URA seeks marketing consultancy for strategic review of Jurong Lake District to draw businesses

One of the aims is to change perceptions among developers, investors, businesses of Jurong as a mainly industrial town

Sat, May 02, 2020

Nisha Ramchandani



THE concept plans for Jurong Lake District (JLD) are up for strategic review, with the Urban Redevelopment Authority (URA) looking to scale up marketing and promotion of the district from the third quarter.

While the area is already home to a number of companies and plans are under way to inject buzz with tourism development, there is a need to boost perceptions by presenting an exciting vision and narrative for the district to better position it as a compelling business location, URA said.

Hence it has issued a tender for a multi-disciplinary marketing consultancy to undertake the strategic review as well as to develop marketing and communication strategies aimed at attracting developers, investors and businesses to JLD.

According to the tender specifications for the one-year contract, the marketing consultant or consulting team will have "to conduct a strategic review of current plans, identify key areas (to) focus on, and develop a comprehensive set of marketing and communication strategies and collateral with the aim of primarily changing developers', investment funds' and businesses' perception of Jurong as a predominantly industrial town and to help them... visualise what JLD will become in future".

Alan Cheong, executive director (research & consultancy) for Savills Singapore, said the perception of Jurong is a mental block that needs to be overcome. Otherwise, firms mulling a relocation to the West may face a more limited talent pool. He said: "People are spoilt for choice where employment is concerned and Jurong has this image of an industrial estate which dates back to the 1960s."

In addition, the JLD's location could be a drawback for those living in the East or North-East due to the commute, he added.

Analysts BT spoke to also said the suspension of the KL-Singapore High Speed Rail (HSR) has thrown a major spanner in the works for the district, although some remain hopeful the project will eventually get back on track, especially given the recent change in Malaysia's government.

Still, CBRE head of research (Southeast Asia) Desmond Sim expects that decentralisation will be high on the agenda for office tenants in the future, which works in JLD's favour. "If there is marketing and a vision to it, it will help with decisions," Mr Sim said. He also said JLD offers a unique selling point for development in the form of its lake waterfront site.

Under the URA's 2008 Master Plan, JLD was envisioned as the biggest regional centre outside the central business district (CBD), bringing jobs, amenities and recreational activities closer to the western part of Singapore. Since then, the JLD master plan was enhanced in 2017 with the decision to establish the KL-Singapore HSR terminus in Jurong East. While the HSR project has been temporarily halted until mid-year, development of JLD will still continue as planned, the tender document highlighted.

With a size of 410 hectares, JLD is carved into four key precincts: Jurong Gateway; a new mixed-use precinct Lakeside East; leisure and recreational area Lakeside West; and an International Business Park.

Christine Li, head of research (Singapore and Southeast Asia) for Cushman & Wakefield, said: "A significant barrier JLD is facing in attracting firms is the absence of economies of agglomeration, as there are significantly fewer firms in Jurong as compared to the CBD or even other decentralised clusters such as one-north."

Without the economies of scale reaped from a cluster and without a large enough rental gap, firms currently located in the CBD may not find it attractive to relocate to JLD, she added.

Ms Li suggested that the government provide tax incentives for firms that shift from the CBD to JLD. She also mooted the idea of having the district declared a "special economic zone" to attract developers given the current economic malaise, so that the highest bid for government land sales (GLS) sites will be awarded even if it is below the reserve price.

Other ideas include ensuring "ample parking lots", as well as doling out special tax incentives so that companies based there can provide transport subsidies to their workers, she added.

With all the current uncertainty around the pandemic, Mr Cheong suggested that it might be better to channel more resources into the CBD instead and put plans for JLD on pause.

CBRE's Mr Sim said, however, that JLD has a development timeline of 10 to 15 years and requires multi-disciplinary input. "There is no improper time for strategising," he said. "This is a fulfillment of (many) hectares of space."

Once fully developed, JLD is expected to deliver over 100,000 new jobs and 20,000 new homes. It will also become a major transport hub, served by four rail lines - North-South Line, East-West Line, and the upcoming Jurong Region Line and Cross-Island Line. Aside from government agencies such as JTC Corp and the Building and Construction Authority (BCA) at Jurong Gateway, JLD is home to private sector companies such as CPG Corporation, engineering consultancy Beca, Daimler and Great Eastern Life.

Over the next decade or so, projects are being planned to enhance accessibility and inject vibrancy into the mixed-use district, including a new integrated tourism development at Lakeside West from 2026 and a transport hub next to Jurong East MRT station with office and retail space as well as recreation activities.

For office space, the URA has earmarked a plot of land ranging from 300,000 square metres (sqm) to 400,000 sqm in gross floor area for an integrated mixed-use development which will be released for sale in the future via the GLS programme.

Highlighting the importance of JLD to support Singapore's next phase of economic growth, the URA brief said: "The ability to seed demand and attract top-tier anchor firms by building up good branding and reputation in this new district is key. Even if the CBD may seem attractive due to its strategic central location and close proximity to clusters of business and financial firms, JLD can complement the CBD and succeed as the largest mixed-use business district outside the city centre if it has a strong and different value proposition."

The tender, which was published on the GeBiz portal in March, has had its closing date extended from April 20 to May 21.