Yzabel Dumaguing
Co-Founding Partner

Yzabel’s main areas of practice are shipping, dispute resolution, international arbitration, international trade (including anti-dumping, energy & natural resources, offshore), and corporate advisory, which includes ship financing.

She acts for global clients based in Asia, Australia, Europe, Africa, and the Americas in maritime transactions and complex disputes, ranging from lenders to borrowers, shipowners to charterers, and corporations engaged in offshoring, commodities such as steel, oil & gas, and natural resources.

Yzabel has acted for clients in all levels of the Singapore courts, and as counsel in SIAC, LMAA, and SCMA arbitral proceedings.

Andrew Lee
Co-Founding Partner

Andrew’s experience in marine, trade & energy, international arbitration, and commercial litigation began in 2009 when he was admitted to the Singapore Bar, following his LLB (Hons) from the National University of Singapore in 2008.

Recognised as one of “Asia’s brightest young legal minds under 40” by Asian Legal Business (2017) and “Singapore’s most influential legal minds aged 40 and under” by Singapore Business Review (2018), Andrew was ranked as a “Rising Star for Dispute Resolution” by asialaw Leading Lawyers for 2022 and 2023. Andrew has acted as counsel in SIAC, UNCITRAL, LMAA, and SCMA arbitration proceedings, representing clients in complex maritime disputes, offshore oil & gas matters, and high-value commercial litigation exceeding USD 125 million.

Singapore Ship Finance Updates 2025

Having been crowned as the “Best Global Seaport” for the fourth time and the “Best Seaport in Asia” for the 37th time at the 2025 Asian Freight, Logistics and Supply Chain (AFLAS) Awards on 3 September 2025,¹https://www.mpa.gov.sg/media-centre/details/singapore-named-best-global-seaport-and-best-seaport-in-asia-2025. while also being the second busiest port in the world in terms of cargo tonnage,²ttps://www.statista.com/topics/5837/container-port-industry-in-singapore. Singapore’s dedication to maintaining its position as a leading maritime hub is undeniable.

Understandably, some of those efforts goes into enhancing the ship finance sector in Singapore. These developments include:

1. Extension of the GST remission for S-REITs and Singapore-listed Business Trusts³Singapore Budget 2025 Speech, Annex H-2; https://www.iras.gov.sg/media/docs/default-source/e-tax/etaxguide_gst_gst-concession-for-reits-and-qualifying-rbts-listed-in-singapore-(fifth-edition).pdf

GST remission is available to Real Estate Investment Trusts listed on the Singapore Exchange (“S-REITs”) and Singapore-listed Registered Business Trusts (“RBTs”) in the infrastructure business, ship leasing, and aircraft leasing sectors.

Subject to their fulfilment of the requirements, this allows S-REITs and RBTs in those sectors to claim input GST for business expenses: (a) “regardless of whether they hold underlying assets directly or indirectly through multi-tiered structures such as [Special Purpose Vehicles (“SPVs”)] or sub-trusts”; (b) incurred in setting up SPVs used “solely to raise funds for the S-REITs or RBTs, and do not hold qualifying assets of the S-REITs or RBTs, directly or indirectly”; and (c) for financing the aforesaid SPVs.

Initially set to lapse after 31 December 2025, this GST remission has been extended to 31 December 2030.

2. Approved Shipping Financing Arrangement (“ASFA”) Award⁴ttps://www.mpa.gov.sg/maritime-singapore/what-maritime-singapore-offers/pro-business-environment/support-for-maritime-businesses/approved-shipping-financing-arrangement. (for Ships and Containers) Effective since 19 February 2025, the ASFA Award was introduced to support the ship and sea-container owners and managers through the provision of withholding tax (“WHT”) exemption on “interest and related payments made by approved entities to non-tax-resident lenders” for qualifying financing arrangements for the purchase or construction of ships and containers.⁵Singapore Budget 2025 Speech, Annex H-2. Additionally, subject to certain exclusions, container and ship lease payments effected to non-tax-resident lessors under finance lease agreements for ASFA Award awardees will also be exempted from WHT. The ASFA Award can apply to qualifying financing arrangements entered on or before 31 December 2031.
3. Extension and Enhancement of the Maritime Sector Incentive (MSI)⁶ttps://www.mpa.gov.sg/maritime-singapore/what-maritime-singapore-offers/pro-business-environment/support-for-maritime-businesses/maritime-sector-incentive

Extensions

The MSI scheme has been extended from 31 December 2026 to 31 December 2031 “to continue developing Singapore as an international maritime centre”.⁷Singapore Budget 2025 Speech, Annex H-2

The MSI comprises several schemes: (a) the MSI-Shipping Enterprise (Singapore Registry of Ships) (“MSI-SRS”); (b) the MSI – Approved International Shipping Enterprise (“MSI-AIS”) Award; (c) the MSI – Maritime Leasing (Ship) (“MSI-ML (Ship)”) Award; (d) the MSI-ML (Container) Award; and (e) the MSI – Shipping-related Support Services (MSI-SSS) Award.

The MSI-AIS Award was initiated to encourage international ship owners and operators to set up their operations in Singapore. Under this scheme, awardees are granted tax exemption or an alternative basis of tax having regard to their ships’ net tonnage on qualifying shipping income for either “(a) a 10-year renewable period; or (b) a 5-year non-renewable period, with the option of graduating to the 10-year renewable award at the end of the 5-year period, if qualifying conditions are met.”⁸ttps://www.mpa.gov.sg/maritime-singapore/what-maritime-singapore-offers/pro-business-environment/support-for-maritime-businesses/maritime-sector-incentive

The MSI-SSS Award was introduced to promote the increase of ancillary shipping service providers and to welcome shipping conglomerates to establish their corporate services functions in Singapore. Awardees are given a concessionary tax rate of 10% on the incremental income derived from providing the following services for a 5-year renewable period: (a) ship broking; (b) ship agency; (c) ship management; (d) maritime technology services; (e) qualifying corporate services; and (f) freight forwarding and logistics services.

The intention of the MSI-ML Award is to motivate entities to set up their capital and funding base (for vessels or sea containers) in Singapore. Qualifying entities are granted tax concessions for up to five years on their qualifying leasing income.

Enhancements

Apart from the extension, the scope of the awards has also been broadened to maintain relevance:

(a) Emission management services are now included under the MSI-SRS, MSI-AIS, and MSI-SSS.

(b) Ships supporting subsea distribution of renewable energy generated onshore are now included under the MSI-ML (Ship) and MSI-ML (Container).

(c) The MSI-ML (Ship) and MSI-ML (Container) Awards now recognise assets leased-in from third parties under finance leases treated as sale agreements as qualifying assets.

(d) Maritime technology services are now included under shipping-related support services for the MSI-SSS.

The requirements for these awards would show that their overarching goal is the generation of economic contributions to Singapore and prioritisation of key shipping functions and decision-making being made in Singapore.

As a small country, it is no secret that Singapore has resource constraints. Instead of shying away from this fact, Singapore has decided to tackle this head on. As stated in Singapore’s 2025 Budget Statement, “we must invest in world-class infrastructure and find innovative ways to overcome our resource constraints”. And the Singapore government is delivering on that promise.

As regards the maritime sector, in addition to the above, Singapore has ensured excellent physical connectivity through, among other things, the development of Tuas Port which has seen new record highs in 2024 in bunker sales, vessel arrival tonnage, and container throughput.⁹Singapore Budget 2025 Speech, p 30, [56].

On a related note, Singapore’s commitment to protecting marine environment and dealing with climate change is also in full steam.¹⁰https://www.mot.gov.sg/what-we-do/green-transport/maritime-environment-responsibility

The Maritime and Port Authority of Singapore (“MPA”) and the terminal operators – PSA Corporation Limited, and Jurong Port Pte Ltd – have set their sights on achieving net-zero emissions by 2050 for Singapore’s harbour craft sector and port operations.

PSA and Jurong Port have set milestones leading up to this main goal. The terminal operators are aiming at a 60% reduction of total emissions by 2030 (compared to 2005 levels). By the time Tuas Port is fully operational in the 2040s, its container handling operations “will be powered by electricity, supplemented by low or zero-carbon energy sources”. Additionally, solar panels will be used to generate green electrons for the terminals.

To achieve this quest, the MPA has established several net-zero fuel pathways including without limitation:

(a) From 2030, all new harbour craft operating in Singapore port waters are to be fully electric, capable of using B100 biofuels, or compatible with net-zero fuels.

(b) Offering fuel solutions to the international shipping industry by building up ammonia, hydrogen, and methanol value-chains.

(c) Protecting coral colonies from the impact of the Tuas Port development by working with volunteers to relocate them to St John’s and Sisters’ Islands.

(d) The implementation of the Green Ship Programme, Green Port Infrastructure Programme, Green Craft Programme, Green Energy and Technology Programme, and Green Awareness Programme, under the Maritime Singapore Green Initiative (“MSGI”). Initially launched in 2011 with S$100 million, MPA committed a further S$50 million for the MSGI in 2024 to support the updated green incentives and initiative, which was done to encourage entities to adopt zero and near-zero greenhouse gas emissions technologies and fuels as early as possible.

(e) The said programmes are voluntary and crafted to incentivise companies to implement green shipping practices and operations, as part of Singapore’s commitment to reduce greenhouse gas emissions from ships.

(f) MPA ratified all major International Maritime Organization (“IMO”) Conventions pertaining to the prevention of ship pollution.

(g) MPA worked with the IMO and other Member States on the development of greenhouse gas reduction measures to assist the maritime industry in meeting the targets in the 2023 IMO Strategy on Reduction of GHG Emissions from Ships. IMO approved these measures in April 2025.

These updates underscore Singapore’s diligence, not only in striving as the preferred port of call, but also in ensuring that the future energy needs of the global shipping industry can be met.

Should you require further information or clarification regarding the ship finance market or the broader maritime industry in Singapore, we would be happy to assist.