The Land Intensification Allowance (LIA) promotes the intensification of industrial land use towards more land-efficient and higher value-added activities across various sectors in Singapore. The LIA has been extended to support the built environment sector in the construction of Integrated Construction and Prefabrication Hubs (ICPHs) since 8 March 2017.
[UPDATED!] The LIA will be expanded to cover new multi-storey Design for Manufacturing and Assembly (DfMA) facilities from 1 January 2026 to 31 December 2030. Stay tuned for more details on the enhanced scheme.
How developers benefit
Approved LIA incentive recipients will enjoy the following allowances on qualifying capital expenditure incurred for the construction or extension/ renovation works, amounting to Addition and Alteration (A&A) works, of an approved LIA building.
- Initial allowance of 25%.
- Annual allowances of 5% are granted until the total allowance amounts to 100% of qualifying capital expenditure.
Who can apply
Companies developing ICPHs, with applications for planning permission (PP) made on or after 8 March 2017, can apply for LIA.
For ICPHs with applications for PP made before 8 March 2017, capital expenditure incurred for any new extension/ Addition and Alteration (A&A) works can qualify for LIA if:
- The ICPH meets a minimum Gross Plot Ratio (GPR) of 1.600 after the extension/A&A works; or
- The ICPH has already met GPR 1.600 and can achieve an incremental 10% GPR improvement after the extension/A&A works.
[UPDATED!] Application details for DfMA facilities will be released at a later date.
Qualifying criteria
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Types of activities
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Activities conducted in ICPHs, such as:
- Prefabrication of individual components e.g. precast columns, beams, staircases;
- Prefabrication of integrated sub-assemblies e.g. Prefabricated Bathroom Units (PBUs); and/or
- Prefabricated Prefinished Volumetric Construction (PPVC).
[UPDATED!] Effective from 1 January 2026:
Activities conducted in DfMA facilities, such as:
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Production of other DfMA products e.g. Prefabricated Mechanical, Electrical and Plumbing (MEP) systems, structural steel, mass engineered timber, 3D concrete printing; and/or
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Types of capital expenditure
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Capital expenditure incurred from the start of policy effective date, i.e. 8 March 2017 to the date of completion of the approved LIA building qualify for the LIA.
Examples of capital expenditure that qualify for LIA:
- Cost of feasibility study on the layout of the building structure;
- Design fees of the building or structure;
- Cost of preparing plans for obtaining approval for the building or structure;
- Cost of piling, construction and extension/Addition and Alteration (A&A) works;
- Cost of demolition of an existing building or structure;
- Legal and other professional fees in relation to the approved construction or approved extension/A&A works; and
- Stamp duties payable in respect of title of the building or structure.
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Other
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ICPHs and DfMA facilities must also fulfill other qualifying criteria in respect of:
- Zoning of land;
- Minimum GPR; and
- Ownership of building.
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Applications under the manufacturing/logistics sectors
For LIA applications under the manufacturing and logistics sectors, please visit the Economic Development Board’s (EDB) website for more details.
[UPDATED!] The materials below will be revised when application details for DfMA facilities are released at a later date.