Take-up Rate for Aircraft Leasing Scheme
Ministry of Trade and IndustrySpeakers
Summary
This question concerns the take-up rate and competitiveness of the Aircraft Leasing Scheme compared to Ireland and Hong Kong, as raised by Mr Dennis Tan Lip Fong. MP Tan also inquired about the basis for Singapore's global market share and the operational definition for the eight top leasing firms based locally. Minister for Trade and Industry Chan Chun Sing attributed Singapore’s competitiveness to its extensive tax agreements, robust financial ecosystem, and the Economic Development Board’s Aircraft Leasing Scheme. He clarified that eight of the top ten global leasing companies have registered offices in Singapore, where they undertake various business activities and comply with statutory tax and accounting requirements. Minister for Trade and Industry Chan Chun Sing emphasized that Singapore remains a leading global hub alongside Ireland, focused on capturing opportunities from the expanding Asian air travel market.
Transcript
23 Mr Dennis Tan Lip Fong asked the Minister for Trade and Industry (a) what is the current takeup rate for our Aircraft Leasing Scheme; (b) for the eight out of the top ten aircraft leasing companies which have their operations in Singapore, how many of them are participants of the Scheme; and (c) how is our Scheme more competitive vis-à-vis that of our closest rivals such as Hong Kong and Ireland.
24 Mr Dennis Tan Lip Fong asked the Minister for Trade and Industry (a) what is the basis for the Ministry's claim that Singapore has 20% of the global market share in aircraft leasing; (b) for the eight out of the top ten aircraft leasing companies which have their operations in Singapore, how does the Ministry define "operations"; and (c) how many of them account for their lease income and aircraft assets in the profit and loss and balance sheets, respectively, of their Singapore entities.
Mr Chan Chun Sing: Singapore's competitiveness as a base for aircraft leasing companies is founded on several factors, including our extensive network of Avoidance of Double Taxation Agreements (DTAs); our strong financial industry and professional services ecosystem which provide supporting services to aircraft leasing businesses; and our established aviation and aerospace industries which complement the aircraft leasing industry with their deep knowledge and quality services.
Several companies of varying sizes seeking to develop aircraft leasing capabilities in Singapore have availed themselves of the Economic Development Board (EDB)'s Aircraft Leasing Scheme (ALS). The ALS is just one of the ways in which the EDB works with aircraft leasing companies to capture growth opportunities for the industry, strengthen the larger ecosystem of related industries, and create good jobs for Singaporeans. While Singapore's competitiveness cannot be attributed solely to our tax regime, factual details of tax regimes across jurisdictions including Ireland, Hong Kong and Singapore can be found in the respective government publications.
Eight out of the top 10 aircraft leasing companies have offices in Singapore and are registered with the Accounting and Corporate Regulatory Authority (ACRA). Aircraft leasing companies in Singapore may undertake activities such as sales, leasing, and financing depending on their business models. In addition, they are required to comply with accounting and tax filing requirements under Singapore law.
While Singapore is generally recognised as one of the top aircraft leasing hubs alongside Ireland which is the industry leader, as reported in industrial reports and news articles, other cities in our region are also competing to capture opportunities arising from Asia's increasing demand in air travel. We will need to continue to partner one another to strengthen Singapore’s position as the preferred base for the world to access Asian markets, and for regional companies to access the world.