27 February 2001
The Maritime and Port Authority of Singapore (MPA), which administers the Singapore Registry of Ships (SRS), has revised its initial registration fee and Annual Tonnage Tax (ATT). With effect from February 2001, shipowners who have registered or who wish to register ships under the Singapore flag can enjoy greater savings from lower registration fee and Annual Tonnage Tax payments.
There are essentially three key changes to the existing fee structure:
a) Under the new structure, the initial registration fee is now capped at a maximum of S$50,000. This is half of the original cap of S$100,000. The capping will provide an incentive to shipowners who wish to register very large vessels (of more than 20,000 Net Tonnage) with the Singapore flag.
b) Changes have also been made to the existing Block Transfer Scheme (BTS). Under the old fee structure, the Block Transfer Scheme provides a discount off the initial registration fee for owners registering five or three vessels aggregating at least 40,000 NT. With the amended Scheme, the same discount is now extended to owners registering two ships of aggregate tonnage 40,000 NT; three ships of aggregate tonnage 30,000 NT; four ships of aggregate tonnage 20,000 NT; and five ships of any aggregate tonnage. The revision will allow owners with smaller vessels to enjoy the BTS discount when they register in bulk.
c) To help shipowners reduce recurrent ship operating costs, the Annual Tonnage Tax payable is now capped at a maximum of S$10,000. Previously, there was no cap on the ATT.
Further details on the new fee structure are provided in the MPA Shipping Circular attached.
The revision of the registration fee and Annual Tonnage Tax is part of the MPA's ongoing efforts to promote and enhance the competitiveness of the SRS. The continued growth of the Singapore Registry is an important factor in the development of Singapore as an International Maritime Centre (IMC). A large quality merchant fleet not only contributes positively to the national GDP, it also helps to attract and promote the development of ancillary shipping and shipping-related services in Singapore, such as ship financing, marine insurance and other services.
While the revisions make the SRS more cost-competitive, the SRS will continue to keep to its stringent registration criteria. This is to ensure that ships flying the Singapore flag maintain their high quality standards.
With the considerable growth in our Registry's tonnage since the formation of the MPA in 1996, the Singapore Registry now ranks as the seventh largest in the world. It also boasts one of the youngest fleets in the world, with an average age of 11 years compared to the world's average of 19 years.
End of Release.