"For the first six months of this financial year, net allocation for our industrial facilities was flat or negative. We forsee a slowdown in demand for land and factory space for the rest of the financial year," said chief executive Chong Lit Cheong.

The government-linked developer, which manages 35 industrial parks housing more than 7000 local and foreign businesses in the city-state, had set aside S$1.5 billion (US$882 million) for projects this year.

The "sudden slowdown in the global economy and the emergence of China as a major manufacturing hub are developments that will have impact on Singapore," he said in a statement.

However, growth in new sectors such as information and communications, biomedical science and petrochemicals had increased demand for business facilities.

The developer also plans to ease regulations and allow greater private sector participation in the industrial property market, including upcoming projects such as Changi Business Park and a 194 hectare (479 acre) Science Park to be unveiled at the end of the year.

It added creative solutions would be sought for Singapore's land shortage such as exploring the feasibility of underground oil storage caverns, super high-rise factories and floating structures.

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