Review of Existing Incentive Structures in Attracting Tenants to Business Parks, Given Persistent High Vacancy Rates

Mr Yip Hon Weng asked the Deputy Prime Minister and Minister for Trade and Industry in view of the persistent high vacancy rates in our business parks (a) whether the Ministry has evaluated the effectiveness of existing incentive structures designed to attract tenants; (b) if so, what are the key findings; and (c) whether there are plans to revise these incentives to better align with current market demands.

The occupancy rate for business parks remains healthy at 77.9% in Q4 2024. Occupancy rates have hovered at around 75% to 85% in the past 15 years. There has been an increase in supply with the development of Punggol Digital District and tenants will begin moving in this year.

JTC Corporation (JTC) does not provide incentives for the spaces at business parks, which are rented out based on market rates. JTC regularly engages businesses and keeps updated on industrial trends to ensure the value and relevance of its business parks so that they remain attractive to and support the needs of businesses.