SINGAPORE (Feb 25): Singapore’s Budget 2019 speech, delivered by Finance Minister Heng Swee Keat on Feb 18, hogged headlines for the better part of the week. Analysts were quick to parse which stocks would be affected by the projected government spending of $80.25 billion.

Some $22.7 billion, or just over a quarter of the total spending, will go to the defence and home security sector, which Heng reasons is necessary because of an increasingly uncertain geopolitical environment. “This spending is significant, but indispensable. We will invest more, if the need arises, to protect the sovereignty of Singapore and the well-being of Singaporeans,” he says.

According to brokerages such as DBS Group Research and RHB Securities, Singapore Technologies Engineering, which generates about half of its revenue from defence-related contracts, is a potential gainer from the increase in defence spending.

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