Singapore Raises Defence Spending by 4.3 Per Cent

An F-15SG fighter aircraft of the Republic of Singapore Air Force.


Singapore’s 2012 Defence Budget Increased to USD 9.73 Billion
As Agence France Presse (AFP) reported, the recently released annual budget report by the government of Singapore indicates that the Southeast Asian country will raise defence spending by 4.3 per cent in 2012. This represents an increase of SGD 504 million* over the 2011 budget and will, thereby, augment the total defence budget to SGD 12.28 billion (USD 9.73 billion). 

According to the report data cited by AFP, defence expenditures will constitute 24.4 per cent of the Singapore government’s total spending for 2012, making the defence ministry the largest beneficiary of the budget allocation. The island city-state, located at the southern tip of the Malayan Peninsula, affords itself a strong military with the largest budget in Southeast Asia and the seventh largest in Asia, according to the IHS global research group. 

Further, Singapore’s defence budget is expected to reach an estimated $12.32 billion by 2015. “States like Singapore have a strong current account and currency and very sound public finances, so its defence spending looks stable in the near term,” explained Rajiv Biswas, Asia Pacific chief economist at IHS Global Insight. 

On Sunday, Feb. 19, the 2012 edition of the Singapore Airshow closed its doors, announcing a record value of aerospace and defence deals worth over USD 31 billion, which represents a threefold increase over the total value of agreements announced in 2010 (USD 10 billion). According to the Jakarta Post, the largest transactions during the six-day event were made in civilian aircraft and the engine sector by Boeing, Airbus, Pratt and Whitney CFM and ATR. 

In his speech at the Singapore Airshow opening ceremony, Deputy Prime Minister and Minister for Defence Teo Chee Hean emphasised the positive prospects for the global defence sector: “This sector has weathered the crisis fairly well. Despite some restraints on defence spending in 2009, countries around the world continued to invest in long-term programmes to renew and upgrade their air defence assets and equipment. With the global recovery, we can expect spending on military aircraft to rise as countries resume their plans to acquire next generation combat fighters, improve Intelligence, Surveillance and Reconnaissance capabilities, and upgrade to a modern network-centric warfare environment.”

The Defence Minister further added: “In addition, the demand for military aircraft that can perform a wider range of missions is also likely to increase in the near future as countries face even more complex security challenges, other than war. For example, critical operations, such as Humanitarian Assistance and Disaster Relief, will be an important role for transport aircraft that can carry out airlift or personnel evacuation missions. Helicopters, too, have demonstrated their versatility and are indispensable in roles ranging from delivery of emergency aid directly to survivors, medical evacuation, and counter-piracy operations where helicopters have proven to be an effective deterrent to pirate boardings.” 

In addition to close security-political and defence ties with Western countries, Singapore is an important partner for the United States, promoting a strong US presence in the region and representing a key strategic hub for US forces. In fact, an element of the US defence strategy shift towards the Asia-Pacific region includes the basing of four Littoral Combat Ships (LCS) in Singapore. This is possible due to a bilateral memorandum of understanding (MOU), signed in 1990 and offering the US military access to specific Singapore defence facilities. (nvk)


Article from www.defpro.com