The Government of Singapore has announced a 12.4% increase in its defence budget for FY 2025, raising it to SGD 23.4 billion (USD 17.4 billion), the largest allocation among government expenditures. This boost will fund major military acquisitions, including two additional Invincible-class submarines, eight F-35A fighters (adding to 12 F-35Bs already on order), new maritime patrol aircraft, and next-generation Army vehicles such as the Titan 8×8 Infantry Fighting Vehicle, as well as upgrades to the High Mobility Artillery Rocket System (HIMARS). The increased spending is partly to accelerate projects delayed by the pandemic, but also reflects Singapore’s response to a more complex and uncertain security environment.
For the business community, this expanded budget translates into significant opportunities across defence, aerospace, technology, and supporting industries. The procurement of advanced platforms—such as submarines from thyssenkrupp Marine Systems (TKMS), potential maritime patrol aircraft from Airbus or Boeing, and upgrades to land and air systems—will drive demand for local and international suppliers, Maintenance, Repair, and Overhaul (MRO) services, systems integration, and related tech solutions. Singapore’s ongoing investment in cyber defence and military digitization also opens doors for firms specializing in cybersecurity, artificial intelligence (AI), sensors, and digital infrastructure.
Defence Minister Ng Eng Hen has stated that future defence budget increases will likely be lower, staying within 3% of GDP. However, the ongoing and planned purchases will likely maintain activity and innovation in the defence industry. Singapore’s continued focus on modernizing its military, developing digital and unmanned systems, and enhancing defence alliances suggests a stable future for defence and aerospace companies, both local and international.
(Source: Defense News)
