Call for review of zoning policy for industrial land

The way industrial land is zoned should be re- assessed to ensure small and medium-sized enterprises (SMEs) will be able to grow.

Responding to the Government's White Paper on Population, said there is a risk some firms will be left out in the cold by existing zoning categories. These were devised for a manufacturing sector that is rapidly evolving - and in turn, threatening to leave these zoning definitions looking outmoded.



Much of the traditional assembly and production activity has gone offshore. But the newer enterprises often do not know if their activities - often they involve creative work or other design-related activity - run foul of zoning laws.

There are three types of users under the Business 1 (B1) zoning for industrial property.

There are product manufacturers, for whom the zoning was initially devised. But there are also firms which are not authorised to use industrial space, such as tuition and employment agencies.

And increasingly there is a "grey area". For example, local SMEs are often subcontractors for multinational companies, specialising in a few aspects of the larger firm's production process.

These should be allowed to use industrial space, which is cheaper than office space, even if their activities do not resemble traditional manufacturing.

If the Government does not adapt B1 definitions to meet the realities of modern manufacturing, then one alternative could be to create a new supply of basic, no-frills office space in non-central locations.

Another option would be to create a hybrid industrial-office, a land-use category used by firms in Hong Kong which need a local administrative base to coordinate factories in China.

More clarity is called, sooner rather than later, to ensure that the "manufacturing sector and Singapore will be better able to keep abreast of global competition". Dr Moh Chong Tau, deputy president of Singapore Manufacturers' Association, said land use is a big issue for many of his members.

He said: "If the business provides support for manufacturing, even if it does not create the physical product, it should not be considered as an 'office environment', where rentals could be two to three times higher than industrial space. If costs are so high, manufacturing spin-offs will go elsewhere."

Source: The Straits Times –8 February 2013