Singapore defence spending is anticipated to reach an all-time high of $19.7bn by 2029, according to GlobalData, a data and analytics company.
The report titled “Singapore Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2024–29” noted that acquisitions supporting its military modernisation include the F-35A/B jets multirole aircraft, Invincible-class (Type 218SG) submarines Multi-Role Combat Vessels (MRCVs), and Hunter Armoured Fighting Vehicles.
The country dedicated a portion of its GDP, averaging 3.5%, to defence spending from 2020 to 2024.
The government’s strategy to counter the limitations of a small military force includes a strong investment in technology and modern defence assets to bolster its operational capabilities.
This direction has led to a defence budget totalling $63bn over the five-year period.
GlobalData Aerospace & Defense analyst Akash Pratim Debbarma said: “Singapore has long relied on international partnerships for technological transfer, knowledge sharing, and digital innovation. This approach was evident when Singapore signed a $2.7bn deal in 2020 with Lockheed Martin to procure 12 F-35B multirole aircraft to replace its aging fleet of F-16s.
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By GlobalData
“As the first Southeast Asian country to acquire the F-35 aircraft, Singapore demonstrates its ambition to be a key military power in the region. Additionally, the country awarded a contract to acquire four Invincible-class (Type 218SG) submarines from Thyssenkrupp Marine Systems, which will enable the country to safeguard key maritime trade choke points in its vicinity, such as the Straits of Singapore and Malacca.”
Singapore is also collaborating with ST Engineering to domestically produce 580 next-generation armoured fighting vehicles (AFVs), also known as the Hunter AFVs, and six Multi-Role Combat Vessels (MRCVs) locally.
Debbarma concludes: “Singapore, alongside Malaysia, Thailand, and Indonesia, faces ongoing challenges in safeguarding the Malacca Strait, which is prone to piracy. The acquisition of advanced defence platforms by Singapore demonstrates its strategic efforts to combat piracy and ensure secure navigation through the Malacca Strait.
“Furthermore, the country also faces the vulnerability of being dragged into regional power struggles between bigger players such as the US and China. Owing to this, Singapore will continue to invest steadily in defence over this decade.”
In 2023, it was reported that Singapore’s defence spending had increased as part of its military modernisation, with plans to rise from $13.5bn in 2024 to $16.3bn in 2028, marking a 4.7% compound annual growth rate.
According to GlobalData’s “Singapore Defense Market Data 2023-2033 report”, Singapore prioritised defence spending due to high terrorism risks from groups such as the Al-Qaeda-linked Jemaah Islamiyah, alongside the need to safeguard its small territorial holdings.
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