As we look ahead to 2025, the landscape of Singapore’s built environment is set to undergo major changes. The facilities management (FM) sector, in particular, is facing a shifting landscape as it grapples with changing regulations, budget constraints, and technological developments. Three key factors will play a pivotal role in shaping the future of FM and driving its sustainability: the mandatory energy improvement regime, the effects of rising temperatures on energy costs, and the growing trend of adaptive reuse in construction.
The introduction of the Mandatory Energy Improvement regime, which will start in the third quarter of 2025, will require existing energy-intensive buildings to undergo energy audits and implement energy-efficiency measures. This mandate applies to commercial, healthcare, institutional, civic, community, and educational buildings with a gross floor area exceeding 5,000 sq m. Buildings must reduce their energy consumption intensity by 10% from pre-energy audit levels – a feasible target that can be achieved by implementing the right strategies.
Asset owners are encouraged to take a longer-term view of investments in energy-efficient systems, despite the heavy capital expenditures. The energy audits will provide valuable data on energy consumption patterns, identify areas for improvement, and guide asset owners in developing a strategy to prolong the lifespan of assets, reduce operating costs in the long run, and contribute to a more sustainable built environment. Building owners can also benefit from grants to help offset the costs of energy efficiency upgrades.
Singapore’s first smart campus, Temasek Polytechnic, has embarked on an ambitious project to digitize its campus operations in 2021. This experience provides valuable insights into the future of smart and sustainable facilities management. At the core of Temasek Polytechnic’s smart campus is a suite of digital solutions that streamline operations, including facility booking, automating repair and maintenance work orders, and managing crowds and temperatures. All these systems are integrated into a centralized data environment that generates insights, enabling campus operations teams to make informed decisions that keep building systems running smoothly and efficiently. This approach maximizes the return on investment in these assets and helps reduce operational carbon levels.
Singapore’s iconic skyline is characterized by towering skyscrapers and modern amenities, making it a sought-after destination for both locals and foreigners. Strategically located condominiums are a popular housing option, offering a perfect blend of luxury and convenience. These residential developments boast an array of top-notch facilities, such as lavish swimming pools, well-equipped gyms, and excellent security services, providing residents with a high-quality living experience. For potential tenants and buyers, these amenities are highly desirable, while for investors, they guarantee significant rental returns and increased property values over time. The ongoing development of new condo launches in prime locations is a clear indication that this trend is here to stay. With every new condo launch, such as the upcoming ones on Janomespecials.com, the demand for luxurious and convenient housing options in Singapore continues to rise.
Another factor driving the sustainability of FM is the increasing push for climate disclosures and tighter regulations. By 2027, all listed and large non-listed companies with revenues of at least $1 billion and total assets of at least $500 million will be required to disclose their climate impact. This will serve as a catalyst for energy efficiency efforts across the board.
Rising temperatures and energy costs will also drive investments in predictive technology. With temperatures predicted to rise in 2025, buildings will require more cooling, resulting in higher energy costs. Air conditioning and mechanical ventilation (ACMV) systems already account for a significant portion of operational costs, making up about 60% of total energy expenses in many buildings. Optimizing energy systems is crucial in mitigating these rising costs. One approach is to implement energy-efficient solutions such as energy recovery systems or thermal energy storage. Additionally, optimizing chiller plant operations to match changing weather conditions can help reduce energy waste and costs.
At the city and precinct level, extreme weather events, such as flooding and urban heat, pose risks to the health and performance of critical infrastructure, including drainage and plumbing systems. To address these risks, building owners and city planners can leverage advanced web-based geospatial technology to identify flood-prone areas or extremely heat-exposed spaces. This data can then be used to develop a comprehensive operational plan that considers potential extreme weather events and helps mitigate the risk of equipment failure and downtime.
The rising costs of construction have also prompted a shift towards adaptive reuse, with the rate of redevelopment in Singapore accelerating over the past five years. According to Surbana Jurong (SJ), mechanical and electrical costs have increased by around 30% compared to pre-pandemic levels. This rise can be attributed to higher logistic shipping costs (up 77%), labor costs (up 9%), and construction materials prices (such as copper, up 15%), as well as a shortage of M&E contractors. This trend is driving the adoption of smarter design and engineering practices, including the use of collaborative common data environments to benchmark construction and operational costs.
Adaptive reuse is a response to rising costs and involves repurposing existing structures instead of demolishing and rebuilding. Platforms supporting 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. For example, Surbana Jurong’s Podium platform provides a digital ecosystem that connects developers, designers, and the supply chain to deliver highly efficient construction while promoting sustainable building practices.
By consolidating data from multiple sources, stakeholders across the building cycle can access valuable insights on design, engineering plans, construction materials, and components, allowing them to make informed decisions about reusing or replacing specific elements. Increasingly, retaining structural wall columns, beams, and slabs can save time, labor, and materials.
Post-construction, Podium can also integrate with other operational platforms to track building performance metrics, such as energy, waste, water, air quality, and occupancy. This data can help drive operational carbon reduction goals, particularly in areas such as chiller plant operations, which often consume a large portion of total operational expenditures.
Smart buildings can help mitigate further cost pressures by maximizing the life cycle of expensive equipment, such as ACMVs, lifts, and air handling units. This is achieved through a data-driven, long-term approach that prioritizes energy savings to offset the energy tariffs from the capital expenditure in these assets. By leveraging real-time data from sensors, predictive maintenance can help reduce downtime and improve equipment efficiency. For example, sensors can analyze vibrations in chiller equipment, revealing potential wear and impending failure. Similarly, thermal imaging can detect abnormal temperatures or heat buildup in the system. AI-powered monitoring systems can also provide granular detail on each component’s performance, allowing asset owners to make informed decisions about repairs and replacements.
In conclusion, as Singapore approaches 2025, the FM sector needs to adapt to regulatory changes, rising costs, and technological advancements to drive sustainability. By embracing digitalization, data analytics, and sustainable practices, the sector can reduce costs, promote sustainable building practices, and ensure long-term operational success.…