HDB industrial land, properties to come under JTC: SMEs welcome added convenience of one-stop shop

HDB industrial properties like (from left) Ubi Plex I, Sin Ming Industrial Estate and this standard factory in Woodlands will come under JTC by early 2018. Most of HDB's industrial tenants and lessees are micro-SMEs, with average annual sales of less
HDB industrial properties like Ubi Plex I (above), Sin Ming Industrial Estate and this standard factory in Woodlands will come under JTC by early 2018. Most of HDB's industrial tenants and lessees are micro-SMEs, with average annual sales of less than $1 million.PHOTOS: HDB
HDB industrial properties like (from left) Ubi Plex I, Sin Ming Industrial Estate and this standard factory in Woodlands will come under JTC by early 2018. Most of HDB's industrial tenants and lessees are micro-SMEs, with average annual sales of less
HDB industrial properties like Ubi Plex I, Sin Ming Industrial Estate (above) and this standard factory in Woodlands will come under JTC by early 2018. Most of HDB's industrial tenants and lessees are micro-SMEs, with average annual sales of less than $1 million.PHOTOS: HDB
HDB industrial properties like (from left) Ubi Plex I, Sin Ming Industrial Estate and this standard factory in Woodlands will come under JTC by early 2018. Most of HDB's industrial tenants and lessees are micro-SMEs, with average annual sales of less
HDB industrial properties like Ubi Plex I, Sin Ming Industrial Estate and this standard factory in Woodlands (above) will come under JTC by early 2018. Most of HDB's industrial tenants and lessees are micro-SMEs, with average annual sales of less than $1 million.PHOTOS: HDB

Streamlining of operations aimed at supporting SMEs, and making things easier for tenants, lessees

Industrial land and properties under the HDB will soon be transferred to JTC Corporation (JTC) to better support the growth of small and medium-sized enterprises (SMEs).

The aim is to streamline operations under JTC to make life easier for tenants and lessees, who will have to deal with only one agency.

About 10,700 industrial units and 540 industrial land leases will be consolidated under JTC in the first quarter of 2018.

Announcing the move, Trade and Industry (Trade) Minister Lim Hng Kiang yesterday said: "JTC will also be able to better match companies' space needs across the different stages of their growth with a larger supply of industrial land and space, including its innovative facilities."

HDB's industrial estates are found in the central, and east and north-east regions. JTC's industrial estates are largely in the west.

The types of industrial properties under HDB are industrial complexes, industrial shops, standard factories and terrace workshops. They include Sin Ming Industrial Estate, Defu Industrial Estate, AMK AutoPoint and factories in Woodlands and Bukit Batok, among others.

Most of HDB's industrial tenants and lessees are micro-SMEs, with average annual sales of less than $1 million. About half of these are in the engineering and consumer products sectors.

Minimal disruption to those affected

HDB and JTC have vowed to ensure minimal disruption to business for affected tenants and lessees, who will continue to be served by the same team of HDB officers. About 160 HDB officers will be transferred to JTC as part of the initiative.

Terms, conditions and contracted rents in existing HDB lease and tenancy agreements will not change.

 

Companies told The Straits Times that parking all public sector industrial properties under one agency will lift convenience and efficiency.

"You don't have to deal with two different groups of people... you can focus on building a relationship with one agency," said Flexi Systems manager April Yang.

Flexi Systems, a waste-water treatment and food-waste management firm, has space at JTC's property in Joo Koon Circle, and this year took additional space at HDB's Woodlands Industrial Park E5.

Mr Lim said the consolidation will allow the Government to undertake more "holistic and comprehensive master planning of industrial estates across Singapore". He noted: "This will enable us to better cluster complementary activities and integrate activities along the value-chain."

DEALING WITH ONE AGENCY

You don't have to deal with two different groups of people... you can focus on building a relationship with one agency. '' 

FLEXI SYSTEMS MANAGER APRIL YANG, on parking all public sector industrial properties under one agency.

He was speaking at a signing ceremony at which three firms inked tenancy agreements with JTC. The trio - Crizto Singapore, Guoxin Manufacturing and Royal Bussan Singapore - will be the first tenants at JTC Space @ Tampines North, which will get its temporary occupation permit next month.

The $72 million nine-storey facility caters to heavier manufacturing activities and can support advanced manufacturing technologies.

Mr Richard Foo, managing director at Guoxin Manufacturing, which now has premises in Tuas and Ubi, said: "It helps to improve productivity... Cost savings from the relocation would be about 40 per cent, with 25 per cent savings on rentals."

The HDB and JTC will engage tenants and lessees, as well as relevant business associations over the next two months to address their concerns about the transition.

A version of this article appeared in the print edition of The Straits Times on October 20, 2016, with the headline 'HDB industrial land and properties to come under JTC'. Print Edition | Subscribe