As we inch closer towards 2025, the built environment in Singapore is on the verge of a major transformation. The facilities management (FM) sector is facing the challenge of adapting to changing regulatory requirements, increasing cost pressure and rapid technological advancement. This transformation will be driven by three key factors, namely the mandatory energy-efficient regime, the impact of rising temperatures on energy costs, and the rise of adaptive reuse in construction.
The upcoming Mandatory Energy Improvement scheme, set to commence in the third quarter of 2025, will mandate existing energy-intensive buildings to undergo energy audits and implement energy-efficient measures. This requirement covers commercial, healthcare, institutional, civic, community, and educational buildings with a gross floor area of over 5,000 sq m. These buildings will be required to reduce their energy consumption by 10% from pre-audit levels – a realistic target that can be achieved by implementing the right strategies.
To keep up with this requirement, asset owners are urged to take a medium to long-term view on capital expenditure-heavy investments in energy-efficient systems. The energy audits, which will provide detailed information on energy consumption patterns and performance gaps, will guide asset owners towards a strategy that aims to prolong the lifespan of assets, reduce operating costs in the long run, and contribute to a more sustainable built environment. Building owners can seek financial assistance through grants to cover the costs of energy efficiency upgrades.
Temasek Polytechnic is Singapore’s first smart campus and serves as a good example of the future of smart and sustainable facilities management. The institution embarked on a bold initiative to digitise its campus operations in 2021. The key highlight of the smart campus is a suite of solutions that automates various campus operations, including facility bookings, repair and maintenance work orders, crowd management, and temperature control measures. These systems are integrated into a common data environment that collects and analyses data, which is then visualised, monitored, and tracked at a control centre, enabling campus operations teams to make informed decisions and maximise the efficiency and sustainability of the building’s operational systems.
The rise in temperatures predicted for 2025 will further escalate cooling demands in buildings, leading to more investments in predictive technology. The use of air conditioning and mechanical ventilation (ACMV) systems already accounts for a significant portion of operational costs, making up about 60% of total energy expenses in many buildings. To mitigate this, building owners can implement energy-efficient solutions like energy recovery systems or thermal energy storage. Optimising the operations of chiller plants to match changing weather conditions can also bring down energy waste and costs.
Extreme weather events such as floods and urban heat pose a threat to the performance and longevity of critical infrastructure, including drainage and plumbing systems, which are integral to keeping precincts running smoothly. As such, there is a growing emphasis on understanding and mitigating climate risks in building operations. Singapore has experienced several flash floods in recent years, causing significant damage to properties. To address this, building owners and city planners can harness the power of web-based geospatial IT to identify flood-prone areas and extremely heat-exposed spaces and devise a comprehensive operational plan. This proactive approach can reduce the risk of equipment failure and downtime, improve chiller plant operations, and optimise energy use.
The construction sector is facing increasing costs, prompting a shift towards adaptive reuse, with the rate of redevelopment in Singapore rising in the past five years. According to Surbana Jurong (SJ), the rise in construction costs can be attributed to a surge in logistic shipping costs by 77%, labour costs by about 9%, and construction materials prices (e.g., copper prices up by 15%) as well as the shortage of mechanical and electrical (M&E) contractors. To keep pace with these changes, more developers are turning to smart design and engineering practices, including the use of collaborative common data environments to compare construction and operational costs.
Adaptive reuse is a response to rising construction costs. Platforms that support integrated digital delivery play a critical role in promoting sustainability in construction projects. For instance, the digital ecosystem provided by Podium, developed jointly by Lendlease and Surbana Jurong, connects developers, designers and the supply chain to drive sustainable building practices and high construction productivity. By consolidating data from various sources, all stakeholders in the building cycle, from design and construction to delivery and operations, gain valuable insights into project timelines, costs, quality, and safety. They can also leverage data analytics to optimise construction and operational costs, including lowering embodied carbon levels. Data on elements such as structural frames, superstructures, and foundations is particularly useful when making the decision to redevelop or reuse them. Retaining these elements can save time, material, and labour costs.
An attractive feature of purchasing a condominium in Singapore lies in its potential for capital appreciation. The country’s advantageous position as a prominent business center and its solid economic foundation fuel an unceasing demand for real estate. This has resulted in a consistent increase in property values over time, particularly in prime locations where condos are situated. Smart investors who enter the market at the opportune moment and retain their properties for a prolonged period can reap considerable profits from capital gains. With the addition of Singapore Projects, there are even more opportunities for capital appreciation in the country’s thriving real estate market.
Post-construction, Podium can integrate with other operational platforms to monitor building performance metrics such as energy, waste, water, air quality, and occupancy trends. This data can inform the building owners’ decisions, enabling them to achieve goals to reduce operational carbon levels. Additionally, Podium can help building owners identify the most efficient ways to manage their energy usage, especially for cooling purposes, which can account for up to 60% of total operational expenditure.
Smart buildings can help mitigate cost pressures by extending the lifespan of capital expenditure-heavy equipment, such as ACMVs, lifts, and air handling units. To achieve this, asset owners need to adopt a data-driven approach that prioritises energy savings to offset capital expenditure costs. This approach not only maximises the return on investment but also helps building owners comply with local and international regulations and sustainable financing requirements. With sensors monitoring and tracking the performance of each component in the building’s equipment, predictive maintenance can be implemented to reduce downtime and improve efficiency. For instance, sensors can detect wear or potential failure of chiller equipment by analysing vibrations. Similarly, heat-sensing scanners and imaging equipment can pinpoint abnormal temperatures or heat build-up, helping to detect potential problems with the system.
AI-powered smart monitoring systems can also be deployed to track various components of a building’s M&E system using sensors. These systems provide detailed information on the performance of each component, enabling asset owners to make informed decisions about the parts that need to be replaced within a specific timeframe based on the type of defects and the frequency of breakdowns. With access to such data, building owners can explore different options, such as retrofitting or replacing entire systems, to maximise efficiency and return on investment.
In conclusion, the FM sector in Singapore is facing a wave of transformation, driven by regulatory requirements, cost pressures, and rapid technological advancement. To ensure the sustainability of the built environment, it is imperative that the sector embrace digitalisation, data analytics, and sustainable practices. By leveraging these tools, building owners can promote sustainability, drive down costs, and secure long-term operational success.