Reasons for JTC Charging Building Premiums for Properties under Management

Mr Don Wee asked the Minister for Trade and Industry regarding the waiver of building premium collections for extensions of state leases, what are the reasons for JTC to charge building premiums for the properties under its management.

JTC leases land to industrialists either as a bare land or with existing buildings. If the land is empty without buildings, which is usually the case for the industrialists to develop its own buildings, the lessee is required to pay a land premium only. No building premium is charged. This approach also applies to the renewal of the lease.

If JTC leases land with existing buildings to a lessee, the lessee is required to pay a building premium for those buildings based on the lease tenure. When the lease is renewed or extended, the lessee will continue to be charged a building premium for the lease renewal, based on valuation of the building in the renewed tenure.