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Market |
Defence |
Report Type |
Market Research |
Country |
Singapore |
Published |
30 October 2009 |
Number of Pages |
57 |
Download |
|
Immediate |
|
Publisher |
Business Monitor International |
Singapore’s emphasis on procuring high-technology weapons systems and multinational peace support has led it to allocate one of Asia’s largest defence budgets. Deputy Prime Minister and Minister for Defence Teo Chee Hean said in February that he expects defence expenditure to remain between 4.5% and 5% of GDP over the news few years, perhaps even straying up to a high of 6% (US$11.4bn) this year.
Teo has stressed the importance of maintaining military spending even amid the global downturn, noting that threats do not diminish but, rather, often emerge during testing economic times, owing to increased social and political frictions.
Singapore has actively addressed security threats in Asia and beyond. In February 2009, the Singapore Armed Forces (SAF) announced they would participate in a US-led task force in the Gulf of Aden designed to target pirates operating in the Gulf and adjacent waterways, supplying a landing ship tank, two helicopters and two-hundred personnel. Teo said in June that Singapore was also prepared to deploy a weapon locating radar (WLR) team to central Afghanistan in view of increased rocket attacks, adding that multinational peace support initiatives will continue to be an important aspect of SAF operations.
Singapore hosted the annual Asia Security Summit, organised by the London International Institute for Strategic Studies from May 29-31, bringing together about 22 ministerial-level guests, along with parliamentarians, military leaders and security experts from more than 27 countries and regions. Teo used the gathering to stress that military transparency plays a crucial role in avoiding misunderstandings and increasing trust and confidence for the Asia-Pacific.
If this was a nod to China’s opaque military expansion, it appears not to have damaged bilateral ties.
Delegates from China led by Vice-Premier Wang Qishan concluded their four-day visit to Singapore (as part of an annual series of bilateral meetings) on August 26. Three agreements were inked – a memorandum of understanding (MOU) to increase the number of civil servants pursuing post-graduate exchange programmes in each other’s countries, an MOU on science and technology concerning intellectual property rights issues, and a protocol amending the existing Double Taxation Agreement – setting the stage for closer economic co-operation between the two sides.
Singapore’s relationship with Malaysia is another crucial regional link and one that has often been strained. Malaysian Prime Minister Najib Razak’s visit to Singapore in May provided an opportunity for the two countries to further discuss and resolve long-standing issues. Najib’s main aim is to attract more Singaporean investment into the Iskandar Malaysia project in Johor and collaboration in this area may in time lead to the thorny issues regarding water, railway land and the Causeway being resolved. A proposal for the construction of a third bridge (symbolising improved relations) connecting Singapore and the neighbouring Malaysian state of Johor is also being mooted.
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