Commercial Space Use and Expand Business Improvement Districts

Overview

The Singapore government is introducing significant reforms to support businesses by simplifying commercial space change-of-use procedures and formalising the Business Improvement District (BID) programme. These initiatives are aimed at reducing regulatory hurdles, encouraging innovation, and creating more vibrant precincts across the country.

Change-of-Use Process

Currently, businesses operating in JTC business parks or community centres under the People’s Association must obtain permission from the Urban Redevelopment Authority (URA) before changing the use of their premises. The process typically takes two weeks and incurs a fee of S$500. For larger projects, such as land-based solar farms, approval is required at a higher fee of S$3,500.

Under the new framework, URA approval will no longer be necessary for specific change-of-use applications. Businesses will only need consent from the relevant landowner and must comply with requirements set by the governing authority.

Example: A small café looking to convert part of its space into a co-working area previously required URA approval. With the new rules, the café can proceed after securing landlord consent and ensuring compliance with fire safety and other regulations, reducing both time and costs.

This reform is part of a broader strategy to streamline business approvals, allowing companies to adapt their operations more efficiently and focus on growth rather than administrative procedures.

Formalising and Expanding the BID Programme

The BID initiative, piloted by URA since 2017 in areas such as Singapore River, Marina Bay, Raffles Place, and Tanjong Pagar, empowers local stakeholders to enhance the appeal and vibrancy of their precincts.

Under this programme, the government provides seed funding of up to S$500,000 per year, matching stakeholder membership fees on a dollar-for-dollar basis. Funds support initiatives including:

• Targeted marketing campaigns

• Hospitality and customer service improvements

• Events and activities to attract visitors

Example: Marina Bay precinct has leveraged BID funding to host seasonal cultural events and enhance visitor amenities, leading to increased footfall and higher business engagement.

Building on positive pilot results, the government plans to formalise the BID programme through legislation and expand it to additional precincts, supporting initiatives such as Singapore’s nightlife revitalisation and urban placemaking.

Reducing Red Tape and Providing Business Support

Regulatory simplification is a continuous effort, with authorities seeking opportunities to reduce processing times, lower fees, and ease administrative burdens. This approach enables businesses to concentrate on innovation, productivity, and expansion, rather than compliance-related delays.

Alignment with Draft Master Plan 2025

These reforms complement the Draft Master Plan 2025, particularly the industrial land review aimed at meeting evolving business needs. Key developments include:

• Transition from mono-use zones to mixed-use industrial zones, offering developers flexibility and improving economic competitiveness.

• Introduction of more business-white sites in Jurong, Tuas, and Woodlands, particularly around transport nodes, providing growth opportunities for companies seeking highly connected locations.

Example: A tech company exploring expansion into Tuas can benefit from a mixed-use industrial site near transport hubs, facilitating both office operations and light manufacturing under a single permit.

Expected Benefits

The combined effect of these reforms will:

• Create a more flexible business environment

• Encourage innovation and entrepreneurship

• Reduce administrative delays and costs

• Promote vibrant, attractive precincts for work and leisure

Businesses can anticipate smoother processes for adapting commercial spaces, participating in BID programmes, and leveraging new mixed-use industrial opportunities in strategic locations.

FAQs on Commercial Space Use and BID Programme

Q1: Do businesses still need URA approval to change the use of commercial spaces?
A1: For specific types of change-of-use, URA approval will no longer be required. Businesses must obtain consent from landowners and comply with other regulatory requirements.

Q2: What is the BID programme?
A2: The Business Improvement District programme allows local stakeholders to manage precincts, enhance appeal, and attract visitors, supported by government seed funding.

Q3: How much funding is available under the BID programme?
A3: The government matches membership fees up to S$500,000 annually, supporting initiatives like marketing campaigns, events, and hospitality enhancements.

Q4: How do the reforms tie in with Draft Master Plan 2025?
A4: The reforms support mixed-use industrial zones and new business-white sites, aligning with the plan to increase land-use flexibility and economic competitiveness.

Q5: Who benefits from these changes?
A5: Businesses, developers, and precinct stakeholders benefit from reduced red tape, increased flexibility, and opportunities to enhance the vibrancy of Singapore’s commercial districts.

Algene Toh

Senior Real Estate Salesperson

Asset Investment Brokers Pte Ltd

Email: admin@bsr2.com

Phone: +65 9008 8002

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