Approaching 2025, the built environment in Singapore is set to undergo significant changes and the facilities management (FM) sector must adapt to keep up with evolving regulatory requirements, cost pressures, and technological advancements. Three key factors will drive the future of FM and contribute to its sustainability: the mandatory energy improvement regime, the impact of increased temperatures on energy costs, and the growing trend towards adaptive reuse in construction.
The Mandatory Energy Improvement regime, set to begin in the third quarter of 2025, will require existing energy-intensive buildings to undergo energy audits and implement energy-efficient improvement measures. This mandate applies to commercial, healthcare, institutional, civic, community, and educational buildings with a gross floor area of over 5,000 sq m. These buildings must reduce their energy usage intensity by 10% from pre-energy audit levels, which is an achievable target with the right strategies in place.
As a result, asset owners are encouraged to take a long-term view when making capital-intensive investments in energy-efficient systems. The energy audits will provide insights into energy consumption patterns, identify areas for improvement, and guide asset owners on strategies to prolong the lifespan of their assets, reduce operating costs, and contribute to a more sustainable built environment. Building owners can also leverage grants to help cover the costs of energy efficiency upgrades.
A notable example of successful FM is Temasek Polytechnic, which became Singapore’s first smart campus in 2021. With the goal of digitizing campus operations, the polytechnic implemented various solutions such as digital facility booking, automated campus repair and maintenance work orders, and crowd management and temperature control measures. These systems operate on a common data platform, which generates valuable data that is visualized, tracked, and monitored in a control center on campus. This data helps campus operations teams make informed decisions to keep building systems healthy and maximize the return on investment while reducing operational carbon levels.
This successful case serves as a model for smart and sustainable facilities management in Singapore. By embracing digitalization, data analytics, and sustainable practices, the FM sector can drive sustainability, reduce costs, and ensure long-term operational success.
Another driver for FM sustainability is the mandatory climate disclosure obligations for all listed and large non-listed companies with revenues of at least $1 billion and total assets of at least $500 million by 2027.
Rising temperatures and energy costs will also drive investments in predictive technology. Air conditioning and mechanical ventilation (ACMV) systems are already a major contributor to operational costs, accounting for around 60% of total energy expenses in many buildings. With predicted increases in temperatures, the demands on these systems will intensify, prompting the need for more energy-efficient solutions such as energy recovery systems and thermal energy storage. Additionally, optimizing chiller plant operations to match changing weather conditions can greatly reduce energy waste and costs.
At the city and precinct level, extreme weather risks such as flooding and urban heat pose challenges to the health and performance of critical infrastructure like drainage and plumbing systems. To mitigate these risks, building owners and city planners can leverage web-based geospatial technology to identify flood-prone areas or spaces with excessive heat. This information can help drive a comprehensive operational plan that takes into account predicting extreme weather events to mitigate the risk of equipment failure and downtime, optimizing chiller plant operations, and reducing operational carbon levels.
Another trend in the FM sector is the growing adoption of adaptive reuse in response to rising construction costs. Surbana Jurong (SJ) estimates that mechanical and electrical costs have increased by approximately 30% compared to pre-Covid levels, attributed to a 77% increase in logistic shipping costs, a 9% increase in labor costs, and a 15% increase in construction materials prices. This trend has pushed for the adoption of smart design and engineering practices, including the use of collaborative common data environments to benchmark construction and operational costs.
By consolidating data from multiple sources, stakeholders across various stages of the building cycle – from design to construction to operations – can access valuable insights to promote sustainable building practices. Data on design, civil and structural engineering plans, construction materials, and components can inform decisions on whether to redevelop or reuse them, known as the adaptive reuse approach. This approach can save time, labor, and materials, hence reducing costs and promoting sustainability. Additionally, integrating platforms like Podium, which connects developers, designers, and the supply chain in a digital ecosystem, can assist in tracking building performance metrics and driving operational carbon reduction goals.
Smart buildings also play a crucial role in mitigating further cost pressures by optimizing the life cycle of capital-intensive equipment like ACMVs, lifts, and air handling units. By using a data-driven approach, building owners can prioritize energy savings and offset energy tariffs from the capital expenditure in investing in efficient equipment. This approach also assists in complying with regulations and sustainable financing requirements. For example, sensors can monitor and track the performance of each component in a piece of equipment, providing valuable insights for informed decision-making on replacement or retrofit programs. This data can also be used for predictive maintenance, reducing downtime and improving equipment efficiency.
Combined, these drivers will shape the future of facilities management in Singapore, driving sustainability, reducing costs, and promoting efficient operations. By embracing technology and sustainable practices, the FM sector can play a crucial role in ensuring a sustainable built environment in Singapore.
Investors who are looking to purchase a condo must also carefully consider the maintenance and management of the property. This is because condos typically come with maintenance fees that are used for maintaining and managing common areas and facilities. While these fees can increase the overall cost of ownership, they also play a crucial role in preserving the property’s value. To make ownership of a condo a more passive investment, investors can enlist the help of a property management company to handle the day-to-day management tasks.