Budget 2026: Defence spending to remain at 3% of GDP, but Singapore ready to raise it if needed

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SINGAPORE: Singapore will maintain its current defence budget at 3 per cent of gross domestic product, but this could change if circumstances call for it, Prime Minister Lawrence Wong said on Thursday (Feb 12).

Delivering this year’s national budget, Mr Wong, who is also Finance Minister, said sustaining investments in security is critical amid a more fragmented and dangerous world.

“For now, we expect to keep defence spending at around 3 per cent of GDP. But we are prepared to spend more if the need arises,” he said.

He added that national security extends beyond the Ministry of Defence and includes investments in the protection of critical infrastructure and the work of the Home Team.

“Taken together, we expect overall security-related expenditures to rise in the coming years – to keep Singapore safe and secure in a far more complex threat environment.”

RISING SECURITY RISKS

Mr Wong said the world has become more dangerous in recent years. In 2024, there were 61 state-based armed conflicts worldwide – the highest number recorded since World War II, he said.

“These conflicts are not confined to distant regions. Closer to home, we witnessed one of the most serious armed clashes involving ASEAN member states in years,” said Mr Wong, citing the Thailand-Cambodia military confrontation.

Calling these developments “deeply troubling”, Mr Wong said they reflect a “shrinking space for negotiation, a greater willingness to use force, and a higher risk of miscalculation, with consequences that can easily spill across borders”.

He reiterated that no one will come to Singapore’s rescue in a crisis and that the country is responsible for its own defence and survival.

Recent conflicts have underscored how the nature of warfare is changing, particularly with the widespread use of unmanned systems, he said. Drones are now used not only for surveillance, but also for precision strikes, electronic warfare and coordinated operations.

“We will study these developments carefully and invest decisively in capabilities that are essential to Singapore's defence. This includes strengthening our ability to deploy, counter, and operate alongside unmanned systems across all domains,” said Mr Wong.

The digital domain has also become increasingly contested, with a sharp rise in cyberattacks by state-sponsored and non-state actors. ...

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