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Singapore Defence and Security Report Q3 2007

Published by: Business Monitor International

Published: Nov. 12, 2007 - 46 Pages


Table of Contents


Executive Summary
SWOT Analysis
Singapore Security SWOT
Singapore Defence Industry SWOT
Singapore Economic SWOT
Singapore Political SWOT
Singapore Business Environment SWOT
Political Overview
Domestic and External Political Outlook
Security Risk Analysis
BMI’s Security Ratings
Table: Singapore Regional Ratings
State Terrorism Vulnerability Index
Regional Security: South East Asia Q307
Overview
Inter-State Conflicts
Internal Conflicts
Singapore Terrorism Risk Rating
Singapore Conflict Risk Rating
Singapore Physical Safety Risk Rating
Security Overview
Internal Security Situation
Table: Regional Insurgent Groups
External Security Situation
Table: Actual And Attempted Piracy Attacks
Defence Industry
Armed Forces
Table: Regional Armed Forces
International Deployments
Weapons Of Mass Destruction
Market Structure
Industry Trends & Developments
Arms Trade Overview
Procurement Trends & Developments
Industry Forecast Scenario
Army Enlargements
Government Expenditure On Defence Industry
Table: Singapore Defence Sector - Historical Data & Forecasts
Macroeconomic Forecast
Table: Singapore - Economic Activity
Company Profiles
ST Aero
ST Kinetics
ST Electronics
ST Marine
BMI Forecast Modelling
How We Generate Our Industry Forecasts
Defence Industry
Sources


Abstract

Singapore, as an island state, faces maritime security threats such as piracy, and as such has developed its
security forces to deal with evolving security challenges. Singapore’s government has provided strong
guidance, and consequently its security and defence forces are well equipped to deal with internal and
external security threats. In the third quarter of 2007, the Singaporean government revised its armed
forces legislation in order to give the military formal legal powers. The legislation will give the armed
forces added protection under domestic law and will allow them to conduct searches, detain suspects, and
use force against hostile aircraft and vessels. As such the armed forces will be able to provide more
operational support civilian authorities in security operations. Previously they were vested with some
policing powers, but this was limited to areas of the armed forces’ control and was only used when a state
of emergency was declared.


The Singaporean defence budget remains one of the highest in the Asia-Pacific region, and it has been
steadily increasing in recent years. The government announced budget increases of 5.3% to SGD10.58bn
in 2007. The majority of the budget will be spent on operating equipment (96.7%) and the remaining
3.3% will be spent on development of personnel and defence equipment. Operating equipment received a
5.5% increase in spending, with the majority on the Armed Forces (SGD10.17bn). The security and
external relations budget represents one third of Singapore’s total expenditure, and includes expenditure
for the Ministry of Foreign Affairs, Ministry of Home Affairs and the Ministry for Defence (MINDEF).
Typically the Singaporean government has kept defence expenditure at 4.5- 5% but the 2007 expenditure
has tipped it over 5%.


Singapore enjoys a robust defence industry which has experienced consistent growth. In the fourth quarter
of 2006 there were no significant changes to its defence industry. However, the industry is set to expand,
both in the Asia Pacific and US market. In Q406, Vision Technologies Kinetics (VTK), a subsidiary of
ST Engineering, agreed to acquire 80% of the US-based MAK Technologies for US$20mn, a firm
which specialises in producing simulation equipment for training purposes. Singapore’s arms trade
remains robust, but the area demonstrating the most export promise was its advance military training
programmes. The last model released in Q406 by the DSTA and ST Electronics was the Advanced
Combat May System (ACMS), which enables soldiers to train with information transmitted in real time
supported by a command-and-control information system (CCIS).




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