The defense buzzword at the Singapore Airshow

As geopolitical uncertainty grows, defense buyers at the Singapore Air Show say they are prioritizing sovereignty, from local manufacturing and co-development to owning the software and intellectual property that runs their systems.

Industry leaders say control over hardware, software and supply chains is now a central factor in purchasing decisions.

Managers of the fair, which will end on Sunday, pointed out that the changing alliances and harsh rhetoric of the great powers are the catalyst for this trend.

“There is one concept that comes out very clearly: the concept of sovereignty,” said Pascale Sourisse, senior vice president of international development at the French aerospace and defense firm. Thaleshe told CNBC.

Sourisse added that this mentality has helped increase defense spending as countries conclude that they need to take care of their own security.

Chua Jin Kiat, vice president and head of international defense affairs at a Singapore engineering and defense firm ST EngineeringHe echoed that sentiment, saying US President Donald Trump’s belligerent attitude towards allies over the past 12 months had led countries to realize “we may not be able to trust others.”

Under the Trump administration, the United States has pushed its allies to spend more on defense, while NATO has also committed to spending. 5 percent of their GDP goes to defense By 2035.

Trump has threatened allies such as Canada and most recently Denmark over Greenland territory. He also reportedly said he would sell out his allies Weaker versions of American weapons “Because one day they may not be our allies.”

Chua added that even organizations like NATO are realizing that old alliances and alliances may no longer be “as viable or valid.”

“So you can be a member of NATO. But actually today, at the end of the day, we see that, first of all, if I am Germany, I am Germany. If I am Finland, I am Finland,” he said.

Sourisse said Thales plans to not only market its solutions but also localize activities and competencies. Company was founded Partner laboratories in Singapore Collaborating with local institutions to develop talent in the field.

ST Engineering’s Chua said the company, constrained by Singapore’s limited land space for large factories, opted for co-production arrangements abroad.

For example, if ST Engineering can produce advanced vehicles in a country with more space for manufacturing facilities than Singapore, the company will collaborate and teach them how to build them through joint production work.

“For most of the big prizes, they have to keep their factories running at home. They have huge manufacturing facilities, thousands of jobs, and the lights have to be kept on all the time.”

New kids on the block

Sovereignty extends beyond factories to software and intellectual property. New companies in the field of defense technology are aware of these demands and structure their agreements accordingly.

US-based Shield AI, which develops autonomous combat systems signed a memorandum of understanding at the air show to integrate Hivemind autonomy software into selected ST Engineering platforms.

Company in early 2025 partnered with The Republic of Singapore Air Force will use Hivemind to enhance the RSAF’s autonomous capabilities.

Brandon Tseng, co-founder of Shield AI, told CNBC that Hivemind enables other companies and militaries to develop their own AI pilots locally, and Singapore will own the intellectual property.

“They can create AI pilots for whatever they want to do. We don’t own them. [the IP]” he told CNBC.

Tseng added that countries will continue to purchase some foreign hardware, but many want to localize critical capabilities such as artificial intelligence and autonomy.