In a significant step toward enhancing the sustainability of its maritime industry, Singapore has introduced a new sustainability pillar within the Maritime Cluster Fund. Announced by Transport Minister Chee Hong Tat, this initiative earmarks S$15 million through to 2030 to support sustainability projects by companies in the maritime sector.
The sustainability pillar is the latest addition to the fund’s comprehensive support structure, which already includes pillars dedicated to manpower development, business development, and productivity enhancement. The primary aim of this new pillar is to facilitate the adoption of sustainable practices within the maritime industry by offering financial assistance for the implementation of pre-approved sustainability solutions. Specifically, it provides funding that covers up to 50% of the qualifying costs for small and medium-sized enterprises (SMEs) and 30% for larger entities, with a cap of S$30,000 per solution. This initiative seeks to stimulate early adoption of green technologies and practices among maritime companies.
Additionally, the Maritime and Port Authority of Singapore is exploring further support for innovative sustainability projects or initiatives that have the potential to encourage industry-wide adoption of sustainable practices. More information on these opportunities is anticipated to be released by the third quarter of 2024, signaling a robust commitment to environmental stewardship within the maritime sector.
This announcement is part of a broader suite of measures aimed at bolstering the maritime industry’s environmental credentials. Notably, the Energy Efficiency Grant (EEG) and the Enterprise Financing Scheme – Green (EFS-G), which were highlighted in Budget 2024, will now be extended to include the maritime industry. These schemes are designed to support the acquisition of energy-efficient equipment and assist harbour craft owners or operators in transitioning to cleaner fleets, respectively, further demonstrating the government’s dedication to sustainable development within the maritime realm.
In addition to environmental sustainability, Minister Chee also unveiled initiatives aimed at enhancing the operational efficiency of the maritime sector. A significant focus is being placed on streamlining the transhipment process between air and sea transportation in Singapore, with the goal of reducing the current waiting times. To achieve this, the Ministry of Transport will establish an Alliance for Action comprising key stakeholders such as DB Schenker, PSA, Cargo Community Network, Sats, Singapore Airlines Cargo, and the Singapore Aircargo Agents Association. This collaborative effort will aim to improve logistics coordination and leverage real-time digital platforms to expedite transhipment processes.
Further simplification efforts include the consolidation of transhipment permit requirements for goods moving through land checkpoints between Malaysia and Singapore. From the first quarter of 2025, only a single permit will be required, a change from the current requirement of two permits. This regulatory adjustment is expected to yield significant cost savings for the industry, estimated at around S$2 million annually, with the potential for further savings as transhipment volumes through Singapore’s land checkpoints increase.
Through these initiatives, Singapore is setting a precedent for integrating sustainability with operational efficiency in the maritime sector, underscoring its commitment to a greener and more resilient future for the industry.
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