The Land Intensification Allowance (LIA) scheme for Singapore’s Built Environment sector will be expanded to include qualifying multi-storey Design for Manufacturing and Assembly (DfMA) facilities, effective from 1 January 2026 until 31 December 2030. The announcement was made by Mr. Desmond Lee, Minister for National Development, during an industry convention on 9 April 2025.
Key Updates:
- Extended Coverage:
The LIA scheme, currently applicable to Integrated Construction and Prefabrication Hubs (ICPHs), will now extend to multi-storey DfMA facilities that demonstrate industrial land optimization through advanced manufacturing processes. - Objective:
The expansion incentivizes adoption of space-efficient industrial solutions, supporting Singapore’s land productivity goals. DfMA facilities enable off-site production of building components, reducing on-site construction time and footprint. - Current Scheme Scope:
Existing LIA provisions cover Integrated Construction and Prefabrication Hubs (ICPHs)—multi-storey, highly automated facilities producing prefabricated precast concrete components. The extension acknowledges evolving off-site construction methodologies. - Implementation Timeline:
Qualifying investments in DfMA infrastructure will be eligible for tax allowances under LIA from 1 January 2026 to 31 December 2030.
Ministerial Emphasis:
“This expansion ensures our policies keep pace with industrial innovation. By rewarding land-efficient DfMA facilities, we accelerate the Built Environment sector’s transformation while maximizing scarce land resources,” stated Minister Lee.
Source: Building and Construction Authority, 9 April 2025.