Jurong Town Corporation (Amendment) Bill

Order for Second Reading read.

The Minister for Trade and Industry (Trade) (Mr Lim Hng Kiang): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time".

The Jurong Town Corporation (Amendment) Bill 2017 comprises three sets of amendments to the Jurong Town Corporation Act.

The first set of amendments provides for the transfer of the Housing and Development Board's (HDB's) industrial properties to Jurong Town Corporation (JTC). With the transfer, all public sector industrial properties will be consolidated under one agency. This will make it more convenient and faster for industrialists as they will only need to approach one agency for their business space needs.

Industrialists will also receive better support for their land and space needs across the different stages of their growth because JTC will be able to better match their needs across all the public industrial land and space in Singapore. This includes JTC's customised industrial facilities, which offer shared infrastructure and services to help industrialists reduce their setting-up and operating costs.

After the consolidation, the Government would be able to undertake more holistic master-planning of industrial estates across Singapore. We can better cluster complementary economic activities. We can also better easily identify opportunities for the sharing of infrastructure and amenities across adjacent estates. In addition, the pooling of industrial master-planning and infrastructure expertise under one agency improves public sector capabilities and operational efficiency.

Our focus is on ensuring a smooth transition for HDB's industrial property customers. Sections 37 and 40 of the Bill thus provide for the transfer of the HDB's contracts and records associated with the transferred properties to JTC, with no change to the contractual terms for existing HDB customers. Section 38 also provides for the transfer of the HDB officers currently serving the HDB customers to JTC. These officers will continue to serve existing HDB customers seamlessly as part of the JTC family.

We have also placed emphasis on engaging the affected customers. Following our announcement of the transfer in 2016, HDB and JTC held several engagement sessions with the customers and their associations to hear and address their potential concerns. Many appreciated the greater convenience they would enjoy after the consolidation.

Some HDB customers were concerned that rents may increase after the transfer. JTC has assured them that their contracted rents with HDB will continue for the current tenancies. In addition, HDB and JTC rents are largely similar. They are set based on similar principles and in line with market conditions.

The smooth transfer of the HDB officers is also a priority for us. Section 39 of the Bill safeguards the officers' remuneration, leave rights and other terms of service. JTC has also conducted engagement sessions with the officers and designed an onboarding programme to familiarise them with JTC's work environment and to facilitate team building.

HDB and JTC will continue to keep in close communication with the affected customers and officers in the lead-up to and after the transfer.

Mr Speaker, Sir, the second set of amendments enables JTC to take on similar powers as HDB in managing the common properties and open spaces of its industrial estates. Instead of taking protracted and costly Court action for minor offences in these areas, section 27 will allow JTC to prescribe offences and associated fines for non-compliance. This will minimise disruption to the transferred customers and ensure consistency and greater efficiency in JTC's treatment of customers across the consolidated property portfolio.

The third set of amendments is administrative in nature. It repeals Part IV of the JTC Act, which covers the sale and management of residential properties. These provisions were included in the JTC Act because of JTC's role in the 1970s and 1980s in building affordable flats and executive flats, largely for industrial workers. JTC no longer plays this role. All the affordable flats that JTC has built have been transferred to HDB, and the executive flats have been privatised and brought under the Land Titles (Strata) Act. Therefore, Part IV of the JTC Act is now obsolete.

With these amendments to the JTC Act, the Town Councils Act will also be amended to remove the references to HDB's industrial properties.

The Housing and Development Act and the Residential Property Act will similarly be amended to delete references to Part IV of the JTC Act.

Mr Speaker, in summary, the consolidation of all public sector industrial properties under JTC, via the JTC (Amendment) Bill 2017, means greater convenience for businesses, better Government support for industrialists' infrastructure needs and a more competitive economy. I beg to move.

Question proposed.

Mr Speaker: Mr Leon Perera.

3.46 pm

Mr Leon Perera (Non-Constituency Member): Mr Speaker, Sir, the JTC (Amendment) Bill provides for the transfer of HDB's industrial properties to JTC. With this transfer, all public sector industrial properties will be consolidated under one agency.

I do not object to the thrust of this Bill, and I support its enablement of the state to undertake more holistic master-planning of industrial estates across Singapore. However, I do have a few clarifications and suggestions.

Firstly, in terms of mitigation of the impact of the transfers, it is noted that both agencies involved − JTC and HDB − have said they will engage tenants and lessees, as well as relevant business associations, on any concerns they have about the transfer. This was referred to in a speech by Minister Lim Hng Kiang on 19 October 2016. I would like to ask if there will be any impact on ongoing negotiations on renewal of leases or will these negotiations continue along more or less the same trajectory as prior to the announcement.

Secondly, on the confirmation of undertakings transferred, clause 41 refers to the joint specifications of assets and liabilities by the two Ministers involved. If there are any disputes, will the Minister for Finance step in to determine the matter?

Thirdly, on offences conducted under the Act, currently, section 64 requires that the consent of the Public Prosecutor is needed before any proceedings can be carried out against any person. The reason for the repeal of this provision is not given. I assume that, in this case, JTC lawyers can start proceedings on their own accord without the consent of the Public Prosecutor. Can the Minister confirm that and explain the rationale for that change?

Lastly, Mr Speaker, Sir, I would like to talk about the role of JTC in our economy in more broader terms. In past debates in this House, the issue of the role of the state agencies − JTC and HDB − versus private developers in the market for industrial and commercial space has been discussed. I would like to return to this fundamental issue to seek some clarifications and pose some suggestions.

JTC holds a far smaller share of industrial and commercial space than it did in the past. In the Committee of Supply (COS) debates in 2016 and 2017, this was highlighted by various Members of this House, such as Mr Dennis Tan and Mr Chen Show Mao. This has, over the years, led to a situation where the rental and property-related costs faced by our small and medium enterprises (SMEs) are very high, relative to most other countries.

Rental costs are not always the highest single component of the total cost structure facing SMEs and startups, though, in most cases, it is highly significant. But equally importantly, they are the one element of the cost structure that we can control and change to perhaps a larger extent than any other. In Singapore, the state owns most of the available land, something that is more or less unique among developed countries.

I would like to ask: can we do more to make low-cost industrial and office space available to our SMEs? SMEs employ two-thirds of workers. We need the SME sector to step up and do more of the heavy lifting in our economy in future to grow jobs and productivity and to become a thriving third pillar alongside multinational corporations (MNCs) and Government Linked Companies (GLCs).

At the COS debate this year, my colleague Mr Dennis Tan highlighted how rental costs were "found to be the second factor with the greatest impact on profitability, coming in after manpower costs". He was referring to a survey that had recently been conducted, I believe, by the Singapore Business Federation (SBF). He went on to say, "I hope the Government will consider conducting a major comprehensive historical and international benchmarking study on business rental costs to understand why rental costs rose so rapidly over the past two decades and why despite the Government's efforts in recent years to release more land through the Industrial Government Land Sales (IGLS) programme so as to ensure more industrial space, SMEs are still feeling the squeeze. The study should also include how the cost of doing business in Singapore compares globally".

At the COS debate this year, I also pointed out how, even if business costs, such as rentals, have recently declined, in the absence of any confidence that such costs are going to be managed well in future, individuals may choose not to become entrepreneurs, since there is no degree of assurance that rentals will remain affordable in future, and no degree of assurance that a spike in rentals in future may push their business models into the zone of commercial non-viability. Low cost today may not mean low cost tomorrow.

At COS 2016, my colleague Mr Chen Show Mao said, "Over the longer term, access to low rent premises has diminished, following the corporatisation of JTC assets as well as the commercial pricing of HDB rentals. We call on the Government to not only keep commercial and industrial rental increases near or below inflation but also to keep their absolute amounts manageable as part of the more serious effort to nurture SMEs as the third pillar. This may require actions to, first, take a long-term view on reducing business rentals and have JTC pick up, in part, their former approach of building lower-cost industrial and commercial property, before many of their many properties were privatised".

In his reply in 2016, Minister Lim had said, "the Government believes in letting market forces set the rent, and we allow the private sector to provide the responses in supplying the demand. Where we intervene is where we recognise some possible market failures, for example, in startups where it is not so commercially viable to provide the space, the Government will step in, and, indeed, we have. JTC set up LaunchPad@one-north in 2015, and plans to build a network of LaunchPads around Singapore". This year, Senior Minister of State Koh Poh Koon said, "However, in terms of the market share, JTC industrial space currently constitute only 8% of all industrial space and we do not have the critical mass to influence overall market pricing".

Mr Speaker, Sir, it would seem that the Government, as the largest landowner in the country, has a choice to release land to private developers of industrial or commercial properties, or to develop the land under the umbrella of JTC to provide lower-cost properties to SMEs and startups. The Government has accepted the principle that, in certain cases, the state should step in to provide land at lower costs to SMEs and startups.

The downside of doing this is, of course, fiscal cost. But it is not clear if the state providing lower-cost industrial and commercial space would stimulate entrepreneurship and value creation in such a way that the tax revenue from additional economic activity would partly or wholly offset the provision by the state of such low-cost land.

Moreover, keeping JTC's market share in the industrial and commercial market low while making ad hoc interventions to create pockets of low-cost space here and there also fails to address the concern that low cost today will not necessarily be low cost tomorrow.

So, my questions and suggestions would be as follows.

Firstly, does the Ministry of Trade and Industry (MTI) measure rental and land costs for industrial and commercial properties regularly and compare those costs to those faced by SMEs and startups in other developed countries? It would be useful, in my view, to benchmark against Germany, Switzerland, Japan and Israel, which are countries known for thriving SME and startup sectors.

Secondly, would MTI consider forming a target for commercial and industrial land costs faced by SMEs and startups by benchmarking against other countries or cities which have been very successful in stimulating startups and SMEs? This target could be formed by considering the cost to the state of providing such land against the additional incremental revenue that the state would gain and the benefit to the economy and people of Singapore from the greater economic activity unleashed by such lower property costs.

At the risk of repetition, I make the observation here once again that the state owns most of the available land in Singapore and, hence, the Government has a unique responsibility to consider such issues and make such choices in a manner that benefits the whole society.

Thirdly, would MTI consider pursuing such land cost targets by JTC taking up a larger market share in the industrial and commercial property market, as was the case in the past? Attempting to control such costs through management of land supply to private developers is too blunt an instrument, given that there is never a perfect method of demand forecasting.

JTC taking a larger share of the market for industrial and office space would send a strong signal to SMEs that manageable space costs will be here to stay and would not simply be gone tomorrow by the next market fluctuation, thus potentially wiping out the viability of a business that could have taken the founders of the business years or even decades of hard work and forgone income to build up.

It could be argued that JTC providing low-cost rents would create excess demand and how then would we allocate the supply among competing companies? A points-based balloting system is one mechanism to do so. The principle behind such a system is reflected in other areas of public policy today, such as the allocation of school places.

Taking every effort to minimise industrial and commercial rentals and property costs is important to stimulate entrepreneurship and the SME sector to be the vital third engine of value and job creation that we need it to be.

It behooves the Government to think through these deeper and fundamental issues relating to the pricing of land for industrial and commercial use and to provide the necessary assurances to all stakeholders about its commitment to control costs now and in the future so as to unleash growth in SMEs and startups.

Mr Speaker: Mr Thomas Chua.

3.57 pm

Mr Thomas Chua Kee Seng (Nominated Member): Mr Speaker, Sir, in Mandarin.

(In Mandarin): [Please refer to Vernacular Speech.] Mr Speaker, after examining this Bill in detail, I support the JTC (Amendment) Bill.

The main purpose of this amendment is to transfer all the industrial units and industrial land leases currently managed by HDB, to JTC in the first quarter of next year. According to clause 5, section 38 of the Bill, after the transfer, all those HDB employees responsible for managing the industrial properties will be transferred to JTC. Moving forward, all existing industrial tenants will be able to liaise with the same group of officers, assuring the tenants of service continuity.

After consolidating all resources, JTC can be more effective in comprehensive planning for its industrial districts and integrating the whole value chain. This is a very good initiative, indeed. At this time, I would also like to highlight three areas of concerns from businesses, and hope that the Minister and JTC could pay attention to them.

Firstly, will there be changes in the land use policy in the future? HDB comes under the Ministry of National Development (MND) and is mainly responsible for public housing projects and creating a quality living environment for Singaporeans. The industrial properties and space provided by HDB also create employment opportunities close to home for many HDB residents. The relationship between many tenants and HDB is "Neighbours first, landlords second". JTC, however, is a Statutory Board under MTI and is mainly responsible for developing industrial infrastructure facilities and promoting high value-added industrial development to propel the sustainable growth of Singapore's economy.

In the first quarter of next year, factories in the heartlands will still remain, but the landlord would have changed; officers are the same, but they would have a different boss. JTC's land use is based on "economic benefits" and "economic value-add". Tenants are concerned that under the management of the new landlord, could the longtime practice of "discussion and reach a compromise" become negotiations purely based on "business considerations"? Everyone hopes that JTC could continue to be empathetic, offer a helping hand, and look after the ecosystem of the heartlands. Before embarking on any major restructuring, we hope JTC could also carefully consider the indirect impact of the newly amended clauses, especially the impact on the livelihood of the employees of SMEs.

Secondly, after the transfer of factory space, will the rentals go up? JTC stated that "after the transfer of industrial properties, the lease terms of industrial tenants would remain unchanged". However, after the lease terms are up, would JTC apply a different set of criteria to determine rentals? Would the renewal of rentals treat the above-mentioned "economic benefits" and "economic value-add" as a priority?

Over the long term, demolishing and redeveloping factories are an inevitable trend. Otherwise, it would be very difficult to realise the overall objective of "integrated planning". However, many neighbourhood hawker centres see their rental and food prices go up after renovation. Tenants are understandably worried that any renovation or redevelopment would cause rentals to soar. This would not only raise their overheads but also increase the cost of living for the public.

Thirdly, how do the "small fish" co-exist with the "big fish"? All along, HDB's industrial tenants have been SMEs, and are mostly family businesses in the traditional industries. On the other hand, many of JTC's tenants are medium to large manufacturers and MNCs.

I have brought up in Parliament many times that policies cannot adopt "the one-size-fits-all" approach. We hope that JTC could make relevant decisions based on the needs of different customer groups. While evaluating and planning for the allocation of industrial land and factory space, besides considerations, such as the pace of industry growth and economic contributions, we do hope JTC could also consider the social functions of traditional industries. The ultimate value of these traditional industries lies in their being able to exist well to serve the public at large. Hence, I do hope JTC would continue to set aside and provide smaller-size industrial units and space with more affordable rentals for the micro and small enterprises, to enable these family businesses and traditional industries to carry on their businesses from generation to generation. These enterprises are more willing to provide employment opportunities for older workers, which is a key factor in maintaining social stability.

Finally, I appeal to all existing industrial tenants of HDB to adopt a positive mindset to adjust to their new landlord, make good use of this opportunity to actively upgrade their business models, and operate traditional industries with a new mindset. We could breathe new life into traditional industries. New opportunities will arise when we incorporate digital technology into traditional businesses. At the same time, I also appeal to the Government to provide substantive assistance to this group of tenants, helping small and micro enterprises to transform so that, in time to come, they could find a suitable space amongst JTC's many industrial properties.

Mr Speaker: Ms Thanaletchimi.

4.05 pm

Ms K Thanaletchimi (Nominated Member): Mr Speaker, Sir, this Bill, which proposes to consolidate the Industrial Property Management to be under JTC and, therefore, the Industrial Properties Group Department from HDB to JTC, is a welcome move.

With this, JTC is now the "go to" agency when it comes to industrial property rental and resources and "know-how" on industrial properties while HDB can focus on the residential needs of the nation. This move is very much applauded as it allows previous HDB industrial tenants to have access to more industrial properties and give them greater ability to do long-term planning. In the pursuit of restructuring the services rendered, it would be very much appreciated that much endeavour is taken to ensure that the affected employees are not worse off, with years of services being recognised and benefits being no less favourable.

Sir, though this consolidation will largely benefit the whole intent and purpose of streamlining services with target customers at the heart of service, I would like to suggest and clarify on the following.

With reference to section 39(3), I would like to suggest disciplinary investigations and actions could be completed by HDB rather than brought over to JTC. This is to ensure that the employee starts with a clean slate with a new organisation.

Section 39 declares that a transfer as such will not give rise to any damages or compensation. To what extent was there consultation with the affected employees at HDB on their concerns of the transfer? The change in top management and organisation and issues, such as physical location of workplace and others, can impact the employee. If employees were not keen on the transfer to the new organisation, will they be given an option to redeploy the employee within HDB?

On the transfer of employees and their terms and conditions and issues pertaining to their transfer of employment, it is pertinent for the respective agencies of the affected staff to discuss the matter or had discussed the matter with the respective union or affected staff and give them ample time to arrive at a decision. A smooth and well thought through transfer will bring about greater staff morale and contentment. Pre- and post-employment transfer feedback from the affected staff should be addressed to ensure employees' operational efficiency.

Mr Speaker: Mr Louis Ng.

4.08 pm

Mr Louis Ng Kok Kwang (Nee Soon): Sir, I am encouraged by this Bill which will help SMEs. These amendments were first announced last year and I understand that the discussion on consolidation has been going on between HDB and JTC for a few years now.

JTC has done well over the past few decades to serve the needs of our business community. As a strategic developer, some recent successes include the setting up of innovative spaces like JTC Launchpad, and strategic clustering of specialised spaces for industries, such as cleantech and biomedicals. With a larger supply of industrial space in its arsenal, I believe it will be able to enhance its support for businesses.

Businesses will also benefit administratively, as they would only need to contact one single agency to access public sector industrial facilities and spaces. Tenants transferred under JTC will also find it easier to expand to adjacent spaces, as there will be options available.

Sir, notwithstanding the benefits brought about by this Bill, I would like to seek a few clarifications.

Firstly, there has been some uncertainty from the business community about whether or not a change in landlord from HDB to JT) would result in any changes on the ground for tenants. Of primary concerns are changes in rental prices and tenancy renewal. I appreciate that JTC has confirmed that there will be no changes in rental prices under the current tenancies, which will continue under JTC.

Can I ask the Minister if there are any tenants who will have their tenancy expiring soon and whether in negotiating their new tenancies under JTC, there will be an increase in their rental prices? Can I also ask if there will be any other changes the tenants will face following the transfer to JTC?

Secondly, some of HDB's industrial properties are older and of lower land-use intensity. Is the Ministry able to share if there are plans to redevelop these properties, upon transfer to JTC, in order to maximise their plot ratio? I understand that some of these older properties are low-rise, single-storey buildings occupying plots in prime locations.

Thirdly, some of the tenants are naturally concerned about JTC's divestment plans for the properties that will be transferred to them. Many are aware that JTC had previously divested a portfolio of properties to a private trust sponsored by Mapletree. Some of the comments I have received on Facebook said that the tenants' rental prices were increased when Mapletree took over.

I appreciate that JTC has confirmed that there are no divestment plans currently. However, can I ask the Minister if there is a timeframe for this and whether this decision of not having a divestment plan will be reviewed annually or is one that is cast in stone?

Sir, I believe that the business community will be better served with these clarifications. That said, I thank the Ministry for the much-awaited Bill as it streamlines our support for businesses, and I stand in support of it.

Mr Speaker: Minister Lim.

4.11 pm

Mr Lim Hng Kiang: Mr Speaker, I thank the Members who have spoken on the Bill and would like to address their comments.

Mr Louis Ng and Mr Thomas Chua asked if HDB's industrial property customers will face an increase in their bill for their new tenancies under JTC. I would like to clarify that both HDB and JTC adjust their rents based on how market rents change. Because market rents have moderated in recent years and are likely to moderate in the near future, the majority of HDB's existing customers are, therefore, unlikely to see their rents go up when they renew their tenancies in 2018.

Some of them will, however, face increased rents when they renew their tenancies in 2018, because of the low contracted rents in their current term. For example, some of the HDB customers who shifted from HDB's Eunos terrace workshops to HDB's Kaki Bukit Autohub were allowed to pay the same rents they paid in Eunos to help with the transition. When they renew their tenancies in 2018, they will have to pay the market rents for the Autohub, which are higher.

To cushion the impact of rent increases, JTC offers tenants a staggered rent scheme. This means that the rents of the tenants will be capped in the first two years of their new tenancies, which effectively spreads out the rent increase for them. Both HDB and JTC already offer this scheme today, and JTC will continue this practice after the consolidation. In addition, for those facing genuine difficulty in payment of their rents, JTC does exercise discretion to offer and provide further rental assistance on a case-by-case basis.

Besides the rental policy, the other tenancy policies of HDB and JTC are generally aligned. There are some differences in the operational processes, but HDB and JTC are working towards aligning them. This is in line with our focus to ensure a smooth transition for HDB's customers.

Ms Thanaletchimi asked a few questions about the affected HDB officers. All the officers currently serving the affected HDB customers will be transferred to JTC, so that they can continue to serve the customers seamlessly after the transfer. However, we will exercise discretion on a case-by-case basis where there are extenuating circumstances.

As I mentioned earlier, the smooth transfer of the HDB officers is a priority for us. So, the Bill safeguards the officers' remuneration, their leave rights and other terms of service. This also means that their years of service will continue to be recognised.

Both before and after the transfer was announced, HDB and JTC has conducted engagement sessions with the officers to brief them about the transfer and to address any questions that they have. JTC also designed an onboarding programme to familiarise the officers with JTC's work environment and to facilitate teambuilding. The two agencies also consulted the HDB Staff Union and the Amalgamated Union of Public Employees. I understand that both unions supported the transfer.

Regarding disciplinary investigations, section 39(4) of the Bill states that "any investigation into the conduct of an affected HDB officer before the transfer date has to be completed by HDB even if the investigation ends after the transfer date". This is the practice that follows the same principle in the Employment Act.

Let me now turn to divestment and redevelopment. The Government has no plans to divest the HDB properties that JTC is taking over. If we wanted to divest, why would we want to take them over in JTC? We might as well ask HDB to do the divestment exercise and let HDB and MND carry the can.

Mr Louis Ng also asked about JTC's plans to redevelop the older HDB properties. JTC will continue with HDB's Industrial Redevelopment Programme to intensify land use. It will also look for opportunities to share infrastructure and amenities across adjacent estates to optimise the use of industrial land.

Let me now respond to Mr Leon Perera's questions. The dispute settlement mechanism in section 41 of the Bill states that the Minister for Finance may decide on any disputes over (a) whether an asset, a liability, an employee or a record has been transferred from HDB to JTC; or (b) whether any contract or document relates to a transferred asset, liability, employee or record. And his decision is final and binding.

Dispute settlement mechanisms are a standard provision in Bills of this nature. They are intended to provide clarity on how disputes may be settled. For example, a similar mechanism was included in the SkillsFuture Singapore Agency Bill in 2016 for the transfer of the assets and liabilities of the Council for Private Education and parts of the Workforce Development Agency to SkillsFuture Singapore.

The removal of section 64 is part of the set of amendments to harmonise the enforcement powers between HDB and JTC. This removal will allow JTC to carry out prosecution for offences related to the common properties and open space of its industrial estates, without having to seek the consent of the Public Prosecutor for each case. These are the same powers that HDB currently has. So, it is just to harmonise the process.

As for Mr Leon Perera's views on the industrial space policy, we have had this debate before. Let me just explain and reiterate the Government's thinking.

First of all, this refers only to the standard common user industrial space where JTC has decided to let market forces play their role in providing it, because JTC does not see any value-add in providing common user high-rise industrial space. So, it divested its properties and it now has only about 8% of the market share. This is to allow market forces to work, and JTC's involvement is then through the Land Sales Programme.

I think the Workers' Party has a different proposal or policy. That is entirely their right − you are left-of-centre. We are more centre. So, this is your Party programme and I encourage you to continue pursuing those and explaining your policy in the next election.

Let me turn towards the role that JTC can play more effectively, and not participate in the general purpose, common user type of properties. As we all know, JTC has, in recent years, been concentrating on looking after the sectoral needs of different sectors. And this is done to look after the needs of all the enterprises from micro, small, medium to the bigger enterprises. In the redevelopment of these cluster facilities, JTC does so in consultation with the industry and with trade associations, so that it can take into account the specific needs of the different groups, something that Mr Thomas Chua has advocated very strongly. So, these facilities will then benefit companies in a number of ways.

First, by having these facilities, we help to cluster companies along the same value chain which will facilitate business collaboration. Second, we provide shared facilities and services to help companies reduce their upfront capital investment and operating costs. Third, many of these new facilities include units of different sizes so as to cater for enterprises of different needs, whether you are micro or small and medium enterprises, and allow them to grow from micro to the large SMEs and have the same space cater to their different stages of growth. Finally, these facilities come with structural designs that make it easy for the companies to expand into adjacent units when they grow their business.

I can give Members a few examples. One upcoming facility that JTC is planning to build is the JTC Automotive Hub. Targeted for completion in 2020, this facility will provide ready-built space to support SMEs, including our micro-SMEs involved in the maintenance of heavy and light vehicles. It will also come with modular units to provide flexibility for tenants looking to expand their businesses. Apart from this, there are plans for shared facilities and services, including centralised spray painting and car washing facilities, to help the tenants reduce their upfront capital as well as their operating costs. I understand that some of HDB's customers in the Alexandra Village Industrial Estate have already expressed interest to expand their businesses in the Automotive Hub.

JTC has another two facilities that would benefit HDB's customers. The upcoming JTC Furniture Hub has already attracted encouraging interest from HDB's customers. The facility will bring together furniture companies and furniture-related service providers across the value chain to facilitate business collaboration. These companies can also look forward to integrated showrooms, a design studio as well as an onsite training institute that will help them enhance their design capabilities.

Another facility is JTC Space@Tampines North, which comes with units that can cater to smaller companies, and a structural design that allows companies to expand their space as they grow. I understand that a number of HDB's customers have made enquiries to take up units in this facility.

JTC will, therefore, continue to engage companies, including the transferred HDB customers, and explore new facilities where JTC can add value to support their needs.

Mr Speaker, Sir, the consolidation of all public sector industrial properties in JTC will provide greater convenience to companies and allow the Government to better support their space needs. We are committed to providing a smooth transition for the transferred customers and working closely with them to grow and improve their businesses after the transfer. Mr Speaker, Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. – [Mr Lim Hng Kiang.]

Bill considered in Committee; reported without amendment; read a Third time and passed.

Mr Speaker: Order. I propose to take the break now. I suspend the Sitting and will take the Chair at 4.40 pm.

Sitting accordingly suspended

at 4.24 pm until 4.40 pm.

Sitting resumed at 4.40 pm

[Mr Speaker in the Chair]