Chart of the Day: Singapore 2019 defence spending hits 12-year high

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.

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“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.