Shoe-box factories and unlawful use of factory spaces工业厂房不该被滥用

	Business Times: Sat, Mar 17
THE shoe-box factory has caught the national development minister's attention, and it's not all good. Writing in his blog, Khaw Boon Wan said that shoe-box apartments serve a purpose as many singles do find them adequate for their housing needs. 'But shoe-box factories? As small as 50-80 sqm (smaller than a typical 7-Eleven shop)? Can a factory truly operate in such a small space?' He noted that many tenants of shoe-box units in industrial parks are legitimate non-industrial tenants providing relevant support services to the industrial tenants for which the park is built. 'For example, some are staff canteens and in-house clinics serving the factory workers. 'However, there are some who appear to be unauthorised non-industrial tenants. They appear to be abusing the lower rentals at industrial land/parks for normal commercial/office activities which should rightly be in commercial land/sites. This is wrong.' He said that offices and shops are not considered industrial use and are not allowed within industrial developments. But he added that non-industrial activities such as child-care centres, staff canteens and showrooms are allowed within industrial developments, provided they support the main industrial activities and, together with lift lobbies and other circulation areas, do not occupy more than 40 per cent of the industrial development. Mr Khaw concluded his blog post by putting the onus on developers and property agents, saying that they must make it clear to prospective buyers that industrial units can only be used for industrial activities. 'They must not mislead buyers into misusing industrial land/ parks for non-industrial activities,' he wrote. When contacted, Dennis Yeo, Colliers International managing director, told BT that occupation by unauthorised non-industrial tenants stems from, among other things, a lack of affordable commercial space. 'It's really a mixed bag of issues. Unauthorised use of industrial land is not driven by the size of the unit. Unauthorised use in industrial land occurs because it is the cheaper option, and also because of the scarcity of cheap commercial and office space.' He believes that the government must exercise caution in the event that it implements measures to curb the misuse of industrial land, stressing that the issue of commercial land shortage cannot be resolved overnight. 'There is a pressing need for more commercial space to be built and to cater to the small businesses as they cannot afford the rent at prime locations . . . but all this takes time.' Nicholas Mak, head of research at SLP International, agreed, adding that the government must bear in mind the potential implications that policy changes might have on small and medium-sized enterprises (SMEs). 'In order for Singapore to be competitive and provide employment, you need SMEs, and they are vulnerable to economic changes and rising costs. If the government were to suddenly chase everyone out, where would they go? Some would close down . . . while other may go to Iskandar Malaysia and create jobs there.' Another difficulty is how the government should go about facilitating the process of weeding out these unauthorised non-industrial tenants. Mr Yeo said: 'The government cannot discriminate between the industries and industrial buildings as there would be repercussions. It cannot be enforced now and the enforcement cannot be phased. If not, everybody would be pleading to be put at the last phase.' To solve the underlying problem of unauthorised non-industrial tenants thus requires addressing the fundamental shortage of commercial space, he said. According to Mr Mak, the government can take a cue from the latest Industrial Government Land Sales Programme, where smaller parcels of industrial land were made available. 'One way is to sell smaller parcels of office space, perhaps in the city fringe area. Some suggestions include Toa Payoh or Braddell.' To ensure consistency between commercial tenants and unauthorised non-industrial tenants who are taking advantage of the lower rental costs, the government could consider imposing a levy, tax or developmental charge, said Mr Mak. Refining and expanding the present definition of what constitutes industrial activities could be another alternative, said Mr Yeo. 'You can widen the definition and redefine what is allowed under industrial use to include product life cycle. If you are involved at any point of the product life cycle, you can qualify under this definition.'   Source: Business Times
» Khaw hits out at rogue use of factory space	Straits Times: Sat, Mar 17
NATIONAL Development Minister Khaw Boon Wan put rogue industrial tenants and landlords on notice yesterday in his latest blog entry. He said tenants are running some office and non-industrial activities in industrial buildings, looking for cheap rents by using industrial space instead of areas where they are supposed to operate. The Straits Times has reported that shops, tuition centres and even churches were using these industrial areas because of lower rents. For instance, Jalan Pemimpin's Clarus Centre houses five religious groups, including Hope Sanctuary, and tuition centre Twig. It is a similar scenario at Henderson Industrial Park, with non-industrial businesses like outfitter Costume City, travel agency Star Holiday Mart and Acts Baptist Church housed across both wings of Block 203. The penalty for the unauthorised use of properties is a fine of up to $200,000 and/or jail for up to a year. Shops and offices should be located in commercial sites, such as in shopping malls, as this unauthorised use of industrial space could be leading to higher business costs. Mr Khaw's post comes as many small and medium-sized enterprises (SMEs) and MPs are raising the issue of high industrial rents eating away at the bottom line of local firms and affecting their competitiveness. Mr Lee Sze Teck, senior manager of research and consultancy at Dennis Wee Group, estimates that non-authorised tenants could contribute to higher rents in some areas and eventually price out genuine industrialists. Mr Khaw said: 'The Urban Redevelopment Authority zones land to support industrial activities. The zoning helps to keep the industrial land cheaper than say commercial and office land, and thereby keeps our industries competitive.' Industrial rent may be more than 30 per cent cheaper, SLP International research head Nicholas Mak said. For instance, while industrial rents can range from $1.50 to $3 per sq ft (psf), suburban office rents can range from $4 to $6 psf. The proper use of industrial space includes manufacturing, warehousing and production. Certain types of e-businesses such as IT infrastructure and software development are also allowed. There are exceptions. For instance, childcare centres and furniture showrooms are allowed within industrial developments as they support the main industrial activities if, say, parents need to leave their children at the centres. Broadly speaking, they may occupy about 40 per cent of the industrial development. Industry observers say the rules should be enforced but tenants The Straits Times spoke to seem to be unclear about the rules. The manager at Costume City, who declined to be named, believes the business is operating within the guidelines. About half the space is used as a showroom to rent out fancy dress costumes; the other half houses its office and warehouse. [e-mail] Additional reporting by Yasmine Yahya, Gan Yu Jia and Yunita Ong 'Don't mislead buyers about units' SHOEBOX factory units - between 50 and 80 sq m or from 538 to 861 sq ft - cannot accommodate genuine industrial activities, said National Development Minister Khaw Boon Wan in a blog posting yesterday. The units may look cheap, and could tempt small-time investors scared off by high residential prices. But they could get a rude shock when they realise how small the units are. The trouble with the so-called shoebox units is that there is not much in the way of industrial production possible in such a small space, experts note. Mr Khaw said that those marketing such properties should make it clear to buyers that industrial units can be used only for industrial activities. That tends to make it hard to find tenants, especially if the Government cracks down on illegal uses such as shops and tuition centres, experts add. EL Development managing director Lim Yew Soon said investors make up about 30 per cent of buyers at his latest industrial estate, Eldix, in Mandai. Unit sizes start from about 1,600 sq ft. Interest from investors has been growing ever since the Government slapped a series of cooling measures on the residential market, he noted. 'We always make sure that our buyers come in with their eyes open and will explain the restrictions of use to them. These restrictions are also listed in the sales and purchase agreement.' Source: The Straits Times 工业厂房不该被滥用 （2012-03-17）   非工业性质的行业出现在工业园区越来越普遍，图为设在亨德森工业园的旅行社；其他如宗教团体、补习中心、托儿所等也可在不少工业园看到。（萧紫薇摄）  许文远昨天发表的博客文章引起市场人士关注。一些受访人士认为，这可能意味，政府很快就会向这些租用工业单位的未经获准非工业用户开刀。一旦政府人员真正地执行条例、采取行动，就可能冲击到近年来相当红火的工业房地产市场，导致工业房地产市场冷却下来。 吴慧敏　报道 [e-mail] 　　国家发展部长许文远警告，发展商和房地产经纪不应该误导买家滥用工业地段或工业园，非法地从事商业和办公室活动。他们必须开门见山地向有意购买者阐明，工业单位只能用在工业用途上。 　　许部长昨天在最新的博客文章“鞋盒厂房？”中，针对越来越多非工业性质的行业出现在工业园区，发表上述看法。 　　他说，市区重建局将一些地段划分为工业用途，目的是为了保持本土工业的竞争力，确保工业用地的价格比其他土地，例如商业和办公用地便宜。但是，一些非工业租户却租用工业厂房，来进行未经许可商业活动，等于滥用工业地段和工业园便宜的租金。他认为，这是错误的。 　　上个月有报章报道，一些非工业用户，包括教堂、补习中心、旅行社等，开始出现在一些工业园区，如兀兰工业园、惹兰柏民宾（Jln Pemimpin)和亚历山大工业园等。 　 　单单是惹兰柏民宾、Clarus Centre的其中一栋大楼，就可以从租户指示牌上看到，有五个宗教团体落户于此，这包括Hope Sanctuary、三一社区中心（Trinity Community Centre）和Victory Harvest Church。补习中心TWIG也是租户之一。 　　这个趋势引起市场人士的关注，有人担心越来越多非工业用户的进驻，将刺激工业工厂的需求上升，从而推高工业厂房的租金，导致真正的工业用户必须承担昂贵的租金，丧失竞争能力。 　　目前，商店或办公楼的平均租金大约是每平方英尺9元，但是屋龄较大的工业厂房单位，租金却可以低至每平方英尺2元。 　　许文远承认，目前工业园区确实存在一些未经许可的非工业租户。不过，大多数非工业租户仍是合法的，他们主要进行一些受许可的非工业活动，来服务园区内工作的人，这包括：员工餐厅、诊所和展示厅等。 　　不过，市建局的规定是，这类非工业活动所占的面积，连同电梯间和其他的走动空间，不能超过整个工业项目的40％面积。此外，它们也必须具有服务主要工业活动的作用。 “鞋盒厂房” 不能满足工业真正需要 　　许文远昨天也发表了他对“鞋盒厂房”的看法。他说，“鞋盒公寓”有其市场需求，满足了一些单身人士的住屋需要，但是他不认为只有50至80平方公尺（比一家典型7－11便利店还要小）的“鞋盒厂房”，能够满足真正的工业需要。 　　他强调，真正工业活动需要一定的空间来运作。裕廊集团也已作出过预测，真正的工业活动需要至少150平方公尺的面积，因此它在出售工业地皮时，都向发展商清楚阐明这一点。至于市建局在评估工业园的发展建议书时，也采用相同的标准。 　　他说，获准的工业活动，包括了制造、货仓和生产活动。一些电子业务，例如IT基础与软件开发活动也是获允许的。 　　许文远昨天发表的这篇博客文章引起了许多市场人士的关注。一些受访的市场人士认为，这可能意味，政府很快就会向这些租用工业单位的未经获准非工业用户开刀。 　　国际产业顾问（International Property Advisor，简称IPA）总裁邱瑞荣表示：“我相信接下来市区重建局应该会更频密地派人到一些工业大厦检查，确保厂房没有被滥用。对于提交上来的工业项目建筑蓝图，它也应该会更严格地把关。”   　他相信，一旦政府人员真正地执行条例、采取行动，就可能冲击到近年来相当红火的工业房地产市场，导致工业房地产市场冷却下来。 　　业者指出，过去两年来，政府三番四次为房市降温，工商业房地产却不受影响，因此吸引一些投资者开始将目光投向店铺、小型办公楼和工业厂房。例如兀兰的Primz BizHub工业项目，买来投资的非工业用户买家，就占了总销售量的差不多三成。