Take-up Rate for Aircraft Leasing Scheme

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 10 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.

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's (EDB's) Aircraft Leasing Scheme (ALS). The ALS is just one of the ways in which 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. 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.