The Land Intensification Allowance (LIA) encourages industries in Singapore to use land more efficiently and to focus on higher value-added activities. The scheme also applies to the Built Environment (BE) sector—specifically for the construction of Integrated Construction and Prefabrication Hubs (ICPHs) and Design for Manufacturing and Assembly (DfMA) facilities.
How developers benefit
Approved LIA incentive recipients can enjoy the following allowances on qualifying capital expenditure incurred for the construction, extension or renovation works that constitute Addition and Alteration (A&A) works of an approved LIA building:
- An initial allowance of 25%;
- Annual allowances of 5% are granted until the full 100% of the capital expenditure is covered.
Who can apply
Companies building ICPHs and/or DfMA facilities can apply for LIA if their planning permission (PP) applications were submitted on or after 1 January 2026.
Qualifying criteria
|
Types of activities
|
ICPHs
The prefabrication of:
- Individual components e.g. precast columns, beams, staircases;
- Integrated sub-assemblies e.g. Prefabricated Bathroom Units (PBUs); and/or
- Prefabricated Prefinished Volumetric Construction (PPVC) modules.
DfMA facilities
- Fit-out works e.g. fitting-out of PBUs and PPVC modules;
- Storage of prefabricated components; and/or
- Production of DfMA products, systems, integrated sub-assemblies or fully integrated assembly except for precast concrete e.g. Prefabricated Mechanical, Electrical and Plumbing (MEP) systems, structural steel, mass engineered timber, 3D concrete printing.
|
|
Types of capital expenditure
|
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 can qualify for the LIA incentive.
The following items are qualifying capital expenditure:
- 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 or 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 or A&A works; and
- Stamp duties payable in respect of title of the building or structure.
|
|
Other
|
ICPHs and DfMA facilities must also fulfil these criteria:
- Zoning of land;
- Minimum Gross Plot Ratio (GPR); and
- Ownership of building.
|
Applications under the manufacturing/logistics sectors
For LIA applications under the manufacturing and logistics sectors, visit the Economic Development Board’s (EDB) website for more information.