As we draw closer to the year 2025, the landscape of Singapore’s built environment is expected to undergo significant transformation. This will call for the facilities management (FM) sector to adapt to changing regulatory demands, cost pressures, and technological advancements. In order to enhance its sustainability, three key drivers will play a crucial role in shaping the future of FM: the mandatory energy improvement regime, the impact of rising temperatures on energy costs, and the growing trend towards adaptive reuse in construction.
As you delve into the world of condo investment, it is crucial to take into account the maintenance and management of the property. Condominiums often come with a maintenance fee that covers the maintenance of shared spaces and amenities. Although these fees may contribute to the overall cost of ownership, they also guarantee that the property remains well-maintained and retains its value. Engaging a property management company can significantly assist investors in overseeing the daily operations and upkeep of their condos, ultimately creating a more hands-off investment. Additionally, for exceptional condos in Singapore, check out Singapore Projects.
One catalyst for energy efficiency in Singapore is the upcoming implementation of the Mandatory Energy Improvement regime, starting in the third quarter of 2025. This regime will require existing energy-intensive buildings to undergo energy audits and implement measures to improve energy efficiency. This mandate applies to commercial, healthcare, institutional, civic, community, and educational buildings with a gross floor area exceeding 5,000 sq m. The goal is to reduce energy usage intensity by 10% from pre-energy audit levels, which is achievable by implementing the right strategies. Asset owners are encouraged to take a medium to long-term view on these investments in energy-efficient systems as they can help prolong the lifespan of assets, reduce operating costs, and contribute to a more sustainable built environment. Building owners can also take advantage of grants to cover the costs of energy efficiency upgrades.
An excellent example of a smart and sustainable FM approach is demonstrated by Temasek Polytechnic, Singapore’s first smart campus. They have taken the bold step of digitizing their campus operations, which offers valuable insights into the future of FM. Their smart campus relies on a suite of solutions that digitize various operations, such as facility booking, automating campus repair and maintenance work orders, and crowd management and temperature control measures. These systems are integrated into a common data environment, generating valuable data that is visualized, tracked, and monitored at a control center on campus. This allows campus operations teams to make informed decisions to keep building operational systems healthy and maximize the return on investment in these assets while reducing operational carbon levels.
Furthermore, with the mandatory climate disclosure obligations being imposed on all listed and large non-listed companies with revenues of at least $1 billion and total assets of at least $500 million by 2027, there will be a push for energy efficiency across the board.
Rising temperatures and energy costs will also drive investments in predictive technology for buildings. As temperatures increase, there will be a higher demand for cooling systems, which already contribute to a significant portion of operational costs. To mitigate these rising energy costs, building owners can implement energy-efficient solutions such as energy recovery systems or thermal energy storage. Moreover, optimizing chiller plant operations to match changing weather conditions can reduce energy waste and costs.
At the city and precinct level, extreme weather risks, such as flooding and urban heat, can pose a threat to critical infrastructure like drainage and plumbing systems. To combat these risks, building owners and city planners can leverage web-based geospatial IT to identify flood-prone areas or heat-exposed spaces and develop a comprehensive operational plan. Singapore has had several flash flood incidents, causing significant damage to properties. Having a clearer understanding of climate change risks can help mitigate these damages and ensure the smooth running of precincts.
Another trend emerging as a response to rising costs is the shift towards adaptive reuse, with the rate of redevelopment in Singapore accelerating in the past five years. According to Surbana Jurong, mechanical and electrical costs have increased by approximately 30% compared to pre-pandemic levels due to various factors such as increased logistic shipping costs (up 77%), labor costs (up 9%), and construction materials prices (such as copper, up 15%). This trend is driving the adoption of smart design and engineering practices, including utilizing collaborative common data environments to benchmark construction and operational costs.
Platforms like Podium, which support integrated digital delivery, enable real estate developers and contractors to gain real-time insights into key performance indicators such as time, cost, quality, and safety. Podium aims to provide a digital ecosystem that connects developers, designers, and the supply chain to deliver high construction productivity and promote sustainable building practices. By consolidating data from multiple sources, all stakeholders involved in the various stages of the building cycle can access valuable data on design, civil and structural engineering plans, construction materials, and components. This information can be used to drive sustainability goals, such as reducing embodied carbon levels. Additionally, data on structural frames, superstructures, and foundations can help building owners decide whether to redevelop or reuse them, applying the adaptive reuse approach. Retaining these structural elements can result in significant savings in material, time, and labor costs.
Post-construction, Podium can integrate with other operational platforms to track building performance metrics, such as energy, waste, water, indoor air quality, and occupancy trends, to drive operational carbon reduction goals. As chiller plants are a major contributor to operational costs, especially in the utility cost category, which makes up about 60% of total operational expenditure, Podium can also optimize the life cycle of capex-heavy equipment, such as ACMVs, lifts, and air handling units. This is done through a data-driven long-term life cycle approach, prioritizing energy savings to offset energy tariffs from the initial investment in these assets. By providing stakeholders with detailed data on the performance of each component, building owners can make informed decisions about retrofitting or replacing systems, which can be prohibitively expensive. For example, sensors can be deployed to monitor vibrations in chiller equipment, indicating wear or potential failure. Similarly, thermographic testing using heat-sensing scanners and imaging equipment can detect abnormal temperatures or heat buildup in the system. AI-powered smart monitoring systems can also be deployed to track the performance of various building components, providing valuable data for asset owners to make informed decisions about maintenance and replacement.
In conclusion, the future of FM in Singapore will be shaped by regulatory demands, cost pressures, and technological advancements. By embracing digitalization, data analytics, and sustainable practices, the sector can drive sustainability, reduce costs, and ensure long-term operational success. This can be achieved through the adoption of smart and sustainable design and engineering practices, leveraging digital platforms like Podium, and utilizing data to make informed decisions in the management and maintenance of buildings. With these strategies in place, the built environment in Singapore can continue to thrive and become even more sustainable in the coming years.