TO support the beleaguered offshore and marine (O&M) industry through a protracted downturn, JTC has given between 3 per cent and 10 per cent in rental rebates to all its O&M tenants and lessees for 2017.
This marks the first rental rebate for industrial properties in Singapore since the global financial crisis in 2009.
While the industry welcomed the move, some have questioned how far it would go towards tackling deeper, structural problems plaguing the sector. Upcoming new launch condo include Parc Botannia , Carpmael Thirty Eight and Kandis Residence , Sengkang Central condo while existing ones include Kingsford Waterbay, Seaside Residences and Grandeur Park Residences. Carpmael 38 prices, 38 Carpmael floor plans, Parc Botannia prices and Parc Botannia showflat will be available shortly.
Others, citing the quantum and timing of the rental rebate, have asked if help for the sector has come too little, too late.
JTC, in response to BT queries, said that it has offered about 250 O&M lessees and tenants rental rebates for 2017. “While there is a general slowdown in economic growth, the marine and offshore (M&OE) industry in particular is facing a unique and prolonged downturn due to cyclical and structural forces . . .
“This (move) aims to provide some reprieve for our M&OE lessees and tenants during this period, while they review their operations to enhance productivity and reposition their business for the future.”
JTC said that it had already lowered the posted rents (which are publicly published rentals of its own industrial facilities as well as industrial land) in tandem with the industrial property slowdown over the last two years.
The rental rebate will further reduce the rentals payable by the companies for a one-year period starting Jan 1, 2017.
For companies with sites which have a higher rent stated in their contracts than the prevailing posted rates, a rebate will be given to effect the lower posted rent as at Jan 1, 2017.
An additional 3 per cent rebate will be given across the board, thus explaining why there is a range of rental rebates from 3 per cent to 10 per cent. It depends on the companies’ existing contracted rents.