Ambitious modernization programs to drive Singapore defense expenditure to $15.8bn in 2027
The Singapore Armed Forces (SAF) is ambitiously modernizing military equipment, homeland security, and cyber security. To overcome the challenges posed by the country's small armed forces, and limited area in which to train, the Ministry of Defence is focusing on effective personnel training overseas and adapting sophisticated technologies. In line with this, the defense budget of the country is expected to increase at a compound annual growth rate (CAGR) of 5% from $13 billion in 2023 to $15.8 billion in 2027, forecasts GlobalData, a leading data and analytics company.
GlobalData’s latest report, ‘Singapore Defense Market Size and Trends, Budget Allocation, Regulations, Key Acquisitions, Competitive Landscape and Forecast, 2022-27’, reveals that Singapore has allocated a defense budget of $12.3 billion for 2022, an increase of 7.4% over the allocation in 2021; and reflects a CAGR of 3.7% during 2018-2022.
Rouble, Aerospace & Defense Analyst at GlobalData, comments: “Singapore is acquiring advanced military technologies and platforms. This includes the acquisition of the F-35 Joint Strike Fighter, CH-47F Chinook and H225M helicopters, Invincible-class (type 218SG) submarines and infantry technology to improve army security and mobility. These upgrades are designed to enhance the force posture of the country’s defense forces and provide an asymmetric advantage.”
In line with the ‘SAF 2040’ next-generation initiative, Singapore aims to develop a capable and modernized military to maximize its capabilities.
Rouble concludes: “Singapore plans to expand its capabilities with the creation and integration of a Digital and Intelligence Service (DIS) with its traditional services. The government has also allocated a substantial amount of expenditure towards the procurement of advanced unmanned aerial vehicles such as Orbiter 4, which can be operated with minimal manpower overcoming the limitations of Singapore's small population.
“Upgrading the command, control, communication, and intelligence systems will help increase the country’s regional coordination and counter the ‘hybrid’ threats in the information and cyber domains. Continued government efforts to use technology as a force multiplier will also increase the country's overall defense expenditure.”