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Structural change in global defence spending unlikely to wane: ST Engineering

Douglas Toh
Douglas Toh • 8 min read
Structural change in global defence spending unlikely to wane: ST Engineering
World leaders gathered at the Nato summit in The Hague, Netherlands, on June 25. Photo: Bloomberg
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At the 2025 North Atlantic Treaty Organization (Nato) Summit held in the Dutch city of The Hague, also home to the United Nation’s (UN) judicial organ, the International Court of Justice (ICJ), member states pledged to commit 5% of GDP yearly on core defence and security-related spending by 2035.

From the perspective of Mervyn Tan, ST Engineering’s new president of defence and public security (DPS), this is an unprecedented structural change which he has not seen in 30 years. “This is something that is unlikely to wane — whether some of these conflicts continue or not — but to be clear, we hope that peace will prevail,” says Tan, a former air force chief.

Tan replaced the outgoing Ravinder Singh on June 1, who retired after 11 years of service. In an announcement, ST Engineering said that Singh’s leadership had been “instrumental” in shaping the DPS segment since its formation during the group’s 2021 reorganisation.

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