Well, what kind of positions did you apply for in mindef? Some of the positions are highly competitive (think policy) where they only bring in people with scholar calibre (I know dpo is filled with scholars; only 1-2 ppl I know are non scholars there). That may affect ur chances. Pay wise I hear that non honors gets abt 3-400 less.

Having said all of that, it's very hard to do a masters in Singapore without a good honors degree... You might want to take up a study loan and work part time to that end, and that significantly improves your employability prospects. Think about it in terms of lifetimme earnings and the doors it opens for u down the road!

Did u intern anywhere within the civil service, or anything that could give you an edge in getting in?