Please only compare apples with apples.
Extracted from Wiki:
Monaco ... is a sovereign city state, located on the French Riviera in Western Europe. Bordered by France on three sides, with one side bordering the Mediterranean Sea, its center is about 16 km (9.9 mi) from Italy, and is only 13 km (8.1 mi) north east of Nice, France.
It has an area of 1.98 km2 (0.76 sq mi), and a population of 36,371, making Monaco the second smallest, and the most densely populated country in the world.
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Until the Monegasque Revolution of 1910 forced the adoption of the 1911 constitution, the princes of Monaco were absolute rulers. The new constitution, however, barely reduced the autocratic rule of the Grimaldis and in any case Albert I soon suspended it.
In July 1918, the Franco-Monegasque Treaty was signed, providing for limited French protection over Monaco. The treaty, endorsed in 1919 by the Treaty of Versailles, established that Monegasque international policy would be aligned with French political, military, and economic interests, and resolved the Monaco Succession Crisis.
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................. In 2002, a new treaty between France and Monaco specified that, should there be no heirs to carry on the Grimaldi dynasty, the principality would still remain an independent nation rather than revert to France.
Monaco's military defense, however, is still the responsibility of France.
http://en.wikipedia.org/wiki/Monaco
Now, my comments:
1) We are much more viable as a nation than Monaco. To wit, we have about 500 times the land area and more than 80 times the population.
2) Compare with Monaco only if Singaporeans do not mind being an appendage of Malaysia or Indonesia, just like that little rock is an appendage of France.
And National Service is for what?