I don't see the alternative for NSP though. They are being forced out of Sembawang & Tampines by SDP and WP respectively. Out of the 7 constituencies they announced they intended to contest:
1. Tampines GRC - WP and PPP contesting. NSP previously contested - they have no choice but to run here.
2. Sembawang GRC - SDP contesting. NSP previously contested - they have no choice but to run here.
3. Marsiling-Yew Tee GRC - SDP contesting. I don't think this is a serious claim and they are just saying this as bargaining chip. Appears to be a useless bargaining chip though.
4. Jalan Besar GRC - PAR contesting, potentially WP contesting. Another useless bargaining chip with no clear use.
5. Marine Parade GRC - WP contesting. Once again, another bs claim by NSP - they have no leverage and this is a useless bargaining chip.
6. Tampines Changkat SMC - WP and PPP contesting. This would have been possible to make a deal with WP and take the SMC while WP gets GRC - until PPP came in. I assume NSP will contest here.
7. Sembawang West SMC - SDP (CSJ) contesting. It would be almost hilariously stupid for NSP to run here, highly unlikely.
The alternative is don't contest. Easy.
Or to be more specific, don't contest in areas with strong opposition parties.
Don't make people remember you for the wrong reasons. Once you lose your deposits in all the places you contest, that's the end of your party. 0 credibility and you will never be voted ever again. Treated like a joke. Also, you will already be hated for not pulling out.
If you pull out, regroup next GE with better candidates then that's mark of a responsible and realistic party. Not a party looking to fight a terrible election with terrible candidates against 2 much better parties.
Your theory will only make sense if they have no choice but to stay and fight will equally small parties like PPP, SPP, PAR etc. Not against SDP and WP. Also, SDP offered them Holland Bukit Timah but they reject. Dumb AF these NSP uncles.