Purpose of the Singaporean Government Behind the Land Productivity Grant Incentive
For the promotion of businesses in Singapore and the speedy development of the economy, the government of Singapore has come up with many schemes and incentives. These incentives will benefit small and medium-sized organizations. The chief aim of such plans is to enable the enterprises in Singapore to increase their capabilities and stay ahead in these fiercely competitive times. The Land productivity Grant is among many of the incentive plans rolled out by the government.
To understand more about this grant, let us know more about it in detail.
What is the Land Productivity Grant?
The chief aim of the Land Productivity Grant (LPG) is to assist companies who seek to use land in the best possible ways using overseas or domestic relocation in Singapore. The support depends on the lease term remaining and on the area of freed upland. It is one-time support that will provide the finance to meet the costs incurred at the start of the relocation.
The Features of Land Productivity Grant
The companies will get support for between 10 to 70 percent of the qualifying costs.
Those included in the qualifying costs are:
- The costs incurred for relocating the existing plant and machinery to the new sites. This does not include any levies or taxes paid to any government; local or foreign and also the cost of buying land, building, machinery, or equipment.
- It also includes any consultancy fees from carrying any studies connected with location and market.
- Qualifying costs also include the expenses incurred on posting the staff based in Singapore or the project manager to the new overseas location to set up the new facility or supervise the training of local labour there.
The Activities that LPG Supports
Before understanding, if you can apply for LPG, it is essential to know how LPG supports your business.
- Any relocation that is done locally, like from an existing facility based on land to one that is on the high rise or any change in the structure of a current model for production.
- If there is the relocation of business facilities partially to Karimum, Bintan or Batam in Indonesia and Iskandar in Malaysia.
Can You Apply for Land Productivity Grant?
Application for Land productivity grant can be possible for both foreign and local companies. These are the following conditions they should meet:
- The company must undergo an incorporation process in Singapore and should have a physical address here.
- The present location of the company should be on industrial land.
- For the companies which are relocating overseas, a close connection from the activities after relocation to those in Singapore must be present.
- To qualify for Land productivity grants, land savings of at least 0.1 hectares must be made by the company.
These applications will be under observation by the Singapore Economic development board (EDB) before approval.