[MTE] [Apr 2025] [P1] Strategic BCM for Security: Navigating PWM, Client Demands, and Beyond

Part 1: Strategic BCM for Security: Navigating PWM, Client Demands, and Beyond

In today’s rapidly evolving security industry, private security companies, particularly in Singapore, navigate a landscape marked by escalating costs, labour shortages, and industry transformations.

Business continuity management (BCM) is increasingly critical to solving these challenges.

This article explores the strategic aspects of BCM, focusing on the Progressive Wage Model (PWM), the evolving client demands, and how businesses can adapt to these pressures to survive and thrive.

The Perfect Storm in Private Security

Singapore's security industry faces multiple challenges simultaneously, which can be described as the "perfect storm." Key factors impacting the sector include:

Rising Costs

The Ministry of Manpower introduced the Progressive Wage Model (PWM), which means security officers receive higher wages, increasing security companies' operational costs.

Manpower Crunch

The difficulty in sourcing qualified personnel further exacerbates the situation. With the demand for skilled workers surpassing supply, companies face a significant labour shortage.

Technological Transformation

The government’s push for industry transformation through the Security Industry Transformation Map encourages technology adoption for efficiency and innovation.

However, rising costs and insufficient manpower make this transition challenging.

Outcome-Based Contracts

Clients increasingly seek security solutions based on outcomes rather than headcount.

This shift means that companies must find ways to deliver results while minimising the number of staff deployed, adding another layer of complexity.

The Changing Role of BCM in Security

Traditionally, business continuity in security companies was treated as a compliance requirement—something necessary to check off a list for licensing purposes.

However, this reactive approach is no longer sufficient. In the face of rising costs and labour shortages, BCM must evolve into a proactive strategy that supports long-term business sustainability.

Current BCM Practices

Security companies are graded on their BCM practices in Singapore. Historically, companies were rated with an A to D grading system, but recently this has shifted to a pass/fail evaluation.

BCM has become a part of this grading, and simply having a plan is no longer enough. While BCM is often outsourced to consultants and may involve tabletop exercises, this traditional, compliance-focused approach does not meet the modern demands of the security industry.

The Need for Transformation

To remain competitive, security firms must move beyond basic compliance and view BCM as an integral part of their business strategy.

Rather than treating BCM as an overhead cost, it should be viewed as an investment that enhances the company's ability to manage risks, ensure continuity, and build client trust.

Addressing Client Demands through Strategic BCM

Clients are increasingly demanding more than security officers, looking for outcomes. This shift from a focus on headcount to outcome-based security solutions requires a strategic rethinking of how BCM is implemented and integrated into operations.

Outcomes Over Headcount

Outcome-based contracts offer flexibility in delivering security services. Companies must ensure that the desired security outcomes are achieved, whether with fewer staff or more efficient technology solutions.

This is where BCM becomes a key enabler, ensuring that operations are resilient and adaptable to changing client needs.

Building Trust with Clients

By integrating BCM into daily operations and making it a core part of the company culture, security firms can demonstrate their commitment to reliability and long-term partnerships.

A strong BCM system builds client trust, enabling companies to secure longer-term contracts and more stable revenue streams. This is especially crucial in an industry where contracts are often short-term and competitive.

Strategic Shifts for Sustainable Business Continuity

To thrive in the current environment, security firms must implement strategic shifts in their approach to BCM. Three key strategies to make BCM a competitive advantage are:

Beyond Headcount

Traditional approaches to security rely on fixed, round-the-clock staffing. However, security companies must rethink staffing models as labour costs increase and efficiency demands rise.

Adopting flexible staffing solutions focusing on outcomes rather than headcount will enable companies to meet client needs more efficiently while managing costs.

Investing in Technology

While technology's upfront cost can be significant, investing in technological solutions that enhance security outcomes and improve operational efficiency will pay off in the long term.

This may include automated monitoring systems, predictive analytics, and other tools that can help reduce the reliance on manual labour.

Building Resilience through BCM

BCM should be embedded in the company’s DNA, guiding day-to-day operations and decision-making.

A resilient organisation can anticipate and respond to threats before crises, ensuring the company and its clients are prepared for unforeseen challenges.

Summing Up for Part 1 ...

The security industry in Singapore is transforming, with rising costs, labour shortages, and evolving client expectations. Business continuity management (BCM) is emerging as a crucial strategic tool to navigate these challenges.

Shifting BCM from a compliance task to a proactive, value-driven strategy can help security firms survive and gain a competitive edge.

As the industry evolves, those who embrace strategic BCM will be better positioned to meet client demands, enhance operational efficiency, and ensure long-term sustainability.

As the moderator of this session, it was compelling to observe how Kamlesh Ramchand grounded business continuity management (BCM) within the context of Singapore’s private security industry.

From the outset, he set a practical tone, recognising that while BCM is often treated as a compliance checkbox, its value lies in strategic application. His experience, transitioning from regulatory oversight in the Singapore Police Force to leading private security firms, gave weight to his insights.

He emphasised that rising wage costs due to the Progressive Wage Model (PWM), a severe manpower shortage, the government's push for technological transformation, and the shift to outcome-based contracts all converge to create a “perfect storm” for security businesses. This makes traditional, compliance-driven BCM insufficient.

The presentation's underlying message was clear: companies must stop treating BCM as an overhead and start using it as a competitive differentiator.

Kamlesh argued that when BCM is embedded into operational DNA—visible not only in boardrooms but also on the ground—it can enhance client trust and support longer-term partnerships.

He highlighted the risk of short-term engagements in the industry, where businesses barely have time to prove themselves before contracts are re-tendered.

Therefore, there is a need to move “beyond headcount” and into strategies that improve agility, performance, and continuity, transforming BCM into a value-generating asset rather than a passive insurance policy. His approach resonated with the audience, setting a strong foundation for the next part of the presentation.

Dr Goh Moh Heng, President of BCM Institute, summarises this webinar. If you have any questions, please speak to the author.