SINGAPORE (March 30): New and existing tenants of HDB industrial properties will not be allowed to sublet their space from June 1.

To give those affected more time to make business adjustments, they will be allowed to renew their subletting agreements up to Dec 31, 2017.

HDB announced the changes in a statement today, saying the new policy will better support industrialists in operating their core businesses, and enable more productive use of scarce industrial land in Singapore.

"Tenants with excess space are encouraged to right-size their factories to smaller units, and can renew their tenancy with HDB for a lower quantum at the end of their current term," it said.

HDB manages close to 12,000 industrial properties, including workshops, warehouses and factories.

Some 98% of these properties are rented out on tenancies ranging from one to three years.

Under current rules, tenants of HDB industrial properties are allowed to sublet up to 50% of their factory floor space.

About 380 tenants - approximately 3% of the total number of tenants - are currently subletting space in their industrial properties.

The new rules do not affect tenants that sublet their premises to their wholly-owned subsidiaries and related companies.