Land Intensification Allowance

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.

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.

Qualifying criteria

Types of activities

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), prefabricated Mechanical, Electrical and Plumbing (MEP) systems; and/or
  • Prefabricated Prefinished Volumetric Construction (PPVC).

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 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.


ICPHs must also fulfill other qualifying criteria in respect of:

  • Zoning of land;
  • Minimum GPR; and
  • Ownership of building.

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.

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