Parliament
Speech by Gerald Giam On MINDEF: Defence Procurement Risks

Speech by Gerald Giam On MINDEF: Defence Procurement Risks

Gerald Giam
Gerald Giam
Delivered in Parliament on
27
February 2026
5
min read

Committee of Supply Debate 2026, Ministry of Defence‍ The global defence industrial base is facing unprecedented strain, leading to severe delivery backlogs that threaten operational readiness. In Japan, audits reportedly revealed that military equipment worth nearly $7 billion remained undelivered five years after contracts were signed, forcing their military to operate with critical capability gaps. Similarly, Taiwan reportedly faces a backlog exceeding $21 billion, with delivery timelines for fighter aircraft and coastal defence systems slipping repeatedly. 

Committee of Supply Debate 2026, Ministry of Defence

The global defence industrial base is facing unprecedented strain, leading to severe delivery backlogs that threaten operational readiness. In Japan, audits reportedly revealed that military equipment worth nearly $7 billion remained undelivered five years after contracts were signed, forcing their military to operate with critical capability gaps. Similarly, Taiwan reportedly faces a backlog exceeding $21 billion, with delivery timelines for fighter aircraft and coastal defence systems slipping repeatedly. 

These examples serve as a stark warning: Robust procurement budgets cannot purchase security if hardware remains on a distant assembly line.

Therein lies the risk of a capability vacuum if our own high-end platforms do not arrive on time. The operational life of existing assets is not infinite. We cannot afford a security hiatus, where our surveillance or regional defence posture is compromised, because we are waiting in a global queue. Relying on a single source for critical high-end systems may create a strategic vulnerability amidst the current global instability.

How is MINDEF diversifying and sourcing from a wider range of global partners to mitigate single-point failures in the supply chain? Singapore must be a partner with sufficient leverage to demand delivery certainty for every asset. Does MINDEF have robust clawback clauses and does it provide for liquidated damages for delays within these high-end contracts?

Furthermore, MINDEF must ensure that multi-billion dollar high-end contracts are transparent and accountable. This can be done ensuring the Auditor-General’s Office is given full access to audit procurement milestones, contract variations and delivery timelines.

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