Prospects who are interested in applying for a new JTC facility or existing customers who are keen to take up another JTC facility may wish to note that applications are assessed based on a number of criteria, including but not limited to the following:
Fixed Assets Investments
Fixed Assets Investments (FAI) includes the following:
- Plant & machinery (P&M), which refers to fixed assets as defined in a company's audited statement of accounts and used in the production of goods and services in connection with the company's business. Companies applying for JTC's land or space will have to declare their overall investment figures and provide justification for the declared figure.
- Building & Civil (B&C) works. A company is also required to meet the minimum B&C works guidelines. This comprises of a set of qualitative design guidelines and standards. Companies applying for JTC's land and facilities will have to provide a set of cost figures indicating the expected building standard.
Plot ratio (PR) refers to the ratio of the floor area (FA) of a building to its site area, i.e. FA/site area. For more details on floor area and plot ratio computation, please visit URA's website.
Companies are required to declare their plot ratio and the plot ratio requirements may vary, depending on the site usage for different industries (e.g. logistics, business parks, standard factories), site locations (e.g. urban, suburban) and lease tenure period (30 years).
If they are unable to meet their declared plot ratio, their lease tenure period will be pro-rated.
In addition, companies can consider applying for the Land
Intensification Allowance (LIA) incentive if their Gross Plot Ratio (GPR) meets
the GPR benchmark and other qualifying criteria. The incentive is administered by EDB. For more information on the qualifying criteria and application process
of LIA, please refer to EDB's circular. For more information, on filing LIA claims in the income tax returns,
please refer to IRAS’ website.
Note: There are certain categories of companies who are exempted from having to meet the minimum plot ratio criterion. Instead, they are subjected to land coverage ratio. Such companies are generally from the petroleum refining and petrochemicals industries.
Value-added (VA) refers to the value “added” by a company to raw materials used during a production process. It is the difference between total output and the total operating cost incurred in the production of goods and services or ancillary activities, where total operating cost refers to the sum of total materials and operating cost.
In addition, JTC would give due consideration to other factors, including but not limited to the credibility of the applicant's business proposal.