Overview
Facilities management (FM) industry evolves from managing physical environments to integrated FM; now progressing towards smart FM
Facilities management can be defined as the management of demand and supply of facilities and services for organisations, and includes tasks such as equipment maintenance, space planning, business continuity, environmental sustainability, human resource management, communication, project management, real estate and property management.
The facilities management industry includes two sub-categories. Hard FM is the management of physically built environments such as energy supply, plumbing and heating HVAC systems, lighting, electrical and mechanical fire safety systems, and building maintenance work. Soft FM refers to the service aspects of the facility, such as grounds maintenance, landscaping, decorating, pest control, waste management and car parking.
Integrated FM (IFM) is a holistic approach to FM, where all aspects of facilities management efforts are consolidated and customised under a single contract. Smart FM is the integration of technologies, people and processes to improve communications, reducing the response time, costs and manpower to raise productivity.
The construction and facilities management industry contributed 9% to Singapore’s GDP in 2018 with around 16,000 enterprises operating in the industry. The industry falls under the purview of Singapore’s Building and Construction Authority (BCA). Construction facilities management is intertwined with the building life-cycle of the construction industry, which includes four segments: design, fabrication, construction and asset delivery & management.
The public sector has the largest demand for IFM, estimated at around SGD 2 billion in 2018. These FM services contracts are offered for government infrastructure development projects of government agencies, such as the Ministry of Education, Ministry of Home Affairs and Land Transport Authority, to large-scale companies with a strong track record on a tender basis.
In 2018, a tripartite FM Implementation Committee (FMIC) was launched by the BCA, with the aim of enhancing the service delivery of FM companies and uplifting the industry by bringing together all major stakeholders from the public and private sector. The FMIC has identified four key focus areas for industry development:
- Championing upfront design for maintainability
- Promoting wider adoption of smart FM technologies
- Leveraging public sector procurement and partnering key private sector developers to create lead demand
- Developing capabilities at both the firm and personnel level to provide good quality FM services
Key Trends
Increased demand for sanitization, maintenance of ventilation systems boosts demand for FM services during the pandemic; industry struggles with labour shortages
The increased emphasis on sanitization, management, maintenance and security during the pandemic led to a higher demand for FM services. In particular, repair and maintenance of indoor air and ventilation systems experienced increased demand during the pandemic.
However, the FM industry was experiencing multiple challenges during the pandemic, as labour costs for cleaning and security increased in 2020. Manpower wages rose from USD 1,300 in 2019 to USD 1,400 in 2020, in line with Singapore’s Ministry of Manpower (MOM) regulations and additional work scope with regards to COVID-19 prevention.
Rising inflation and progressive wage model expected to impact FM companies amidst growing competition and slow industry growth
The rising rate of wages is expected to continue to increase as a result of Singapore’s progressive wage model (PWM). This, coupled with rising inflation, is set to increase operating costs for FM services. As repair and maintenance are key service areas of FM, the increased prices for spare parts are expected to lead to higher costs for FM service providers.
On the pricing front, growing price competition, bundled contracts, and change of contractors and contracts (from conventional to performance-based) are expected to affect sales revenue for FM service companies. These factors are expected to weigh down profit margins, despite creating growth in demand.
FM market revenue is projected to register low growth with a 2% CAGR from 2020 to 2024 as a result of delays in construction projects due to lower demand for new buildings. FM service providers are expected to enhance services and efficiency through investment in technology, in addition to comprehensive or non-comprehensive, multi-site or single-site, and integrated services or single-service as a value proposition for cost optimization for both parties.
Government initiatives address emerging workforce issues, identifying key areas for automation
Prior to the pandemic, in October 2019, the Singapore International Facility Management Association (SIFMA), in partnership with the Agency for Science, Technology and Research (A*STAR) launched the Consortium Operation and Technology Roadmap (COTR) for the transformation of the FM industry in Singapore. The roadmap charts more than 50 short-term, medium and long-term technology solutions to improve FM service delivery.
The roadmap identifies the following external challenges facing the industry in the future:
1. Sustainability: addressing emerging and prevalent environmental issues related to the FM industry
2. Manpower challenges: talent retention and difficulties in succession planning, with the ageing labour force in Singapore
3. Tightening of regulations: awareness of government policies related to quality and sustainability
4. Economics/life-cycle costing of ageing buildings: depreciation of buildings
5. Increased complexity of buildings/infrastructure: change in societal views
6. Technologies disrupting FM: hardware (robotics), software (systems, data, AI)
The Singaporean government aims to address these challenges through the following measures:
1. Issuance of a Professional Facility Management Certificate
2. Establishing a code of practice for the FM industry
3. Accreditation of FM companies
4. Industry cost benchmarking
5. Promoting FM as a career of choice
6. Providing future-ready services
7. Building a recognized and trusted Singapore FM brand.
Key areas for smart FM technology and innovation as identified by the industry roadmap include data integration, sensors, drones/autonomous vehicles, digitalization of building information and robotics/automation.
In 2020, the Singaporean government announced that it will allocate SGD 19 million in funding under its Productivity Solutions Grant (PSG) of the BuildSG Transformation Fund (BTF) until January 2023 to support SMEs for the purchase and implementation of pre-approved technology solutions that enhance productivity, covering up to 70% of the qualifying cost, with a funding cap of USD 30,000. The initiative is part of the construction and FM industry digital plan.
Real estate company JLL in Singapore, in partnership with the International Facility Management Association (IFMA) Foundation, announced its plans to fill the talent gap in the facility management industry in Singapore, through attracting and developing talent in the industry.
Key Statistics
- Singapore’s total FM market size in 2017 was around USD 3 billion.
- The largest market segment was commercial FM, which was USD 971 million in 2017.
- The second-largest segment was public/infrastructure FM, valued at USD 637 million in 2017.
- Singapore’s integrated FM market size was USD 330 million, while the other FM services markets were valued at around USD 2 billion in 2017.
- The outsourced FM market in Singapore was worth USD 2 billion, while the in-house FM market size was USD 522 million in 2017.
- The typical length of outsourced FM deals for service providers is between 3 and 5 years.
Top Singapore MNCs in Facilities Management
SAVILLS (SINGAPORE) PTE. LTD.
Repeat company as per the client
CBRE PTE. LTD.
Repeat company as per the client
ISS FACILITY SERVICES PRIVATE LIMITED
Repeat company as per the client
JOHNSON CONTROLS (S) PTE. LTD.
Repeat company as per the client
JONES LANG LASALLE PROPERTY CONSULTANTS PTE LTD
Repeat company as per the client
JARDINE ENGINEERING (SINGAPORE) PTE. LTD.
Jardine Engineering (Singapore) was established in 1998. It is part of the Jardine Matheson Group, which is headquartered in Hong Kong, and operates in Shenzhen, Myanmar, the Philippines and Thailand. Jardine Engineering (Singapore) offers a range of facility management solutions, which includes building and operations maintenance, and managing agent and handyman services. It operates ducting and piping facilities at its premises. Having acquired Thermal Pte. Ltd. in 2012, the company also provides maintenance, installation and operation services related to complex air conditioning and mechanical ventilation systems. Jardine Engineering (Singapore) offers its clients access to a range of technical expertise in various fields.
ENGIE SOUTH EAST ASIA PTE. LTD.
Engie South East Asia is based in Singapore and was incorporated in 1986. The company is part of the Engie Group which is headquartered in France and operates in Europe, America, the Middle East, Asia and Africa. In Asia, it also operates in Malaysia and the Philippines. The company offers its clients tailor-made integrated solutions. It utilizes leading global technologies to create innovative and smart solutions. Its services include data centres, digital solutions, district cooling, energy efficiency, solar energy solutions, green mobility/transportation, property services and integrated facility management. In addition, it provides as-a-service-solutions such as utilities as-a-service, green energy as-a-service and
facilities as-a-service.
ATALIAN SERVICES PTE. LTD.
Repeat company as per the client
W SERVICES (S) PTE. LTD.
W Services (S), based in Singapore, was incorporated in 1998. The company’s parent organization, Cushman and Wakefield, is headquartered in Illinois, Chicago. Aside from Singapore, C&W Services also operates in the US, Canada, and Puerto Rico. C&W Services in Singapore offers specialized services such as facilities management, building engineering solutions, asset management services, energy procurement consulting, facade inspection and maintenance services, township management, contact centre services, sustainability services and energy management strategies. In addition, it provides innovative facility management technologies to clients from various sectors such as building owners, occupiers, government bodies and real-estate companies.
SODEXO SINGAPORE PTE. LTD.
Sodexo Singapore was established in 1982. It was the first office to be set up in the Asia-Pacific region by the France-based Sodexo Group which operates in 53 countries across the world. Sodexo Singapore offers corporate catering services, facility management and technical services such as technical service management, asset management, building maintenance, space planning, project management, grounds maintenance, workspace management, space control, HVAC systems, mechanical engineering and electrical work. Sodexo Singapore offers a range of both soft and hard facility management services to its clients from various sectors, including business, defence, education and healthcare.
Top Singapore Large Local Enterprises in Facilities Management
YANLORD LAND
Yanlord Land Group was incorporated in 2006. The company, which is headquartered in Singapore, also operates in China GROUP LIMITED and Hong Kong. Yanlord Land Group is a real estate developer which provides property development and management services for residential, commercial and integrated properties. It has undertaken numerous property development projects which include hotel and investment properties. At present, it is working on two residential projects in Singapore. Yanlord Land Group has been honoured with many awards including the 2020 China Top 100 Real Estate Developers, and Top 10 in Profitability, as well as the Jiangsu Province Top 50 in Property Management Company Award.
LHN LIMITED
LNH, which was founded in 1991, is a real estate services management group that specializes in services related to space optimization, facilities management and logistics management services. LHN offers a spectrum of integrated facility management services, in addition to car park management services and energy management services, which are all provided through three of its subsidiary companies. It offers space optimization services for industrial, residential and commercial spaces, and its logistics services include transportation and container depot services. LHN has received many accolades over the years, its most recent recognition includes The Singapore Corporate Award 2021.
CERTIS CISCO SECURITY PTE. LTD.
Repeat company as per the client
SMM PTE. LTD.
SMM is headquartered in Singapore. The company, which was established in 1996, is part of the Surbana Jurong Group which operates branch offices across Bangladesh, Brunei, China, India, Indonesia, Malaysia, Pakistan, UAE and Vietnam. SMM is focused on offering a range of facility management services. These include integrated workspace solution, integrated facilities management, engineering support service, asset enhancement, sustainability and smart solution, and BIM-enabled facilities management. It manages mission critical facilities in the military, education, business, industrial and public sectors. Its most significant public project includes the Singapore F1 race.
ADVANCER GLOBAL LIMITED
5 Advancer Global was incorporated in 1991. The company is an employment service provider which is headquartered in Singapore. It provides a range of estate management and workforce solutions and services. Its integrated facility management services include cleaning and stewarding services; property consultancy and property and facility management services; specialized pest control services; gardening, landscaping and aquascaping; security, consultancy and smart security technology; and waste management and recycling solutions. Advancer Global utilizes smart technology to provide scalable data-driven solutions to facilitate optimal performance; these include estate management dashboard, smart sensor system, and pest control digital system.
E M SERVICES PRIVATE LIMITED
EM Services, incorporated in 1988, provides a range of township and property management services to its clients in Singapore. These services cover public housing, commercial buildings, private properties and student accommodation spaces. EM Services also offers township management services such as procurement management and call centre services. Its other services include contracts and project management, engineering services and real-estate services. In addition, EM Services provides training services that are designed to promote continuous learning in individuals. It also offers a mobile application, Gofix, which enables clients to access a range of handyman services with ease. From 2020 to 2022, the company received the Excellent Service Award (EXSA) Certification of Recognition.
CBM PTE. LTD.
Repeat company as per the client
CYCLECT ELECTRICAL ENGINEERING PTE LTD.
Cyclect Electrical Engineering, established in 1943, is a multi-disciplinary engineering solutions provider in Singapore. The company has expertise in delivering a range of sustainable engineering and maintenance solutions. It provides maintenance and operation services such as industrial support solutions, integrated facilities management and marine engineering solutions. Its engineering and construction services include equipment installation and hook up. In addition, it offers integrated services such as energy solutions, solar power solutions, and ride and show engineering solutions. Cyclect Electrical Engineering’s website enables its customers to access a range of quality products including electrical controls, instrumentation and automation products, HVAC products, and production machinery and consumables products suitable for various industries.
EXCELTEC PROPERTY MANAGEMENT PTE LTD
Exceltec Property Management was founded in Singapore in 1997. It is a property and facilities management company which provides property related advisory and management services. The company’s core range of services includes property and strata management services, integrated facility management services, project management and consultancy services, and green sustainability services. In addition, it provides fire safety management, MEP engineering, and a 24-hour mobile team and call centre. Exceltec Property Management offers specialized services for healthcare and data centre management, as well as indoor air quality services. The company was honoured with the SME 1000 Award in 2018 by DP Information Group.
CPG FACILITIESMANAGEMENT PTE LTD
CPG Facilities Management was incorporated in 1998. The company, which is headquartered in Singapore, is a subsidiary of CPG Corporation. CPG Facilities Management offers a comprehensive range of management services to its clients. These include facility management services such as building and building automation systems management, computerized maintenance and management, and environment and landscaping management. In addition, it provides township management, project management, contract management, consultancy services, event management, and leasing and marketing services. CPG Facilities Management has worked on projects related to government buildings, residential and educational institutes, mixed development projects, and more.
Top Singapore SMEs in Facilities Management Sector
ACMS FACILITIES MANAGEMENT PTE. LTD.
ACMS Facilities, which was established in Singapore in 2010, provides a range of cleaning and maintenance services in the country. It also operates in Malaysia. The company works with clients from various sectors, spanning across commercial, retail, construction, education, healthcare, leisure, IT, social housing, industrial and property management. Its cleaning services include commercial cleaning, retail cleaning and specialist cleaning services. ACMS Facilities offers a variety of facility services such as building repair and maintenance solutions, landscaping services, and pest control and security services. In addition, it provides janitorial supply and services such as washroom services, and chemicals and cleaning tools.
PROPERTY FACILITY SERVICES PTE. LTD.
Property Facility Services is headquartered in Singapore. The company, which was incorporated in 2001, is a property and facility management company. Facility services provided by Property Facility Services include supervision of repair and maintenance works, energy management consultancy, trust fund management, and time deposit administration. Its property management services include consultancy services, project management services, comprehensive property management services and administration of contracts. The company also provides a web portal service which can be personalized to meet the individual needs of clients. In addition, Property Facility Services operates a 24-hour call centre to assist its clients.
WEISHEN INDUSTRIAL SERVICES PTE LTD
Repeat company as per the client
WEAVEPACT MANAGEMENT PTE. LTD.
Weavepact Management was founded in 2006. Headquartered in Singapore, it is a one-stop provider of integrated facility management services. Weavepact Management offers an array of cleaning and maintenance services for commercial/institutional, events and private residences. It also provides facility management services, security services and manpower placement services. It has provided facility services to numerous projects across the country including the Agrow Building, Tropika East, Mimosa Park and Clementi Arcade. In addition, it offers a range of training programmes relating to cleaning, security, facilities maintenance and manpower placement.
OCEAN IFM PTE. LTD.
Ocean IFM is headquartered in Singapore. Incorporated in 2006, it provides an array of integrated property and facility management services such as security, landscaping and cleaning services. It also provides professional strata management consultations, and other services such as contract administration, financial reporting and accounting, environment, health and safety services, and project management. Ocean IFM has worked on numerous projects, ranging from residential to commercial, industrial and mixed-use developments. The company has been honoured with numerous awards over the years, and this includes receiving the Singapore Prestige Brand Award in the Established Brands category in 2019.
1 PLUS PRIVATE LIMITED
Repeat company as per the client
HILANDAS PROPERTY & FACILITIES MANAGEMENT PTE. LTD.
Hilandas Property & Facilities Management was established in Singapore in 2004. The company specializes in providing a range of services in the areas of property maintenance services, facility management services, and financial and accounting services to strata subdivided developments. Its property management services include advisory, supervision of contractors and regular inspections to ensure all tasks are efficiently executed. Hilandas Property & Facilities Management offers comprehensive facility management services to management corporations. It has undertaken numerous projects across the country including Parc Haven, Scenic Heights, Bishan Loft and Bayou Residence.
PROPMAG MANAGEMENT SERVICES PTE LTD
Propmag Management Services was founded in 2000. The company, which is headquartered in Singapore, is a property management service provider and a member of the Association of Strata Managers in Singapore. Propmag Management Services offers a wide range of services such as managing agent services which include advisory services, administrative and secretarial services, supervision of contractors, coordination with contractors, and accounting and financial services. Its other services include integrated facility management services and maintenance/handyman services. The company’s portfolio of projects include High Street Plaza, Sea View Point, Park Residence Kovan and Hillington Green.
CWL FACILITIES MANAGEMENT PTE. LTD.
CWL Facilities Management is an accredited managing agentin Singapore. Incorporated in 2015, the company is a specialized provider of a wide range of property management solutions which includes strata management, integrated facilities management, project management and consultancy services. CWL Facilities Management’s facilities and maintenance services include maintenance, planning and management, contract administration, tenancy management and statutory compliance. Its strata management services include a variety of administrative and secretarial functions, accounting and finance functions and property management. In addition, the company provides remote monitoring services through a fleet of company vans which are available 24/7 islandwide to provide M&E support.
SINGAPORE FACILITISTS PRIVATE LIMITED
Singapore Facilitists, which was incorporated in 2017, focuses on providing a range of integrated facility management services. The company’s core services include property management, project management, facilities management, and design and build services. Its support services are listed as fire safety management, servicing maintenance, technology and solutions, and cleaning services. Singapore Facilitists provides a variety of facility services to suit client needs and these include energy management, value procurement, environment, and health and safety services. The company has won recognition for its services, and this includes receiving the Singapore Prestige Brand Award in the Promising Brands category for the year 2020/2021.