INDUSTRIAL landlord JTC will continue to ensure a steady supply of space for small and medium-sized enterprises (SMEs), Trade and Industry Minister Lim Hng Kiang noted in a written parliamentary reply released yesterday. Click here for a full release of the statement.
He was responding to Ang Mo Kio GRC MP Inderjit Singh, who asked about the availability of JTC space for SMEs.
Mr Lim’s comments come amid complaints from smaller companies about rents shooting up on the back of higher valuations.
He noted that the available JTC-managed space for SMEs is 94,000 sq m.
JTC owns 323,000 sq m of space in the multiple-user factory category, which represents 3.7 per cent of the total market segment.
JTC’s 3.7 per cent holding had an occupancy rate of 90.9 per cent as at June 30, with about 29,000 sq m available.
It also has a ready stock of vacant standard factory units with 65,000 sq m in the single-user standard factory segment.
Mr Lim noted that JTC is increasing the supply of industrial land via the Industrial Government Land Sales.
An estimated 500,000 sq m of multiple-user factory space will be made available annually this year and next year.
He added: “This is about three times the average annual supply of land released in the past five years.”
Mr Lim explained that JTC is also building more developments that SMEs can use.
These include 14,800 sq m of standard factory space at Tanjong Kling to be launched next month.
Other upcoming projects include the Surface Engineering Hub and MedTech1 @ MedTech Hub developments, providing a further 64,200 sq m.
Mr Lim added: “These cluster developments will increase the operational and cost competitiveness of SMEs through co-location and shared facilities.”
He also noted that JTC has made provisions for SMEs seeking affordable industrial land to build customised facilities.
SMEs can participate in JTC’s land launches via the Open Land Application Scheme or the new Price-Quality Tender, which releases land with shorter tenures to lower the investment commitment required.