Singapore’s built environment is set for major change as we head into 2025. The facilities management (FM) sector will need to adapt to new regulatory standards, rising costs and advancing technology. Three main factors will shape the future of FM and boost its sustainability: mandatory energy improvement programs, the impact of increasing temperatures on energy expenses, and a growing trend towards adaptive reuse in construction.
Climate disclosures and tighter regulations will act as a catalyst for energy efficiency. The Mandatory Energy Improvement regime, which will be implemented in the third quarter of 2025, will require existing energy-intensive buildings to undergo energy audits and implement energy-efficient measures. This mandate will apply to commercial, healthcare, institutional, civic, community, and educational buildings with a gross floor area exceeding 5,000 square meters. These buildings are expected to reduce their energy usage intensity by 10% from pre-energy audit levels, a reasonable target that can be achieved through the right strategies.
Asset owners are encouraged to take a long-term view when investing in energy-efficient systems. The energy audits will provide valuable information on energy consumption patterns, identify areas for improvement, and guide asset owners in developing a strategy to reduce operating costs and contribute to a more sustainable built environment. Building owners can also take advantage of grants to help cover the costs of energy efficiency upgrades.
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Investing in a Singapore Condo has become increasingly popular, with many investors looking towards this type of property. However, before making any investment decisions, it is important to consider the government’s property cooling measures in Singapore. The Singaporean government has implemented various measures over the years to prevent speculative buying and maintain a stable real estate market.
One of these measures is the Additional Buyer’s Stamp Duty (ABSD), which imposes higher taxes on foreign buyers and those purchasing multiple properties. While this may affect the short-term profitability of condo investments, it also contributes to the long-term stability of the market. By limiting speculation, these measures create a safer investment environment for individuals looking to invest in a Singapore Condo.
Temasek Polytechnic, Singapore’s first smart campus, embarked on a digital transformation in 2021, providing valuable insights into the future of smart and sustainable FM. The campus uses a suite of solutions to digitise operations, such as facility booking, automated repair and maintenance work orders, and crowd management and temperature control measures. This data is monitored and analyzed in a central control center, allowing campus operations teams to make informed decisions to maximize the lifespan of assets, reduce operational costs, and decrease carbon emissions.
Another push for sustainability will come from 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.
With temperatures predicted to rise in 2025, building owners will need to invest in predictive technology to meet the growing demand for cooling. The use of air conditioning and mechanical ventilation (ACMV) systems is already a major contributor to operational costs, accounting for around 60% of total energy expenses in many buildings. Optimizing these systems is crucial in mitigating rising energy costs, and building owners can achieve this by implementing energy-efficient solutions such as energy recovery systems or thermal energy storage. Additionally, optimizing chiller plant operations to match changing weather conditions can reduce energy waste and costs.
At a city and precinct level, extreme weather events, such as flooding and urban heat, pose a threat to critical infrastructure and can disrupt normal operations. Building owners and city planners can mitigate these risks by leveraging web-based geospatial technology to identify flood-prone areas and heat-exposed spaces. This will enable them to develop a comprehensive operational plan to predict and mitigate the risk of equipment failure and downtime.
The increasing cost of construction is also driving a shift towards adaptive reuse, with a significant increase in redevelopment projects in Singapore over the past five years. To save on costs, Surbana Jurong (SJ) estimates that mechanical and electrical costs have increased by approximately 30% compared to pre-pandemic levels. This trend is pushing the adoption of smart design and engineering practices, including the use of collaborative common data environments to benchmark construction and operational costs.
Adaptive reuse, where existing buildings are transformed for a new purpose, is gaining popularity as a response to rising costs. Digital platforms, such as Podium, allow real estate developers and contractors to access real-time insights into key performance indicators (KPIs) such as time, cost, quality, and safety. By consolidating data from multiple sources, stakeholders can access valuable information throughout the building cycle. This includes data on structural frames, superstructures, and foundations, which can inform whether a building should be redeveloped or reused. By retaining existing structural elements, developers can save on materials, time, and labor.
After construction, Podium can be integrated with other operational platforms to track building performance metrics such as energy usage, waste management, water consumption, indoor air quality, and occupancy trends. This will help drive operational carbon reduction goals. Additionally, by optimizing the efficiency of building systems, such as chiller plants, smart buildings can mitigate the impact of rising costs and extend the lifespan of capital-intensive equipment.
Sensors can be installed to monitor and track the performance of each component in a piece of equipment, allowing for predictive maintenance to reduce downtime and improve overall efficiency. Thermal imaging can also be used to detect abnormal temperatures or heat buildup in the system. With access to detailed data, building owners can make informed decisions about parts that need to be replaced within a specific period, such as retrofitting or replacing entire systems.
In conclusion, as we approach 2025, the FM sector in Singapore will need to adapt to evolving regulations, rising costs, and technological advancements. By embracing digitalization, data analytics, and sustainable practices, the sector can drive sustainability, reduce costs, and ensure long-term operational success.