Strategic Analysis of Singapore's Facilities Management Reveals Immense Growth Potential
Increase in manpower costs spurs transformational growth strategies of FM companies in securing new contracts
Research Overview
This study provides an update to a similar study published in 2020. Since 2019, the cost of FM services in Singapore has increased. In 2021, FM vendors anticipate higher inflation rates for all services.
Manpower cost is the main reason for price increase in FM services in 2020. For cleaning and security services, the increase in manpower costs is associated to Singapore’s progressive wage model (PWM). Price increase in FM services is also attributed to improvements of other fringe benefits, such as bonus pay-out.
COVID-19 constraint will be an emerging reason for increased inflation rates in 2020 for all services across all buildings types. Other cited reasons for possible price reduction are bundled contracts, change of contractors and contracts (from conventional to performance-based), price war or competition, and use of technologies that replace manpower.
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