11 sites released for industrial use

There are 11 sites in the Industrial Government Land Sales programme for the first half of next year - six confirmed plots and five on the reserve list.

The six confirmed parcels have a total site area of 3.27ha and a tenure of 20 years. Four are in Tuas South Link, one in Tampines North Drive and one - at 0.8ha, the largest of the six sites - in Jalan Lam Huat.

Ms Christine Li, director of research at consultancy firm Cushman and Wakefield, said: "The Government continues to roll out smallish industrial sites to meet the needs of end-users. All the sites come with 20-year lease tenure, which is targeted at industrialists rather than developers."

Three of the five reserved sites are in Tuas South Link, one is in Tuas Bay Close and one in Woodlands Height. These sites have a total area of 7.98ha and tenures of either 20 or 30 years.

They are triggered for public tender after an acceptable minimum bid has been lodged.

There were 12 sites offered in the second half of this year - seven confirmed and five on the reserve list.

Ms Li added that despite the dip in manufacturing activities - arising from the slowdown in both China and the domestic economy - the Government has reduced the total number of confirmed list sites by only one and has cut the total gross floor area by 49,000 sq ft, or about 7.5 per cent.

She said that this was done to ensure adequate supply in the market for industrialists, "who need their own industrial space to get ready for the upturn once the global economy is on a stronger footing".

Ms Li added that November industrial production grew "at a quicker than expected pace" of 11.9 per cent year on year, the fastest growth rate in more than two years.

"This points to some upside in the fourth-quarter GDP numbers, and more confidence that we will avoid a technical recession in the fourth quarter," she said.

"The continued supply seems timely for the industrialists because in the earlier years when the industrial prices were high and there was a strong participation of the Industrial Government Land Sales tenders, it could have been difficult for them to secure sites at a more reasonable price."

The Trade and Industry Ministry said in a statement yesterday that the Government will continue to release "sufficient" land for "an adequate supply of industrial space".

A version of this article appeared in the print edition of The Straits Times on December 24, 2016, with the headline '11 sites released for industrial use'. Print Edition | Subscribe