Commenting on the benefits of the Sustainable Aviation Fuel (SAF) tax that the Civil Aviation Authority of Singapore will introduce in 2026, SMU Assistant Professor of Strategy & Entrepreneurship (Education) Terence Fan said that the SAF levy would benefit Singapore in the long run, explaining that the levy is easier for small or newly established airlines as they do not need to navigate complex trading mechanisms. He concluded that the levy’s costs would likely be shared across airlines, cargo companies, and end-customers, and that although certain price-sensitive industries might feel the impact, the tax is unlikely to impede manufacturing growth in Singapore or the region.
