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President of the Association of Strata Managers in Singapore, Teo Poh Siang gives an insight into the strata management landscape of Singapore
May 07, 2024 | Megha S Anthony | Singapore | Community Management
In recent years, the strata industry in Singapore has undergone remarkable evolution, particularly in the realm of strata management and the embrace of digitization. This transformation has prompted industry players to innovate and adapt to new paradigms.
Leading the charge in this dynamic landscape is Wisely 98, a licensed real estate agency and accredited strata firm renowned for its pioneering solutions and expert counsel. At the helm of Wisely 98 stands Teo Poh Siang, the Founding Managing Director, whose extensive experience and visionary leadership have positioned the firm as a trailblazer in the industry. As the current President of the Association of Strata Managers in Singapore, Teo Poh Siang is a respected authority whose insights and contributions have shaped the trajectory of strata management practices in the country.
Talking to REM TIMES, Teo Poh Siang provides an insight into the trends and technology that is streamlining the industry in Singapore.
A concept called Progressive Wage Model (PWM) was introduced by the labour movement in 2012. It was later developed by tripartite committees consisting of unions, employers, and the government. The PWM is based on the key objectives of helping Singaporean workers climb the four ladders of skills upgrading, productivity improvement, career advancement and wage progression. It further aims to help companies make better use of and retain the workforce. The security sector of the strata industry was the first to commence the PWM from 2016. Since then, the PWM has been extended among others, to cover another 4 sectors of the strata ecosystem that include: cleaning service; lift & escalators; landscape and with waste management being the latest sector commencing since July 2023. The wage requirement is mandatory for workers employed under these 5 sectors. The wages for workers employed in these sectors have risen bringing about cost pressure and therefore the increase in levies against the strata owners. Strata owners and elected councils are therefore looking to the strata practitioners for creative solutions in containing cost.
The business cost, especially manpower cost, has risen after the COVID-19 pandemic. There are also rising expectations from subsidiary proprietors, residents and occupants. However, there has been a steady decline in the birth rate in Singapore. Between 2013 and 2017, the decline was 3%, which increased to 4% between 2018 and 2022. Almost all the industries in Singapore faced a shortage of manpower. This was therefore encountered by the strata management industry.
Finding strata managers with the expected skill set may sometimes become challenging. That could also bring about a mismatch in expectation and deliverability.
The scope of work expected from a strata practitioner is wide, broad and deep. There are many disciplines of knowledge and skill sets required to manage any typical strata development. To be professional in his work, a practitioner is required to undergo training and abide by a certain code of conduct.
President of the Association of Strata Managers in Singapore, Teo Poh Siang
To retain business adaptability, we acquired a strata management digital solution about three years ago. It was a complete new tool, requiring everyone from the top management to the lowest level to embrace a change. Certain existing business processes were also required to undergo changes. These changes were painful. With perseverance, we overcame the challenges.
This cloud based digital solution comes with APP and WEB applications, integrated with operational and financial modules, and with a front-end feature for the customers (i.e. occupants). We are particularly excited about the accounts payable feature which allows for supplier invoices to be processed digitally. A direct debit feature for payments of approved invoices, saves time and mitigates human errors. This provides a seamless workflow. The operational module allows occupants and their visitors to use the APP based feature for access into the estate. This same digital solution has also enabled us to reduce the security personnel required onsite and therefore served to contain cost.
The expectations and deliverables must be communicated. Response time and turnover time for repairs should be made transparent. Works that concerned safety (eg lift man trap) and livelihood of occupants (eg power failure) will be granted priority over others. Occupants are concerned about the turnover time for repairs. For example, when there is a planned repair to a certain common facility, say the swimming pool will be shut down for retiling for several months, communications and repeated communications must be sent in advance to prepare the residents. The expected completion date should be made known. It is also recommended that regular communications be made to update occupants on the progress of the repair work. If there were any unexpected delay and a change in completion date is unavoidable, written explanation for the unexpected delay must be provided as soon as the delay becomes evidenced. If there were any negative feedback, action should be taken to verify and to activate service recovery procedure, if needed.
The Association of Strata Managers has an accreditation scheme to train practitioners in strata management. This accreditation scheme is recognised by the Building & Construction Authority. However, it has not become compulsory for whoever wants to conduct business in strata management to be accredited. Accreditation is purely voluntary. There are still a larger number of practitioners choosing not to be accredited, claiming that the current accreditation scheme is not compulsory and there is no regulatory requirement compelling any practitioner to undergo such an accreditation process. The scope of work expected from a strata practitioner is wide, broad and deep. There are many disciplines of knowledge and skill sets required to manage any typical strata development. To be professional in his work, a practitioner is required to undergo training and abide by a certain code of conduct.
There are more than 428,000 condo units in Singapore. Collectively, these are estimated to be worth more than S$428 billion of high value assets. When commercial and industrial strata developments are taken into consideration, the value is even higher. Seeking the service buyers, meaning the management corporations (body corporates), to set accreditation as a criteria in their employment for strata management services is one of the possible strategies. The service buyers are the paymasters. They certainly want trained competent personnel to manage their estates. My company is constantly sending new hires for training to become accredited individuals. The ability to bring value to the table would differentiate the competition.
