Availability of Space in JTC Facilities for SMEs

Mr Inderjit Singh asked the Minister for Trade and Industry what is the current availability of JTC space for SMEs to operate their businesses.

Mr Lim Hng Kiang: SMEs seeking industrial space typically favour multiple-user factories and single-user standard factories as they are smaller, require less overheads and are easier for SMEs to set up quickly.

For the multiple-user factory segment, JTC currently owns 323,000 square metres of space, which represents 3.7% of the total market segment.

Within JTC's 3.7% holding, at an occupancy rate of 90.9% as at 30 June 2012, there are about 29,000 square metres of space available. For the single-user standard factory segment, JTC has a ready-stock of vacant standard factory units amounting to 65,000 square metres of space. Together, the current available JTC-managed space for SMEs to operate their business amounts to 94,000 square metres.

JTC will continue to ensure a steady supply of industrial space for SMEs in three ways.

First, to ensure ample supply of ready-built space in the market, JTC is increasing the supply of industrial land via the Industrial Government Land Sales (iGLS). For 2012 and 2013, an estimated 500,000 square metres (5.7% of the base stock of 8.8 million square metres) of multiple-user factory space will be made available to industrialists each year. This is about three times the average annual supply of land released in the past five years.

Second, JTC is also building a pipeline of developments that SMEs can tap on. Let me elaborate on three that will be launched in the next two years.

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Come September 2012, JTC will launch the Small Footprint Standard Factories at Tanjong Kling, which will add another 14,800 square metres to its portfolio of standard factory space. These factories are an improved version of JTC's current standard factories. SME tenants will benefit from greater space flexibility as there will be additional structural provisions to allow the easy installation of different material handling systems within the factory.

In 2013, JTC will launch the Surface Engineering Hub and MedTech1 @ MedTech Hub. This will provide another 64,200 square metres of industrial space into the market. These cluster developments will increase the operational and cost competitiveness of SMEs through co-location and shared facilities.

Third, JTC has made provisions for SMEs seeking affordable industrial land to build their customised facilities. SMEs can participate in JTC's land launches via the Open Land Application Scheme (OLAS) or the newly introduced Price-Quality (PQ) Tenders, which releases land with shorter tenures to lower the investment commitments required.