LAND & UTILITIES FAQs - EDB

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LAND & UTILITIES
FAQs

             Last updated 06 March 2018
Last updated 06 March 2018

TABLE OF CONTENTS

LAND & SPACE
 1. What type of property zoning can I use?                                                        3
 2. How do I buy or rent commercial properties?
 3. What are the rental rates for commercial properties in Singapore?                              4
 4. How do I buy or rent industrial properties?
 5. What are the lease management policies for JTC and HDB industrial properties?                  5
 6. What are the rental rates for industrial properties in Singapore?
 7. What is the construction process for industrial developments?                                  6
 8. What are the cost of construction in Singapore?
 9. What are the incentives available for construction expenditures?                               7

WATER
10. How can my company obtain its water supply?                                                    8
11. What are the types of water available in Singapore? What is NEWater?
12. What is the cost of water in Singapore?                                                        9

ELECTRICITY
13. How can my company obtain electricity?                                                        10
14. What is the cost of electricity in Singapore?                                                 11
15. How are electricity tariffs in Singapore regulated?
16. How stable is the electricity supply in Singapore?

GAS
17. How do I obtain gas in Singapore?                                                             12
18. What is the cost of gas in Singapore?
19. How do I obtain industrial gases in Singapore?
20. Are there special permits required to purchase industrial gases?                              13

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LAND & SPACE

 1. What type of property zoning can I use?

    Singapore’ property is zoned for different uses. Commercial and industrial zones are the most
    commonly used by companies. To identify the right zone for your specific activities, you can
    refer to the guidelines on the Urban Redevelopment Authority’s website:

        •   Guidelines on Property Use for Businesses
            https://www.ura.gov.sg/Corporate/Property/Business/Change-Use-of-Property-for-Business

        •   Planning Considerations for Property Use
            https://www.ura.gov.sg/Corporate/Property/Business/Change-Use-of-Property-for-
            Business/Assessment-Criteria

 2. How do I buy or rent commercial properties?

    Commercial properties can be purchased or rented via the following means:

        •   Private Sector

            You can purchase or rent commercial property owned by the private sector. For assistance in
            identifying such properties and executing transactions related to them, you may wish to
            engage a real estate property consultant. You may refer to the Resources page on EDB’s
            website for a non-exhaustive list of real estate property consultants:

            Institutes of higher learning, infrastructure and utility service providers
            https://www.edb.gov.sg/en/news-and-resources/resources.html

        •   State Property

            Vacant State properties which are not earmarked for immediate development may be rented.
            The allowable uses could include residential, commercial, industrial and other uses,
            depending on the specific property. Tenure varies by property, and is typically capped at
            3+3+3 years. The rental of these properties is managed by the Singapore Land Authority
            (SLA) and its agents. For more information on the available properties and the procedures
            for rental, you can refer to the Singapore Land Authority’s website:

            Rental of State Property and Land
            http://www.sla.gov.sg/Services/RentalofStatePropertyandLand.aspx - .VlPf1PmUfs4

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       •   Government Land Sales (GLS) Programme

           If you intend to develop your own commercial office building, you can bid for land released
           through the GLS programme. A GLS tender is typically planned and announced every 6
           months. For more information on the GLS Programme, you can refer to the Urban
           Redevelopment Authority’s website:

           GLS Updates
           https://www.ura.gov.sg/Corporate/Land-Sales

           FAQ on GLS Programme
           https://www.ifaq.gov.sg/URA/apps/Fcd_faqmain.aspx?TOPIC=8855

3. What are the rental rates for commercial properties in Singapore?

   Private sector real estate consultants provide reports on average commercial rental rates.
   You can refer to the following non-exhaustive list of sources.

       •   Colliers
           http://www.colliers.com/en-gb/singapore/insights

       •   Knight Frank
           http://www.knightfrank.com.sg/research/results.aspx?typeid=all&regions=5&isocodes=SG&vi
           ew=grid

4. How do I buy or rent industrial properties?

   Industrial properties can be purchased or rented via the following means:

       •   Private Sector

           You can purchase or rent industrial properties owned by the private sector. For assistance
           in identifying such properties and executing transactions related to them, you may wish
           to engage a real estate property consultant or a third party facility provider (3PFP). You may
           refer to the Resources page on EDB’s website for a non-exhaustive list of real estate property
           consultants and 3PFPs:

           Institutes of higher learning, infrastructure and utility service providers
           https://www.edb.gov.sg/en/news-and-resources/resources.html

       •   Industrial Government Land Sales (IGLS) Programme

           You may bid for industrial land released through the IGLS programme. As a land sales
           agent for the Government, JTC regularly releases industrial land for development via

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           public tenders. For more information on the IGLS, you can refer to JTC’s website.

           IGLS
           http://www.jtc.gov.sg/industrial-land-and-space/pages/industrial-government-land-sales.aspx

       •   Government Property

           You may rent or lease industrial properties held by the government through JTC, subject to
           certain criteria being met. For more information, you can refer to JTC’s website:

           JTC’s available properties
           http://www.jtc.gov.sg/industrial-land-and-space/pages/default.aspx

           JTC’s allocation criteria
           http://www.jtc.gov.sg/customer-services/Pages/allocation-policies.aspx

5. What are the lease management policies for JTC industrial properties?

   There are distinct lease management policies for JTC industrial properties. These policies may be
   updated from time to time. Companies are advised to refer to JTC’s website for their respective
   policies.

       •   JTC’s lease management policies
           http://www.jtc.gov.sg/customer-services/pages/lease-management-policies.aspx

6. What are the rental rates for industrial properties in Singapore?

   Rental rates for JTC properties are published on their respective websites. Private sector real estate
   consultants also provide reports on industrial rentals. You can refer to the following links for more
   information.

       •   JTC’s Posted Rates (for specific rental rates)
           http://jtc.gov.sg/industrial-land-and-space/Pages/price-overview.aspx

       •   JTC’s Industrial Property Market Statistics (for general market information)
           http://www.jtc.gov.sg/industrial-property-market-statistics/Pages/default.aspx

       •   CBRE Research
           http://cbre.com.sg/research/Pages/singaporereports.aspx

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       •   Colliers Research
           http://www.colliers.com/en-gb/singapore/insights

       •   JLL Research
           http://www.jll.com.sg/singapore/en-gb/research

       •   Knight Frank Research
           http://www.knightfrank.com.sg/research/results.aspx?typeid=all&regions=5&isocodes=SG&vi
           ew=grid

7. What is the construction process for industrial development?

   The Building Construction Authority has published a guide to provide investors, developers,
   consultants, and builders with basic information on how to approach, plan, design, construct and
   implement the requirements in an industrial building development. The guide provides an overview
   of the major regulations, as well as the submission and approval procedures for the carrying out of
   industrial developments.

       •   BCA’s guidebook
           http://www.bca.gov.sg/publications/others/guide_on_construction_of_industrial_developments
           _in_singapore.pdf

8. What is the cost of construction in Singapore?

   The Building and Construction Authority (BCA) publishes international construction costs reports on
   their website. Private sector consultants also provide such reports. Please refer to the following links:

       •   BCA’s Construction statistics
           http://www.bca.gov.sg/keyconstructioninfo/keystats.html

       •   Arcadis / LangdonSeah Construction Cost Handbook
           http://www.langdonseah.com/en/ph/publications/filter/annual-construction-cost-handbook/sg/

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9. What are the incentives available for construction expenditures?

      •   Land Intensification Allowance (LIA)
          You may apply for LIA if you are constructing an industrial building or structure that meets
          or exceeds specific land intensification benchmarks. Qualifying buildings or structures enjoy
          an allowance of up to 100% of qualifying capital expenditure. For more information about the
          LIA, you can refer to EDB’s website.

          EDB Land Intensification Allowance (LIA)
          https://www.edb.gov.sg/content/dam/edbsite/how-we-help/incentives-&-
          schemes/LIA%20Brochure.pdf

          FAQ on LIA
          https://www.edb.gov.sg/content/dam/edbsite/how-we-help/incentives-&-
          schemes/LIA%20FAQs.pdf

      •   Building and Construction Authority (BC) Green Mark
          BCA Green Mark is a rating system that evaluates buildings for their environmental impact.
          It aims to promote sustainable design, construction and operations practices in buildings. You
          may apply for the BCA Green Mark if you are constructing a building that incorporates
          internationally recognized best practices in environmental design and performance.
          For more information about the Green Mark scheme, you can refer to BCA’s website.

          BCA’s Green Mark Scheme
          http://www.bca.gov.sg/GreenMark/green_mark_buildings.html

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WATER

 10. How can my company obtain its water supply?

    Water supply can be secured from the Public Utilities Board (PUB). To assist developers, architects
    and professional engineers, licensed water service plumbers, government departments and statutory
    boards in their application for water supply, PUB has prepared a Handbook outlining the key
    procedures. The Handbook also provides general information on water supply matters which may be
    of interest to all consumers.

        •   Handbook on Application for Water Supply
            https://www.pub.gov.sg/compliance/watersupplyservices/handbook

        •   Procedures for design and installation of water service installations within a
            customer’s premises
            https://www.pub.gov.sg/compliance/watersupplyservices/procedure

 11. What are the types of water available in Singapore? What is NEWater?

    There are 2 main types of water in Singapore: Potable water, which is suitable for drinking and
    generally for domestic use, and NEWater.

    NEWater is high-grade reclaimed water produced from treated used water that is purified further using
    advanced membrane technologies. It is ultra-clean and safe to drink, having passed more
    than 130,000 scientific tests, and surpasses World Health Organisation requirements.

    Because it is ultra-clean, NEWater is ideal for industry use, such as wafer fabrication processes.
    NEWater is supplied to wafer fabrication, electronics and power generation industries for process use
    as well as commercial and institutional complexes for air-con cooling purposes. This frees up potable
    water for domestic use.

        •   NEWater
            https://www.pub.gov.sg/watersupply/fournationaltaps/newater

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12. What is the cost of water in Singapore?

   The cost of water, also known as water tariffs, is published on PUB’s website.

       •   Water Price – refer to Non-Domestic (Businesses) section
           https://www.pub.gov.sg/watersupply/waterprice

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ELECTRICITY

 13. How can my company obtain electricity?

   You can purchase electricity from retailers or from the wholesale electricity market if you are a
   contestable consumer. Most commercial and industrial users fall into this category. To be a
   contestable consumer, you need to either:

       •   Have an average monthly electricity consumption of at least 2,000 kWh
           (that’s about $400 in monthly electrical bills); or

       •   Take high tension supplies (6.6kV and above)

   If you are not a contestable consumer, you may buy electricity from SP Group at the regulated tariff.
   For more information on electricity retailers, the wholesale electricity market and SP Group, please
   refer to the links below.

       •   Electricity Retailers
           https://www.emcsg.com/marketplayers

           https://www.openelectricitymarket.sg/choices/retailers

           https://www.ema.gov.sg/Licensees_Electricity_Retailer.aspx

           https://www.ema.gov.sg/Licensees_Electricity_Generation_Company.aspx

       •   Take high tension supplies (6.6kV and above)
           https://www.emcsg.com/

       •   SP Group
           https://www.spgroup.com.sg/what-we-do/electricity-and-gas

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14. What is the cost of electricity in Singapore?

   The commonly used reference for electricity prices paid by contestable consumers is the Uniform
   Singapore Energy Price (USEP). USEP is regularly updated at 30 minute intervals and information
   is available from the Energy Market Company’s website.

       •   USEP Information
           https://www.emcsg.com/marketdata/priceinformation

   Fixed electricity tariffs by SP Group is available on their website.

       •   SP Group
           https://www.spgroup.com.sg/what-we-do/billing

15. How are electricity tariffs in Singapore regulated?

   Since 2001, the Energy Market Authority (EMA) has progressively opened the retail electricity market
   to competition to give consumers more options to manage their energy cost. Instead of buying
   electricity at the regulated tariff from SP Group, eligible consumers can choose to buy electricity from
   electricity retailers under customised price plans or from the wholesale electricity market at prices that
   fluctuate every half-hour. In 2018, EMA will introduce the Open Electricity Market to households and
   businesses, starting with a soft-launch in the Jurong area in April 2018. For more information, please
   refer to EMA’s website.

       •   Liberalisation of Retail Electricity Market
           https://www.ema.gov.sg/Electricity_Market_Liberalisation.aspx

       •   Updates on Open Electricity Market
           https://www.openelectricitymarket.sg

           https://www.ema.gov.sg/Electricity_Commercial_or_Industrial_Consumers_Consumers.aspx

16. How stable is the electricity supply in Singapore?

   Singapore’s electricity grid has an average interruption time of less than 1 minute per customer a year
   and is more reliable than Tokyo (4 minutes), New York (20.53 minutes), Hong Kong (23.40 minutes)
   and London (33.60 minutes).

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GAS
 17. How do I obtain gas in Singapore?

    The gas system in Singapore consists of two separate gas pipeline networks, namely the town gas
    pipeline network and the natural gas pipeline network. The town gas pipeline network serves about
    50% of the households in Singapore. Town gas (used mainly for cooking and water heating by
    domestic and commercial customers) is manufactured and retailed by City Gas Pte Ltd.

        •   City Gas Pte Ltd
            https://www.citygas.com.sg/contact-us/

    Natural gas is imported into Singapore from Malaysia and Indonesia via four offshore pipelines, as
    well as through SLNG, Singapore’s LNG import terminal.

    You can obtain natural gas by contacting a gas supplier. Please refer to EMA’s website for a list of
    licensed natural gas suppliers.

        •   Natural gas suppliers
            https://www.ema.gov.sg/Licensees_Gas_Licences.aspx

 18. What is the cost of gas in Singapore?

    The domestic tariffs for town gas can be found on City Gas’ website for reference.

        •   City Gas Pte Ltd – Domestic Tariffs for Town Gas
            http://www.citygas.com.sg/forhome/useful-info-2/gas-tariffs/

    For industrial users, prices for natural gas are negotiated directly with suppliers.

 19. How do I obtain industrial gases in Singapore?

    There are a wide range of gases, including air gases (nitrogen, oxygen, argon), hydrogen, carbon
    monoxide and specialty gases, available in Singapore.

    You may refer to the Resources page on EDB’s website for a non-exhaustive list of industrial gas
    suppliers.

    Institutes of higher learning, infrastructure and utility service providers
    https://www.edb.gov.sg/en/news-and-resources/resources.html

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20. Are there special permits required to purchase industrial gases?

   The use of any hazardous substances in Singapore is controlled by the National Environmental
   Agency (NEA). The hazardous substances controlled by NEA are those that:

       •   Pose a mass-disaster potential
       •   Are highly toxic and polluting
       •   Generate waste which cannot be safely and adequately disposed of

   For the list of controlled substances, please refer to NEA’s website.

       •   Controlled Substances
           http://www.nea.gov.sg/docs/default-source/anti-pollution-radiation-protection/chemical-
           pollution/hazardous-substances/hs--table-1

   Control is implemented at the Planning, Licensing and Enforcement levels. For more information
   about these controls, please refer to NEA’s website.

       •   Management of Hazardous Substances
           http://www.nea.gov.sg/anti-pollution-radiation-protection/chemical-safety/hazardous-
           substances/management-of-hazardous-substances

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