JTC AND HDB INDUSTRIAL PREMISES (Sale to sitting tenants)

Mr Chia Shi Teck asked the Minister for Trade and Industry (a) when the sale of Jurong Town Corporation and Housing and Development Board industrial premises to sitting tenants will be launched; (b) whether there will be similar discounts to sitting tenants as in the sale of HDB shops; and (c) whether consideration will be given to sell small plots of industrial land to enable smaller local enterprises to develop and own their industrial premises.

Mr Chia Shi Teck (Nominated Member): Question No. 7, Sir. I declare my interest as a tenant of JTC.

The Minister for Trade and Industry (Mr Yeo Cheow Tong): Sir, JTC tenants already have a choice of either renting or buying their premises. JTC's standard factories and workshops are offered for sale on 30-year leases, or rent on 3-year tenancy. As at the end of May 1994, sitting tenants own 87% of JTC's standard factories and 41% of JTC's terrace workshops. Sitting tenants who are currently renting their premises are free to apply to JTC for the purchase of their present premises at any time. The price for such premises will take into account the location, age and condition of the buildings. For instance, an older building will be sold at a lower price than a newer one. It is not the practice of JTC to provide additional discounts.

JTC also sells complete blocks of flatted factories to industrialists who wish to buy them. JTC does not sell individual units within a multi-tenanted block of factory and is now considering the feasibility of doing so.

In the case of HDB industrial shops and factories, tenants can only rent at present. However, I understand that HDB is currently looking into the feasibility of selling HDB industrial shops and factories to their sitting tenants.

As for industrial land, JTC is examining the possibility of selling them to lessees.