Me: How do you know that the local produced weapon will be more
expensive than buying off the shelf?
Glock: How do YOU know ?
Is is YOU who claim that it is for more expensive!!!
So backup your claim with data, not gut feel!!!!
Me:As long as our numerical requirement for the particular weapons
is high enough( achieveing economical of scale), the fixed cost
(R&D,production line etc) plus variable cost will be lower than
buying off the shelf foreign weapon with their high profit
margin!!!
Glock:Right, but how high is our numerical requirement compared to
other armed forces ? We have a bigger requirement than other armed
forces in countries which are developing their own weapons
?

Have you ever taken a course like Intro to Economics or something
similar???
Higher qty does not neccesary equate higher return, your assumption
show that you have no economics background, that is this term
called Diminishing Marginal Returns.
So let's say requirement is able to fully utilised a production
line, the average cost will be lowest i..e. optimise.
Increasing of production factor/s so to increase qty does not
equate lower average cost, that is why it mean by Diminishing
Marginal Returns of factor.
So if we are producing at the optimise qty for that production
line.and
FC + VC < Price of off the shelf weapon.
then it is worthwhile, that is only micro level and I am not even
talking Macro level yet!!!
For small arms , our number are high enough to venture into
it.
You can see many countires designing and producing their own arms,
why???
For economical and strategic benefits!
Me : Next is , where does the all the money go to if SG govt bought
weapon from locally produced ST Engg's weapons?
High % of it will remain in SG, whereas buying off the shelf
foreign weapon will be the complete opposite, so this good for our
current account i.e. better economically for SG!!
Glock: If you read my post , a high percentage actually goes to
foreign companies in some very high value SG developed systems such
as the Bionix and Primus. Also , the Terrex was not developed by
STK but by Timoney !

It is all depend on the level of indigenous part, if 10% is
indigenous in term money value, that mean 10% will remain in
SG.
Labour cost of assembly will also remain in SG.
Foreign off the shelf weapon will be 100% out of SG!!
( unless you have local middleman that take a cut like those in MY,
then some do remain locally!!!
)
As for Terrex, Timoney only provde us the drive train and
suspension, if it is by fully design by Timoney , then why STK is
marketing Terrex and not Timoney???
Me: This exactly why one condition of military aids to Israel by
the US is that it could only be used to buy US produced weapon,
they dun even mind they are Israeli deisgn weapon as long it is
produced in US.
This will ensure the majority of the money of the military aids to
Israel actually stay in US!!!
Glock : Does Singapore have a large political lobby in the USA as
Israel does ? Obviously no.
You dun understand the example that I have given, the point is
to have job creation, prevent flow of funds out the country i.e.
better current account.
So which weapons systems we have produced gives us strategic
benefits ?
All weapons locally produced gives us strategic
benefits!!!!
1) the qty is unknown unless we leaked it out
2) the capability is unknown, for example we may have some secret
stuff in it that we dun want other to know abt.
For example BMS, armour protection of BX etc.
3)we could design weapon that fully meet our needs, Primus, BX are
good example.
4) we are less vulnerable when face with a arms embargo than a
country that have no arms industry at all.
5) we could rammed up production in time of tension, and have more
weapon much more quicker than buy off the shelf.
6) there are weapons that you could not buy off the shelf becos no
one is selling them, for example NCW system , some electronics
warfare stuff etc.
Such high tech and highly sensitive stuff are best produce by
ourselves, but to produce such stuff , we must have certain the
technology knowhow, w/o a good R&D and arms industry , we will
not able to do so.
7) we hear all the time SG has silver bullets, secret projects etc,
can we have such things if we buy everything off the shelf???