By the time 2025 arrives, Singapore is set to undergo significant changes in its built environment. The sector of facilities management (FM) is facing the challenge of adapting to changing regulations, cost constraints, and technological advancements. Three key factors will shape the future of FM, and work towards promoting sustainability: the mandatory energy improvement regime, the impact of rising temperatures on energy costs, and the growing trend towards adaptive reuse in construction.
The upcoming Mandatory Energy Improvement regime, effective from 3Q2025, will require existing energy-intensive buildings to undergo energy audits and implement energy-efficient measures. This mandatory requirement applies to commercial, healthcare, institutional, civic, community, and educational buildings with a gross floor area of more than 5,000 sq m. The objective is to reduce energy usage intensity by 10% from pre-energy audit levels. This goal can be achieved by implementing appropriate strategies.
In order to make successful investments in energy-efficient systems, it is crucial for asset owners to take a medium to long-term view on capital expenditure-heavy investments. The energy audits will provide valuable insights into energy consumption patterns, identify performance gaps, and guide asset owners on strategies to prolong the lifespan of their assets, lower operating costs in the long run, and contribute to a sustainable built environment. Building owners can also utilize grants to cover the costs of energy efficiency upgrades.
Temasek Polytechnic, Singapore’s first smart campus, embarked on a digitization project in 2021 with the aim of achieving a sustainable future. This experience offers valuable insights into the future of smart and sustainable facilities management. The heart of Temasek Polytechnic’s smart campus is a suite of solutions that digitize campus operations, such as facility booking, automating repair and maintenance work orders, crowd management, and temperature control measures. These systems are integrated into a common data environment, generating data that is visualized, tracked, and monitored at a control center on campus. This helps campus operations teams make informed decisions to maintain the health of building operational systems and maximize the return on investment in these assets while reducing operational carbon levels.
Another factor that will drive the sustainability of FM is the obligation for climate disclosures 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 lead to more investments in predictive technology. Air conditioning and mechanical ventilation (ACMV) systems are already a major contributor to operational costs, accounting for approximately 60% of total energy expenses in many buildings. Optimizing energy systems is crucial in mitigating rising energy costs. Building owners can achieve this by implementing energy-efficient solutions such as energy recovery systems or thermal energy storage. Furthermore, optimizing chiller plant operations to match changing weather conditions reduces energy wastage and costs.
At a larger scale, extreme weather events such as flooding and urban heat can have a drastic impact on the health and performance of critical infrastructure like drainage and plumbing systems, which are essential for the smooth functioning of precincts. To mitigate these risks, building owners and city planners can leverage advanced web-based geospatial IT tools to identify flood-prone areas or heat-exposed spaces. This will help them develop a comprehensive operational plan that considers extreme weather predictions to mitigate the risk of equipment failure and downtime, as well as optimize chiller plant operations.
Adaptive reuse is a response to the increasing construction costs, leading to a shift towards this approach over the past five years in Singapore. Surbana Jurong (SJ) estimates that the costs for mechanical and electrical works have increased by approximately 30% compared to pre-Covid levels. This upward trend can be attributed to a 77% increase in logistic shipping costs, a 9% increase in labor costs, and a rise in construction material prices, such as copper (up 15%). This has caused a shortage of mechanical and electrical (M&E) contractors. As a result, there is a growing adoption of smart design and engineering practices, including the use of collaborative common data environments to benchmark construction and operational costs.
Platforms that support integrated digital delivery provide real estate developers and contractors with real-time data on key performance indicators such as time, cost, quality, and safety. One such platform is Podium, which aims to create 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, stakeholders across the various stages of the building cycle can access valuable information on design, civil and structural engineering plans, construction materials, and components to reduce embodied carbon levels. This data is critical when building owners need to decide whether to redevelop or reuse existing structures. By retaining structural walls, columns, beams, and slabs, they can save time, labor, and resources.
Post-construction, Podium can integrate with other operational platforms to track building performance metrics, including energy, waste, water, indoor air quality, and occupancy trends. This will help drive operational carbon reduction goals. The utility cost of ACMV chiller plants can quickly escalate post-construction, accounting for 60% of total operational expenditure. Smart buildings can offset these costs by maximizing the life cycle of capital-intensive equipment, such as ACMVs, lifts, and air handling units. This can be achieved through a data-driven, long-term life cycle approach that prioritizes energy savings to offset energy tariffs from capital expenditures. This investment in smart building infrastructure helps inform procurement, replacement, and retrofit programs to optimize the equipment’s efficiency, maximize returns, and ensure compliance with local and international regulations and sustainable financing requirements.
Sensors can be deployed to monitor and track the performance of each component in a piece of equipment. For example, sensors can analyze the vibrations in chiller equipment and identify signs of wear or impending failure. Similarly, thermographic testing with heat-sensing scanners and imaging equipment can detect abnormal temperatures or heat buildup in a system. AI-powered smart monitoring systems can also track various components of a building’s M&E system, providing granular details on their performance. This data enables asset owners to make informed decisions about parts that need to be replaced within a specific period, based on the type of defects and the frequency of breakdowns. With access to detailed data, building owners can evaluate various options, including retrofitting or replacing entire systems, which can be costly.
It is crucial for international investors to have a clear understanding of the regulations and limitations surrounding property ownership in Singapore. While foreigners are typically able to buy condominiums without many barriers, the same cannot be said for landed properties, which have stricter rules for ownership. Moreover, foreign buyers are required to pay the Additional Buyer’s Stamp Duty (ABSD), which currently stands at 20% for their first property purchase. However, the allure of Singapore’s stable and lucrative real estate market continues to draw foreign investment, making properties like Singapore Condos a highly sought-after option.
In conclusion, by embracing digitalization, data analytics, and sustainable practices, the FM sector in Singapore can promote sustainability, reduce costs, and ensure long-term operational success. The key is to adapt to regulatory demands, leverage technological advancements, and stay ahead of changing market conditions. This will enable the industry to drive towards a more sustainable built environment and achieve a greener, more resilient future.…