technology. Having said that, the market still faces many challenges including manpower issues, saturation, and budget restriction impacting outsourcing decisions. The high reliance on manpower in the market, coupled with the growing cost as a result of the implementation of the Progressive Wage Model (PWM), does make it difficult for many to compete in terms of pricing. And these factors are delaying the market advancement.
Digitalization and Performance Measures
Singapore may have a high outsourcing rate, but it also has a good acceptance of new technologies, approaches, or business models. The maturity among service providers translates into higher adoption of technology-supported solutions. A large number of professionals prefer those solutions that provide immediate information and flexible communication.
Decisions taken by facility managers for the strategy always have a vast impact on the effectiveness of facilities. Furthermore, performance measurement in facility management enables asset managers to identify the past and present operational efficiency of a facility and make effective decisions for strategic planning.
Smart Facility Management in Building Maintenance Holds its Significance Growth
Smart FM, which integrates systems, processes, technologies, and personnel to enhance the management of a building's facilities, has been successfully adopted in the form of mobile and desktop applications to improve building management and energy efficiency in the sector.
In recent years, there has been significant interest from Building Owners in developing smart buildings or estates that cater to varied customers' experiences. As the economy shifts from traditional industry silos to integrated digital ecosystems, businesses that place their customers' experience first have the ability to continuously create new value and that build on digital economies of scale will thrive.
With more than half of Singapore’s buildings turning 30 years or older by 2025, there is now greater demand for efficient solutions that can improve communications, lessen response time, reduce costs and manpower, and raise productivity in building management.
The use of Smart FM technologies will be key in helping the Built Environment stay future-ready. Processes and people must be considered to fully harness the potential of Smart FM technologies in supporting data-driven decisions, creating change, and improving management outcomes for Singapore’s buildings and facilities.
(Source: Morder Intelligence Report)