JTC extends industrial land leases to boost business growth

This will cover the development phase to ensure businesses enjoy the full 20- or 30-year lease term.

Businesses in Singapore’s industrial sector will benefit from longer lease tenures and increased flexibility under new enhancements to the Industrial Land Lease Framework announced by JTC.

The changes, aimed at improving investment viability and business growth, include longer leases for new developments, a new lease extension scheme, earlier renewal options, and expanded investment recognition.

One of the most significant enhancements is the addition of three extra years to all new greenfield industrial land leases.

Businesses have raised concerns that up to three years are spent on land development, reducing the actual productive lease period.

To address this, JTC will extend lease tenures to cover the development phase, ensuring businesses enjoy the full 20- or 30-year lease term. This measure takes immediate effect.

Another major improvement is the introduction of the Flexible Lease Extension Initiative (FLEXI) scheme, which will allow eligible businesses on 20-year JTC leases to extend their tenure by up to 10 additional years in two five-year tranches.

Companies must demonstrate strong economic performance and commit to new plant and machinery (P&M) investments to qualify. The FLEXI scheme will launch in the second half of 2025.

To provide greater certainty in long-term business planning, JTC is bringing forward the lease renewal application window. Instead of waiting until six years before the lease expiry, companies can now apply ten years in advance.

This change, also set for implementation in H2 2025, gives businesses more time to plan expansion and investment strategies.

JTC is also expanding the definition of P&M investments to recognise innovation, research & development, digital transformation, and Intellectual Property creation.