Considered to be the most advanced military force in Southeast Asia, Singapore’s defense market is set to be worth $13.4 Billion by 2018.
The country’s military expenditure, which stands at US$9.9 billion in 2013, grew at a CAGR of6.75% between 2007 and 2012 primarily to counter the threat posed by terrorist organizations, such as Jemaah Islamiah.
The acquisition of automated equipment and overseas training for its armed forces are expected to drive the growth in country’s defense expenditure.
Earlier in January, the US Defence Security Cooperation Agency (DSCA) outlined the details on Singapore’s upgrade programme for 60 Lockheed Martin F-16 C/D Block 52 fighters. The proposed package is worth $2.4 billion and includes 70 active electronically scanned array (AESA) radars, an avionics upgrade, and a small number of guided weapons for testing and integration purposes.
In December 2013, Singapore revealed it would be is acquiring two new submarines from German defence contractor ThyssenKrupp Marine Systems with delivery to take place in 2020.
It said the deal of unknown value includes a logistics package and a crew training arrangement in Germany.
The two new submarines, along with Archer-class submarines purchased from Sweden in 2005 will replace its Challenger-class submarines that were built in the 1960s and acquired by the city-state in the 1990s.
The same year Singapore requested the sale of 6 AN/TPQ-53 (V) Counterfire Target Acquisition Radar Systems worth $179 million from Lockheed Martin. The AN/TPQ-53 (V) Counterfire Target Acquisition Radar Systems include 120 degree sector scan capability, software support, support equipment, simulator, generators, power units, personnel training and training equipment.
Singapore is also acquiring an advanced European air defense system as a replacement for its aging U.S.-made Hawk surface-to-air batteries as well as 100 AIM-120C7 Advanced Medium Range Air-to-Air Missiles (AMRAAM) for an estimated cost of $210 million and 20 AIM 9X-2 SIDEWINDER Block II All Up Round Missiles for an estimated cost of $36 million.
Local manufacturer Singapore Technologies Engineering Ltd. was awarded a contract for designing and building eight new naval vessels which will be equipped with core combat systems, the country’s Ministry of Defense said last year.
In addition, Singapore will spend 1-2% of its current defense budget on cyber security. In 2013, Singapore launched a five-year cyber security master plan, to develop the country into a trusted ‘infocomm’ hub by 2018.
The Singaporean military has set up a new Cyber Defence Operations Hub, with the aim of guarding the country’s systems against virtual attack, by consolidating cyber-security efforts, according to a study released last year.
According to SIPRI, Singapore is now the world’s 20th biggest arms exporter and registered a trend-indicator value (TIV) of 12 million in 2011 to 76 million in 2012 in terms of volume of exports of major conventional weapons. During the period 2008-2012, Thailand was the largest importer of Singaporean defense goods, accounting for 55.9% of total defense exports, which was largely attributed to the signing of a deal worth US$160.0 million for the endurance amphibious assault landing ship, which was delivered in 2012.