Singapore’s built environment is heading towards a significant transformation as we approach 2025. The facilities management (FM) sector is facing mounting pressure to adapt to the changing regulatory landscape, cost constraints, and technological advancements. These three factors will play a crucial role in shaping the future of FM and driving its sustainability: the mandatory energy improvement regime, the impact of rising temperatures on energy costs, and the growing trend towards adaptive reuse in construction.
The Mandatory Energy Improvement regime, which will take effect in the third quarter of 2025, will require energy-intensive buildings to undergo energy audits and implement energy-efficiency improvement measures. This mandate applies to commercial, healthcare, institutional, civic, community, and educational buildings with a gross floor area of over 5,000 sq m. These buildings are expected to reduce their energy usage intensity by 10% from pre-energy audit levels, a target that can be achieved by implementing the right strategies.
To comply with this mandate, asset owners will need to take a long-term view on capital expenditures for energy-efficient systems. The energy audits will provide valuable data on energy consumption patterns, performance gaps, and strategies for prolonging the lifespan of assets, reducing operating costs in the long run, and contributing to a more sustainable built environment. Building owners can also leverage grants to cover the costs of energy efficiency upgrades.
One example of a smart and sustainable facility management model is Temasek Polytechnic, which embarked on a digital transformation of its operations in 2021. By digitizing campus operations and implementing a suite of solutions that integrate facility booking, maintenance work orders, crowd management, and temperature control measures, Temasek Polytechnic has achieved efficiency and sustainability in its operations. This approach can serve as a model for other buildings and facilities to follow. With the help of digitalization, data analytics, and sustainable practices, the FM sector can drive sustainability, reduce costs, and ensure long-term operational success.
The push towards sustainability is also being driven by climate disclosure obligations, which will affect all listed and large non-listed companies with revenues of at least $1 billion and total assets of at least $500 million by 2027. This will lead to increased investments in predictive technology to mitigate the impact of rising temperatures on energy costs. Air conditioning and mechanical ventilation systems are already a significant contributor to operational costs, accounting for around 60% of total energy expenses in many buildings. By optimizing energy systems through energy-efficient solutions such as energy recovery systems or thermal energy storage, building owners can mitigate rising energy costs. City planners and building owners can also utilize web-based geospatial IT to identify flood-prone areas and areas of extreme heat to develop a comprehensive operational plan that considers predicting extreme weather events to mitigate the risk of equipment failure and downtime, optimize chiller plant operations, and reduce operational carbon levels.
The increasing construction costs are also prompting a shift towards adaptive reuse, with the rate of redevelopment in Singapore accelerating over the past five years. This trend is driving the adoption of smart design and engineering practices, including the use of collaborative common data environments to benchmark construction and operational costs. Platforms such as Podium, a proptech platform, are helping to connect developers, designers, and the supply chain to deliver high construction productivity and promote sustainable building practices. By consolidating data from multiple sources, stakeholders can access valuable information on design, engineering plans, construction materials, and components throughout the building cycle. This data can help inform decisions on whether to redevelop or reuse structural elements, thus minimizing embodied carbon levels. Post-construction, Podium can also integrate with other operational platforms to track building performance metrics such as energy, waste, water, indoor air quality, and occupancy trends to drive operational carbon reduction goals.
Smart buildings can mitigate further cost pressures by maximizing the lifespan of capital-intensive equipment, such as ACMVs, lifts, and air handling units. By implementing a data-driven, long-term life cycle approach that prioritizes energy savings, building owners can offset the energy tariffs from the capital expenditure on these assets. Sensors can be deployed to analyze vibrations and detect wear or impending failure of equipment. AI-powered smart monitoring systems can also track the performance of various components in the building’s M&E system and provide granular data to help asset owners make informed decisions on replacements or retrofits. This data-driven approach can help building owners reduce downtime, improve equipment efficiency, and comply with regulations and sustainable financing requirements.
In conclusion, as Singapore’s built environment undergoes transformation, the FM sector must embrace sustainability, digitalization, and data analytics to stay competitive and meet the evolving demands of the industry. With the right strategies and technology, the sector can drive efficiency, reduce costs, and ensure long-term success in the ever-changing landscape.