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Minister Lim Hng Kiang’s Oral Reply to Parliament Question on Purchase of Industrial Properties

Minister Lim Hng Kiang’s Oral Reply to Parliament Question on Purchase of Industrial Properties

Question
 
Mr Inderjit Singh: To ask the Minister for Trade and Industry whether the Ministry will consider disallowing the purchase of industrial properties for investment purposes and allowing industrial properties to be bought only by users themselves.
  
Oral Reply by Mr Lim Hng Kiang, Minister for Trade and Industry
 
1. There are currently no restrictions on the purchase of industrial properties by investors.  Introducing such restrictions will have significant impact on businesses.
 
2. Not all industrialists buy industrial space. Some industrialists prefer a rental arrangement, which may give them greater business flexibility. Others may choose not to commit higher upfront financial resources to own their properties. MTI ensures that there is sufficient space for industrialists to either buy or rent industrial space.
 
Long-term investors play an important role in the business ecosystem. They rent out the space they buy to industrialists. Allowing investors to participate in the industrial property market provides options for industrialists, reduces the upfront capital costs for businesses and keeps rentals competitive.
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