Market Trends of Singapore Facility Management Industry
In-house Facility Management to Witness Major Growth
- In-house facility management refers to services offered by a dedicated resource the client organization employs. In this type of facility management monitoring, performance control is usually conducted under the terms of the conventional employee/employer relationship.
- In-house facility management involves recruiting specialized personnel to maintain and manage various functional attributes of a facility or area. Most of the generic services are outsourced to third-party service providers. However, some services, such as security services or cybersecurity assistance, are still operated and monitored in-house to ensure the safety and integrity of the facilities.
- Factors such as increased economic activity, consumer spending, and tourism activities have increased the occupancy of large residential layouts or projects, hotels, and commercial spaces. This has, in turn, increased the need for better management of the facilities.
- Increasing office space construction is expected to drive the in-house FM services segment due to the increasing demand. For example, as per the Singapore Department of Statistics, 465,000 m2 of office real estate were under construction in Q2 this year.
- The perception of facilities management will change for the sector’s benefit. Companies are anticipated to embrace collaborative initiatives that can unlock productivity collaborations, thereby improving operational performance, together with a cohesive tech-enabled approach that optimizes maintenance regimes remotely.
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Commercial Segment Holds Significance Market Share
- The commercial entities primarily cover office buildings constructed or occupied by business services, such as corporate offices of IT and communication, manufacturers, and various other service providers. Due to the provision of necessary fitments and interiors, decoration and management in commercial buildings have gained substantial importance, driving the country's commercial sector market.
- Commercial spaces require property accounting, contract management, renting, procurement management, and several other services, so hiring professionals becomes necessary. Due to such factors, the commercial category has growth opportunities in the market, and the trend is anticipated to continue vastly during the forecast period.
- The commercial sector covers various services and can be categorized into property, cleaning, security, catering, support, and environmental management. Among these, the property category has high demand due to the high requirement for advertising rental properties, asset management, and property maintenance services.
- The surge in infrastructure development investments can positively impact the Singaporean facility management services market. As new infrastructure projects are built, there is a rising demand for effective facility management to maintain, handle, and operate these facilities efficiently. This, in turn, can lead to the growth of facility management services as more organizations and government entities seek these services to ensure their assets' proper upkeep and functionality. With the rise in such developments, economic growth, and ongoing diversification, the market is expected to register lucrative growth opportunities throughout the forecast period.
