Pasir Panjang Wholesale Centre to rectify all fire safety issues to secure lease extension beyond 2026: SFA

SINGAPORE: The leases of Pasir Panjang Wholesale Centre and Jurong Fishery Port will be extended to 2040, with the former being required to take on rectification works to meet mandatory fire safety requirements by end-2026, said the Singapore Food Agency (SFA) on Friday (Aug 29).

The rectification works required will involve all the shops – about 200 of them – at Pasir Panjang Wholesale Centre, and financial support will be provided.

The current leases of Pasir Panjang Wholesale Centre and Jurong Fishery Port are set to expire in 2026 and 2030 respectively. 

The extensions are meant to ensure a continued and resilient food supply chain for Singapore, said SFA, which manages both wholesale hubs.

Both hubs play key roles in Singapore’s agri-food system, said the agency.

Established in 1969, the Jurong Fishery Port is the only seafood wholesale market in Singapore, following the closure of Senoko Fishery Port in 2024.

It features 130 market lots, a 400-metre wharf and supporting facilities such as shops, storage lots, and ice-crusher stalls. 

SFA said on Friday the extension to 2040 will allow its tenants within the fishery port to “plan, invest, and upgrade with confidence”.

RECTIFICATION WORKS AT PASIR PANJANG WHOLESALE CENTRE

The Pasir Panjang Wholesale Centre first began operations in 1983. Spanning 15.4 hectares across 26 blocks, it is Singapore’s largest wholesale centre for fruits, vegetables, and dried goods with 1,200 units, including shops, stalls, cold rooms and trading pitches.

As part of the requirements for a lease extension, about 200 shops will be required to undertake fire safety compliance works.

These include the installation of sprinkler systems, as well as rectifying past modifications made by the lessees without SFA approval, said the agency.

These rectifications are critical to ensure the safety of tenants, workers and members of the public visiting the wholesale centre, SFA said. 

Since 2022, SFA has been working closely with tenants and the Singapore Civil Defence Force (SCDF) to progressively address fire safety requirements. 

Thus far, SFA said it has completed the installation of sprinklers in common areas and linear heat detectors in shops, laying the foundation for broader rectification works. 

SFA will complete the addition and alteration rectification exercise progressively between now and end-2026.

This comprises the demolishing of non-fire safety compliant assets from units to facilitate the installation of sprinklers, as well as securing fire safety approvals for Pasir Panjang Wholesale Centre once the entire sprinkler system is properly tested. 

SFA said it will bear the cost of installing sprinklers at the ceiling of each shop and demolish existing chillers or assets that do not meet fire safety standards.

In addition, affected tenants will receive waivers for three months’ rent and service and conservancy charges.

The three-month waivers are based on estimates of how long the rectifications could take, SFA said, adding that it wanted to ensure a “fair” support package to help tenants with potential disruptions and cost issues.

Other support initiatives include allocating swing spaces, which are temporary vacant spaces for business use, to ensure continuity of trade and provision of co-funding support for those who need to reinstall their chillers. 

“To ensure quality and minimise disruption, SFA-appointed contractors are working closely with the (Pasir Panjang Wholesale Centre) Association and affected tenants — reviewing unit layouts, polling their operational needs, and sequencing works in consultation with them,” it said.

Tenants who do not wish to continue their leases may opt to exit without reinstatement obligations, it added.

SFA highlighted that “some tenants have also expanded their trading activities into common spaces”, affecting escape routes and obstructing fire safety provisions. 

The agency said it will work with the SCDF to ensure that these fire hazards are rectified to provide a safer environment for the tenants and visitors.

There have been no major fires since the opening of the wholesale centre.

But a 2023 report by the Auditor-General’s Office had flagged fire safety violations that occurred under managing agents contracted by SFA to run the wholesale centre.

DISRUPTIONS EXPECTED

An engagement session with the first batch of tenants was held on Friday morning, where Senior Minister of State for Sustainability and the Environment Zaqy Mohamad shared details of the latest announcement.

One of those who attended the session was Mr Tai Seng Yee, executive director of Zenxin Agri-Organic Food and secretary of the Pasir Panjang Wholesale Centre Association.

“There may be some disruptions but our friends at Pasir Panjang Wholesale Centre are happy and welcome the news of a support package,” he told CNA.

While the support package may not “be 100 per cent adequate”, such as in instances where major rectification works are needed, Mr Tai said it reflected feedback given by tenants over the years during discussions on fire-safety compliance.

For many tenants, the cost to carry out such works is concerning, said Mr Jerry Tan, executive director of Hu Lee Impex, an importer and wholesaler of fresh produce. Depending on the scale of demolishing works, it can cost the tenant upwards of S$10,000.

“Any support is good,” said Mr Tan, who also attended the engagement session on Friday morning.

Several tenants also appreciated the provision of alternative spaces, such as cold rooms, so that they may continue operations while rectification works are being done. Some also liked that they were given an option to give up their leases without reinstatement obligations.

“Essentially, there is support and there are also choices given,” said Mr Tai, who has five units at the wholesale centre.

“We see it as a positive.”

The bigger positive news was the lease extension for the wholesale centre.

That has been a “big question” on the minds of tenants for a long time, said Mr Tai, adding that the tenants are now relieved that the uncertainty is over.

“The Pasir Panjang Wholesale Centre is a 42-year-old development … we have no issues here but a lot of things can be updated for everyone’s safety and future-proof us for another 14 years,” he added.

SFA is set to hold a second engagement session with shop tenants next week.

Noting that having a continued supply of safe food for Singapore and Singaporeans is a key priority, Mr Zaqy said it is “therefore crucial for these facilities to be upgraded, rejuvenated and future-ready”. 

At the same time, it is important to ensure the safety of tenants, customers and other stakeholders operating at these facilities. 

“Hence, we must do the necessary rectifications in (Pasir Panjang Wholesale Centre) in accordance with mandatory fire safety requirements,” he said in the press release.

“Though there may be some inconveniences during the regularisation works at (Pasir Panjang Wholesale Centre), SFA will continue to work closely with stakeholders involved and provide the necessary assistance to ensure business continuity and minimise disruptions.”