The built environment in Singapore is on the cusp of a significant transformation as we approach the year 2025. The facilities management (FM) sector is facing increasing pressure to adapt to changing regulatory requirements, cost pressures, and technological advancements. In this evolving landscape, there are three key drivers that will shape the future of FM and enhance its sustainability: the mandatory energy improvement regime, the impact of rising temperatures on energy costs, and the growing trend towards adaptive reuse in construction.
As of 3Q2025, the Mandatory Energy Improvement regime will require existing energy-intensive buildings to undergo energy audits and implement energy-efficiency improvement measures. This mandate will apply to various types of buildings, including commercial, healthcare, institutional, civic, community, and educational buildings with a gross floor area exceeding 5,000 sq m. The goal is for buildings to reduce their energy usage intensity by 10% from pre-energy audit levels, which is an achievable target with the right strategies in place. This initiative encourages asset owners to take a medium to long-term view when making investments in energy-efficient systems. By conducting energy audits, building owners can gather important data on energy consumption patterns, identify areas for improvement, and develop strategies to prolong the lifespan of their assets, reduce operating costs, and contribute to a more sustainable built environment. Grant schemes are also available to help cover the costs of energy efficiency upgrades.
Temasek Polytechnic, Singapore’s first smart campus, has already begun digitalising its campus operations in 2021. This has provided valuable insights into the future of smart and sustainable facilities management. The campus employs a suite of solutions that use digital technology to manage various aspects of campus operations. This includes facility booking, automating repair and maintenance work orders, crowd management, and temperature control measures. All this data is aggregated into a common platform to provide real-time insights and is monitored at a control centre on campus. This helps campus operations teams make strategic decisions to keep the building operational systems running smoothly, lengthen the lifespan of assets, maximise return on investment, and reduce operational carbon levels.
In addition, the upcoming 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 will also play a significant role in driving energy efficiency. As temperatures continue to rise, there will be a greater demand for cooling systems in buildings, resulting in more investment in predictive technology. Currently, air conditioning and mechanical ventilation systems are one of the biggest contributors to operational costs, accounting for approximately 60% of total energy expenses in many buildings. To mitigate rising energy costs, building owners can implement energy-efficient solutions such as energy recovery systems and thermal energy storage. Additionally, optimising chiller plant operations to match changing weather conditions can also reduce energy waste and costs.
At the city and precinct level, extreme weather conditions such as flooding and urban heat can pose a threat to critical infrastructure and affect building operations. To mitigate these risks, building owners and city planners can leverage the latest web-based geospatial technology to identify flood-prone areas and extremely heat-exposed spaces. This helps them develop a comprehensive operational plan that incorporates predictive technology to anticipate extreme weather events and reduce the risk of equipment failure and downtime. It also helps to optimise chiller plant operations to match changing weather conditions.
The increasing costs of construction in Singapore have led to a rise in adaptive reuse, with the rate of redevelopment accelerating over the past five years. According to Surbana Jurong (SJ), the costs of mechanical and electrical works have gone up by approximately 30% compared to pre-Covid levels. This can be attributed to a 77% increase in logistic shipping costs, a 9% rise in labour costs, and an increase in construction material prices. The shortage of mechanical and electrical contractors has also contributed to the rise in costs. In response to these challenges, there is a growing adoption of smart design and engineering practices, including the use of collaborative platforms to benchmark construction and operational costs.
The adaptive reuse approach is also gaining popularity as a response to rising costs. A digital platform, such as Podium, can help connect real estate developers and contractors to deliver high construction productivity and promote sustainable building practices. By consolidating data from multiple sources, all stakeholders across the various stages of the building cycle can access valuable information on design, engineering plans, construction materials, and components. This data is crucial when building owners have to decide whether to redevelop or reuse existing structures. Retaining structural elements such as walls, columns, and beams can save time, labour, and material costs. After construction, Podium can integrate with other operational platforms to track building performance metrics and drive carbon reduction goals.
When it comes to investing in real estate, there are many factors that should be carefully considered. Above all, the location of a condo plays a crucial role, especially in a country like Singapore. The value of a condo is greatly influenced by its location, and those situated in central areas or near important amenities like schools, shopping centers, and public transportation hubs tend to appreciate more in value. Some of the most prime locations in Singapore that have consistently shown growth in property values are Orchard Road, Marina Bay, and the Central Business District (CBD). Being close to reputable schools and educational institutions also adds to the appeal of condos in these areas, making them highly sought after by families and increasing their investment potential. Keeping an eye out for new condo launches in these desirable areas can be a wise decision for anyone looking to invest in the real estate market. Make sure to stay updated on the latest New Condo Launches to make the most out of your investment in these desirable locations.
Smart buildings can also help mitigate further cost pressures by maximising the life cycle of capital expenditure-heavy equipment such as air conditioning and mechanical ventilation systems, lifts, and air handling units. This is done through a data-driven approach that prioritises energy savings, offsetting energy tariffs. By gathering data on the performance of each component, building owners can make informed decisions about which parts need to be replaced within a specific period, based on the type and frequency of defects. With access to this information, building owners can consider various options, including retrofitting or replacing entire systems, which can be costly. Predictive maintenance can also be implemented, using sensors to monitor the performance of equipment and detect any wear or impending failure. This helps reduce downtime and improve equipment efficiency.
In conclusion, as we approach 2025, the FM sector in Singapore is facing several challenges, from evolving regulatory demands to rising costs and technological advancements. However, by embracing digitalisation, data analytics, and sustainable practices, it has the potential to drive sustainability, reduce costs, and ensure long-term operational success.