_0.jpg?IQjCrZF5i0PBNSsjbdqhHQpa8ZlmOt64&itok=r5PBpP8X "The expanded scheme will support construction or additions & alteration (A&A) works in multi-storey Design for Manufacturing and Assembly (DfMA) facilities (Photo: Samuel Isaac Chua / EdgeProp Singapore)")
Desmond Lee, Minister for National Development and Minister-in-charge of Social Services Integration has announced that the Land Intensification Allowance (LIA) scheme will be expanded to include more facilities.
Administered by the Building and Construction Authority (BCA), the LIA scheme promotes the intensification of industrial land use used for higher value-added activities.
Currently, the LIA scheme supports Integrated Construction and Prefabrication Hubs (ICPHs), which are multi-storey and highly mechanised or automated facilities that produce prefabricated precast concrete components off-site.
The expanded scheme will support construction or additions & alteration (A&A) works in multi-storey Design for Manufacturing and Assembly (DfMA) facilities, which support a different set of services from ICPHs. Such services include fit-out works for pre-fabricated modules and the storage of prefabricated components.
DfMA facilities also manufacture products including prefabricated mechanical, electrical and plumbing systems, structural steel, mass engineered timber and three-dimensional concrete printing.
The LIA scheme provides a tax allowance of up to 100% of the qualifying capital expenditure incurred for the construction or A&A works of a qualifying building.
This tax rebate is for the corporate tax of the owner of the building, with an initial tax allowance amounting to 25% of qualifying capital provided during construction and a subsequent annual allowance of 5%, until the total tax allowance amounts to 100% of the qualifying capital expenditure.
To qualify for the expanded scheme, new multi-storey DfMA facilities (except ICPHs) must achieve a minimum gross plot ratio (GPR) of 1.03. Existing facilities that have already met the GPR threshold and wish to tap on the LIA scheme for A&A works must demonstrate that the works will result in a 10% increase to the building’s GPR.
Furthermore, at least 80% of the total gross floor area of the qualifying facility must be used by the building owner, or its related users.
Companies developing new multi-storey DfMA facilities can apply for the expanded LIA scheme on or after Jan 1, 2026.
