Budget 2026: Security-related spending expected to rise in coming years
In addition to physical attacks, the Republic is also vulnerable to cyberthreats
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[SINGAPORE] The government expects security-related expenditures to rise in the coming years, as Singapore makes sustained investments into its security amid a far more complex threat environment, said Finance Minister Lawrence Wong on Thursday (Feb 12).
“For now, we expect to keep defence spending at about 3 per cent of (gross domestic product),” Wong, who is also prime minister, said in his Budget speech delivered in Parliament. “But we are prepared to spend more if the need arises.”
Singapore’s security efforts go beyond the Ministry of Defence, he said, adding that they include investments in the security of the country’s critical infrastructure and in the Home Team.
In his speech, PM Wong acknowleged that the world has “become more dangerous” in recent years, with 61 state-based armed conflicts worldwide in 2024 alone. This was the highest on record since the Second World War, he said.
And these conflicts are not confined to distant regions, he added, highlighting the escalation of a Thailand-Cambodia border dispute into an open military confrontation – “one of the most serious armed clashes involving Asean member states in years”.
Such developments 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 said.
He also flagged the changing nature of warfare, with unmanned aerial systems – used for surveillance, precision strikes, electronic warfare and coordinated operations – becoming a common feature.
Cheaper, more accessible and increasingly sophisticated drones allow even smaller actors to “project force in new ways”, he added.
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Singapore will study these developments closely and “invest decisively” in essential defences, including strengthening abilities to deploy, counter and operate alongside unmanned systems across all domains.
PM Wong also highlighted the emergence of the digital domain as an increasingly contested arena, flagging a “sharp rise” in cyberspace attacks by state-sponsored and non-state actors – ranging from scams targeting individuals to attacks on critical information systems.
While Singapore has strengthened its defences by establishing a cybersecurity agency and building expertise, threats are becoming more frequent, more coordinated and more sophisticated, he said.
It will thus strengthen its cybersecurity posture by deepening capabilities, improving cross-agency coordination and better safeguarding its most critical systems.
As many private-sector companies play a role in delivering essential services, their systems are also vulnerable, and it is no longer enough to defend government systems alone.
Attackers often exploit smaller or less-protected companies to gain access to larger systems, but many companies lack the resources or expertise to handle advanced cyberthreats, PM Wong noted.
The government will therefore also deepen its partnerships with industry, especially owners of critical information infrastructure, to strengthen Singapore’s collective cyberdefence.
For more of BT’s Budget 2026 coverage, go to bt.sg/budget26
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