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The Singapore Maritime Foundation (SMF) formed the Finance Arbitration Working Group in 2004. Led by Mr Brent Nelson Smith, Managing Director & Joint Group Head, Corporate and Investment Banking, DBS Bank Ltd, the group provided additional impetus towards the development of Singapore as an international maritime finance hub.
As a result of SMF’s support and untiring efforts from the Ministry of Finance, the Maritime and Port Authority and the financial sector, Singapore now offers shipping companies a wider variety of finance options and incentives, including:
a. Shipping Trusts
There are three shipping trusts listed on the Singapore Exchange. They are:
• Pacific Shipping Trust
• First Ship Lease Trust
• Rickmers Maritime Shipping Trust
b. Maritime Finance Initiative
The scheme provides for:
• Concessionary tax rate of 10 per cent on qualifying management-related income for Approved Ship Investment Managers (ASIM) for a period of 10 years; and
• Tax exemption on qualifying income (from both finance and operating leases) derived by Approved Ship Investment Vehicles (ASIV) from:
(i) Ship leasing activities to non-tax residents of Singapore;
(ii) Leasing of vessels registered with the Singapore Registry of Ships (SRS);
(iii) Leasing of foreign-flagged vessels operated by companies under the Approved International Shipping Enterprise Scheme (AIS).
The target audience for the MFI scheme include ship leasing companies, shipping funds or shipping business trusts that provide financing for all types of vessels, including those used for the offshore oil and gas sector.
For more information on the MFI, please visit www.mpa.gov.sg.
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