Singapore's Draft Master Plan 2025, recently unveiled by the Urban Redevelopment Authority (URA), presents a comprehensive vision for the city-state's development over the next 10 to 15 years. The plan, which builds on extensive public engagement since October 2023, focuses on four key themes: Shaping a Happy Healthy City, Enabling Sustainable Growth, Strengthening Urban Resilience and Stewarding Nature and Heritage.
The plan proposes significant changes to Singapore's urban landscape, including:
- Increased housing in central areas, with a focus on accessibility and supporting diverse demographics. This includes the development of new homes in key locations such as the former Keppel Club site and the redevelopment of the Turf Club in Kranji.
- Introduction of mixed-use developments and "vertical zoning" to create more vibrant, integrated spaces.
- Enhancement of five Identity Corridors, including the Thomson-Kallang Corridor and the Historic East Corridor, to preserve and showcase Singapore's unique character.
- Expansion of green spaces and recreational areas to promote active lifestyles and mental well-being.
- Implementation of sustainable development practices, including green buildings and renewable energy initiatives.
- Strengthening of urban resilience through improved infrastructure to handle climate change and other disruptions.
For businesses and investors, the plan aims to strengthen Singapore's economic gateways with key employment nodes and infrastructure improvements. This includes the development and enhancement of business nodes to support companies and provide attractive work-live-play-learn environments. The URA is actively seeking public input on various aspects of the plan, from national initiatives to neighbourhood-specific projects. This participatory approach offers stakeholders an opportunity to shape the future of Singapore's urban development.
The Draft Master Plan 2025 may present new opportunities and challenges in areas such as real estate development, environmental regulations and urban planning law. As the plan progresses, it will be crucial to stay informed about evolving regulations and zoning changes that may impact business operations and investment strategies. The final Master Plan 2025 is expected to guide Singapore's development, balancing economic growth with sustainability and quality of life improvements for its residents.
Of particular note is that the Draft Master Plan 2025 and the recently announced Johor-Singapore Special Economic Zone (JS-SEZ) complement each other in several ways, aligning with Singapore's long-term development goals:
- Economic growth: The JS-SEZ aims to create 20,000 skilled job opportunities and support the expansion of 100 projects within its first decade. This aligns with the Master Plan's focus on enabling sustainable growth and strengthening Singapore's economic gateways.
- Cross-border connectivity: The JS-SEZ aims to improve cross-border goods connectivity between Singapore and Johor, while also enabling freer movement of people. Johor is the southern-most state in Peninsula Malaysia and is separated from Singapore by a small body of water which is about 1km at its narrowest and connected by two road bridges and a train track. This complements the Master Plan's emphasis on accessibility and integrated spaces.
- Sustainable development: Both initiatives prioritise sustainability. The JS-SEZ promotes sectors that enhance economic complexity, digital vibrancy and net-zero aspirations. This aligns with the Master Plan's focus on sustainable growth and green buildings.
- Business ecosystem: The JS-SEZ aims to strengthen the business ecosystem within the region, which complements the Master Plan's goal of creating attractive work-live-play-learn environments.
- Regional cooperation: The JS-SEZ represents a reimagining of the Singapore-Malaysia relationship as an economic partnership. This aligns with the Master Plan's vision of Singapore as a global city with strong regional connections.
By leveraging the complementary strengths of Singapore and Johor, the JS-SEZ enhances Singapore's value proposition for global investments, supporting the Master Plan's objectives for long-term economic development and urban planning. The Draft Master Plan also calls for the development of the Northern Gateway as the entrance to growth opportunities in new innovative and advanced sectors (e.g., agri-tech and food, digital tech and cybersecurity) through the development of the new Agri-Food Innovation Park at Sungei Kadut and the Punggol Digital District. As the location in Singapore most proximate to Johor, the complementary development of both these plans offers investors new businesses opportunities.
Client Alert 2025-021
