How Master Plan 2025 is reshaping SG’s industrial landscape

As a small nation, Singapore must continually adapt to global developments. The review of the latest Draft Master Plan 2025 (DMP 2025) presents two case studies that exemplify the nation's strategic shift in the industrial landscape to meet evolving business needs: the rezoning in Woodlands North Coast and Changi Business Park to include more Business 2 (B2) and B2-White spaces.

Figure 1: Changes in Master Plan for Woodlands North Coast

Source: URA, JLL Research

A visual analysis of the zoning plan for Woodlands North Coast reveals significant rezoning of several plots from Commercial, Business 1 (B1) and Business Park zones to B2 -White zones. This change underscores the planners’ commitment to strengthening Singapore’s manufacturing and industrial capabilities. The B2-White zoning framework offers enhanced development potential through higher density for the “white spaces”, subject to evaluation by the relevant authorities. For example, developments on a site zoned as “4.2 [B-2.5] W”, must achieve the minimum plot ratio (PR) of 2.5 for B2 uses before authorities permit White uses, capped at the total maximum plot ratio of 4.2. The increase in B2-White zones creates value-added opportunities for manufacturing tenants by integrating other non-industrial uses such as commercial facilities, shops and childcare services within developments, subject to authority approval.

Table 1: Types of zoning: Use quantum in Woodlands North Coast¹

Source: URA, JLL Research

The WNC rezoning aligns with Singapore's broader strategy, as the Prime Minister articulated in the recent National Day Rally 2025 regarding flexible industrial spaces near the Rapid Transit System (RTS) link. These sites, positioned close to the Johor-Singapore Special Economic Zone (JS-SEZ), offer the domestic manufacturing industry access to cross-border manufacturing and logistics opportunities.

The second case study examines Changi Business Park (CBP), which illustrates the plan’s responsiveness to market realities. The rezoning of an estimated 173,000 sqm from Business Park BP to B2 classification showcases Singapore’s agility when faced with challenging market conditions.

Business park space vacancy at CBP remains at over 20% in 2Q25, since 4Q2021.

Based on the 2019 MP, approximately 50% of the 66-ha CBP is undeveloped. The MP 2025 conversion of some 173,000 sqm to B2 space represents over half of this unoccupied BP land, demonstrating a substantial commitment to addressing market needs through zoning flexibility.

Figure 2: Changes in Master Plan for Changi Business Park

Source: URA, JLL Research

This conversion allows for more manufacturing activities, expanding the industrial ecosystem with a larger pool of prospective occupiers. The rezoning should improve the land productivity as it caters to the growing manufacturing needs targeted in the Changi development plans.²

The evolution of Woodlands North Coast and Changi Business Park under DMP 2025 provides insights into the future of Singapore's industrial real estate sector. These case studies exemplify that flexibility has become paramount in industrial development, whether through rezoning to B2-White or conversion from business park designations to B2 zoning. Both approaches share a common thread: a shift from the traditional business park model of the 1980s to a more flexible and market-responsive archetype that meets the new industry needs.

¹Zoning refers to different classifications of industrial land use. B1 zone is designated for clean and light industries. B2 zones contain general and special industries, intended for heavier industrial activities. Business Park zone accommodates high-tech, Research and Development (R&D), high-value-added, and knowledge-intensive industries. A “white zone” refers to a zone permitting various uses, including commercial, residential, hotel, sports and recreational facilities, or combinations of uses.
²This shift signals Singapore's market responsiveness and willingness to adapt planning policies when current conditions demand flexibility.