JTC Subletting Policy: A Comprehensive Guide

Alliance Facilities Management Pte Ltd: Your Trusted Partner in Singapore’s Industrial Property Market

• Established in 2011, Alliance Facilities Management Pte Ltd has earned a solid reputation for guiding both multinational corporations and small-to-medium enterprises through Singapore’s complex industrial property market—especially when it comes to JTC-related services. From JTC Lease Assignments and Lease Renewals to Anchor Tenant Applications and Industrial Land Tenders, our team offers end-to-end support to help your business secure approvals under stringent JTC guidelines.

Over a Decade of Proven Results

• Backed by over 100 successful JTC submissions totalling more than SGD 1 billion in value, our track record speaks for itself. We focus on delivering real results. That’s why we charge fees only upon successful approval, reflecting our unwavering confidence and commitment to your success. Our experts meticulously craft comprehensive business plan justifications, present fixed asset investments and redevelopment plans, and demonstrate job creation potential—all to reinforce your project’s economic value and win regulatory approval.

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• Beyond specialized JTC services, Alliance Facilities Management Pte Ltd provides holistic facilities and construction management solutions. Whether we’re optimizing your current facilities or overseeing new developments, our attention to detail and proactive approach ensure efficient execution while upholding the highest standards of quality and compliance.

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• Our client-focused philosophy is at the heart of everything we do. We’re proud to serve a wide array of industries and business sizes, including listed equity firms (19%), MNCs (16%), and SMEs (65%). Our industry breakdown underscores our versatility:

Construction / Engineering: 23%

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Food Production: 12%

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By aligning our expertise with the specific challenges of these industries, we deliver tailored solutions that drive efficiency, growth, and compliance.

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At Alliance Facilities Management Pte Ltd, we believe that navigating Singapore’s industrial property market should be a strategic advantage, not a hurdle. Trust our decade of expertise, proven methodology, and results-driven fee structure to safeguard your interests, ensure a seamless approval process, and enhance your operational efficiency.

Contact Us today to discuss how we can support your business goals and help you thrive in Singapore’s industrial landscape.

Stay informed about the latest JTC Industrial Land Lease policy changes that aim to provide greater flexibility, certainty, and support for businesses. Below is a comprehensive overview of the enhancements and their implementation timelines.

1. Additional Three-Year Lease Tenure for New Greenfield Industrial Land Allocations

• Key Update: JTC will offer an additional three years of lease (with payable land rent/premium) for all new greenfield allocations requiring new building development. This ensures businesses can enjoy the full 20- or 30-year intended lease term.

• Why It Matters: Helps businesses cover building and development periods without sacrificing lease duration. Provides more predictability in operational and capital planning.

• Implementation Timeline: Immediate effect.

2. Introduction of the Flexible Lease Extension Initiative (FLEXI)

• Key Update: Eligible land lessees on 20-year JTC leases can extend their leases in up to two tranches of five years each. Businesses must demonstrate strong economic outcomes and commit to new plant and machinery investments to qualify.

• Why It Matters: Allows businesses to extend beyond the original 20-year term by up to an additional 10 years. Encourages sustained economic growth and investment within Singapore’s industrial landscape.

• Implementation Timeline: Targeted for 2H2025.

3. Earlier Lease Renewal Applications

• Key Update: JTC will bring forward the lease renewal application window from six years to ten years before the prevailing lease expiry.

• Why It Matters: Provides businesses with greater certainty about lease continuation well in advance. Facilitates long-term strategic planning, including expansion and technology upgrades.

• Implementation Timeline: Targeted for 2H2025.

4. Broader Recognition of Auditable Investments in Innovation and R&D

• Key Update: Beyond traditional Plant and Machinery (P&M) investments, JTC will recognize auditable investments in innovation, R&D, digital transformation, and Intellectual Property (IP) creation. This expanded definition aligns with evolving business models and supports value creation and productivity.

• Why It Matters: Encourages companies to invest in advanced technologies and IP, driving competitiveness and growth. Acknowledges modern forms of capital investments critical to innovation-driven enterprises.

• Implementation Timeline: Targeted for 2H2025.

Conclusion

These JTC Industrial Land Lease policy enhancements are designed to provide businesses with:

• Extended lease security for better long-term planning.

• Greater flexibility to adapt and grow.

• Incentives for innovation through recognition of diverse forms of investment.

For more information or to discuss how these changes can benefit your business, contact us or visit our website. Stay ahead with the latest updates and make the most of your industrial land lease tenure under JTC’s enhanced framework.

Thank you for your continued trust and partnership with Alliance Facilities Management Pte Ltd.

Answer: Subletting occurs when a lessee/tenant rents out part of its property to another tenant (subtenant). JTC's consent is required before subletting any property. Unauthorized subletting is a breach of the lease/tenancy agreement and can lead to termination.

Answer: JTC lessees can sublet their property, provided they meet specific conditions and obtain prior consent from JTC. Subletting is restricted to 30% of the Gross Floor Area (GFA) for non-related businesses. Subletting to related businesses is not restricted by the 30% GFA cap.

Answer: A "Related Business" is defined as a business where the lessee owns more than 50% of the business’s shareholding, or the business owns more than 50% of the lessee’s shareholding. Such subletting requires JTC’s prior consent and can be granted up to the current lease expiry date.

Answer: To apply for subletting, lessees must submit an application through JTC’s Customer Service Portal (CSP). The application should include a floor plan of the sublet area, the subtenant’s business profile, and relevant approvals depending on the subtenant’s activities.

Answer: Subletting to unrelated businesses incurs a sublet fee. For timely applications, the fee is calculated based on a percentage of JTC’s land rental rate. Late applications or false declarations result in higher fees. Subletting to related businesses does not incur a fee for timely applications, but a flat fee applies for late submissions.

Answer: Service providers such as logistics, food storage, or data center services are allowed if they have formal service agreements with customers and the space used on-site supports the lessee’s business. These arrangements do not require subletting approval from JTC.

Answer: Yes, resident subcontractors who support the lessee’s operations exclusively do not require subletting approval. Their use of the premises must solely support the lessee's business activities.

Answer: Lessees can sublet up to 30% of their GFA to non-related businesses. This is intended for short periods, and the maximum subletting period for such arrangements is three years.

Answer: 

• Sublet Type - Lessees on posted rate (within quantum)

Fee (per month) for timely applications - {30% x (JTC's land rental rate per annum) x (Sublet area/Total GFA) x (Land area)}/12

Consequence for late applications/false declarations (Effective from 1 November 2021) - {100% x (JTC's land rental rate per annum) x (Sublet area/Total GFA) x (Land area)}/12

• Sublet Type - Subletting to Related Entities / Anchor Subletting

Fee (per month) for timely applications - No fee payable

Answer: The subletting must be for industrial use. Any office usage within the sublet space must support the main manufacturing operations and cannot be standalone.

Answer: Unauthorized subletting is a breach of the lease/tenancy agreement. JTC may terminate the lease or impose higher subletting fees for late applications or false declarations. JTC reserves the right to back-collect up to 100% of the assessed sublet rent.