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The Malaysia Facility Management Market is anticipated to record a CAGR of 4.3% over the forecast period (2022 - 2027). The growing emphasis on outsourcing non-core operations and growth in the institutional sector is expected to drive the Malaysian market for facility management services. Along with this, the government regulation on safety measures and environmental concerns to follow green practices is expected to drive the market.
- Malaysia has its prominence in outsourced markets for facility management services in terms of development and sophistication. The region's facility management industry operates with integrated contracts provided by significant vendors such as AWC Berhad, SDE Facilities Management Sdn Bhd., etc., across various countries and borders, and small local players focus on single contracts and single-service solutions. However, given the dynamics occurring across the region, there are increasing opportunities to leverage facility management and corporate real estate in new ways.
- Moreover, facility management (FM) includes management methods and techniques for building management, infrastructure management for an organization, and overall harmonization of the work environment in an organization. This system standardizes services and streamlines processes for an organization.
- Over the last decade, several service vendors, such as Harta Maintenance Sdn Bhd, Zelan AM Services Sdn Bhd, etc., operating in the region have been focused on expanding their presence to leverage the increasing demand for facility management, especially with the recent trend favoring the outsourcing of non-core operations. Further, Malaysia has been witnessing increased opportunities to leverage facility management and corporate real estate in innovative ways, given the dynamics across the country.
- In terms of the end-user demand, the public sector's contribution toward the facility management market in Malaysia is primarily driven by the government's constrained budgets that lead to the continuous outsourcing of essential facility management services.
- Considering the market for Malaysia facility management has been subjected to moderate growth due to the rise in demand for people with improved requirements. This scenario is projected to bolster the development of the market during the forecast period. The ongoing pandemic has resulted in the steady market growth in the region. However, the pandemic has resulted in limited production, leading to a sharp decline in business inputs.
- The outbreak of COVID-19 has had a mixed business impact on facilities management firms. The restrictions on the movement of people resulted in a decline in project work and a decreased level of activity across many customer sites. Significant players in the market, such as AWC Berhad, MST Facilities Sdn Bhd., and others, were adversely affected due to the pandemic lockdown.
Scope of the Report
Facility management (FM) is a profession that incorporates many disciplines to ensure functionality, safety, comfort, and efficiency of the built environment by integrating people, process, place, and technology. The Malaysia Facility Management Market is Segmented by Type of Facility Management, Offering Type, and End User.
|By Type of Facility Management Type|
|Inhouse Facility Management|
|By Offering Type|
|By End User|
Key Market Trends
The Rise in Digital Technology Drives the Facility Management Market
- Malaysia’s Digital Transformation continues to drive demand for U.S. technologies in the information and communications technology sector (ICT) as Malaysia seeks to become the digital hub in Southeast Asia.
- Malaysia is focused on the development of connectivity, satellite broadband, digital infrastructure for buildings, 5G ecosystems, and smart automation. This provides U.S. companies an opportunity in the near term to supply cybersecurity and digital technology.
- Malaysia is strategically situated in the heart of the region, with easy access to other growing markets and robust infrastructure, connectivity, and economic stability. The ICT sector is one of the fastest-growing sectors in the Malaysian market, which is expected to reach 22.6 percent of the country's GDP by 2025, according to the Malaysian Government.
- In the past, Malaysian companies have not prioritized cybersecurity due to budget cuts. However, the current global pandemic is pushing more companies to go digital, thus creating demands for cybersecurity solutions to protect the vulnerability of their companies.
- The requirement of preventive maintenance is crucial in maintenance management because it protects the good state of facilities before they fail. Once the method is implemented, a considerable amount of data about operation and maintenance will be generated. The Malaysian Public Works Department is responsible for the preservation of government and asset maintenance data in Malaysia
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Healthcare Marks its Major prominence in Institutional Facility Management
- Healthcare is one of the institutional facility management verticals. The government’s Health Ministry is responsible primarily for healthcare in Malaysia. Malaysia usually has an efficient, comprehensive healthcare system with two different kinds of healthcare – both government-owned, universal, and co-existing private.
- The health sector of Malaysia has an estimated worth of approximately USD 8.4 billion, with total health care spending projected to be around 4.75% of its gross domestic product (GDP). Government and private funds now contribute to about 55% and 45% of overall health spending, respectively, in Malaysia. The Ministry of Health in the public sector is the country’s leading government department responsible for health services.
- Moreover, a lot of demand exists for the futuristic needs of facility management. For instance, KPJ needed a number of medical facilities, including an MRI scanner and CT scanning, to assist them in the delivery of medical services. KPJ may not be able to provide patients with decent care services without high-technology medical services because the current medical service is more technologically dependent. A well-administered medical facility may help decrease medical time.
- In the healthcare sector, technology plays a significant role. KPJ should spend more on research research to improve their medical skills and also assist them in altering their administrative tasks quickly to minimize errors and errors that damage their company’s image.
- In addition to that, the 2021 budget shows large cuts across all the healthcare specialties. There are opportunities for U.S. companies in the construction of new health facilities and the integration of IT in healthcare practices.
The Malaysia Facility Management Market is moderately consolidated with the presence of diverse firms of different sizes. This market is anticipated to encounter a number of partnerships, mergers, and acquisitions as organizations continue to invest strategically in offsetting the present slowdowns that they are experiencing. The clients in this region are employing FM services to increase the ease of their business operations. The market comprises key solutions and service providers, such as AWC Berhad, MST Facilities Sdn Bhd., Harta Maintenance Sdn Bhd, Zelan AM Services Sdn Bhd, and SDE Facilities Management Sdn Bhd.
- December 2021 - AWC Bhd said its subsidiary had secured a letter of award (LoA) from the Ministry of Health (MoH) for a five-year contract to provide hospital support services valued at RM106.04 million.
- February 2022 – TH Properties Sdn. Bhd. received a response to its latest residential project in Bandar Enstek when 60 percent of Pristine 3 was taken up within a week of its launch.
- December 2021 - UTMSPACE, in partnership with UEM Edgenta and THE Malaysian Association of Facility Management (MAFM), launched the Facility Managers Development Programme (FMDP) aimed at equipping facilities management (FM) professionals with knowledge of the principles and methods of successful facilities management. FMDP may provide a platform for better career advancement for the construction industry stakeholders.
Table of Contents
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Impact of COVID-19 on the Facility Management Industry
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Growing Trend Toward Commoditization of FM
5.1.2 Increasing Investments on Infrastructure Developments
5.2 Market Restraints
5.2.1 Diminishing Profit Margins and Ongoing Changes in Macro-environment
6. MARKET SEGMENTATION
6.1 By Type of Facility Management Type
6.1.1 Inhouse Facility Management
6.1.2 Outsourced Facility Mangement
22.214.171.124 Single FM
126.96.36.199 Bundled FM
188.8.131.52 Integrated FM
6.2 By Offering Type
6.2.1 Hard FM
6.2.2 Soft FM
6.3 By End User
7. COMPETITIVE LANDSCAPE
*List Not Exhaustive
7.1 Company Profiles
7.1.1 AWC Berhad
7.1.2 MST Facilities Sdn Bhd.
7.1.3 Harta Maintenance Sdn Bhd
7.1.4 Zelan AM Services Sdn Bhd
7.1.5 SDE Facilities Management Sdn Bhd
7.1.6 SYREFL Holdings Sdn Bhd
7.1.7 UDA Dayaurus Sdn. Bhd.
7.1.8 JLL Property Services (Malaysia) Sdn Bhd
7.1.9 Sepadu Group
7.1.10 TH Properties Sdn Bhd
8. INVESTMENT ANALYSIS
9. FUTURE TRENDS
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Frequently Asked Questions
What is the study period of this market?
The Malaysia Facility Management Market market is studied from 2020 - 2027.
What is the growth rate of Malaysia Facility Management Market?
The Malaysia Facility Management Market is growing at a CAGR of 4.3% over the next 5 years.
Who are the key players in Malaysia Facility Management Market?
AWC Berhad , MST Facilities Sdn Bhd., Harta Maintenance Sdn Bhd, Zelan AM Services Sdn Bhd, SDE Facilities Management Sdn Bhd are the major companies operating in Malaysia Facility Management Market.