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THIS DOCUMENT IS IN DRAFT FORM, INCOMPLETE AND SUBJECT TO CHANGE. THE
INFORMATION IN THIS DOCUMENT SHOULD BE READ IN CONJUNCTION WITH THE
SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.
INDUSTRY OVERVIEW
The information presented in this section, unless otherwise indicated, is derived from
various official government publications and other publications and from the market research
report prepared by Frost & Sullivan, which was commissioned by us. We believe that the
information has been derived from appropriate sources and we have taken reasonable care in
extracting and reproducing the information. We have no reason to believe that the information
is false or misleading in any material respect or that any fact has been omitted that would
render the information false or misleading in any material respect. The information has not
been independently verified by us, the Sponsor or any of our or their respective directors,
officers or representatives or any other person involved in the [REDACTED] (except Frost &
Sullivan) nor is any representation given as to its accuracy or completeness (except Frost &
Sullivan). The information and statistics contained in this section may not be consistent with
other information and statistics compiled within or outside of Singapore.
SOURCE OF INFORMATION
We have commissioned Frost & Sullivan, an independent market research and consulting
company, to conduct an analysis of, and to prepare a report on the environmental services
industry in Singapore, including the general cleaning services sector, the landscaping services
sector and the waste management and recycling services sector. The report prepared by Frost &
Sullivan for us is referred to in the document as the Frost & Sullivan Report. A total fee of
HK$750,000 was paid to Frost & Sullivan for the preparation of the report, which we believe
reflects market rates for reports of this type.
Frost & Sullivan is a global consulting company founded in 1961 in New York and has over
40 global offices with more than 2,000 industry consultants, market research analysts, technology
analysts and economists.
RESEARCH METHODOLOGY
The Frost & Sullivan Report was undertaken through both primary and secondary researches
obtained from various sources using intelligence collection methodologies. Primary research
involved discussing the status of the industry with certain leading industry participants across the
industry value chain and conducting interviews with relevant parties to obtain objective and
factual data and prospective predictions. Secondary research involved reviewing information
integration of data and publication from publicly available sources, including official data and
announcements from Government Entities, and company reports, independent research reports and
data based on Frost & Sullivan’s own data base.
In compiling and preparing the Frost & Sullivan Report, Frost & Sullivan has adopted the
following assumptions (i) the social, economic and political environment in Singapore is likely to
remain stable in the forecast period; and (ii) industry key drivers are likely to drive the
environmental services industry in Singapore, including the landscaping services sector, the
cleaning services sector, and the waste management services sector in the forecast period.
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SECTION HEADED ‘‘WARNING’’ ON THE COVER OF THIS DOCUMENT.
INDUSTRY OVERVIEW
DIRECTORS’ CONFIRMATION
Our Directors have confirmed that after taking reasonable care, there is no adverse change in
the market information since the date of the Frost & Sullivan Report which may qualify,
contradict or have adverse impact on the information of this section.
OVERVIEW OF THE ENVIRONMENTAL SERVICES INDUSTRY IN SINGAPORE
Introduction of environmental services
The Singapore environmental services industry basically include a few key sectors such as
cleaning services, waste management services, landscaping services, and others. The increasing
demand from the public (such as residential, public facilities, parks, recreation venues) and
private sectors (such as private residential, etc.) helps to drive the upward trend of the
environmental services industry in Singapore with the aid of improving technologies. Strong
endeavors are continuously being made by the Singapore Government and the society to achieve
the ‘‘Garden City’’ vision, which would breed an increasing number of gardens, parks and related
infrastructure so as to enhance greenery of this country and thus create substantial business
opportunity for the landscaping industry in Singapore. Moreover, the rising amount of city wastes
in Singapore calls for more professional and environmentally friendly collection, transport,
disposal and recycling approaches so that the country’s sustained economic development could be
accompanied by balanced environment protections, which would fuel the development of the
waste management industry in Singapore.
Environmental services in Singapore basically include the following major sectors and
categories:
Landscaping Services – Installation and upgrade of sidewalks, walls and fences, pavers, rocks, decks, etc.
– Garden cultivation and maintenance services
– Lawn maintenance services, etc.
Cleaning Services General Cleaning Specialised Cleaning Services
– Public area cleaning services for – High rise cleaning
residential buildings
– Cleaning services for public – Cleanroom cleaning
premises
– Cleaning services for shopping – Dishwashing services
malls, industrial buildings and
factories and schools
– Office cleaning services – One-off post-construction cleaning
– Housekeeping services
– Garbage disposal
– Car park cleaning
– Conservancy services
Waste Management – Collection, transportation and disposal services of general waste, horticultural
waste, chemical and toxic waste
– Collection and sorting services of recycles
– Composite waste management, etc
Others – Pest control and fumigation services
– Desilting services
– Dewatering services
– Washing of treatment units
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INDUSTRY OVERVIEW
Value chain analysis of environmental services industry in Singapore
Upstream Midstream Downstream
Raw material suppliers Environmental services Government Entities
-Tool and machinery suppliers providers (ministries and statutory boards)
-Cleaning equipment suppliers -Landscaping services providers
-Recyclable sorting suppliers Government-linked companies
-Cleaning services providers
(corporate entities where the
-Waste management
Horticulture and construction government owns a stake)
services providers
suppliers Private entities
(commercial, residential, industrial,
Manpower suppliers institutional and others)
Market size by revenue of the environmental services industry in Singapore
The chart below set forth the market size by revenue of environmental services industry in
Singapore from 2015 to 2025 and the Singapore environmental services industry generated a total
market size by revenue of approximately S$3,152.1 million in 2020, at a CAGR of approximately
3.9% from 2015 and is expected to amount to approximately S$4,448.9 million by 2025,
representing a CAGR of approximately 7.2% from 2021. The overall growth of the environmental
services demand is not only attributed to the rising demand of cleaning services, landscaping
services and waste management services for public and private sector projects but also attributed
to the continued and strong supports from the Singapore Government such as the Environmental
Services Industry Transformation Map (ES ITM), which is one of the four ITMs under the Built
Environment cluster in order to drive industry upgrading by investing in productivity and
innovation. NEA also developed and implemented a guide on Price-Quality ratio and a definitive
set of qualitative attributes, with higher weightage on productivity and technology for tender
evaluation of public landscape works. The market size of environmental services industry in
Singapore witnessed a slight decrease in 2020 due to the outbreak of COVID-19. Impacted by the
outbreak of COVID-19, the economy in Singapore will suffer a downturn in 2020, but is expected
to recover in 2021, depending critically on the pandemic fading and the government policy
support. The outbreak of COVID-19 caused some consequences including layoffs, income
declines and fear of contagion, hence triggering further business closures and reducing social
activities. In order to prevent COVID-19 from spreading further, the government prohibited social
gatherings of any size in both private and public spaces during the Circuit Breaker Period.
Looking forward, with the gradual fading of COVID-19 and the expected availability of vaccines,
the environmental services industry will recover in line with the economic activities. Also, the
recover from the virus and higher awareness on hygiene is expected to prompt the sustained
development of environmental services industry, especially for the cleaning sector.
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Market size by Revenue of Environmental Services Industry in Singapore, 2015-2025E
CAGR 2015-2020 2021E-2025E Government Enes
Government Entities 4.2% 6.7%
Million S$ Government-linked Companies
Government-linked Companies 4.2% 7.6%
Private Enes 4,448.9
4,500 Private Entities 3.5% 7.1%
Total 3.9% 7.2% 4,138.5
4,000 3,857.0
3,602.8 1,427.9
3,500 3,374.5 1,335.8
3,178.2 3,152.1
3,020.1 1,251.2
3,000 2,888.5 1,172.2
2,745.7 1,100.6
2,597.6
1,039.7 1,032.4
2,500 941.2 984.5
841.6 890.2 1,630.4
2,000 1,511.6
1,305.6 1,403.0
1,126.7 1,127.7 1,216.6
1,500 1,023.4 1,070.1
919.5 972.1
1,000
1,202.7 1,291.1 1,390.5
500 883.5 923.9 965.4 1,011.8 992.0 1,057.4 1,125.0
836.5
0
2015 2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E
Source: Frost & Sullivan Report
Market size by revenue of the landscaping services sector
The landscaping services sector is greatly driven by the national vision of ‘‘Garden City’’
which was first introduced in 1963 to transform Singapore into a city with abundant lush greenery
and a clean environment in order to make life more pleasant for the people. The implementation
process of this vision has gone through several phases from tree planting to park creating, which
generated substantial demand for landscaping services to implement related infrastructure setup
and deal with the maintenance on regular basis. In addition to rising number of gardens being
continuously established in lots of private residential communities (partially driven by the
‘‘Community in Bloom’’ initiatives), the increasing supply of public spaces provide strong driving
forces for the demand growth of landscaping services in Singapore. Going forward, with the
announcement of the One Million Trees movement in March 2020, NParks is partnering the
community to plant a million trees across the island over the next decade; and the Landscape
Sector Transformation Plan announced in May 2019 will equip the landscape workforce with
higher-value skills so as to lift the sector to another level, necessary to transform Singapore into a
City in Nature, which therefore indicating a promising outlook for the landscaping sector.
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Market size by Revenue of Landscaping Services Industry in Singapore, 2015-2025E
CAGR 2015-2020 2021E-2025E Government Enes
Government Entities 4.6% 9.1%
Million S$ Government-linked Companies
Government-linked Companies 4.3% 9.3%
Private Enes
300 Private Entities 3.2% 7.5%
Total 4.1% 8.7% 272.0
249.7
250 229.5
211.1 95.7
200 195.1 194.5 87.5
182.0 178.9 80.1
170.5
157.9 73.4
146.6 67.6 67.4
150 62.0 61.8
57.0
53.0 100.5
49.4 91.8
100 76.9 84.0
64.9 69.8 64.3 70.4
56.2 60.7
52.2
50
60.8 65.4 70.4 75.8
45.0 48.7 52.9 55.1 57.8 52.8 56.7
0
2015 2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E
Source: Frost & Sullivan Report
Market drivers and opportunities of the landscaping services sector
i) Increasing supply of landscaping infrastructure
Rising supply of parks and other open spaces in Singapore provides strong support for the
continuous demand for landscaping services in this market. In 2013, the Ministry of National
Development (MND) released the Land Use Plan 2030 that outlines the strategies to provide the
physical capacity to sustain a high-quality living environment for more population by 2030. In
this plan, it tries to integrate greenery into the living environment by expanding park connectors
to 360 kilometres by 2020 and having 85 percent of homes within a 10- to 15-minute walk of a
park by 2030. Also, the National Parks Board (Nparks) indicates that the sustainable Singapore
blueprint targets for 2030. From 2015 to 2019, the total area of regional parks maintained by
Nparks increased from 3,129.8 hectares to 3,274.2 hectares and benefiting from the aforesaid
government initiatives, it is expected to further grow in the foreseeable future. The increasing
total maintained area of public parks, playgrounds, and related open space will require regular and
comprehensive landscaping services which further promote the development of landscaping
services sector. Moreover, Nparks will work with the community to carry out the One Million
Trees movement announced in March 2020 to plant more than a million trees across Singapore
over the next 10 years, bringing the number of trees in Singapore to more than 8 million
throughout the whole of Singapore including streetscapes, gardens, parks and park connectors,
nature reserves and nature parks, etc. This movement will bring sustainable demand for
landscaping services over the next few years.
Going forward, the park provision ratio is expected to increase to 0.80 hectare/1000
population in 2030, compared with 0.79 hectare/1000 population in 2019. In addition, it is
expected that as compared to the 120 hectares of skyrise greenery, 130 kilometres of nature ways
and 1,500 Community in Bloom Gardens in 2019, there will be 200 hectares of skyrise greenery,
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180 kilometres of nature ways and 2,000 Community in Bloom Gardens in 2030. Hence, the total
maintained area of public parks, playgrounds, and related open space will grow further in the
future.
In the private sector, with the increasing awareness of skyrise greenery and green building, a
growing number of developers would like to build or retrofit buildings with extensive green roofs,
edible gardens, recreational rooftop gardens, and lush verdant green walls. Funded by the Skyrise
Greenery Incentive Scheme (SGIS) and SGIS 2.0 developed in 2009 and 2015 respectively, the
number of skyrise greenery projects which involve rooftop greenery and vertical greenery for the
private commercial and industrial buildings is on a rise, thus generating more market
opportunities for Singapore landscaping services providers. Therefore, coupled with the
increasing units of available private residential properties and executive condominiums in
Singapore, the demand for the landscaping services in the private sector will keep growing and
the market size will expand further.
ii) Strong government supports
In order to promote the development and growth of the landscaping industry, the Singapore
Government has promulgated and introduced many incentive schemes and policies. For instance,
the Landscape Productivity Grant (LPG) Scheme, since administered by the Centre for Urban
Greenery & Ecology (CUGE) in 2013, has committed approximately S$3.6 million to support
more than 50 companies under the first tranche, each company could receive up to 50% funding
or a maximum of S$100,000. The LPG scheme aims to encourage landscape companies to
purchase landscape equipment. To provide more support for landscaping businesses investing in
innovation and productivity, the second Landscape Productivity Grant was also announced with
several enhancements. Landscape companies are eligible to seek funding of up to S$300,000,
triple the S$100,000 cap allocated under the first scheme. The increased cap comprises a
mechanisation and technology cap of S$200,000, and a new funding category of S$100,000 for
innovation projects undertaken with Institutes of Higher Learning (IHLs) or equipment companies
to develop, adopt and implement innovative solutions. Meanwhile, the Singapore Government has
launched and introduced a series of campaigns for creating and maintaining a green economy,
such as the Clean and Green Singapore (CGS) by the NEA. In 2018, The LPG scheme has been
streamlined into the Productivity Solutions Grant (PSG) which helps businesses navigate the
grants landscape more easily.
In May 2019, Nparks launched Singapore’s Landscape Sector Transformation Plan (LSTP),
which is a holistic 10-year transformation plan that aims to further grow and elevate the landscape
sector through digitalisation, mechanisation and professionalisation. The LSTP will equip the
landscape workforce with the higher value skills necessary for greenery and landscape
management in Singapore’s biophilic City in a Garden where pervasive greenery became part of
the urban landscape. Accompanying the enhancement of greenery and strengthening of urban
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ecosystems, the sector is expected to grow up to 30% by 2030 in terms of revenue. Hence, the
strong government supports would further drive the industry activities and the growth for
landscaping services in Singapore.
Market size by revenue of the cleaning services sector
With the fast growth of Singapore’s economy and the rising awareness of seeking
professional cleaning service providers to deal with household or public area cleaning, the
demand for cleaning services sector continued to expand. Also, the outbreak of COVID-19
continued to drive the increase of the cleaning services sector in Singapore. In 2015, the market
size by revenue was S$1,653.1 million and increased to approximately S$2,099.4 million in 2020,
demonstrating a CAGR of approximately 4.9% during this period. Going forward, the continuous
demand from downstreams would further drive the industry growth together with the improving
technology applied in the work such as using automated cleaning robots to improve cleaning
efficiency and reduce labour costs. The units of available private residential properties and
executive condominiums in Singapore have been increasing in the past few years and are
expected to keep growing further, and therefore creating more spaces where cleaning services are
required. Such downstream demand is expected to increase tender opportunities and project flows.
Despite that the cleaning services sector is expected to witness a decreasing growth rate in 2020
due to the outbreak of COVID-19, the raising hygiene awareness developed during this period is
forecasted to further prompt the development of cleaning services upon the recovery from the
virus. The market size by revenue of the cleaning services sector is expected to reach
approximately S$2,963.4 million in 2025, at a CAGR of approximately 7.2% from 2021.
Market size by Revenue of Cleaning Services Industry in Singapore, 2015-2025E
CAGR 2015-2020 2021E-2025E Government Enes
Government Entities 5.1% 6.8%
Million S$ Government-linked Companies
Government-linked Companies 5.0% 7.5%
Private Enes 2,963.4
3,000 Private Entities 4.6% 7.1%
Total 4.9% 7.2% 2,756.0
2,569.0
2,500 2,400.0
2,248.1 1,026.9
2,064.8 2,099.4 959.7
1,953.9 898.4
2,000 1,850.4 841.8
1,745.7 789.5
1,653.1 739.1
726.1
686.3
1,500 611.9 651.7
577.3 1,082.9
1,004.3
869.0 933.1
1,000 755.5 810.1
700.6 740.5
625.7 663.7
592.2
500 853.6
648.4 689.2 737.4 792.0
483.6 508.1 534.9 567.1 598.3 604.8
0
2015 2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E
Source: Frost & Sullivan Report
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Market drivers and opportunities of the cleaning sector
i) Growing demand from construction of commercial and residential buildings
In recent years, Singapore’s economy growth has driven the development of Singapore
construction industry and the increasing number of new buildings brings new opportunities for the
Singapore cleaning services market. In the public sector, the increasing demand from construction
of airport, parks and other public areas has brought many development opportunities for the
cleaning and housekeeping services providers. Also, the number of properties under the
management of HDB recorded a growth rate at CAGRs of approximately 1.8% from 2015 to
2019 and 1.6% from 2020 to 2025. On the other hand, with the increasing living standard and
rising awareness of professional cleaning, there is a growing demand for cleaning services from
residential, commercial and office buildings. The spaces of offices, retails, factories and
warehouses steadily increased at CAGRs of approximately 1.5%, 0.6%, 1.8% and 4.5% from 2015
to 2020, respectively, and they are expected to grow at CAGRs of 1.3%, 0.8%, 1.7% and 4.4%
from 2021 to 2025, respectively. Overall, the increasing construction demand from Government,
government-linked companies and private entitles has boosted the demand for cleaning services
and would continue to drive the demand of this sector over the next few years.
ii) Increasing support from government on advanced technologies
The cleaning service providers are trying to improve and optimize their service delivering
approach and model by introducing more advanced equipment or machineries such as smart
cleaning machines and more professional vehicles so that the operational efficiency could be
enhanced with lower labour costs incurred. Meanwhile, the Singapore Government is
promulgating a series of incentive schemes and related supports to optimize the industry structure
and encourage the application and deployment of automation technology in this sector. For
instance, in April 2016, the Info-communications Development Authority of Singapore (IDA)
along with the Workforce Singapore (WSG) and the Environmental Management Association of
Singapore (EMAS) introduced Robot-as-a-Service (RaaS) pilot solution to the cleaning service
sector in order to redesign workflow process by deploying robots to perform routine, time-
consuming, and repetitive tasks, while also prevent work-related accidents and personal injury and
therefore transform the cleaning landscape to become manpower lean. Also, the Environmental
Services Industry Transformation Map (ES ITM) launched by NEA in December 2017 has issued
the INCUBATE initiative, which stands for ‘INnovating and CUrating Better Automation and
Technologies for Environmental Services’. The INCUBATE embodies the partnership between the
technology providers and services providers, premises owners, and the government, to collectively
innovate and curate better technologies, solutions and innovations for the environmental services
industry. In this case, janitors from business can also be re-trained and appointed as technicians to
manage multiple robotised machineries at the same time.
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Market size by revenue of the waste management services sector
Growths in Singapore’s population and economy have contributed to the large amount of
waste in various sectors, and the amount of solid waste generated in Singapore has remained
above 7.2 million tonnes in the past five years. Singapore has a well-established waste
management mechanism with strong capabilities in every phase of the process from waste
collection, transports, sorting and recycling to landfill or incineration. Also, Singapore has a high
waste recycling rate of approximately 59% in 2019, which is expected to further grow in the
future since the NEA aims to work towards transforming Singapore into a Zero Waste Nation and
reach an overall recycling rate of 70% by 2030. The waste management services sector reached a
market size by revenue of approximately S$635.4 million in 2019, decreased to S$595.6 million
in 2020 due to the impact of COVID-19, and is expected to recover and grow to S$822.9 million
by 2025, at a CAGR of 6.7% from 2021.
Market size by Revenue of Waste Management Services Industry in Singapore, 2015-2025E
CAGR 2015-2020 2021E-2025E Government Enes
Government Entities 1.3% 6.1%
Million S$ Government-linked Companies
Government-linked Companies 1.4% 7.0%
Private Enes
900 Private Entities 1.1% 6.7%
Total 1.3% 6.7% 822.9
800 769.2
720.3
700 675.9 197.5
635.4 635.7 185.9
584.4 593.2 608.1 595.6 175.1
600 559.2 165.0
159.4 155.7
141.7 143.1 151.0 146.6
500 137.5 312.6
291.4
400 272.2
235.7 238.7 254.8
216.3 219.5 225.4 222.2
300 207.2
200
273.1 291.8 312.9
100 214.5 226.4 230.6 231.7 240.3 226.7 241.3 256.2
0
2015 2016 2017 2018 2019 2020 2021E 2022E 2023E 2024E 2025E
Source: Frost & Sullivan Report
Market drivers and opportunities of the waste management sector
i) Support from the Singapore Government
The amount of solid waste generated in Singapore reached 7.2 million tonnes in 2019. In
order to manage the solid waste and support the development of the waste management industry,
the Singapore Government has implemented various policies such as the Environmental Service
Industry Transformation Map (ES ITM) for waste management and cleaning sectors, which NEA
has developed different strategies to transform the industry to improve productivity, promote
growth, and create better jobs. The ES ITM provides opportunities for technology collaboration
and adaptation in the waste management sectors, such as using on-site food waste digesters to
increase productivity and reduce costs. Also, smart bins and power assisted janitor carts that
reduce the workload of cleaning staff and make cleaning more efficient. The ES ITM also stresses
the role of waste recycling services and aims to improve the weights of recycling services in the
waste management industry, thereby driving the demand for comprehensive range of services
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spanning across waste collection, disposal, and recycling. With the increase in recycling activities
in the community and the continual focus in improving productivity as supported by the
government, the environmental service providers are encouraged to develop efficient and
innovative waste management and recycling services to meet the demand. Moreover, the Skills
Framework that jointly developed by SkillsFuture Singapore (SSG), Workforce Singapore (WSG),
and NEA, together with industry associations, training providers, organisations and unions
promotes skills mastery and lifelong learning for skills and career development to enhance
business competitiveness and support employment and employability in the environmental
services industry includes sectors such as cleaning operation, waste collection, pest management,
etc.
ii) Trend of waste recycling and environmentally-consciousness
NEA aims to work towards transforming Singapore into a ‘‘Zero Waste Nation’’, and reach
an overall recycling rate of 70% by 2030 from 59% in 2019. The Singapore Government
encourages the practice of 3R (Reduce, Reuse, Recycle) in different premises. For example, the
National Recycling Programme launched in 2001 required public waste collectors licensed by
NEA, namely ALBA W&H Smart City Pte Ltd, SembWaste Pte Ltd, Veolia Environmental
Services Singapore Pte Ltd, and 800 Super Waste Management Pte Ltd, to provide recycling bins
and recycling collection services to all HDB estates, private landed properties and condominiums
or private apartments. Meanwhile, with the development of environmentally-consciousness
globally, people are looking for a full service that could deliver customised treatment program
for high volume, difficult to treat waste streams than a waste disposal service. With the
promotions and practices from Singapore Government and to cater the trend of waste recycling,
the provision of enhanced waste management services is expected.
COMPETITIVE LANDSCAPE ANALYSIS
According to the Frost & Sullivan Report, the environmental services industry in Singapore
is very fragmented with the top 10 players accounting for approximately 24.3% of the market
share in 2020 and there are over 600 players in the Singapore environmental service market. Our
Group ranked the tenth largest player by way of revenue in the Singapore environmental services
industry with a market share of approximately 0.7% in 2020. For the competitive strength of our
Group, please refer to the section headed ‘‘Business – Competitive Strengths’’ for a detailed
discussion.
There are very few service providers that could simultaneously cover all these major sectors
of the environmental service industry. The current industry is evolving for market players to
enhance their service offering and operate their businesses more efficiently.
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TOP 5 Environmental Services Providers in Singapore, 2020
Source: Frost & Sullivan Report
TOP 10 Environmental Services Providers with Their Market Shares and Rankings in Three
Segments of Environmental Services Industry in Singapore in term of Revenue, 2020
Landscaping Cleaning Waste Management
Group Market Share Ranking Market Share Ranking Market Share Ranking
Group A 11.1% 1 4.7% 1 11.7% 2
Group B n/a n/a n/a n/a 25.2% 1
Group C n/a n/a 3.7% 2 n/a n/a
Group D n/a n/a 3.6% 3 n/a n/a
Group E n/a n/a 1.2% 7 3.8% 4
Group K n/a n/a n/a n/a 4.2% 3
Group I n/a n/a 2.3% 4 1.6% 9
Group J n/a n/a 2.2% 5 n/a n/a
Group M n/a n/a 1.7% 6 n/a n/a
Our Group 4.0% 5 0.5% 13 0.9% 10
Source: Frost & Sullivan Report
Meanwhile, as of 2020, there are over 100 companies in Singapore providing landscaping
services and our Group ranked the fifth largest player in terms of revenue with a market share of
4.0% in 2020. The chart below sets forth the top five landscaping services providers in Singapore
in 2020:
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TOP 5 Landscaping Services Providers in Singapore, 2020
Source: Frost & Sullivan Report
The cleaning service sector in Singapore is very fragmented with top 15 players accounting
for approximately 25.1% of the market share in 2020 and there are over 350 companies in
Singapore as of 2019 providing cleaning services for various customer sectors. Our Group ranked
the thirteenth place in terms of revenue amongst the cleaning sector in Singapore in 2020 with a
market share of approximately 0.5%.
TOP 5 Cleaning Services Providers in Singapore, 2020
Ranking Group Market Share Revenue (S$ Million)
1 Group A 4.7% 99.4
2 Group D 3.7% 77.6
3 Group C 3.6% 75.4
4 Group I 2.3% 48.4
5 Group J 2.2% 44.4
.. ..
. .
13 Our Group 0.5% 10.8
Source: Frost & Sullivan Report
There are over 150 companies in the waste management services industry in 2020 and the
top 10 players accounted for an aggregate market share of approximately 58.6%. Our Group
ranked the tenth largest player in terms of revenue with a market share of approximately 0.9%.
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TOP 5 Waste Management Services Providers in Singapore, 2020
Ranking Group Market Share Revenue (S$ Million)
1 Group B 25.2% 150.3
2 Group A 11.7% 69.6
3 Group K 4.2% 25.3
4 Group E 3.8% 22.9
5 Group L 3.5% 20.9
.. ..
. .
10 Our Group 0.9% 5.3
Source: Frost & Sullivan Report
Notes:
1) Group A is an established environment services provider for public and private sectors in Singapore. The
company was listed on the Singapore Exchange Securities Trading Limited in 2011 and delisted in August
2019. Its environmental services include waste management and waste treatment, cleaning and conservancy,
horticultural services and industrial laundry processing. The company is one of the four licensed public waste
collectors appointed by the National Environment Agency. The company served or is serving nearly 40
customers including government departments and statutory bodies, institutions, commercial and industrial
customers and individual households. Its major customers include but not limited to National Environmental
Agency, Ministry of Education, National Parks Board, People’s Association, Singapore Police Force, etc.
2) Group B, incorporated in 1995, is part of a public company named Sembcorp Industries Limited listed on the
Singapore Exchange Securities Trading Limited, a leading energy, urban development and marine group,
operating across multiple markets worldwide. Group B is an integrated solid waste management service
provider in Singapore. It offers a comprehensive suite of services to the municipal, industrial and commercial
sectors. Its range of solid waste management services includes (a) waste collection comprising the (i) public
waste collection and (ii) general waste collection; and (b) conversion of recycled wood into wood chips.
3) Group C, founded in 1988, is an integrated environmental solutions specialist and professional cleaning
company in Singapore. The company helps clients in property facility maintenance, while preventing health
risks and ensuring environment sustainability.
4) Group D, incorporated in 1991, is a public company listed in The Stock Exchange of Hong Kong Limited in
July 2020. It is an established general cleaning service provider in the environmental services industry
headquartered in Singapore with operations in both Singapore and Thailand. The company primarily provides
general cleaning works for a variety of public and private venues in Singapore and private customers in
Thailand.
5) Group E, established in 1971, is a public company listed in Singapore Exchange Limited. The company is
specialised in waste management services in Singapore that has pioneered many innovative value-added
services which include the fully mechanized waste disposal vehicles and portable waste compactors used in
the industry today. The company specialises in waste disposal for a wide portfolio of clients including
commercial offices, shopping complexes, food courts, cineplexes, residential buildings and warehouses.
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INDUSTRY OVERVIEW
6) Group F, established in 1971, is one of Singapore’s largest landscaping contractors and golf management
specialists. Its landscaping services include landscape design, implementation and maintenance, urban park
management and maintenance, arboriculture consultancy, management and maintenance; its golf course
services include planning, design, management, construction, renovation and maintenance of golf courses.
The Company submitted its IPO application to The Stock Exchange of Hong Kong Limited in February 2020
but its IPO submission has lapsed as at the Latest Practicable Date.
7) Group G, incorporated in 2003, provides reliable and quality commercial landscaping services in Singapore.
Its services include landscape maintenance, horticulture services, arboriculture services, turf management,
grass cutting, tree pruning, tree cutting and tree removal.
8) Group H, founded in 1990, is primarily involved in landscaping, recycling, horticulture waste management
and maintenance. Its services include nursery planting, landscape maintenance, arboriculture, floral service,
green waste disposal recycling, rental of equipment and consulting service.
9) Group I, incorporated in 1985, offers services included custodial & janitorial services, external facade
cleaning services, landscaping & horticultural services, pest management services and waste management
services.
10) Group J, established in1994, provides a range of comprehensive solutions for the cleaning industry in
Singapore. Their cleaning solutions included conservancy cleaning, commercial & industrial cleaning,
institutional cleaning and external facade cleaning.
11) Group K, founded in 1997, is a global leader in optimized resource management, providing innovative waste,
water and energy management solutions. The company works across the whole spectrum of environmental
services including integrated waste and recycling management of hazardous and non-hazardous waste,
industrial services, public cleansing and water management.
12) Group L, incorporated in 2004, is dedicated in providing an efficient and environment friendly waste
management solution which include waste collection and disposal solution and recycling services.
13) Group M, established in 1994, primarily provides housekeeping services, cleaning services and pest control
services to the industrial, commercial buildings & residential condos.
Threats and Challenges
i) Shortage of labour supply
The environmental services industry is labour intensive and requires a substantial amount of
staff. The local labour force in Singapore is limited and more costly. The average income for
local employees in the environmental services industry is usually below the average level in
Singapore, so this industry may be less attractive to Singapore residents than other industries.
Singapore environmental services providers therefore prefer to employ foreign workers that
significantly allow them to reduce their costs and better control their overall expenditure.
However, the Singapore Government has been tightening entry conditions for foreign workers in
order to manage foreign worker dependence and encourage enterprises to upgrade local workers.
Foreign workers have to apply for work permits in Singapore, which restricts the nationalities,
ages, and maximum period of employment of workers. Also, the number of work permit holders
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that enterprises could hire is limited by quota (or dependency ratio ceiling) and subject to a levy.
In Singapore, foreign work permit requirements vary by sector. The dependency ratio ceiling
(DRC) currently for the construction sector has been 87.5% for the past years; while the DRC for
services sector was reduced from 40% in 2019 to 38% in 2020 and to 35% in 2021. The levy
rates are tiered so that those who hire close to the maximum quota will pay a higher levy. The
Ministry of Manpower has increased the levy for work permit holders in the services and
construction sectors in 2016 and 2017, though remained unchanged in the following years. Hence,
the labour supply may be adversely affected and bring challenges for service providers in this
industry.
ii) Employee retention issue
The environmental services providers rely heavily on their personnel as the quality of their
performance that directly determines whether the customers are satisfied or not. Also, services
providers who would like to expand and grow their business tend to hire more full-time
employees, because finding on-demand and temporary helpers for large projects can sometimes
create other issues. However, the hiring and training process for full-time employees can be time-
consuming and costly. Hence, recruiting and retaining reliable employees are becoming a top
challenge for the environmental services providers. Since the competition in the environmental
services industry is fragmented, employees can easily leave and switch their jobs because of a
higher salary rate or better benefit plan. The environmental services providers will need to focus
more on their employees’ needs including not only incentives but also emotional and social
support.
Entry Barrier
i) Sufficient and continuous capital and high labour cost for projects
A significant amount of capital to finance equipment investment and labour cost is required
in environmental services industry in Singapore. For cleaning services industry and landscaping
services industry, the consistent rising labour cost, and the high initial start-up cost of purchasing
advanced equipment and material, payment for performance deposit, subcontracting charges and
providing comprehensive worker training program are barriers for new comers. As for the waste
management services industry, capital investments for advanced equipment and R&D are
necessary for market players to hold competitive advantages in the industry. Therefore, it is
critical for the environmental providers to have a sound financial condition and sufficient working
capital to maintain daily operation and implement works.
ii) Techniques for providing high quality services
Professional techniques are also regarded as a barrier in environmental services industry.
The landscaping services industry involves many disciplines and numerous fields of expertise,
such as landscape architecture, botany, architecture design, garden design and construction
techniques, planting and conservation techniques, and ecological restoration techniques. The
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landscaping services industry also belongs to the construction engineering business which
illustrates a wide range of core tasks such as business contracting, engineering design,
implementation and maintenance. Only enterprises with mature and comprehensive business
system can offer high quality services such as technical solution design ability, cost measurement
and project quotation ability. New entrants without accumulated professional skills will encounter
technical barriers in the industry.
iii) High standard in building solid business network
Environmental services industry requires long-term solid business network, especially the
waste management services industry which requires the service providers to have a business
network from the beginning stage of waste collection to the end stage of waste processing.
Upstream suppliers such as waste collection service providers need to conduct on-site sorting and
collection of waste, which then transferred by logistic service providers to different waste
management services providers that concentrate in different types of processing methods.
Securing the influx of necessary waste volumes in order to reach and maintain at least the
minimum, or ideally the optimal, scale is perhaps the most critical barrier to entry into the market
for waste treatment. It is difficult for new entrants to establish a trustworthy and long-term
business relationship with both upstream and downstream participants in order to maintain a
stable business operation and stay competitive in the market.
Cost Analysis
i) Labour cost analysis
The environmental services industry is inherently labour intensive and labour costs generally
accounted for a significant part of the costs in the whole service process. In Singapore, foreign
workers play an important role as the local labour force is limited and more costly. The average
monthly income for each sector in the environmental services workers in Singapore has
experienced continuous growth in the past few years and is expected to further increase going
forward.
Local workers are generally paid with higher salaries than foreign workers in the
environmental services industry. The waste management service workers usually enjoy much
higher wages than other two sectors, and the difference between the cleaning service workers and
landscaping service workers is insignificant.
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INDUSTRY OVERVIEW
Average Monthly Income of Environmental Services Workers (Singapore), 2015-2025E
Average Monthly Income of Landscaping Service workers (Singapore), 2015-2025E
Average Monthly Income of Cleaning Service workers (Singapore), 2015-2025E
Average Monthly Income of Waste Management Service workers (Singapore), 2015-2025E
Source: Frost & Sullivan Report
ii) Refuse disposal fee
In Singapore, the waste cannot be recycled would be transported to waste-to-energy plants
for incineration while the incinerated ash and other non-incinerable wastes are then transported to
the Tuas Marine Transfer Station (TMTS) for the barging operation to Semakau Landfill where
they are disposed of. Refuse disposal facilities in Singapore consist of TIP, TSIP, KSTP, SWTE,
TMTS/SL. The latest refuse disposal fees are S$77 per tonne for TIP, TSIP and KSTP, S$81 per
tonne for SWTE, and S$97 per tonne for TMTS/SL.
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