JTC announces enhancements to industrial land lease framework
25 March 2025
On 6 March 2025, JTC Corporation announced it will be making four enhancements to the industrial land lease framework following the recommendation of the Alliance for Action on Business Competitiveness (“AfA”) for the Government to consider providing longer lease tenures and more flexibility in lease renewals for businesses. The AfA was formed by the Ministry of Trade and Industry and the Singapore Business Federation in 2024.
The four enhancements are set out below.
Additional three years of lease tenure for new greenfield industrial land allocations to cover businesses’ building and development period
Businesses have provided feedback that it may take up to three years to build and develop a piece of industrial land. This effectively reduces the productive period of their lease tenures and affects the viability of their investments.
JTC has reviewed the feedback and will grant an additional three years of lease, with payable land rent/premium, for all new greenfield allocations where new building development is needed, so that businesses can enjoy the full 20- or 30-year intended lease term.
This enhancement will take immediate effect.
New FLEXI scheme to allow eligible land lessees to extend their leases by up to two tranches of five years
Businesses that have performed well a few years into their leases may wish to expand by making incremental investments. Such business may want to have longer leases given the additional investments, especially for those with shorter leases of 20 years.
Under JTC’s new Flexible Lease Extension Initiative (“FLEXI”) scheme, eligible lessees on 20-year JTC leases will be allowed the flexibility to extend their leases by up to two tranches of five years. Businesses that demonstrate strong economic outcomes in their current lease term and commit to new plant and machinery (“P&M”) investments are eligible for the FLEXI scheme. Doing so extends the leases beyond the original contracted 20 years by up to another 10 years.
The scheme will be implemented in H2 2025.
Allow all lessees to apply for lease renewals 10 years before lease expiry
Currently, businesses typically approach JTC to discuss the renewal of their lease up to six years before prevailing lease expiry. JTC will bring forward the lease renewal application window to 10 years before prevailing lease expiry. This will provide businesses with greater certainty about their renewed lease tenure.
This enhancement will be implemented in H2 2025.
Recognise auditable investments made by businesses in innovation, R&D, digital transformation, and IP creation
Businesses are required to make P&M investments as part of the requirements for lease renewal. As the nature of investments has evolved over time, JTC will expand the definition of P&M investments to recognise auditable investments in innovation, R&D, digitalisation, and intellectual property (IP) creation. This will promote value creation and productivity.
This enhancement will be implemented in H2 2025.
Reference materials
The press release is available on the JTC website www.jtc.gov.sg.