Expanded tax scheme to benefit more construction companies from 2026

[SINGAPORE] The Land Intensification Allowance (LIA) scheme for the built environment sector, which provides tax allowances to owners of construction facilities such as prefabrication hubs, will be expanded to cover a greater range of developments from Jan 1, 2026.

National Development Minister Desmond Lee on Wednesday (Apr 9) said the enhanced scheme will support multi-storey design for manufacturing and assembly (DfMA) facilities related to prefabrication operations.

“These include facilities that perform fit-out works, store precast components or produce other DfMA components such as mass engineered timber and prefabricated mechanical, electrical and plumbing systems”, said Lee at the 47th International Federation of Asian and Western Pacific Contractors’ Association convention.