Singapore found a niche in the global arms market
The Singapore Airshow 2016 exhibition of aviation and military equipment ended in Singapore. The forum was very representative. Southeast Asia has long been one of the most capacious, solvent, and therefore competitive markets for weapons and civil aviation. All key players strive to show their achievements and novelties here.
Companies from Russia and the United States, Germany and France, Israel and Turkey, China and South Korea - leading military-industrial firms - took part in the Singapore Airshow this year. However, to the surprise of many, the exhibition of the owners was the most representative. Small arms and ammunition, infantry fighting vehicles and armored personnel carriers, drones and communications equipment, a huge range of components for aviation equipment - all testified to the path taken by Singapore in half a century from a third world country to the status of a new military-industrial center.
The Republic of Singapore is the smallest state in the world in terms of area, with a developed arms industry. Its military-industrial complex is inextricably linked with the national doctrine of total defense adopted during the Cold War. It lies in the fact that, if necessary, all the country's resources are mobilized for defense needs. Its own military industry became a necessary condition for the implementation of the doctrine, since the state could not count on the import of all types of weapons and military equipment due to limited resources. Singapore did not aspire to autarky in the production of weapons. The country has always remained dependent on foreign suppliers in the field of technically complex and critical systems for ensuring national security, primarily combat aviation.
Long-range rifle
The history of the national military-industrial complex dates back to the first years of the country's existence. Israeli military advisers, who created the army of the republic, recommended the adoption of the American M16 assault rifle, which by that time had already passed approbation in the climatic conditions of Southeast Asia and got rid of childhood diseases and problems associated with low-quality ammunition. However, Colt was overwhelmed by orders for the US Army in the Vietnam War and offered the Singaporeans a license to manufacture the rifle. To master the production of the M16 and ammunition for it, Chartered Industries of Singapore (CIS) was established in 1967. As the armed forces were built, the defense industry in Singapore was replenished with new enterprises. In 1968, Singapore Shipbuilding & Engineering began operations, whose task was to build and maintain light patrol vessels for the naval forces that were being created. In 1969, Singapore Electronic & Engineering Limited was formed, which was to deal with the repair and maintenance of communications and radar equipment. In 1971, Singapore Automotive Engineering was added (servicing military equipment of the ground forces), in 1973 - Ordnance Development and Engineering (production of artillery ammunition), in 1975 - Singapore Aerospace Maintenance Company (SAMCO, servicing combat aircraft and helicopters). In January 1974, the government decided to merge the disparate defense companies into a single state holding Sheng-Li. At the same time, a decision was made to start its own development of weapons and enter the world market. In 1978, Unicorn International was founded to promote Singaporean defense products. Development of original prototypes begins - the SAR 80 assault rifle and the Ultimax 100 light machine gun. They were adopted by the Singaporean army in 1982 and 1984, and the first export success soon followed. The machine gun was purchased by the Philippine Armed Forces under the American military assistance program. In 1988, the first own artillery system was developed - the FH-88 towed howitzer.
In May 1990, Sheng-Li holding was renamed Singapore Technologies (ST) Holdings. It formed industry companies that went through an IPO on the Singapore Stock Exchange. However, until the end of the 90s, the range of the Singaporean military-industrial complex was limited to small arms, towed artillery and patrol boats. Advances in the development of civilian industry allowed the transition to the design and production of systems of a higher technical level. To this end, the management of the defense holding carried out restructuring and a number of acquisitions, as a result of which the military industry acquired its modern structure.
The parent company is ST Engineering, a controlling stake (51.3%) of which belongs to the state-owned Temasek holding (this largest investment company in Asia owns various assets at home and abroad). We can say that ST Engineering is a local analogue of Russian Technologies. Its turnover in 2014 amounted to $ 6, 53 billion, order book - $ 12, 5 billion. And the volume of military products, according to the Stockholm Institute for Peace Research, reached 2.01 billion dollars, which allowed ST Engineering to be included in the top hundred of the world's leading military-industrial corporations. And to put it on the 51st place in the rating, higher than, for example, the Israeli Rafael or Uralvagonzavod. ST Engineering has four main subsidiaries: ST Aerospace, ST Land Systems, ST Electronics, ST Marine and smaller ones. Each, in turn, has its own network of subsidiaries in Singapore and other countries.
All their own, except for tanks
Defense products of the ST Land Systems Singapore division are represented by military equipment and weapons for the ground forces. The ST Land Systems brand is the result of the rebranding of Singapore Technologies Kinetics Ltd., however, small arms and artillery weapons continue to be marketed as ST Kinetics products. The subdivision has developed and produces its own models of infantry fighting vehicles, armored personnel carriers, self-propelled guns, towed artillery pieces, etc. The first large project of armored vehicles was the BMP Bionix, which was put into service in 1999. The most advanced prototype is the Terrex wheeled armored personnel carrier. It was developed in 2004 in collaboration with the Irish company Timoney Technology Ltd. and Turkish Otokar. The peculiarity of the machine is the presence of a circular view (day and night vision cameras around the perimeter) and sound detection of fire. In addition, the armored personnel carrier is integrated into the control systems of the company and battalion level. On the basis of Terrex, medical, command, reconnaissance versions, an artillery and aviation observer vehicle have been developed. About 300 units of all types were delivered to the Singapore Armed Forces in 2006–2011. The armored vehicles developed by ST Land Systems are actively moving to the international market, and they have a major success - a contract signed in December 2008 worth 150 million pounds (221 million dollars) for the supply of 115 Bronco vehicles to Great Britain. Bronco (the name of the British version of the Warthog) - an armored tracked articulated vehicle with enhanced protection against IEDs - was purchased by London in four versions (command, medical, repair and evacuation, transport) for the contingent in Afghanistan.
ST Land Systems is one of the few remaining developers and manufacturers of artillery systems (howitzers and mortars), both self-propelled and towed, on the world market. The Primus self-propelled 155 mm howitzer was developed in 2003 based on the American M109. Provides a direct supply of ammunition from the vehicle for their transportation. The use of an aluminum alloy body reduces the mass of the ACS to 28 tons. Towed artillery systems are represented by the FH-2000 155-mm howitzer and the light air-transportable 155-mm SLWH Pegasus (Singapore Light Weight Howitzer). Their features are the presence of compact engines, which give the guns the ability to independently change positions, and are widely used in the construction of light alloys. The management sees towed howitzers as their market niche, they are actively marketed in the market. In addition to artillery, ST Kinetics is one of the world leaders in the development and production of 40 mm grenade launchers and ammunition. The product line includes the manual single-shot CIS 40 GL, the automatic CIS 40AGL and its lightweight version, the LWAGL. These products are widely exported. More than 10 thousand CIS 40AGL have been sold in 20 countries.
The list of ST Kinetics small arms includes the CPW (Compact Personal Weapon) submachine gun, the SAR-21 assault rifle and its derivatives, the Ultimax 100 hand-held machine gun, and the CIS 50MG heavy machine gun. In addition, under the license of the Belgian company FN Herstal, a single FN MAG machine gun is being produced under the designation GPMG. Singaporean small arms are in demand in the global market by both the national armed forces and private military companies and other structures due to their good efficiency-cost ratio. The SAR-21 assault rifle and its derivatives are in service with the Armed Forces and special services of seven countries, the Ultimax 100 machine gun is used by the armies of Brunei, Indonesia, the Philippines, Thailand and others, the CIS 50MG heavy machine gun under the designation SMB-QCB is produced under license by the Indonesian company Pindad. In addition to the above, ST Kinetics produces a wide range of ammunition. Thanks to ST Land Systems, Singapore is close to self-sufficient in armaments for the ground forces. From armored vehicles, the country only needs to import main battle tanks, from small arms - in pistols and sniper rifles, although it is obvious that this dependence will be overcome.
From drones to satellites
ST Aerospace's main market niche is maintenance and preventive maintenance in civil aviation, including servicing aircraft from other Asian countries. The company holds licenses for a wide range of aircraft, including products from Boeing, Airbus, Sikorsky Helicopters and other leading firms. In 2006, the company announced large-scale plans for the development of unmanned aircraft. So far, progress in this area has been limited to the development of small and ultra-small drones. So, in 2010, the Skyblade UAV entered service with the intelligence units of the Singapore army. The device weighing five kilograms is equipped with a video camera and an infrared sensor, and is capable of carrying out reconnaissance at a distance of up to eight kilometers from the launch site. Currently, with the participation of specialists from the Israeli company IAI, a UAV of a higher technical level is being developed. The main challenge for ST Aerospace in the coming years will be participation in the Joint Strike Fighter program. In the early 2000s, the Singapore government announced plans to purchase up to a hundred fifth-generation F-35 Lightning II fighters in the vertical take-off version (F-35B). ST Aerospace will have to master the repair and maintenance of these machines.
The military programs of the ST Electronics division include the development of C4ISR communications and command and control systems, the production of appropriate equipment, electronics and electro-optical devices for soldiers and military equipment. The company is a leading supplier of training equipment for the Singapore Army. In addition, ST Electronics is the developer of the Advanced Combat Man System. It includes personal communications equipment, surveillance cameras and laptop computers, integrated by the department management system.
The company sets the task of deploying a space industry in the country. In 2014, the Center for the Design of Satellite Systems (ST Electronics’Satellite Systems Center) was created, which began to develop devices in the interests of military and civilian customers.
Shipyards and other growth points
In recent years, the military shipbuilding of Singapore has sharply strengthened its position. This is the result of two major programs implemented by ST Marine. The Endurance landing craft was the first large-scale military project implemented at the Singapore shipyards. Four prototypes, built from 1998 to 2001, replaced the County-class tank landing ships made in the USA in the 50s. Each Endurance is capable of transporting up to 18 tanks and up to 350 soldiers. An even more important project that made the Singapore Navy the most powerful among the countries of Southeast Asia was the construction of Formidable class frigates. The contract with the French company DCNS was signed in March 2002. Under the terms of the contract, the first ship was built in the French Lorient (entered service in May 2007), the remaining five - at the Benois shipyard in Singapore. This experience made it possible to qualify for large orders from abroad. In 2009, a $ 135 million contract was signed to build the HTMS Angthong landing craft for the Thai Navy. The ship was delivered to the customer in April 2012. The export success of the Singapore shipbuilders (and in general the largest achievement in the sale of weapons and military equipment abroad) was the signing in April 2012 of a contract worth $ 880 million for the development and construction of four patrol ships for the Omani Navy. The design will be based on a slightly enlarged hull of the Fearless class patrol ships, built in the 90s for the Singapore Navy. It can be stated that the country is capable of building all types of surface warships and ships. Although, of course, many components (missile weapons, radar and sonar stations, power plants) have to be imported.
Speaking about the prospects for the development of the national defense industry in Singapore, it should be noted that the domestic market is already largely saturated. Only the most complex and resource-intensive niches remained, such as the development and production of military aircraft, missile weapons, main battle tanks and submarines. The deployment of national production of these types of weapons and military equipment is inexpedient for economic reasons (a limited guaranteed market at very high entry costs), so Singapore will continue to rely on imports here.
The priority direction of the development of the national military-industrial complex in the foreseeable future will be consolidation in those niches where the country's defense industry has already accumulated sufficient competencies and is capable of producing competitive products. These are, first of all, small arms, grenade launchers, artillery, ammunition, naval equipment, and in the future - combat electronics and communications. To penetrate the world market, the Singaporean military industry combines an active marketing policy (broad representation at international exhibitions, coverage of the military-industrial complex's successes in the media) with the tactics of expanding the network of foreign missions. Agreements on cooperation in the field of the defense industry have been signed with several arms-producing countries, including Australia, France, Norway, Sweden, South Africa and the United Kingdom. Russia could also add to the list of possible partners for Singapore. For all its westernism, Singapore does not belong to any military blocs, skillfully maneuvering between the centers of power. For example, the state has good relations with both China and Taiwan. For our country, in the context of sanctions from Europe and the United States, when the sources of imports of weapons, their components and military technologies are blocked, the more urgent is the search for new partners. Singapore is open to cooperation. Among his trump cards is the liberal system of export controls in relation to military personnel. With proper organization of business, the enterprises of the Singaporean defense industry could become full-fledged partners for Russian companies.
For more information on the defense industry in Singapore and other emerging military industrial powers, see the Emerging Military Industrial Countries book by the Center for Strategic and Technological Analysis, coming out this spring.
