Yahoo! News:

The camera is normally a big selling point, but in Singapore Apple’s iPhone 4 and 4S are now available without the function — to cater to military personnel banned from taking image-capturing devices into army camps.Camera phones were banned in the city state’s military installations in 2007 after photos of sensitive training activities were posted online.Prices listed on M1’s website showed that adapted versions of the iPhone cost Sg$49 ($38) more.

It’s probably just a matter of time before this model is widely available for other military and business customers.