JTC Renewal of Lease: A Comprehensive Guide

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.

Choosing the right consultant for your lease renewal with JTC is critical to ensuring a smooth, successful process. At ALLIANCE FACILITIES MANAGEMENT PTE LTD, we are uniquely positioned to be your trusted partner in navigating the complexities of JTC lease renewals. Here’s why appointing us as your consultant is the best decision for your business:

• Expertise and Experience: Our team of professionals brings extensive knowledge and hands-on experience in managing JTC lease renewals. We understand the intricate criteria and requirements set by JTC, ensuring your application is meticulously prepared and aligned with their expectations.

• Risk-Free Professional Fees: We are confident in our ability to secure your lease renewal, which is why our professional fees are only payable upon approval. This ensures that you receive the highest quality service with no financial risk until your application is successfully approved.

• Comprehensive Services: We offer end-to-end services that cover every aspect of the lease renewal process. From initial consultation and strategic planning to document preparation and submission, we handle it all, allowing you to focus on your core business operations.

• Strategic Planning: We help you develop robust business and redevelopment plans that highlight your economic contributions, job creation potential, and land use optimization. Our strategic approach maximizes the likelihood of a favorable assessment from JTC.

• Customized Solutions: Understanding that every business is unique, we tailor our services to meet your specific needs. We provide personalized guidance and solutions that align with your business goals and operational requirements.

• Efficiency and Timeliness: Our proactive approach ensures that your application is submitted well within the required timelines. We work diligently to gather and verify all necessary information, minimizing delays and expediting the review process.

• Compliance Assurance: We stay abreast of the latest JTC guidelines and policies, ensuring your application is fully compliant. Our thorough understanding of JTC’s criteria helps prevent common pitfalls and enhances the quality of your submission.

By appointing ALLIANCE FACILITIES MANAGEMENT PTE LTD as your consultant, you are choosing a partner dedicated to your success. Our expertise, comprehensive services, and client-centric approach ensure that your JTC lease renewal application stands the best chance of approval, allowing you to continue your operations seamlessly and with confidence. Let us help you secure your business’s future and optimize your industrial land use effectively.

Answer: JTC Lease renewal is the granting of a new lease term after the current term expires, allowing industrialists to continue operations at their sites. It is not guaranteed and is subject to JTC’s assessment.

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

Answer: The maximum renewed lease term is up to 20 years, subject to JTC’s assessment of your business strength, redevelopment plans, and government redevelopment plans for the site.

Answer: Applications should be made 6 years and no later than 3 years before the expiry date of the existing lease.

Answer: Applications can be submitted via the JTC customer service portal. Your JTC Customer Engagement Officer will assist with the next steps.

Answer: Applicants should provide a detailed business and redevelopment plan, fixed asset investments, gross plot ratio, job creation projections, and financial projections. JTC holds applicants accountable for the details provided, with audits conducted at the end of the investment period.

Answer: JTC will inform you of the outcome via email within 3 months after receiving all required information.

Answer: Key terms include revision of land rental, potential building premium, completion of proposed building works, and assignment prohibition period.

Answer: Fees include land rent or premium, building premium (if applicable), survey fees, URA processing fees, legal document preparation costs, and GST.

Answer: 

Link - INVESTMENT IN PLANT & MACHINERY (P&M) 

Answer: 

Link - INVESTMENT IN PLANT & MACHINERY (P&M) 

Link - INVESTMENT IN PLANT & MACHINERY (P&M) 

Answer: B&C investments include the construction of factory buildings, civil works, professional fees, and renovation works excluding furniture and fittings.

Answer: Costs not included are land rental, property tax, utilities charges, stamp duties, and financing costs.

Answer: At least 60% of the total gross floor area must be used for industrial activities, while the remaining 40% can be used for ancillary purposes.

Answer: JTC considers economic contribution, job creation, synergistic linkages to other sectors, and optimization of land use.

Answer: If affected, you may not be able to renew your lease. Consult your JTC Customer Engagement Officer before applying.

Answer: You must rectify any breaches before applying for lease renewal.

Answer: Consider consolidating operations in a smaller floor space or JTC may require you to return part of the land.

Answer: You have 3 years from the offer letter date to complete building works and fulfill fixed asset investments.

Answer: You cannot assign the land for a minimum of 5 years from fulfilling investment criteria or 3 years from the new lease term commencement, whichever is later.

Answer: JTC reserves the first right to buy over the remaining lease period if you wish to assign the land outside the assignment prohibition period.

Answer: An Environmental Site Assessment (ESA), previously known as JTC Environmental Baseline Study (EBS), is a requirement imposed on industrial land, prototype factory, and standard factory sites with activities sited within B1/B2 industrial land usage under the URA Masterplan. The ESA helps establish the baseline level of potential contaminants in the soil and groundwater beneath the site and assess the extent of contamination.

From 01 Feb 2024 onwards, to be consistent in terms of reference with other agencies, JTC Environmental Baseline Study (EBS) has been re-named to JTC Environmental Site Assessment (ESA).

JTC Environmental Site Assessment (ESA) Requirements and Technical Guideline  (2024 EDITION) 

Answer: Intensify land use as much as possible to optimize scarce industrial land resources. Plot ratio exempt industries have no minimum requirements but must meet minimum land area coverage.

Answer: Submit a temporary occupation license, certification of development completion, audited cost statements, and any other required documents.

Answer: The lease term is pro-rated if there is a shortfall between the committed and actual figures of gross plot ratio and investments in plant and machinery.

Answer: If applicable, the building premium is payable upfront for JTC-owned buildings. The amount will be known 3 months before the new lease term.

Answer: Façade treatment should use good quality, easy-to-maintain materials, optimize building form, and ensure the façade is environmentally responsive to the tropical climate.

Answer: Developments must achieve a minimum Green Cover of 30% of the total site area, which can include tree planting, grass cells, grass pavers, and green roofs.

Answer: Solar deployment is mandatory for new and renewed leases if the site has at least 800 sqm of available contiguous rooftop area and a remaining lease period of 15 years or more.