More flexibility in regulations to help businesses

SINGAPORE – The Government is actively reviewing regulations to support innovation and keep up with industry trends, Minister of Trade and Industry (Industry) S Iswaran said on Friday (March 3), as he unveiled plans to allow more flexible use of industrial space to encourage business integration.

The Urban Redevelopment Authority, with state industrial landlord JTC, will pilot new land use guidelines at a multi-tenanted building in Woodlands North Coast. The current guidelines for Business 1 zones, which require companies to use at least 60 per cent of their space for core industrial activities, will be adjusted.

Instead of the 60:40 guideline, JTC will introduce new guidelines so that companies can co-locate service-driven activities alongside their manufacturing operations.

Companies that have offshored their lower value-added activities can also maintain their more knowledge-intensive activities in the industrial plot, while retaining close oversight of their operations overseas.

The move is in recognition of the fact that business models are shifting from production-led to service-driven growth activities, said Mr Iswaran.

“It is important that we ensure our regulations are not an inadvertent burden to businesses,” he said during the Committee of Supply debate for the Ministry of Trade and Industry’s budget.

The Woodlands pilot development will support manufacturing companies in co-locating their service-driven activities such as research and development and after-sales support alongside their manufacturing operations.

A wider range of uses will be allowed within the development, including industrial-related uses that are closely linked to or provide critical support for the industrial sector, for instance, engineering and industrial design activities that play a key role in the manufacturing value chain.

Acknowledging that vibrant “live-work-play-learn” environments also play an important role in the attraction and retention of talent, 
Mr Iswaran also said the Government would pilot greater land use flexibility at the district level in upcoming growth centres, starting with Punggol.

The Government will closely monitor the market response and public feedback to the pilot and study the applicability to other locations. It will also continue to review land use policies for industrial zones to ensure they remain relevant.

“However, even as the Government adopts greater flexibility in regulations, we must remember that we are entering uncharted waters. We must be prepared that things may not always turn out as planned, in which case we should be ready to change course or cut losses as such risks are part and parcel of the innovation process,” Mr Iswaran said.