by NCMP Yee Jenn Jong
Since the first REIT was formed here in 2002, REITS have grown to be a dominant force in the space leasing industry.
The cost of rents remains a huge concern to SMEs. In a Straits Times article last month, industry players pointed to REITS as the main driver of increases in retail and industrial rents. We saw closures of large and popular book stores, with rental cited as a main cause. Last year, industrial rents jumped by its highest level in 14 years.
I hope the Ministry can actively look at how rental rates can be brought down. A good place to start is at JTC. Since 2008, JTC has divested 2 mil sqf of industrial space to REITS. I urge JTC to stop all further divestment. I also hope JTC can resume its original role of building and leasing affordable industrial space again to SMEs, rather than rely only on land sales and market forces.