Older business parks may need overhaul, say experts

Singapore Science Park 1 opened in the 1980s. Experts have highlighted the need for business parks to change constantly. ST PHOTO: LIM YAOHUI

Some economic hubs, especially those that opened decades ago, may need an overhaul if they are to compete with new regional centres on the horizon, said industry observers.

Older industrial areas have plenty of years on the clock already: Singapore Science Parks 1 and 2 opened in the 1980s and 1990s, while International Business Park was set up in 1992.

Mr Nicholas Mak, head of research and consultancy at ZACD Group, said older industrial parks like these have to find ways to maintain their draw, such as by offering cost advantages or more relaxed regulations.

“The formula for success in the past may not work in the near future,” he added. “They may need to reinvent themselves.”

However, the onus may be on building owners and tenants to propose solutions to the authorities.

Mr Mak noted: “I don’t think the authorities want white elephants as well, and they are willing to consider business proposals, especially if they are beneficial to the Singapore economy.”

Associate Professor Sing Tien Foo from the National University of Singapore’s real estate department agreed on the need for business parks to change constantly.

However, he noted that while it is easy to upgrade the physical infrastructure, it may be difficult to attain the suitable human capital and research and development facilities for the business parks to truly blossom.

Mr Chris Koh, director of property consultancy Chris International, said business parks may not feel the heat in the short run.

“But when the other (new) business parks become more mature, there will be consolidation of clusters and older parks will have to reinvent themselves to remain competitive,” he added.

For example, these older parks could inject more vibrancy by adding shopping and food and beverage outlets, as well as residential use, to attract the younger working generation, Mr Koh noted.

Mr Mak said it may boil down to location and facilities, which newer hubs may not be able to guarantee.

“Even if (the hubs) are old, but well-located, there will still be tenants and users going there, compared with a new and untested place,” he added.

“Whatever fanciful name is given, if it does not have the infrastructure, companies are not going there.”

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