JANES
AN ARTICLE FROM INTERNATIONAL DEFENSE REVIEW MAY 01, 2005
Singapore's defense industry builds on a tough-minded approach to procurement
By Mark Daly
Singapore spends by far the largest single part of its national budget on defense - between 4.5 per cent and five per cent of Gross Domestic Product (GDP) in recent years - with the government committed to spending up to six per cent, according to figures given to the parliament in March this year (2005). In 2004, the figure was estimated by one source to be 5.27 per cent of GDP, equivalent to US$5.03 billion. Unofficial estimates put defense spending at as much as 27-29 per cent of the overall national spending each year since 2001. SIPRI, the Stockholm International Peace Institute, gives US$4.733 billion as the defense spend for 2003.
As a wealthy and stable nation, Singapore can justify a national defense industry for carefully selected systems and self-sufficiency in key areas, but at the same time, the Ministry of Defense (MINDEF) follows a strict policy of 'best sourcing'. There has been no move to produce anything approaching an across-the-board strategic industrial capability, and neither MINDEF nor its agency organization DSTA (Defense Science and Technology Agency) would attempt to do so merely for reasons of prestige.
Since the establishment of the Future Systems Directorate in February 2003, which plays an integral part of the Singapore Armed Forces strategy for force transformation, Singapore has an agency that conducts experiments, which will have a powerful interest in future, technologies, which are seen as key enablers for superior fighting concepts.
Singapore's leading defense industries are all grouped within Singapore Technologies Engineering Group (ST Engg), which is 57 per cent state-owned. The latest figures released in March show a turnover for fiscal year 2004 of S$2.9 billion (US$I.7 billion). All companies in the group handle both defense and civil work, and the latest annual report says that commercial contributions overtook revenues from the defense sector for the first time in 2004, amounting to 51 per cent of total revenues (compared to 45 per cent in 2003). The company has 11,600 employees globally.
One ST Engg executive tells IDR: "We have reached a stage where we do not mind investing beyond Singapore's own needs," but defense programmes are still largely generated by the requirements of the Singapore Armed Forces. ST Engg has more than 100 subsidiaries and associated companies. A handful of other Singapore-based companies base defense interests, mostly as suppliers to ST Engg.
Making the grade
An example of the tough-minded approach to procurement can be seen in the current fighter procurement competition to choose between the F-15, Rafale and Typhoon. Offsets to local industry will not influence the selection, according to the president of ST Aerospace. The company plays an advisory role in the selection. Offsets are not considered a leading element of any Singaporean offshore selection. MINDEF says that this approach and transparent processes give Singapore a reputation as a 'reference
CustomerÂ’, which carries particular weight, in the case of the fighter competition, with other air forces and the aerospace industry.
Geographical and manpower constraints also have a powerful influence on Singapore's industry. In March this year, a government minister gave parliament the example of how air grading for prospective aircrew is outsourced to Tamworth in Australia, with the MINDEF neither owning nor maintaining training aircraft.
A zero-growth policy in military manpower has been in effect for nearly 20 years, largely influenced by Singapore's low birth rate. This, in turn, has influenced development of systems such as the ST Primus 155 mm self-propelled howitzer, which requires a crew of only four conscripts. MINDEF claims a three-fold increase in manpower productivity for artillery over the past 10 years, also citing the locally made FH2000, which reduced the manning for a 155 mm system from 12 to eight men. The need to achieve lower manning levels has influenced naval programmes such as the Endurance-class LSTs.
ST Marine, which has yards at Benoi and Tuas (and, by acquisition ofVT Halter, in the US), is working on six stealth frigates for the Republic of Singapore Navy (RSN). These are being built in collaboration with DCN International of France based on the La Fayette class, but with significant changes and known as the Formidable class.
The first vessel, built in France, is now fitting out, and in the covered assembly sheds at its main yard at Benoi, hulls four and five are in various stages of construction. Components exist for the final vessel in class, which is scheduled to launch in 2008.
The second vessel, Intrepid, was launched in July 2004, and the third, Steadfast, was launched in January this year. Complement is 71, with a high level of automation. The final vessel in the class will launch in 2008 and commission in 2009. The combat management system was developed indigenously by the DSTA, and runs from Standard Operating Common Consoles supplied by the ST Electronics company SES. The Integrated Communications system comes from another ST Electronics company, CET.
Key milestones
Starting with a co-operative agreement with Lurssen Werft of Germany to deliver four 45 m missile gun boats, independent design capability was quickly developed by the 1980s, a key milestone being the contract to design and build six 62 m missile corvettes, the Victory class for the RSN.
ST Marine has since gained experience in stealth technology - RCS (Radar Cross Section), RAM (Radar Absorbent Material) and infrared [IR] signature reduction - partly in collaboration with partner ST companies.
President of Naval Business Larry Loon says: "Our naval work falls into two broad areas: stealth vessels of corvette size and fast interceptors of 15-20 m up to 80 m is one area and the second is multirole support vessels such as the 141 m LST and down to fast small landing craft."
Twelve units of 55 m patrol vessel and four of the 141 m Endurance-class LST are other recent projects. Both designed and built for the RSN, the complement for the LST is 65 compared to 130 in previous-generation vessels in this category.
The patrol vessels, equipped with guns and an anti-submarine warfare capability, were built and commissioned between 1995 and 1998.
ST Marine has extensive commercial shipbuilding interests, which works to its advantage, says Loon. "The RSA does not have enough business to keep all our capacity busy," he says. "Between the last LST and the frigate, we put three platform supply vessels through the yard." And after the frigates programme, the company says there may be container vessels, for which a contact has already been secured, taking their place in the covered berths at Benoi.
Flexibility is also practiced between new vessels and refit. "Some people have hang-ups about mixing new build and repair in the same yard, but we do not and we have done reasonably well at that," says Loon.
Some submarine work has been carried out in tropicalisation of Singapore's four former Swedish Sjoorman-class submarines, known locally as the Challenger class.
Although the RSN has generated most of ST Marine's naval work, exports have been made to navies and coast guards in Brunei, India, Kuwait and Thailand. The Kuwait Coast Guard, for instance, ordered the 43 m landing and supply craft and last year followed with a design and build contract for a 49 m land supply craft. Technology transfer from ST Marine was part of the contract for 45 m inshore patrol vessels for the Indian Navy. Collaboration and joint ventures are actively sought.
ST Marine has also developed the FBS 60 Floating Bridge System, which is in service with the Singapore Armed Forces.
The days when the island of Singapore was the world's largest supplier of computer hard disks are now a fairly distant memory. Economic forces in the region constantly drew the manufacturing base for large-volume items to Taiwan, then to South Korea on onwards to China and Vietnam. Singapore has consequently moved up the value chain.
"Singapore is not cheap anymore, our labour is not cheap," says Patrick Choy, chief marketing officer for ST Kinetics.
Of all the ST Engg Group companies, ST Kinetics, with its 2,300 employees, is the one most dedicated to military programmes, although it does handle non-defense work, with interests in commercial automotive businesses in China and North America. The company describes its move up the value chain as "an evolution of capabilities". Starting with the licensed production of small arms ammunition right after Singaporean independence, it quickly moved to systems integration and upgrade work on armored vehicles in the 1980s. By the start of the 1990s, ST Kinetics' predecessor companies were engaged in full-blown design and development of infantry weapons systems, vehicles and artillery systems. Now the emphasis lies on what is described as Systems of Systems Engineering.
Advanced equipment
ST Kinetics continues to manufacture small arms and ammunition, albeit advanced equipment such as the SAR 21 combat rifle, the Super Rapid Automatic Grenade Launcher and air-bursting 40 mm munitions for automatic grenade launchers. The programmable fuse for the air-bursting munitions has built-in self-destruct, a feature that the company says will prove increasingly important for certain markets such as Scandinavian armies operating in snow. Self-destruct fusing has also been applied to a 155 mm artillery cargo shell. Plans for an Area Effects Weapon, Single Shot grenade launcher were shown at the IDEX 2005 exhibition (see IDR 412005, p21).
Another variation on the 40 mm theme is a newly introduced range of less-than-Iethal rounds: sponge, paint and stinger versions to be fired from all low-velocity grenade launchers, typically the ST Kinetics CIS 40GL.
Weapons produced by ST Kinetics include the 120 mm Super Rapid Advanced Mortar System, claimed to be the first with a recoil force of less than 20 tonnes at maximum charge, for a wider range of platforms and applications.
Starting with the FH2000/52 calibre howitzer, unveiled in 1990, there has been a high level of activity in the field of artillery systems and vehicles.
The latest is Primus, the self-propelled 155 mm/39 calibre howitzer, in production against an order for 54 by the Singapore Army.
The Bionix infantry fighting vehicle (IFV) entered service with the Singapore Army in late 1997 and is built in IFV25 and IFV40/50 versions. A bridgelayer version is in service with the Singapore Army alongside a recovery vehicle variant. Bionix is in full production, although overall requirements or deliveries have not been disclosed.
Bronco, an all-terrain tracked carrier in at least four variants, is built for a Singapore Army requirement but is completing trials with European countries. Bronco is seen by ST Kinetics as a basis for future developments such as an active articulation system, with the ability to quickly decouple the rear module and operate it as a remotely piloted vehicle. Hybrid electric drive, based on technology already established in some buses, is being investigated for Bronco.
Hybrid electric drive is also reported to be an option for an unmanned version of the Spider light strike vehicle for reconnaissance in hazardous environments. The basic Spider has completed trials in the United Arab Emirates.
Beyond Bronco, a Future All-Terrain Vehicle with a payload of seven tonnes (compared to the Bronco's five tonnes) and a sustained cross-country speed of 60 km/h over 500 km is being studied. A feasibility contract was awarded by the Finnish Defense Forces last year.
Terex A V81, an 8x8 IFV, was added to ST Kinetics' portfolio in September 2003. It is the subject of a joint venture with Turkey's Otokar..
ST Kinetics is also responsible for the Vision Ball surveillance device, which has been described as an information grenade, and a soft ground mobility system deploying vehicle, which dispenses special high expansion ratio foam to generate a navigable surface, is being studied.
Bringing all these systems together is ST Kinetics' Engineering Development Centre, with 350 personnel working on integrated solutions.
ST Electronics provides communication and sensor systems, including electro-optics and software. It has training and simulation products, and technology for the encryption of mobile communications. Major contracts are often in the civil sector, with large rail and traffic management projects.
Achieving synergy
Electronics is an area where synergy between military and civil interests is often achieved, with a classic example being an IR fever sensing system, adapted from an ST Electronics thermal imager in 2003, for the screening of travellers for the symptoms of Severe Acute Respiratory Syndrome (SARS). The system was developed in one week in collaboration with the DSTA, and was quickly fielded at ports of entry.
The example is useful because, in the words of ST Electronics' President of Defense Business Lee Fook Sun: "We live in a world where technology changes direction at the rate of 19, and requirements tend to change at 9g."
For ST Electronics, the swift change of direction has been towards homeland security and the development of specific systems for countering 'new terrorism'.
In 2004, the company introduced MAPS - Maritime, Aviation and Port Security - which was derived from the existing range of sensors and systems
Another product from ST Electronics subsidiary Agilis is Hyperion-M, a shelter-mounted mobile C/Ku-band radar system intended to counter illegal vessels. It includes an electro-optical system, a target tracker, an automatic identification system and a microwave link. A tower-mounted version ofHyperion is also marketed.
Agilis' commercial Very Small Aperture Terminals have found military applications with the Oscmar Company in New Zealand for training troops in the field with a high level of realism, which included a broadband satellite communications system.
In March this year, Agilis showed its miniV, claimed to be the world's smallest Very Small Aperture Terminal in its class, at the Global Security Asia 2005 exhibition.
This satellite communications system permits simultaneous voice telephony, video streaming and data transmission. It can fit into a suitcase. The company claims that the miniV can be rapidly deployed and operated in less than 10 minutes by one person.
Many of ST Electronics' products are in the category of dual-use or paramilitary, an example of which is the Emergency Integrated Communication System, which is essentially a communication system for emergency services, bringing. Together mobile platforms, fixed bases, networking and a range of radio interfaces.
Two mobile command vehicles have been developed by subsidiary CET: the Expandable Command & Communication Vehicle and the Forward Command Vehicle
Complementary Interests
ST Aerospace is the largest of ST Engg's defence-related companies, employing nearly 4,500 people. Its operations are dominated by civil activities, maintenance, overhaul and conversions for airliners and engines. In some respects its defense interests are complementary-one of the major projects from 2004 has been the overhaul of US Pacific Air force C-130 Aircraft and the refurbishment of 20 Philippines Air Force UH-1H helicopters complete with a logistic package. Deliveries commenced last year 2004.
C-130 capability is comprehensive, with the overhaul of airframes and F56 engines to the highest level, and including work up to conversion to air fuelling tanker.
In the Fixed wing combat aircraft field, upgrades for A-4 and F-5 fighters have represented a good volume from Singapore Air Force and from export customers such as Brazil and turkey. While those aircraft remains in service, there will still be a market, albeit diminishing.
Again building on national work to support and maintain Singapore’s F-16 force, ST Aerospace offers the ‘Falcon One’ series of upgrade for the F-16, covering weapons, electronic warfare, navigation and target and warning systems. The programme is based on offering customers a choice of subsystems from suppliers from around the world.
The company also offers a Super Puma door gun upgrade, providing two manually operated 12.7 mm machines guns installed outside the cabin doors, leaving full usable cabin space. The design can be adapted for other types of helicopter.
In ST Aero’s own military programmes, a significant area for the future is unmanned aerial vehicles (UAVs) – The MAV-1; the bungee-launched skyblade II: and, most recently, the VTOL Fantail - which are distinguished as being ST Aero in-house design projects, described as ready and under discussion with customers. Fantail has potential with armed forces, paramilitary and security forces, says the company.
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