Critical factors influencing the development of Singapore’s defense industry

This study considers factors influencing Singapore’s defence industry (DI). Primary and secondary data were used and interpreted using both quantitative and qualitative comparative analysis. Furthermore, the basis of the Structure-Conduct-Performance (S-C-P) model has been utilised in structuring the layout of this paper. The Singapore Armed Forces (SAF) receive a considerable and stable defence budget, which is influenced by geopolitical implications, and this consistent funding has had a very positive impact on economic growth including the strengthening of Singapore’s DI. In the DI environment, close relationships between the SAF, Ministry of Defence (MINDEF), and other ministries, scientific institutions, research laboratories, and private businesses are evident. The capability of the indigenous DI to supply the SAF with the necessary equipment is increasing, although imports remain crucial especially in supplying the Air Forces. As the SAF prepare for third-generation warfare, the indigenous DI will play a major role in developing new solutions. The success of Singapore’s DI lies in the synergetic civil-military industrial and technological integration, timely diversification of factories towards the production of dual-use products, a niche production business strategy, successful defence offset strategy, and cooperation with the US. This study describes the most important factors influencing the DI’s development and shows the status of Singapore’s DI. It also points out that the strategic aims set by the Singapore government for the indigenous DI are sustained. Furthermore, Singapore’s strategy provides a clear roadmap for other small countries to develop their respective DIs.