SINGAPORE — Against the backdrop of what Finance Minister Heng Swee Keat described as an “increasingly uncertain geopolitical environment”, the Government will spend about 30 per cent of its total expenditure this year on defence, security and diplomacy efforts.

“This spending is significant, but indispensable,” said Mr Heng in his Budget statement on Monday (Feb 18).

Stressing that Singapore cannot take its peace, prosperity and stability for granted, he added: “We will invest more, if the need arises, to protect the sovereignty of Singapore and the well-being of Singaporeans.”

The proportion spent on defence, security and diplomacy efforts has been consistent in previous Budgets.

For the 2019 financial year, the Government ministries are estimated to spend a total of S$80.3 billion, up slightly from S$79 billion in FY2018.

Of this, the Ministry of Defence is estimated to spend S$15.5 billion, up 4.7 per cent from FY2018.

The estimated spending by both the Ministry of Home Affairs (MHA) and the Ministry of Foreign Affairs (MFA) are unchanged compared to FY2018, at S$6.7 billion and S$0.5 billion respectively.

Together, the three ministries’ expenditures are estimated to be S$22.7 billion.

Singapore is currently locked in fresh bilateral disputes with Malaysia over maritime and airspace issues. Mr Heng did not make a reference to these in his speech.

Nevertheless, since the Pakatan Harapan formed Malaysia’s government in May last year, it has revisited several old issues including water prices as well as raised new ones.

Since November last year, Malaysian government vessels have repeatedly intruded into Singapore’s territorial waters. 

Mr Heng said MFA “works continuously to build good relations with our neighbours and the major powers, and to promote a rules-based international order with international laws and norms”.

Turning to defence, Mr Heng said that a strong Singapore Armed Forces “remains a bulwark against threats to our way of life”. It also “lends weight” to diplomatic efforts, ensuring negotiations with Singapore are taken seriously.

“Should diplomacy fail, we must stand read to safeguard our interests and defend ourselves”.

Mr Heng also cited the work of the Home Team in ensuring a safe environment — notwithstanding the country’s low crime statistics — as well as the Cyber Security Agency in countering the growing cyber threats.

Mr Heng reiterated that Singapore’s commitment to defence and security “cannot waver”.

“Diplomacy and deterrence are the twin pillars of our approach,” he said. “These are fundamental to our sovereignty, our success and to safeguarding our vital interests.”

NEW AND GROWING THREATS

Mr Heng noted that security threats are “evolving and becoming more complex”, with the terrorism threat remaining high.

Beyond physical threats, malicious cyber activities are growing, he noted. These include the spreading of fake news to divide society as well as cyber attacks mounted by foreign actors to influence domestic affairs and politics.

New technologies, said Mr Heng, have made it easier for others to carry out attacks “with greater ease and intensity, and with more sophisticated tactics”.

In light of the threats, Government agencies must continue to innovate and build new capabilities, he stressed.

As previously announced, MHA will set up a new Home Team Science and Technology Agency by the end of this year. Its role is to develop science and technology capabilities to support operational needs. More details will be released at the ministry’s Committee of Supply debate next month.

The private sector too has a part to play, with Mr Heng citing private security firm Certis’ efforts in using big data and artificial intelligence as part of its operations. MHA will help to transform the private security industry through innovation and technology, he added.

Meanwhile, the Government has included digital defence as the sixth pillar of Singapore’s Total Defence framework. The other five pillars are military, civil, economic, social and psychological defence.

Singapore has been hit by high profile cyber breaches, including an attack on SingHealth’s database.

Mr Heng stressed the need for everyone to remain alert and vigilant. This can be done through “practising good cyber hygiene, being vigilant against fake news and helping one another use technology safely”, he said.