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Besides wages and the cost of
capital, rentals form another significant component
of business costs. In July last year, the Jurong
Town Corporation (JTC) implemented several measures
to moderate or defer rental increases for its
lessees. These measures are up for review on 1
July 1998. Similarly, in December 1997, the Housing
& Development Board (HDB) implemented a package
of rental concessions for its industrial and commercial
tenants. The HDB package included moderating rental
adjustments at 3rd renewal of tenancies and staggering
increases in rent for sub-letting and assignment
cases. These steps were part of the Government's
continuing efforts to review and moderate cost
pressures on businesses.
JTC and HDB will now extend additional
rental concessions to their tenants and lessees.
- JTC and HDB will freeze their posted land
rentals for an additional 12 months, till end
June 1999. They will moderate rental adjustments
for their industrial land lessees who are paying
less than the posted rates.
- JTC will freeze the posted rentals of its
factories, workshops and warehouses till end
June 1999, and similarly moderate rental adjustments
for existing tenants.
- To help tenants and lessees who may have
temporary cashflow problems, HDB and JTC will
make upfront collections of rental payments
monthly rather than quarterly.
JTC and HDB will be releasing more details of
these concessions separately. |
