Government Increases Farming Spaces and Offers Longer Leases to Encourage Investment and Local Production
[SINGAPORE] To enhance food security, the Singapore Government has announced plans to tender more land and sea spaces for farming, offering longer lease terms. The initiative, unveiled by the Singapore Food Agency (SFA) on March 7, aims to support local agriculture and bolster the country’s goal of producing 30 per cent of its nutritional needs by 2030. The leases, which will begin to be launched progressively from late 2022, will allow businesses the option to extend their lease by an additional 10 years after the initial 20-year term, providing more stability for long-term planning and investment.
This move is part of Singapore’s strategy to reduce its dependency on food imports, which currently make up over 90 per cent of its food supply. Although local production of key food items such as fish, vegetables, and eggs has been increasing in recent years, the government hopes to further boost this through extended lease options and additional funding support.
The SFA also revealed that the S$60 million Agri-Food Cluster Transformation Fund, aimed at enhancing production capabilities among local farmers, will be expanded to include a broader range of food types, such as more varieties of vegetables, mushrooms, and shrimp.
Coastal Fish Farm Leases to be Introduced
As part of the changes, coastal fish farms will no longer have to renew their licences annually, but instead will transition to a leasing system starting January 1, 2024. Temporary occupation licences will be introduced for farms in the Straits of Johor and Southern Waters, with fees ranging from S$3,600 to S$6,000 per half hectare. These fees will gradually increase over the next four years, with full charges implemented by 2026. However, the government has waived these fees for 2023 to ease the transition.
Additionally, SFA has reduced the annual licence fee for sea-based farmers to S$145 from the current S$850 per half hectare, making it more affordable for them to operate. New farm applications or farms with significant changes to their operations will incur a one-off assessment fee.
Through these initiatives, the government aims to foster growth in local farming industries, provide greater stability for farm operators, and contribute to the long-term goal of achieving greater food security for Singapore.
