Second Reading (Round-up Speech) by
Mr Lim Hng Kiang for Trade & Industry on
The Jurong Town Corporation (Amendment) Bill 2013
There is no change in JTC’s role. JTC remains committed to supply industrial land. What has changed is the way we go about doing it. As we all know in the early years, JTC is the primary provider of industrial property. But in 1992, the Government introduced land for sale for industrial developments through the Government Land Sales (GLS) programme. The private sector participated actively and their market share increased.
2. If we look at the three segments of industrial property, the first where manufacturers or owners undertake development of their factory space on JTC’s land, this remains core to JTC’s mission. Second is the provision of warehouse space. The private sector is very active in this area. JTC is never a major player in warehouse space. In the third area, for multiple-user factory, because of the GLS programme, JTC’s share has dropped from 60-70 percent in the 70s to about 20% in 2008. This is when we decide to divest since tenants in JTC are getting subsidised rents while other users have to pay market rent. So today, if you look at the property market, JTC continues to provide land for industrialist to build their own factory. Warehousing and multiple-user factory space are provided mostly by the private sector. The job of JTC is to make the industrial property statistics available so that the industrial property market is more transparent and efficient.
3. On the specific point on religious organisations, some flexibility has been given to religious organisations to use industrial premises zoned B1 on a non-exclusive, limited basis as we recognise that these organisations only use the space for part of the week and at the same time this will maximise the use of space. The use of such spaces cannot exceed two days a week and can only occupy part of the industrial premises within the ancillary use quantum of 40% of total space.
4. The mission of JTC remains to ensure that we have a steady supply of industrial property space at competitive rates.