DSTA widens defence technology search to new markets amid supply chain concerns
The Defence Science and Technology Agency will look at regions such as the Nordics, Eastern Europe, Japan and South Korea to diversify its sources of defence tech.
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SINGAPORE: The Defence Science and Technology Agency (DSTA) is stepping up efforts to diversify its sources of defence technology, expanding beyond its traditional partners in the West to markets such as Japan, South Korea, the Nordics and parts of Eastern Europe.
The move comes as geopolitical uncertainties and supply chain disruptions reshape global defence procurement, said Mr William Peh, director of DSTA’s newly established Horizon Tech Office.
The office pairs promising start-ups and new innovative companies with its own programmes and potential users.
For DSTA, the Singapore Armed Forces’ (SAF) central procurement agency, unmanned systems remain a key priority - not only in terms of acquisition but also in countering them.
This year, the agency’s attention is not just on what technologies to buy but where they come from.
Lessons from recent armed conflicts, including the war in Ukraine, have shown that startups - rather than traditional defence giants - are increasingly at the forefront of innovation in areas such as drones, artificial intelligence and autonomy.
“We have seen rapid advancements in these three technology areas and the increasing use of such technologies in the modern battlefield. We are therefore doubling down our efforts in terms of scouting and developing our internal capabilities in these three areas,” said Mr Peh.
WIDENING ENGAGEMENT
To better identify and track companies to procure from, DSTA is widening its engagement with venture capitalists and accelerators.
“This will be the first time we are going in bigger waves to engage (them), because we believe these are where the innovative technology companies will have touch points with. And by going to them, there's a possibility of them referring good companies to us,” Mr Peh noted.
Many of these firms are based outside DSTA’s usual procurement markets, he added.
“Most of our systems are largely procured from the West, with some systems that are developed in-country. We think we should not be placing our eggs in just one basket. And it is worthwhile to search for alternatives,” he said.
When looking for such alternatives, DSTA will focus on markets with advanced science and technology capabilities and credible solutions in specific areas, Mr Peh told CNA.
Regions such as the Nordics, Eastern Europe, Japan and South Korea are potential alternatives that warrant further exploration, he added.
Still, identifying promising companies is only half the battle. Ensuring they can be tested, adapted and deployed quickly within the SAF is equally critical.
To that end, DSTA has shifted away from a traditional buyer-seller model towards deeper partnerships with industry players.
“I think this is a key difference compared to the past. For instance, we provide the companies with access to our data sets, test beds and operational environments to co-design solutions, test, iterate and scale them up,” Mr Peh said.
He added that this approach allows DSTA to better understand emerging technologies and accelerate their transition into operational use.
SINGAPORE FIRMS STILL CRUCIAL
While DSTA is searching abroad for more options, Mr Peh stressed that local companies continue to play an important role.
“We do not put specific biases on overseas versus local companies,” he added.
“That said, if we look at the numbers over the years, I think it has been evenly split between the local companies and the overseas companies, both in terms of the number of companies contracted and the contract value that we awarded to both sets of companies.”
When asked how smaller Singaporean firms fit into DSTA’s strategy, Mr Peh highlighted the importance of building domestic capabilities to strengthen resilience, especially during supply chain disruptions.
“In certain cases where we think there is strategic importance to build up local capability, DSTA will find opportunities to intentionally build up their local capability, either through a local partner or by marrying up the overseas company with our local partner,” he added.
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