The government is allocating 30% of the budget to defence from 18.5% in 2018.
This chart from OCBC Treasury Research highlights how defence will account for a larger share in Singapore's budget mix in 2019 as finance minister Heng Swee Keat reveals that the government will increase spending for the sector to 30% from 18.5% in 2018.
According to OCBC Treasury Research, it was in 2007 when budget spending for defence accounted for such large chunk in the budget.
“In the past five years, defence spending only accounted for about 20% of government expenditure,” the report noted. “The increase in spending highlights the risks Singapore faces regarding terrorism, geopolitical uncertainties and the ever-growing cyber risks, as demonstrated by the recent spate of cyber hackings.”
During his speech, Heng flagged out terrorism as the ever-present threat, and added the cyber defence as the new entrant to the Total Defence framework.
Do you know more about this story? Contact us anonymously through this link.