JTC Anchor Tenant Application: Frequently Asked Questions (FAQs)

Answer: The company does not need to pay a subletting fee to JTC for a company designated as an approved JTC Anchor Tenant.

Answer: JTC assesses applications based on the economic contribution, productivity of the project, job creation, synergistic linkages to other sectors, and land use optimization.

Detailed Business Plan and Proposal are Required for submission to JTC.

Answer: 

Industrial Land productivity (Value Added) is one of the key criteria when JTC is considering applications for renewal of lease or to purchase or rent their facilities. 

DEFINITION OF JTC VALUE ADDED (VA) TERMS

Operating Income

Sale/ Revenue - Refer to sales derived from goods manufactured or processed by the company only, excluding goods purchased for resale. The value of sales should be based on selling price excluding excise duties if any.

Other Operating Income - Operating income the company derives other than those arising from the sale of manufactured goods.

Total Operating Income - Sum of Sale/ Revenue and Other Operating Income

Operating Costs

Raw Material, Components and Packaging (including subcontracted out) - Comprise direct input materials for the goods sold, both sourced from Singapore and imported, whether purchased by the company or by the outsourced company for work subcontracted out.

Work Subcontracted Out (i) In Singapore (ii) Outside Singapore - Work subcontracted out comprises activities of the company's core business which are performed externally and excludes cost of raw material, components and packaging incurred on behalf of the company Expenses from work subcontracted out are considered to have been incurred in Singapore if activities were conducted within Singapore.

Remuneration - Remuneration should pertain only to employees working in Singapore (those employed pertaining to the project). It should exclude those who are on the payroll of the Singapore entity and work outside Singapore, especially in the case of HQ projects, and should take in every component provided for in compensation package which is paid annually, including benefits. Locals refer to Singaporeans and Permanent Residents.

Depreciation - Depreciation refers to that for capital assets located in Singapore only.

Rental - Clear distinction should be made between rental arising from the use of building space and that for land.

Interest Cost - Interest Cost refers to interest payable to local banks, branches of foreign bank and other corporations.

Royalties & Know-how Fees (i) In Singapore (ii) Outside Singapore - Payment which is recurring for ongoing use of intellectual property and transfer of know-how. Does not include one-off lump sum payments made in the event of the acquisition of intellectual property.

Other Operating Costs (i) In Singapore (ii) Outside Singapore - Examples include freight charges and advertising and promotion costs. Please provide a breakdown in terms of expenses incurred and activities carried out within Singapore or outside Singapore.

Answer: 

Third-Party Facility Providers

• Must sublet at least 70% of GFA per allocation to anchor subtenant(s). Subletting to anchor subtenants can be granted till the expiry of the current lease term.

• Can sublet up to 30% of GFA to non-anchor subtenants with sublet term of up to three years for each non- anchor subtenant.

The sublet space must be occupied by an approved anchor subtenant(s) at all times. Multiple anchor subtenants are allowed to jointly fulfil the minimum 70% GFA requirement after the original anchor tenant left after fulfilling the Minimum Occupation Period.

An approved anchor subtenant is defined as a business that satisfies JTC’s assessment criteria in terms of:

• value-added per sqm of the land;

• remuneration per worker;

• skilled worker profile; and

• occupying a minimum GFA of at least 1,000 sqm.

Answer: For detailed information on the latest policy on JTC's Subletting? Visit JTC Subletting Policy: A Comprehensive Guide

Answer: 

• The approved anchor tenant of a Third-Party Facility Provider is defined as a company that satisfies JTC’s assessment of value-added, remuneration per worker and skilled worker profile, as well as the minimum GFA requirement. 

• Detailed Business Plan and Proposal are Required for submission to JTC.

Reduced Gross Floor Area (GFA) Requirement by JTC Anchor Tenant / Subtenants

• Under 3PFP’s policy, approved anchor subtenants must collectively occupy a minimum quantum of space and each anchor subtenant must take up at least 1,500 sqm of space. We have received feedback that many quality anchor subtenants require smaller spaces than the minimum space quantum specified in the policy. In our review, we had to balance the need to ensure the provision of large spaces for quality industrialists with this feedback. To allow more quality industrialists to qualify as anchor subtenants, we will reduce the required minimum GFA to 1,000 sqm.

 JTC Anchor Tenant / Subtenants Which Remain status quo at Renewal Need Not be Reassessed

• Currently, anchor subtenants need to apply for subletting renewals and applications are assessed based on their economic contributions, the productivity of the project and the creation of good jobs. To improve administrative efficiency, the reassessment of existing anchor subtenants at renewals will now be required only when there is a change (i.e. an increase or decrease) in their occupied GFA and/or usage. Please note that applications will still have to be submitted for extensions of subletting period.

Minimum Occupation Period of JTC Anchor Tenant / Subtenant upon Renewal

• A minimum occupation period (MOP) of three years per term is currently imposed on subsequent anchor subtenants, i.e. replacement of the original anchor subtenants. To allow greater flexibility for these anchor subtenants, we will now consider the overall duration the anchor subtenants have been on site. As such, during their renewals, subject to our approval, they can now renew for any duration (depending on their business needs) after they have fulfilled their initial MOP. Similarly, this flexibility will also be extended to original anchor subtenants for their renewals after they have fulfilled their MOP.

Answer: For detailed information on the latest policy on JTC's Subletting? Visit JTC Subletting Policy: A Comprehensive Guide