Is the Fire Protection Industry in Singapore as Attractive for Search Funds?

Feb 24, 2025 by Kenneth Cheng | Mission Kay Capital’s Principal

Understanding the Fire Protection Industry in Singapore

Fire protection is a critical industry in Singapore, driven by strict regulations, rapid urbanization, and increasing awareness of fire safety. The industry spans multiple segments, including fire prevention, suppression, detection, and safety training. From commercial buildings to industrial facilities, compliance with fire safety standards is non-negotiable, creating a steady demand for fire protection services.

The sector consists of multinational corporations developing cutting-edge fire safety technologies and smaller local firms specializing in system design, installation, and maintenance. While large enterprises dominate manufacturing and product innovation, SMEs play a crucial role in service-based fire protection solutions, ensuring safety compliance and long-term operational reliability.

My Perspective on Fire Safety & Protection

Whilst on the ground, the team and I have noticed whilst fire safety, protection and prevention has been a priority for many larger companies, many of the SMEs operating in Singapore (not all) tend to do the bare minimum to meet regulations and in our previous posts about State of SMEs in Singapore and Malaysia, we know that SMEs account for 99% of businesses here.

My experience at UL Solutions, a global leader in fire safety testing and certification, gave me a deep appreciation for the importance of fire protection. Having worked closely with businesses that prioritized fire safety, I saw firsthand how essential this industry is—not just for regulatory reasons, but for protecting lives and assets. Naturally, my passion for fire safety extends to fire protection, and I see this as an area where an investor-operator like Mission Kay Capital can make a meaningful impact.

Challenges for Search Funds in the Fire Protection Industry

While this sector presents strong opportunities, there are challenges:

Fragmentation & Competition: The industry is highly fragmented, with many small to mid-sized firms competing in service and maintenance.
Regulatory Complexity – Compliance with SCDF regulations requires industry knowledge and adherence to strict licensing requirements.
Skilled Labor Shortage – Certified fire safety technicians are in high demand, making talent acquisition a challenge.
Owner-Dependent Relationships – Many firms are family-run, and transitioning ownership while maintaining client trust can be difficult.
Slow Technology Adoption – Many smaller firms operate manually, lacking automation and digital systems.

Why the Fire Protection Industry is Attractive for Search Funds

No Dominant Player & Slow Consolidation: Despite market fragmentation, there has been no rapid consolidation, meaning an investor-operator can build scale through acquisitions. Unlike industries dominated by a few large firms, fire protection remains highly localized, offering opportunities for a buy-and-build strategy.
Companies operating in the System Design & Installation (SDI) part of the value chain have an advantage on recurring revenue: Fire system installation firms benefit from recurring revenue that come from subsequent regulatory mandated maintenance, inspections and recertification contracts (post installation). Many have operated for decades, ensuring stable cash flow—ideal for a search fund investment.
Recession-Resistant & Long-Term Stability: Fire protection services are compliance-driven and essential, making them resilient to economic downturns. This aligns with the long-term hold strategy that search funds prioritize.

At Mission Kay Capital, we see strong potential in the fire protection industry for search funds and entrepreneurs. We have engaged with several business owners in this space—many of whom run profitable, well-established firms. While they are not yet ready to sell, we continue to build relationships and remain open to opportunities.

Connect with us if you know business owners in the fire protection sector considering succession, we would love to connect.

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