LOCATIONAL ANALYSIS OF COMPANIES IN JURONG EAST INTERNATIONAL BUSINESS PARK

Abstract

In the New Economy, which is largely innovation-driven, specific areas like life sciences and high-technology development, are predicted to the key drivers of economic growth in Singapore. Conventional industrial estates may be inadequate to accommodate this new development So, in response to this change in economic structure, business parks have been evolving rapidly. From general business parks to specialized park for specialized nature of operation, business parks have inevitably become the place that the economic viability of new ideas can be tested and finally materialized. It is therefore imperative to understand the key locational determinants that attract such industries. Therefore, this study aims to find out the locational factors, which local research-oriented industries consider important. In doing so, it is hoped that important factors can be provided for during the planning and development of future business parks. This is especially pertinent with the latest iPark and Biopolis in the midst of development. This study is carried out to investigate clearly the locational factors, which are important in influencing the locational decisions of companies in the first business park of Singapore - Jurong East International Business Park. Analysis indicated that cost/rental is the main locational factor, while importance of different factors varies according to the nature of business activities.