New funding initiative aims to accelerate adoption of green solutions in Singapore’s maritime industry
A new sustainability pillar has been introduced under Singapore’s Maritime Cluster Fund, with S$15 million allocated to support environmentally friendly initiatives until 2030. Announced by Transport Minister Chee Hong Tat during the ministry’s budget debate on March 5, this funding aims to encourage the maritime sector to adopt greener solutions and enhance sustainability efforts.
This new pillar joins the fund’s existing three areas—manpower development, business development, and productivity. It will co-fund sustainability solutions, covering 50% of qualifying costs for small and medium-sized enterprises (SMEs) and 30% for non-SMEs, with a cap of S$30,000 per solution. The goal is to encourage early adoption of sustainable technologies and practices within the industry.
Additionally, the Maritime and Port Authority of Singapore may provide funding for projects that introduce new sustainability solutions or promote industry-wide adoption. More details on this initiative will be available in the third quarter of 2024.
As part of Budget 2024’s sustainability push, the government is also extending the Energy Efficiency Grant (EEG) and Enterprise Financing Scheme – Green (EFS-G) to the maritime industry.
The EEG will support the purchase of energy-efficient port and harbor craft equipment, available until March 2026. The grant offers up to 70% co-funding for pre-approved equipment, capped at S$30,000 under the base tier. Larger investments will be eligible for an advanced tier, with a cap of S$350,000 per company. Further details will be shared by the end of 2024.
Under the EFS-G, harbor craft owners and operators can apply for loans to transition to cleaner energy fleets, with the government sharing 70% of the financial risk.
Beyond sustainability efforts, Minister Chee also outlined plans to streamline Singapore’s multimodal shipping operations. Currently, transhipments involving multiple transport modes—such as moving goods from air to sea—can take over five days. The Ministry of Transport aims to cut this time in half, ensuring that goods leave Singapore within 24 hours of arrival.
To achieve this, the ministry will:
Form an Alliance for Action with key logistics stakeholders, including DB Schenker, PSA, Cargo Community Network, Sats, Singapore Airlines Cargo, and the Singapore Aircargo Agents Association. This alliance will enhance coordination and implement a real-time digital logistics platform.
Reduce administrative burdens by requiring only one permit instead of two for transhipments via land checkpoints between Singapore and Malaysia. This change, set for implementation in early 2025, is expected to save the industry around S$2 million annually, with potential for higher savings if cargo volume increases.
These initiatives reflect Singapore’s ongoing commitment to sustainability and efficiency in its maritime and logistics sectors.
