Press Release Description

Malaysia Facility Management Market to Fuel Due to Surging Government Focus for Developing Tourism Industry

The Malaysia Facility Management Market is projected to grow at a CAGR of around 5.67% during the forecast period of 2023-28, says MarkNtel Advisors in their recent research report. The major factors igniting the market growth are rapid growth in the commercial sectors contributed by the surge in hospitality & ICT industries. Malaysia has been experiencing significant growth in tourist arrival due to government support & initiatives, leading to a rise in the construction of hotels, retail stores, and other conventional & recreational destinations. According to the Malaysia Tourism Promotion Board (MTBP), tourist arrival in Malaysia has grown from around 4.33 million in 2020 to approximately 10.07 million in 2022. The Malaysian government has outlined several strategies in the Twelfth Malaysia Plan (12MP), including the restoration of tourist confidence to travel safely in a post-pandemic world & providing better quality products & services such as ecotourism & community-based cultural immersion activities.

In addition, the initiation of a ten-year transformation plan for the tourism industry, called the National Tourism Policy (NTP) 2020-2030, would further play a key role in the expansion of the tourism industry in Malaysia. The NTP, such as smart tourism has been formulated to position the country as among the top ten tourist destinations in both arrivals & receipts, further attributing the ripple in hospitality & tourist destination places. According to the Malaysian Investment Development Authority (MIDA), the government approved nearly 29 projects comprising an investment of around USD 820 million for constructing hotels, theme parks, conventional centers, and others to promote the tourism industry in the coming years. Thus, to ensure the efficient operation & security of the buildings & infrastructure, the demand for facility management services would grow considerably in Malaysia.

Moreover, the heightened integration of technologies such as Artificial Intelligence (AI), Internet of Things (IoT), robotics, etc., in recent years, to enhance performance along with effectively managing documentation & ensuring a high level of satisfaction is supporting the growth of the market. The integration of AI algorithms would help the organization reduce the cost of operations of HVAC, security, and other systems, further enriching their efficiency. AI can be used for space optimization & space planning of organizations based on the number of employees, sensors, and usage of previously available data.

The rising Foreign Direct Investment (FDI) in the country for strengthening the country’s position as a regional & global business hub has led to the expansion of industrial & commercial sectors. The inflated FDI would be subsequently used in the country's infrastructural development by developing new hotels, hospitals, and entertainment facilities, among others, which would drive the market in the following years, further states the research report, “Malaysia Facility Management Market Analysis, 2023.”

Hard Facility Management to Account for the Potential Market Share

Based on the type, the market is bifurcated into Hard, Soft, Risk, and Administrative. Among them, Hard facility management secured the dominating share in the past years & is anticipated to follow the same trend during the forecast period as well. Hard facility management services are on the rise in the nation due to the rapid construction of building infrastructure, particularly for the residential, energy, and commercial sectors. The government of Malaysia is making efforts to revive the travel & tourism & manufacturing sectors after the downfall caused due to COVID-19 pandemic. Hence, the expansion of the retail, commercial & industrial sectors in the country boosted the demand for the installation & maintenance of air conditioning, plumbing, and electrical systems, further attributing to the expansion of hard services.

Integrated Services to Dominate the Market in the Near Future

Based on service delivery, the market is fragmented into Single, Bundled, and Integrated. Of them, Integrated services held a significant market share during 2018-2022 & would hold a strong footprint in the forthcoming years as well. This is owing to their lower total contract costs & the ability to access several services under a single contract. The country's expanding development in several industries, including business, retail, healthcare, and hospitality, has been a key element in the expansion of integrated services in the Malaysia Facility Management Market.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market players, JLL Facility Management, AWC Berhad, Sepadu Group, Harta Maintenance Sdn Bhd, Zelan AM Services Sdn Bhd, PMC Facilities & Real Estate, CBRE, RPH Global Property Management, KLCC Property Holdings Berhad (KLCCP), MST Facilities Sdn Bhd are looking forward to strengthening their market position.

Key Questions Answered in the Research Report

  1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
  2. What are the trends influencing the current scenario of the market?
  3. What key factors would propel and impede the industry across the country?
  4. How has the industry been evolving in terms of geography & product adoption?
  5. How has the competition been shaping across the country?
  6. How has the buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2018-28?
  7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?