Speech by MOS Tan Kiat How at the Singapore International Facility Management Association (SIFMA) Facilities Management Expert Summit 2021

Wednesday, 8 December 2021

Very good morning. I am very happy to join you today at the inaugural SIFMA FM Expert Summit.

FM industry partners and all of you, have been at the frontline of our battle against COVID-19. It has been a very tough year for all of you, your staff, and especially your team on the ground. I would like to thank all of you for your hard work, commend you for your resilience on behalf of Singapore and Singaporeans.

I am very pleased that SIFMA has made good progress in raising the bar for the Facilities Management (FM) industry since the last time we met at the opening of SIFMA’s office in July. For instance, SIFMA has played an active role in raising the competencies of our FM firms, through its Certified FM Companies (CFMC) accreditation scheme. SIFMA also commissioned the Singapore FM Landscape Study, which will help chart the course ahead for FM transformation.

Pressing on with FM Transformation

We have made good progress in transforming the FM industry. Since the set up the tripartite Facilities Management Implementation Committee (FMIC) in April 2018, we have worked together to raise awareness and adoption of Design for Maintainability (DfM) and Smart FM. These efforts have helped our FM firms kickstart their transformation journey to reduce their maintenance workload, and raise productivity.

These early efforts have enabled our sector to better weather the many challenges brought about by the COVID-19 pandemic. At the same time, the many difficulties that the sector faced during COVID-19, such as manpower disruptions, are a reminder for us to press on with our transformation efforts. We need to better optimise the deployment of manpower and resources in our industry. This entails redesigning lower-wage, manpower-intensive jobs, and improving localisation in our industry.

Apart from accelerating our efforts for DfM and Smart FM, we will need to move towards more Integrated and Aggregated FM in our industry. I have seen for myself how firms can harness efficiencies from managing different FM services on an integrated platform, and aggregating FM services across many different buildings. For instance, I saw CBM Private Limited’s integrated platform at work when I visited them in July.

This platform allows CBM to coordinate multiple FM services, such as cleaning and building maintenance, across its portfolio of buildings at the same time. The adoption of Integrated and Aggregated FM could create more than 20% in manpower savings, and significantly reduce the use of resources such as electricity. These savings will help firms create better jobs with higher wages for locals, such as FM managers that coordinate operations from a central command centre.

Importantly, our collective efforts will play a crucial role in changing public perceptions of FM as an industry, and help us better retain and attract talent. Let me share three areas we can focus on for a future-ready FM industry.

Leveraging Technology, Procurement and People to Transform

First, technology. The adoption of smart technologies can help us automate manual and repetitive tasks, and transform how manpower can be deployed for FM. For instance, robots can be deployed to carry out manual cleaning activities. Workers can then be deployed in higher-skilled roles, such as supervising cleaning operations by using digital platforms to monitor multiple cleaning robots and teams concurrently. Sensors and data analytics can also be integrated with many of these technologies to monitor and even predict issues before they can occur, further reducing the workload for our workers.

We work closely with industry partners to drive the adoption of smart technologies, through initiatives such as the Smart FM Challenge and the Smart FM Proof-of-Concept Grant. But we will need to go further. This includes driving the adoption of Smart FM for existing buildings, and the use of advanced technologies that can enable Integrated and Aggregated FM. The Government will take the lead in these areas. Under GreenGov.SG, all new public sector buildings with floor area above 5,000 sqm will be required to adopt Smart FM by FY2030. BCA is also working closely with agencies such as JTC and MOE to adopt Integrated and Aggregated FM for their buildings, including for their existing buildings. I urge all building owners and FM firms to join us in this effort to adopt more technology in managing your buildings.

Second, procurement. We can enhance the way we procure FM services to encourage the deployment of innovative solutions. Today, some of these procurement practices are not ideal. For example, tendering out FM contracts for a period of less than three years may prevent firms and building owners from investing in solutions that have higher upfront costs, but deliver greater lifecycle savings. Similarly, when contracts are tendered out for a single FM service for a single building, firms and building owners will not reap the benefits of Integrated and Aggregated FM.

That is why we will need the support of building owners and firms to change the current contractual practices. We encourage contract durations to be at least three years, with an option to extend if there is good performance. Contracts can also be aggregated to cover multiple FM services across a number of buildings. At the same time, outcome-based contracting should be adopted to incentivise firms to deliver better services. For instance, building owners could consider providing a bonus payment for FM firms that achieve zero equipment breakdowns or complaints.

BCA will continue to work closely with agencies to undertake these progressive procurement practices for their FM contracts. As a service buyer, I encourage all building owners to incorporate these practices in your new FM contracts. BCA has developed a Guide for FM Procurement, which can be useful as a reference.

Third, people. We will need to upskill the FM workforce to keep pace with our transformation efforts. For instance, workers will need to be trained to use smart technologies, and make sense of data insights to realise their full potential. Under the Built Environment Skills Framework, BCA has worked with SkillsFuture Singapore, Workforce Singapore and industry partners to establish clear progression pathways for the FM workforce. The pathways provide a guide for how FM workers can improve their competencies in key transformation areas, and advance to jobs with higher wage bands. At the same time, we will need to complement upskilling with greater professional recognition through accreditation.

This will allow FM firms to easily identify workers who have taken the initiative to develop skills in these key areas. With better professional recognition, accredited workers will also enjoy better job opportunities across the FM industry. Accreditation will also help to assure service buyers of the quality of FM services provided by the firms.

On this note, I am pleased to announce the launch of SIFMA’s Certified Facilities Management Expert (CFME) scheme, which is aligned with the Built Environment Skills Framework. As a start, the scheme provides accreditation for four tiers of PMET job roles in the FM industry.  At the basic tier, FM executives will be accredited based on technical competencies in key transformation areas including DfM and Smart FM.

At the higher tiers including management roles, FM professionals will need to exhibit strong knowledge in emerging growth areas such as Integrated and Aggregated FM. They are also required to translate that knowledge into a sustainable business strategy for their respective firms, before they can be accredited under the scheme. I encourage our firms to make use of the CFME scheme to build key skillsets in your employees, which will position your businesses to do well as the industry transforms.

Conclusion

The FM industry is an integral part of the Built Environment sector. It ensures our buildings are safe, clean, and well-maintained. With your support in leveraging technology, changing the way procurement is done, and upskilling your workforce, we can position FM as a future-ready industry that brings great value to the spaces that we maintain. This will help us inspire more Singaporeans to take up jobs in our industry, and contribute towards driving greater productivity and sustainability in the Built Environment.

I would like to commend SIFMA for putting together its “See Space Differently” rebranding campaign, which will be launched later at today’s event. This campaign will help to raise the industry’s visibility to more Singaporeans, and hopefully attract a diverse group of young Singaporeans to work in FM jobs.

Finally, I would like to thank SIFMA for inviting me to grace today’s event, and I wish all of you a fruitful time participating in the discussions later. Thank you.