Defence Spending Strategy and Assessing Effective and Long-term Returns on Defence Investments

Ms Valerie Lee asked the Coordinating Minister for Public Services and Minister for Defence (a) what are the key principles and considerations underpinning Singapore's defence expenditure; and (b) whether there are frameworks or indicators used to assess the effectiveness and long-term returns on defence investments, including both tangible and intangible outcomes such as deterrence and national resilience.

Our defence spending and procurement decisions are consistently underpinned by key principles that ensure the effective use of resources in building up our capabilities and readiness to defend Singapore. These include the following:

(i) Operational Needs First. Our first priority is always on our operational needs, both current and emerging ones. To build up our capabilities ahead of time, and not just-in-time.

(ii) Clear-eyed on Life Cycle Costs. We plan our investments with full consideration of life cycle cost and long-term sustainability, taking into account the financial and manpower resources needed in acquiring, establishing, developing and maintaining the capability.

(iii) Integrated Systems View. We acquire and develop capabilities not in isolation, but with a view towards them being a part of the larger integrated system within the Singapore Armed Forces (SAF). This ensures that the SAF's capability is more than the sum of its individual parts.

(iv) Consistency is Key. As developing integrated systems and real capabilities require time and consistent effort, we invest steadily in technology and our people’s skills and competencies over the long term, eschewing a “feast and famine” approach in defence spending.

(v) Resilience Matters. It is important for the SAF to build resilience against disruptions. We achieve it through means such as the ability to adapt to our unique needs, ensuring adequate stockpiles and having alternative sources of supplies.

(vi) "Best Solution" Mindset. We acquire the most cost-effective systems to meet our operational needs, guided by robust professional assessments rather than being tied to any single source or solution. Where we need to achieve greater resilience or customise for our unique needs, we may develop our own systems.

(vii) Operational Needs Always. Going back to the first principle, our operational needs remain our foremost and utmost consideration, so that we can build a strong SAF that is prepared for today's threats and tomorrow's challenges. The first and last principles are deliberately repeated, in order to emphasise its importance. We do not let any non-operational considerations distract us from acquiring the best systems we can afford for our warfighters.