Singapore Expands Supply of Industrial Land in Early 2025 to Support Economic Growth and Address Rental Pressures
To address rising industrial rents and support growth sectors like manufacturing and technology, Singapore is releasing 10 industrial land sites under the Industrial Government Land Sales (IGLS) programme in the first half of 2025. The initiative aims to stabilise the market and future-proof economic development.
Singapore is taking decisive steps to increase the availability of industrial land in response to rising demand and upward pressure on industrial rental rates. This effort is part of a strategic plan to support long-term industrial growth, accommodate emerging business sectors, and ensure a stable and competitive property market for businesses.
Through a carefully coordinated release of sites under the Industrial Government Land Sales (IGLS) programme, the government aims to provide sufficient land for key industrial activities while maintaining affordability for companies of all sizes. This initiative is expected to benefit both local enterprises and global firms that have chosen Singapore as a base for their manufacturing, logistics, or advanced technology operations.
Industrial Government Land Sales (IGLS) Programme: Enhancing Accessibility for Industry Players
The Industrial Government Land Sales programme serves as the central mechanism through which industrial sites are made available to the market. It operates on a dual-listing system: sites are offered on a Confirmed List, where plots are guaranteed to be launched for tender during the period, and a Reserve List, where sites will only be launched if there is sufficient interest from developers or businesses.
For the first half of 2025, the IGLS programme will release a total of 10 land parcels spanning 14.07 hectares. These sites are strategically distributed across major industrial zones and are selected based on factors such as infrastructure readiness, market demand, and proximity to key logistics nodes. Of these, seven sites have been placed on the Confirmed List, while three have been included in the Reserve List. This distribution reflects a balanced approach, ensuring that ready-to-develop plots are made available while maintaining flexibility to respond to changing market dynamics.
Supporting High-Growth Sectors and Future-Proofing Industrial Development
The increased land supply under the IGLS programme is designed to directly benefit sectors that are critical to Singapore’s long-term economic transformation. These include advanced manufacturing, clean technology, electronics, biomedical sciences, and digital infrastructure development. As businesses in these sectors require scalable, modern, and well-located industrial facilities, the release of new land plots enables them to plan and invest with greater confidence.
Additionally, the land parcels have been zoned and allocated in alignment with broader urban planning frameworks and national development strategies. This ensures that the new industrial spaces integrate well with surrounding infrastructure and contribute to sustainable urban growth.
Addressing Cost Pressures from Industrial Rent Escalation
The government’s decision to increase the supply of industrial land is also a direct response to escalating industrial rental costs. Over recent quarters, rents for both factory and warehouse spaces have experienced steady growth, driven by limited land availability and heightened demand across several sectors. This has posed cost challenges to small and medium-sized enterprises (SMEs), startups, and even larger multinational firms operating in the city-state.
By expanding land supply, the government seeks to stabilise rental trends, reduce competitive bidding for limited space, and promote a healthier and more predictable property market. This measure is expected to moderate rental increases and create a more level playing field for new and expanding businesses.
Strategic Planning for Resilient Industrial Infrastructure
The IGLS programme and the expansion of industrial land supply represent a long-term investment in Singapore’s economic resilience. With global supply chain disruptions, technological advancements, and evolving industrial needs, there is an increasing necessity to future-proof industrial infrastructure. These land releases help ensure that businesses have access to the space they need to remain agile, scalable, and competitive.
This strategy aligns with Singapore’s broader economic vision to maintain its status as a global industrial and logistics hub. It also reinforces national efforts to support innovation, workforce transformation, and sustainable development across the industrial sector.
Algene Toh
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