Increasing Influx of Foreign Investments Bolsters the SEA Integrated Facilities Management Market, Finds Frost & Sullivan

Wed Feb 27, 2013 11:34pm EST

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Increasing Influx of Foreign Investments Bolsters the SEA Integrated Facilities
Management Market, Finds Frost & Sullivan

- Stringent regulatory environment vital for the market's success

KUALA LUMPUR, Malaysia, Feb. 28, 2013 /PRNewswire/ -- Higher foreign investments in
Southeast Asia and greater awareness about building management have given a thrust to
the integrated facilities management (IFM) market in the region, with Malaysia and
Singapore leading from the front. The strong regulatory support, along with market
initiatives to educate end users about the benefits of IFM, will enhance awareness about
outsourcing FM.

New analysis from Frost & Sullivan (http://www.buildingtechnologies.frost.com
[http://www.frost.com/prod/servlet/svcg.pag/EVBT]), Strategic Analysis of IFM Market in
Southeast Asia, finds that the market earned revenues of US$781.9 million in 2012 and
estimates this to reach US$1.13 billion in 2018.

As the IFM concept grows in popularity in Southeast Asia, regulatory bodies will realize
the importance of regulating FM practices. IFM companies will be compelled to improve
their standard of service to meet regulations and guidelines and in turn, prompt
facility owners outsource FM to specialist IFM companies. A well-regulated market will
help keep costs down and make IFM affordable to most facility owners.

Apart from improved regulations and guidelines, the growing demand from the rising
number of multinational companies (MNCs) setting up operations in the region will also
stimulate the IFM market.

"MNCs influence the local market by enhancing awareness about IFM's environmental
benefits and ability to save costs," saidFrost & Sullivan Energy & Environmental
Research Associate Janice Wung. "As these MNCs offer regional or global contracts to
domestic, specialized FM service providers, business opportunities for IFM companies in
this region are bound to increase."

However, many large multinational IFM companies are hesitant to enter developing markets
due to uncertain profits. They find it safer to focus on developed nations, where there
is a considerable understanding and application of IFM.

Additionally, in developing market, facility owners are reluctant to change their
current methods of facility maintenance. The head-on competition from FM service
providers, including service providers offering single services, hinders the IFM market.

In this scenario, IFM service providers will do well to differentiate themselves from FM
companies. IFM fully integrates all sub-disciplines of FM under one umbrella using IT.
As the new generation of Southeast Asians is technologically and digitally savvy, IFM is
likely to find much higher adoption in future.

"Further, the accelerated development of new commercial and residential space has
created a huge market for IFM, as these buildings are likely to employ more advanced
facilities management systems," noted Wung. "The completion of new projects will
coincide with the escalating popularity of IFM in the local market, brightening the
prospects of domestic participants."

If you are interested in more information on this research, please send an email to
Donna Jeremiah, Corporate Communications, at
djeremiah@frost.com,[mailto:djeremiah@frost.com], with your full name, company name, job
title, telephone number, company email address, company website, city, state and
country.

Strategic Analysis of IFM Market in Southeast Asia is part of the Building Management
Technologies Growth Partnership Service program. Frost & Sullivan's related research
services include: home energy management systems in Japan as well as temporary housing
structures in Singapore and Australia. All research services included in subscriptions
provide detailed market opportunities and industry trends evaluated following extensive
interviews with market participants.

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Strategic Analysis of IFM Market in Southeast Asia 
P69C-19

Contact: 

Donna Jeremiah 

Corporate Communications - Asia Pacific 

P: +61 (02) 8247 8927 

F: +61 (02) 9252 8066 

E: djeremiah@frost.com[mailto:djeremiah@frost.com]

Carrie Low 

Corporate Communications - Asia Pacific 

P: +603 6204 5910 

F: +603 6201 7402 

E: carrie.low@frost.com[mailto:carrie.low@frost.com]

Jessie Loh 

Corporate Communications - Asia Pacific 

P: +65 6890 0942 

F: +65 6890 0988 

E: jessie.loh@frost.com[mailto:jessie.loh@frost.com]
http://www.frost.com [http://www.frost.com/]

Frost & Sullivan

Web site:  http://www.frost.com/
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