Why Defence Spending Alone Doesn’t Guarantee Better Capabilities

by Rachel Morgan News Editor

At the conclusion of the 23rd Shangri-La Dialogue in Singapore, Defence Minister Chan Chun Sing challenged the prevailing focus on raw defence expenditure, arguing that strategic innovation and consistent investment are more critical than the total amount spent. Speaking to reporters on May 31, Minister Chan noted that there is no direct correlation between high spending and actual military capability.

The dialogue, held at the Shangri-La Singapore hotel from May 29 to 31, highlighted a growing tension between the need for increased military capacity and the importance of diplomatic reassurance. As nations bolster their defenses, Minister Chan emphasized that building power requires a simultaneous commitment to transparency regarding intentions to maintain regional stability.

Did You Know? Singapore and 16 other nations launched the “Guiding Principles for Underwater Infrastructure Defence Exchanges” on May 30, a voluntary framework designed to share information and provide early warnings to protect vital energy and telecommunications cables.

The Challenge of Consistent Investment

A recurring theme at this year’s summit was the difficulty of maintaining steady defence funding. US Secretary of War Pete Hegseth urged allies to increase their defense spending to 5 per cent of their GDP, following previous calls for a 3.5 per cent threshold. While some nations are responding to these calls, Minister Chan warned against a “feast-or-famine” approach to military budgets.

The Challenge of Consistent Investment
Guarantee Better Capabilities Secretary of War Pete Hegseth

He argued that building “real capabilities”—particularly in human capital and scientific advancement—requires years of sustained effort. Training specialized personnel, such as pilots and sailors, cannot be rushed and waiting to increase funding until a security crisis occurs may ultimately prove to be too late.

Expert Insight: The distinction between “spending” and “capability” is a critical pivot point for modern defense strategy. By prioritizing long-term human capital and technological development over rapid, reactive procurement, nations may avoid the pitfalls of inefficient spending, though this requires the tough task of maintaining public and political support during periods of relative stability.

Securing Critical Infrastructure

The summit also addressed the vulnerability of subsea infrastructure, which serves as a digital and energy lifeline for global trade. Minister Chan highlighted that the disruption of these systems could have severe consequences for a nation’s ability to access essential supplies. The newly launched exchange framework is intended to act as a deterrent, ensuring that the basic components of modern life remain secure against interference from lousy actors.

Shangri-La Dialogue: Singapore Defence Minister Chan Chun Sing closes event | Full speech

Looking ahead, the effectiveness of these defense strategies may depend on how well nations balance their growing capabilities with diplomatic reassurances. If countries continue to prioritize consistent, long-term development over reactive spending, they may be better positioned to navigate future security landscapes. Should the voluntary framework for underwater infrastructure prove successful in information sharing, it could potentially serve as a model for future multilateral security cooperation.

Frequently Asked Questions

What is the primary concern regarding defence spending mentioned by Minister Chan?
Minister Chan stated that there is no straight line between defence expenditure and capabilities. He warned that some countries spend heavily but do not achieve commensurate capability due to “feast-or-famine” strategies that fail to build long-term human and technological capital.

Frequently Asked Questions
Guarantee Better Capabilities While the Chinese Defence Minister

Why is the new underwater infrastructure framework considered important?
The framework is designed to protect critical energy and telecommunications cables. Minister Chan noted that if these systems are disrupted, countries could be cut off digitally, which would have serious implications for the lives and livelihoods of their citizens.

How did the dialogue address the level of Chinese participation?
While the Chinese Defence Minister was absent for the second consecutive year, Minister Chan noted that Chinese participation levels vary annually. He added that the Chinese delegation at the 2026 dialogue, led by Major-General Meng Xiangqing, made their presence felt during the plenary sessions.

How do you believe nations can best balance the need for military readiness with the importance of maintaining regional trust?

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