Is Environmental Baseline Study required and What is the Reinstatement at End of Lease Term for JTC Industrial Land?

Answer: Environmental Baseline Study :

• The Successful Tenderer shall conduct an environmental baseline study to determine the presence of minerals, hydrocarbons and chemicals on and beneath the Land and to submit to JTC a written copy of the results of the Environmental Baseline Study within four (4) months from the commencement date of the Lease Term.

Reinstatement at End of Lease Term :

• To remove all buildings, structures, fixtures, fittings, installations and equipment, or any part of it as may be specified by the Lessor;

• To engage a competent independent consultant, who shall be from the relevant list of third party specialist consultants published at the relevant time by the National Environment Agency or its successor, to conduct another Environmental Baseline Study (“Subsequent Study”) to determine the level of contamination at, on and beneath the Land and buildings and to submit a written copy of the Subsequent Study to the Lessor;

• If the results of the Subsequent Study indicate that the level of minerals, hydrocarbons or chemicals present at the time of the Subsequent Study exceeds that of the First Baseline Study, to properly carry out within the time stipulated by the Lessor, all works necessary to decontaminate the Land to the state and condition existing at the time of the First Baseline Study and to the Lessor’s and the Authorities’ satisfaction; and

• To reinstate any damage to and yield up the Land in tenantable repair or original condition in accordance with the Lessee’s covenants.

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.