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

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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. 

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

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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.

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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?

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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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