Singapore

According to World Bank the Defence Budget of Singapore for the year 2020 represents approximately 2.9% of the annual State Budget. The planned Defence Budget for this year was US$10.77 Billion (SG$15.09 Billion) but it was eventually reduced to SG$13.63 Billion, about 10% less than it was planned, due to the delay of some projects.

Besides the years 2000, 2001 and 2015 the Defence Budget of Singapore has been constantly increased. This trend verifies the long-term strategy of the Governments of Singapore to maintain and improve the military capabilities of the Armed Forces of the country.

Defence Industry

The defence industrial development of the new state started in 1967 with the establishment of the Chartered Industries of Singapore (CIS), the first of the three divisions that later will become the state-owned Singapore Technologies Corporation (STC). Initially Chartered Industries produced several different types of ammunition and small arms. Gradually the company expanded its production to artillery shells, armor piercing munition for the AMX-13 light tanks.

The second division of STC was established in 1973 and produced mortars based on Finnish design as well as Israeli designed 155mm M68 howitzers which later was locally modified and exported as the FH-88. The third division of STC was established in 1971 and produced modified Mercedes heavy three-ton trucks. ST Automotive Engineering modified as well the American made M-113 APC to serve as platforms for the locally developed mortars and foreign supplied surface to air missile systems.

In 1968 another defence industry was established the Singapore Shipbuilding and Engineering. The new company constructed in 1974-1975 under license from West Germany’s Lurssen Werft TNC-45 missile fast attack boats. Later in 1989 Lurssen Werft provided to Singapore Shipbuilding and Engineering the design for the construction of corvettes for the Navy of Singapore. Finally, in 1981 Singapore Aerospace Corporation was established for the local assembly of the Italian SIAI-Marchetti S-211 jet trainer aircraft. The new company was capable to do MRO for numerous types of military aircraft, engines, and avionics equipment including the refurbishment of the A-4S Skyhawk aircraft and depot-level maintenance of the C-130 transport aircraft.

As it has been mentioned earlier the authority that supervised and did the management the local defence industry was Sheng-Li Holding established in 1974.In a move to promote organizational synergies, the Government of Singapore decided in 1990 to restructure and rename Sheng-Li Holdings to Singapore Technologies (ST) Holding and four years later in 1994 to put ST Holding under the control of the State Investment Company Temasek. ST Holding gradually expanded its portfolio in the fields of telecommunications, financial services, tourism, and transportation. Singapore’s defence industry was clustered into what was called ST Engineering, a publicly listed company with Temasek Holding owning 51% of the shares.

In 2000, ST Engineering acquired the Chartered Industries of Singapore (CIS), and the new company was named ST Kinetics. Presently Singapore Technologies is structured into four major companies, ST Aerospace, ST Marine, ST Electronics and ST Engineering Land Systems Ltd (formerly ST Kinetics). ST Engineering companies are part of the Singapore Defence Ecosystem of users, developers and producers in support of the 3rd Generation Singapore Armed Forces.

In 2019, ST Engineering employed 22,000 workers in 22 countries with S$7.86 Billion revenues and S$592.67 Million profit. ST Engineering has the prime contractor role for major locally produced military platforms and systems such as (a) Next Generation Armored Fighting Vehicle, (b) Bronco all terrain tracked carrier, (c) Super Rapid Advanced Mortar System, the FH-2000 field howitzer, (d) Terrex AV81 8×8 AFV, (e) Multi-Role Combat Vessel and (f) Joint Multi-Mission Ship.