Is Defence And Security The Next BIG Thing?

Singapore just arrested eight Bangladeshis suspected of terrorism yesterdat. This comes after more and more terrorist-related news report surfaced in the region. Malaysia recently arrested more than a dozen terror suspects, with some of them working inside government agencies. Terrorists in the Philippines has been kidnapping innocent hostages from Malaysia and other foreign countries over the past few years. This list goes on and it seems that more need to be done to maintain peace and safety in the region.

In this day and age where terrorists operate in the shadows, the need for stronger defense and security measures seem greater than ever. But what enterprises could help the region maintain the peace and security we currently enjoy?

There are only a handful of defense-related companies listed here in Singapore. Singapore Technologies Engineering Ltd (SGX: S63) is the most prominent of them all. With a market capitalization of close to S$10 billion, the company has a large defence segment which consists of aerospace, electronics, land and marine businesses. The company also serves customers globally in almost every continent. With the threat of terrorism raising in this region, would ST Engineering provides the necessary products and services to help its clients counter these risks?

Less well-known in the defence sector is Starburst Holdings Ltd (SGX: 40D). Compared to ST Engineering, Starburst Holdings is only a S$70 million company. The company focused on building training facilities for law enforcement agencies, military and other securities agencies around Southeast Asia and the Middle East.

Out of the two companies, which of them would be better positioned to help the governments and other securities agencies around the region to better combat terrorism?

Foolish Summary

Terrorism certainly appears to be on the rise in this region, the need for strong security measures seems stronger than ever. Would these companies be part of the solution to help the region maintain the peace and safety for its population?

If you'd like to receive more investing insights and be kept updated on the latest company and stock market news, you can sign up for a FREE subscription to The Motley Fool's weekly investing newsletter, Take Stock Singapore

Also, like us on Facebook to follow our latest hot articles. The Motley Fool's purpose is to help the world invest, better.

The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore writer Stanley Lim doesn’t own shares in any companies mentioned.