Associate Professor Zhang Weina, Deputy Director of SGFIN commented that the sustainable aviation fuel (SAF) levy on outbound cargo will likely be passed on to end customers. This may negatively impact the price competitiveness of Singapore’s exports. However, as transit and inbound cargo will be exempt from this levy, the impact on companies using Singapore as a transit logistics hub will be minimal. She added that the efficiency and reliability of the Singapore’s airports far outweigh the cost of the levy. The SAF levy is necessary and crucial to building a low-carbon aviation ecosystem in the long term.
