Singapore Facilities Management Industry Tracker, 2017

Description

The facilities management (FM) services market in Singapore is quite matured, with a high outsourcing trend compared to any other city in this region. Industries, commercial, and retail segments are the major FM end user segments in the country, accounting for 68% of the total FM market. The presence of numerous, large multinational companies in Singapore contributes to high outsourcing percentage, as these companies generally prefer to outsource FM services. Most organizations and facility owners typically prefer to outsource hard FM, while delivering soft FM in-house. This is primarily due to the lack of the unique technical skills that are often necessary to deliver hard FM services.

However, the market is currently witnessing a rise in number of companies outsourcing both hard and soft FM services, as the management philosophy of focusing on core competencies is gaining better awareness. The growth in sustainability awareness along with spurt in number of green and smart buildings offer good opportunities for FM providers and this trend is expected to continue over the coming years. Energy efficiency and carbon footprint reduction are becoming high priorities for building owners and facility managers. As such, retrofitting and refurbishing existing office buildings are increasing in order to make them more environmentally friendly. Demand for energy management services is expected to be increase several fold and will be a critical service area for FM providers.

FM services for the retail end users are driven by the growth in number of shopping malls and retail chains in the country. Owners of older facilities continue to invest in upgrading of assets. The commercial segment is the biggest gainer for FM companies and it has high percentage of outsourcing. In addition, the number of data centers is increasing the overall commercial space in Singapore. Government building as FM customer is characterized by its large areas and high FM outsourcing trend. However, the construction of new government buildings is minimal and expenditure in this segment will largely be based on existing facilities. Singapore’s aging population is expected to drive investment in healthcare assets in future. The government is also exploring ways to use spare capacity in private hospitals to enhance its public healthcare capacity. As a result, workplace management solutions for hospitals are likely to boost demand for FM solutions.

Cleaning is the most matured FM service segment and is also widely adopted across all verticals. Despite slowdown in the construction industry as well as rising labor costs, the cleaning expenditure is forecast to grow. Energy management, on the other hand, is an emerging FM service in the market. Growing awareness for energy conservation and sustainable are contributing to the strong growth in demand for energy management in Singapore.

The study covers the period of 2016 to 2020. Findings in the base year of 2016 are collated from primary and secondary researches with FM providers, facility owners, and internal databases. Forecasts and analysis are verified with industry participants.