19 Oct 2021
Posted in Aerospace, Defense & Security
Defense acquisition expenditure of Singapore to grow at 10.77% CAGR through 2026, says GlobalData
To overcome the challenges posed by its small military size, Singapore is looking to adopt modern technology through acquisition of advanced defense platforms. As a result, the country’s defense acquisition expenditure is expected to grow at a compound annual growth rate (CAGR) of 10.77% between 2022 and 2026, forecasts GlobalData, a leading data and analytics company.
GlobalData’s report, ‘Singapore Defense Market – Attractiveness, Competitive Landscape and Forecasts to 2026’, reveals that Singapore’s total defense expenditure is set to experience a compound annual growth rate (CAGR) of 4.60% during the forecast period. Singapore’s defense acquisition and R&D spending record a steep 98% Y-o-Y growth, from US$215m in 2020 to US$425m in 2021.
Akash Pratim Debbarma, Aerospace & Defense Analyst at GlobalData, comments: “Even though the country’s economy suffered from the challenges posed by the COVID-19, Singapore did not cut its defense budget. Acquisition expenditure is driven by Singapore’s need to develop its domestic defense industry, procure latest technologies to counter the regional threats over the forecast period.”
To counter the regional disputes, Singapore is also constantly focusing on the training of its military personnel through joint exercises with partner countries like the US, Australia and India.
Mr. Debbarma concludes: “Singapore’s decision of procuring Invincible-class (type 218SG) submarines will strengthen its operation in shallow and busy tropical waters. The country’s plan to replace its aging F-16s with F-35Bs are quite strategic, considering that this version allows Singapore to overcome some challenges faced due to pressure of maintaining traditional long runways.
“While the world is busy fighting the COVID-19 pandemic, Singapore is poised to bounce back from the economic crisis and continues to spend to develop a strong military force that secures its strategic interest and regional aspirations.”