Benefits of Land Intensification Allowance (LIA) and Incentive Programs for Land Use Intensification | Land Intensification Programme

by | Sep 16, 2023

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Qualifying Conditions for LIP Singapore

Singapore’s Land Intensification Programme (LIP) plays a crucial role in supporting the nation’s economic growth and agricultural development.

With limited land size and a growing population, Singapore needs help ensuring food security and sustainable land use.

The LIP serves as a strategic solution to address these issues.

Overview of LIP Singapore

The Land Intensification Programme aims to increase land productivity by intensifying land use in selected areas.

The programme focuses on developing and optimizing plots of land, making them more efficient for agricultural purposes.

By utilizing advanced farming techniques and technology, farmers can maximize their yields and make better use of limited land resources.

To qualify for the LIP, farms must meet specific qualifying conditions and demonstrate their commitment to sustainable agricultural practices.

Farmers must show that their proposed project will enhance land productivity and contribute to Singapore’s agricultural sector.

The LIP also provides various incentives and support schemes to encourage farmers to participate.

Purpose and aim of the programme

The Land Intensification Programme serves several purposes in Singapore’s agricultural development and economic growth.

First and foremost, it aims to ensure food security by increasing local food production.

By intensifying land use and maximizing yields, Singapore can reduce its dependency on food imports, enhancing self-sustainability.

Additionally, the LIP contributes to economic development by supporting the growth of the agriculture sector.

The programme provides farmers the necessary resources and support to expand their operations and improve productivity.

This, in turn, creates new job opportunities and boosts the local economy.

To apply for the Land Intensification Programme, interested parties can access e-services and submit their proposals online.

The applications will undergo a thorough evaluation process, and successful applicants will receive support and guidance to implement their projects.

In conclusion, Singapore’s Land Intensification Programme (LIP) plays a vital role in optimizing land use and promoting agricultural development.

By intensifying land productivity, Singapore can enhance food security, encourage economic growth, and create a more sustainable future for the nation.

Key Takeaways

  1. Purpose of LIP: LIP is essential for Singapore’s economic growth and agricultural development, addressing challenges related to land scarcity and population growth.
  2. Land Productivity: LIP aims to intensify land use, making it more efficient for agriculture by leveraging advanced farming techniques and technology.
  3. Qualifying for LIP: Farms must meet specific conditions and show commitment to sustainable practices to qualify for LIP, which offers incentives and support.
  4. Food Security: LIP enhances food security by increasing local food production, reducing dependency on food imports.
  5. Economic Development: LIP contributes to economic development by supporting agriculture growth, creating job opportunities, and boosting the local economy.
  6. Application Process: To apply for LIP, interested parties can use e-services provided by the Economic Development Board.
  7. Qualifying Conditions: Qualifying for LIP requires access to extension services and alignment with economic development goals.
  8. Eligibility Factors: Projects must support agricultural growth, promote sustainability, and align with government policies to qualify for LIP.
  9. Financial Benefits: LIP offers financial benefits, including allowances, reduced tax rates, and waived fees for approvals and permits.
  10. Strategic Districts: Choosing a strategic district enhances chances of success in LIP and access to support services.

Qualifying Conditions for LIP Singapore

Understanding the requirements to qualify for LIP

If you are considering participating in the Land Intensification Programme (LIP) in Singapore, it’s essential to understand the qualifying conditions.

LIP aims to support agricultural growth in the country by encouraging land intensification and the adoption of innovative farming techniques.

To qualify for LIP, you must meet specific requirements.

One essential requirement is access to extension services.

This means that you should have access to support and guidance from agricultural experts to improve your farm productivity and ensure sustainable farming practices.

It’s also essential to demonstrate that your project aligns with the policy responses and goals of the Economic Development Board.

Critical criteria and eligibility factors

To qualify for LIP, your project should contribute to the future of agriculture in Singapore.

It should support agricultural growth, promote productivity, and prioritize sustainable practices.

It should also align with the agricultural policy framework set by the government and demonstrate how it contributes to the country’s overall economic development.

How to determine if your project is eligible for LIP

To determine if your project is eligible for LIP, consider various factors.

These include the type of capital expenditure required for your project, the incentive period you are applying for, and how your project aligns with the economic development goals of Singapore.

It’s essential to provide comprehensive details and justification in your application to demonstrate how your project meets the qualifying conditions for LIP.

By understanding the qualifying conditions for LIP and ensuring that your project meets these criteria, you can increase your chances of qualifying for the incentive scheme.

The Land Intensification Programme provides a strategic opportunity for businesses in the agricultural sector to grow and contribute to Singapore’s economic development.

To learn more and apply for LIP, you can visit the e-services the Economic Development Board provides.

Incentives and Benefits of LIP Singapore

Incentives and Benefits of LIP Singapore

Exploring the incentives offered under LIP

Singapore’s Land Intensification Programme (LIP) provides various incentives to businesses looking to enhance their operations and contribute to economic growth.

These incentives aim to attract and retain companies in strategic districts and encourage them to invest in land intensification projects.

Under the LIP scheme, businesses can qualify for Land Intensification Allowances (LIA).

This includes the Capital Expenditure Allowance (CEA), which allows qualifying businesses to claim a percentage of their capital expenditure as an allowance.

The Expansion Income Allowance (EIA) also provides incentives for companies that generate additional income through expansion activities.

Furthermore, businesses can benefit from the Expansion Incentive (EI), which offers a preferential tax rate on the income generated from the expansion activities.

These incentives stimulate economic development and help companies reduce their tax liabilities.

Financial benefits and tax incentives

Apart from the allowances mentioned above, participating in the LIP scheme offers financial benefits and tax incentives.

For instance, companies can enjoy an Incentive Period, during which they are eligible for a reduced income tax rate for a specified number of years.

This encourages businesses to continue investing and expanding their operations in Singapore.

Additionally, fees related to approvals and permits for LIP projects may be waived or reduced.

Duties payable for the transfer of ownership of properties within strategic districts may also receive favorable treatment.

Other strategic advantages of participating in LIP

Participating in the LIP scheme provides strategic advantages for businesses.

Singapore’s market-driven intensification approach promotes compact and sustainable development, allowing companies to optimize land use and enhance operational efficiency.

By participating in LIP, businesses can align themselves with the country’s long-term development plans and benefit from the synergies created within strategic districts.

To apply for the LIP scheme, businesses can utilize e-services provided by relevant government agencies.

These platforms streamline the application process, making qualifying for LIA and other incentives easier for companies.

Overall, the incentives and benefits offered under the LIP scheme make it an attractive program for businesses looking to expand and contribute to Singapore’s economic development.

Applying for LIP Singapore

Applying for LIP Singapore

Step-by-step guide on how to apply for LIP

If you are a landowner in Singapore and want to participate in the Land Intensification Programme (LIP), you must follow a step-by-step process.

Here’s how you can apply for LIP:

  1. Procedure Manual: Familiarize yourself with the LIP procedure manual provided by the Urban Redevelopment Authority (URA). This manual outlines the requirements and processes involved in the LIP application. 
  2. Demand for Land: Assess the need for land in the strategic districts identified by the URA. Determine if your land is located in a community where LIP is applicable.
  3. Land Consolidation: Explore the possibility of consolidating your land with neighboring landowners. Reducing land helps maximize its value and potential for development. 
  4. Apply for LIA: Determine if your land meets the qualifying conditions to apply for a Land Intensification Allowance (LIA). The LIA is an incentive scheme that provides tax benefits to landowners who intensify land use.
  5. E-Services: Utilize the e-services provided by the URA to submit your LIP application and necessary documentation. The e-services make the application process more efficient and convenient.

Necessary documentation and permits

When applying for LIP, you must submit specific documentation and obtain permits.

These include:

  1. Extension Costs: Provide estimates for the extension works you plan to undertake on your land. 
  2. Agricultural Services: If your land is currently used for agricultural purposes, you may need to engage agricultural services to ensure compliance with relevant regulations. 
  3. Technical Services: Consult technical services, such as engineers or architects, to design and plan your land intensification project. 
  4. E-Services: Use the URA’s e-services platform to upload and submit the necessary documentation. The e-services streamline the documentation process and reduce paperwork. 

Overview of the application process and timelines

The application process for LIP typically involves the following steps:

  1. Submission: Submit your LIP application and all required documentation through the URA’s e-services platform. Ensure that all documents are complete and accurate. 
  2. Review: The URA will review your application and assess its eligibility for LIA. This review process may take some time, depending on the complexity of your project. 
  3. Approval: If your application is approved, you will receive a notification from the URA. You can then proceed with the land intensification works outlined in your application.
  4. Timelines: The timelines for the application process may vary. It is essential to stay updated on the URA’s website for any changes or updates regarding LIP applications. 

By following these steps and adhering to the necessary documentation and permits, you can successfully apply for LIP and take advantage of the benefits it offers to landowners in Singapore.

LIA and e-Services for LIP Singapore

LIA and e Services for LIP Singapore

Introduction to the Land Intensification Allowance (LIA)

Singapore’s Land Intensification Programme (LIP) aims to promote economic growth and enhance agricultural productivity.

Under LIP, businesses can qualify for the Land Intensification Allowance (LIA), a strategic incentive scheme encouraging landowners to maximize land use within qualifying conditions.

How to qualify for LIA through participation in LIP

To qualify for LIA, businesses must participate in the Land Intensification Programme.

They can do this by expanding their cropland and generating income from the expansion.

This expansion income acts as an incentive for businesses to intensify their land use practices and contribute to the economic development of Singapore.

By participating in LIP and meeting the qualifying conditions, businesses can receive the LIA benefit, which allows them to claim capital allowances on specified costs incurred for land intensification.

This benefit helps companies to offset the cost of investments made in land intensification, further incentivizing their participation in LIP.

Utilizing e-Services for seamless application and management

The Singapore government provides convenient e-services for businesses participating in LIP to streamline the application and management process.

These online portals offer various technical services and documentation required for the application process.

Stakeholders can easily access these e-services to apply for LIA, track the progress of their applications, and manage their LIA benefits.

The use of e-services not only simplifies administrative processes but also enhances transparency and accountability.

Businesses can conveniently submit applications and access relevant information anytime through these user-friendly online portals.

This digital transformation streamlines operations reduces paperwork, and ensures efficient communication between stakeholders.

In conclusion, the Land Intensification Allowance (LIA) and the utilization of e-services play vital roles in the Land Intensification Programme (LIP) in Singapore.

By qualifying for LIA through participation in LIP and utilizing e-Services for seamless application and management, businesses contribute to Singapore’s economic development while optimizing their land use practices.

Strategic Districts and LIP Singapore

Strategic Districts and LIP Singapore

In Singapore, the Land Intensification Programme (LIP) is a scheme that incentivizes developers and landowners to intensify land use in strategic districts.

The LIP aims to address land scarcity and support Singapore’s economic development by optimizing land productivity and maximizing available plots.

Overview of the strategic districts under LIP

Under the LIP, specific districts in Singapore are designated as strategic districts.

These districts are chosen based on their potential for economic growth and development.

By focusing on these areas, the government seeks to promote sustainable urban planning and efficiently use limited land resources.

The LIP encourages land intensification by incentivizing landowners who qualify for the scheme.

To be eligible for LIP, landowners must meet certain conditions, such as a minimum land size requirement and compliance with specific land use guidelines.

The government’s e-services platform provides a convenient and streamlined process for landowners to apply for the LIP.

Understanding the benefits of choosing a strategic district for your project

Choosing a strategic district for your development project can bring several benefits.

One of the key advantages is access to extension services and support from relevant government agencies.

These services can help developers navigate policies and regulations, streamline processes, and maximize the potential of their projects.

Additionally, strategic districts often offer favorable policy responses and incentives to facilitate land intensification.

This includes increased plot ratio allowances, streamlined planning processes, and financial grants.

By choosing a strategic district, developers can leverage these incentives to optimize land use and maximize returns on investment.

Furthermore, projects in strategic districts contribute to the overall economic development of Singapore.

They attract businesses, create job opportunities, and enhance the vibrancy of the local community.

By participating in the LIP and choosing a strategic district, developers play an active role in shaping the future of Singapore’s urban landscape.

In summary, the Land Intensification Programme in Singapore focuses on strategic districts to promote land intensification and economic development.

Choosing a strategic neighborhood for your development project allows you to access extension services, benefit from favorable policies, and contribute to Singapore’s growth.

Applying for the LIP through E-Services

Applying for the LIP through E Services

Step-by-step guide on how to apply for the LIP electronically

The Land Intensification Programme (LIP) in Singapore offers incentives to qualifying landowners who wish to enhance the value and potential of their land.

If you are interested in applying for the LIP, the process has been made more accessible by introducing electronic services (e-services) through an online portal.

Here is a step-by-step guide on how to apply for the LIP electronically:

  1. Start by visiting the online portal dedicated to the LIP. This portal provides all the necessary information, guidelines, and application forms. 
  2. Determine if your land meets the qualifying conditions for the LIP. These conditions include being located in a strategic district and meeting specific criteria for land consolidation. 
  3. Prepare the required documentation, such as land title documents, survey plans, and other relevant certificates or permits. 
  4. Access the e-services section of the online portal and create an account if you haven’t already. This will allow you to submit your application electronically. 
  5. Fill in the online application form, providing all the necessary information and attaching the required documentation. 
  6. Apply through the online portal. Once submitted, you will receive an acknowledgment of receipt. 
  7. Await the Land Intensification Authority (LIA) evaluation of your application. The LIA will assess your application based on the eligibility criteria and the benefits to be derived from land intensification. 
  8. If your application is approved, you will receive notification from the LIA and details of the incentive scheme you qualify for. 

Benefits and convenience of using e-services for LIP applications

Using e-services for your LIP application offers several benefits and conveniences.

Here are some reasons to consider using the online portal:

  1. Technical Services: The online portal provides user-friendly features that guide you through the application process. You can access procedure manuals and resources explaining the demand for land intensification and its benefits. 
  2. Documentation: All the application forms, guidelines, and documentation requirements are available for download online. This saves you time and effort in obtaining physical copies.
  3.  Application Process: The e-services platform streamlines the application process, reducing the need for paperwork and manual submissions. You can submit your application conveniently and securely from anywhere with an internet connection. 
  4. Access to Subsidy: If your LIP application succeeds, the incentive subsidy will be disbursed electronically. Using e-services ensures a smooth and efficient payment process. 

Utilizing the e-services offered through the LIP online portal allows you to enjoy a simplified application process, quicker response times, and the convenience of managing your LIP application online.

Case Studies: Successful Implementation of the LIP

Case Studies Successful Implementation of the LIP

Real-life examples of companies that have benefited from the LIP scheme

Singapore’s Land Intensification Programme (LIP) has proven to be a successful initiative, driving economic growth and promoting sustainability in various sectors.

Several companies have benefited from the scheme, and here are some real-life examples:

  1. Agriculture Company A: With the help of LIP, Agriculture Company A expanded its operations and increased productivity by utilizing vertical farming techniques. This resulted in higher crop yields and reduced land usage, contributing to a more sustainable and efficient agricultural industry. 
  2. Manufacturing Company B: Company B leveraged the LIP scheme to qualify for the Land Intensification Allowance (LIA) incentive. By optimizing their production processes and adopting advanced technologies, they increased output while reducing their environmental footprint. This not only boosted their competitiveness but also created more job opportunities. 
  3. Technology Startup C: Startup C applied for the LIA through the LIP to establish a research and development facility in a strategic district. The incentive provided them with financial support and access to necessary infrastructure, enabling them to develop innovative solutions and contribute to Singapore’s economic development. 

Key learnings and insights from their experiences

The success stories of these companies offer valuable insights for others considering the LIP scheme:

  1. Strategic district selection: Choosing a location in a designated strategic district increases the chances of qualifying for the LIA. It allows businesses to leverage the synergies created by the presence of other like-minded organizations. 
  2. Fulfilling qualifying conditions: Understanding and fulfilling the qualifying requirements for the LIA is crucial. Companies must demonstrate how their projects enhance land productivity, promote sustainable use of resources, and contribute to economic growth. 
  3. Accessing e-services: Companies should use the e-services provided by the Singapore Land Authority to simplify the application process for the LIP scheme. These online platforms offer convenience and efficiency. 

In conclusion, the Land Intensification Programme (LIP) has significantly promoted economic development and sustainable practices in Singapore.

Through the scheme, companies from various sectors have been able to grow, innovate, and contribute to the nation’s overall progress.


In conclusion, the Land Intensification Programme in Singapore aims to promote land use intensification and the development of high-value and substantive economic activities.

Through the programme, industrial land use is being intensified and enhanced to increase land productivity and support economic growth.

The completion of the approved Land Intensification Agreement (LIA) is crucial for businesses to enjoy benefits such as the Industrial Building Allowance and claiming Pioneer Certificate Incentives.

It is important to note that legal and other professional fees incurred about the approved construction or renovation of a qualifying factory under the LIA are eligible for tax deductions.

To participate in the program, businesses must consult the Singapore Economic Development Board and provide supporting documents demonstrating their commitment to more land-efficient and higher value-added activities.

The completion of the construction or renovation, as well as the verification of the expenditure incurred, is also required to qualify for the program.

The Integrated Construction and Prefabricated Hubs are essential to the Land Intensification Programme.

These hubs aim to upgrade the construction industry’s capabilities and promote prefabricated technology, leading to faster construction and increased efficiency.

Overall, the Land Intensification Programme allows businesses to optimize their land use, develop high-value economic activities, and upgrade their capabilities.

By participating in the program, companies can enjoy tax benefits, enhance their productivity, and contribute to the sustainable development of Singapore’s economy.

Businesses must stay updated with the latest amendments and guidelines related to the Land Intensification Programme.

Regular consultations with the relevant authorities and visiting compliant with the requirements will ensure businesses can fully leverage the program’s benefits.

The Land Intensification Programme is essential in Singapore’s efforts to create a sustainable and efficient business environment.

By intensifying industrial land use and promoting innovation in construction, the programme aims to support the growth and competitiveness of businesses while minimizing land takes and maximizing land productivity.

Frequently Asked Questions

What is the Land Intensification Programme (LIA)?

The Land Intensification Programme (LIA) is a scheme implemented by the Singapore Economic Development Board (EDB) with the support of the Building and Construction Authority (BCA) and the Inland Revenue Authority of Singapore (IRAS).

 It encourages industrial land users to intensify their land use towards more land-efficient and productive operations.

How does a company qualify for LIA?

To qualify for LIA, a company must be in the manufacturing and logistics sectors and own or lease an existing qualifying building or structure.

 The company should also incur qualifying capital expenditure for renovations or enhancements that improve land productivity among industrial users.

What are the benefits of participating in the LIA?

Participating in the LIA can provide companies with various incentives and schemes, such as enhanced land productivity, income tax incentives under the Income Tax Act, and a higher Gross Plot Ratio (GPR) for buildings approved under the LIA.

How can I apply for LIA?

To apply for LIA, companies can submit their proposals to the EDB for evaluation.

 The proposals should include the details of the intended qualifying building or structure, the planned renovations or enhancements, and the expected impact on land productivity.

What is a qualifying building or structure?

A qualifying building or structure refers to an existing industrial building that meets the criteria set by the EDB.

 The installation should be approved under the LIA and used for manufacturing and logistics activities.

Which sectors are eligible for the LIA?

The LIA is open to companies in the manufacturing and logistics sectors.

 These sectors include industries involved in manufacturing, assembly, warehousing, distribution, and other related activities.

What is the role of the Singapore Economic Development Board (EDB) in the LIA?

The Singapore Economic Development Board (EDB) is the leading implementing agency of the LIA.

 They evaluate proposals, provide guidance to companies, and administer the incentives and schemes offered under the program.

Can I claim income tax incentives under the LIA?

Companies participating in the LIA can claim income tax incentives under the Income Tax Act.

 These incentives are provided for qualifying capital expenditure incurred for renovations or enhancements that improve land productivity among industrial users.

What is the role of the Building and Construction Authority (BCA) in the LIA?

The Building and Construction Authority (BCA) supports the implementation of the LIA by ensuring that approved LIA buildings meet the necessary building and safety standards.

 They work in collaboration with the EDB and the relevant agencies to monitor and regulate the development and use of industrial land.

What is the role of the Inland Revenue Authority of Singapore (IRAS) in the LIA?

The Inland Revenue Authority of Singapore (IRAS) is involved in the LIA to administer the income tax incentives provided under the program.

 They ensure compliance with tax regulations and guide companies on the claiming process.

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