Singapore’s Smart Nation initiative was launched by Prime Minister Lee Hsien Loong in 24 November 2014. The internet of things is a fundamental piece of smart nations. This could be a big opportunity. Research firm IDC believes the internet of things could generate as much as US$9 trillion of annual sales worldwide by 2020. And conglomerate Singapore Technologies Engineering Ltd (SGX: S63) has a foot in the door in this initiative. Smart cities Lee Fook Sun,…
Singapore’s Smart Nation initiative was launched by Prime Minister Lee Hsien Loong in 24 November 2014.
The internet of things is a fundamental piece of smart nations. This could be a big opportunity. Research firm IDC believes the internet of things could generate as much as US$9 trillion of annual sales worldwide by 2020. And conglomerate Singapore Technologies Engineering Ltd (SGX: S63) has a foot in the door in this initiative.
Lee Fook Sun, Deputy Chief Executive Officer and President of ST Electronics (a subsidiary of ST Engineering), provided some details during its second quarter earnings briefing.
He talked about the importance of the smart nation program:
“Cities need to be smart because there are a lot of challenges with urbanization.”
“Urbanization brings along quite a lot of demand. As cities grow, you need to do certain things to make cities continue to be efficient, to be effective in the way they are being operated.”
Urban population in 2014 made up 54% of the total global population. According to Forbes , Singapore has the third highest population density with 8,000 people per square kilometer (km).
Safety and security
The key pillar to smart nations, according to Lee, is connectivity and big data . Another pillar to smart nations would be safety and security. He said:
“When you have a lot of people living together, there are all sorts of security considerations. Domestic violence. Cyber-attacks can happen. Terrorist attacks can happen.”
Along this vein, ST Engineering has a few security solutions up its sleeve. Lee talked about cyber-security solutions, which includes encryptors. Lee said:
“We are actually one of the earliest cyber security companies in Singapore.”
“We started building a lot of encryptors which is really a protection of communication. So, a device to protect your communication. So, we are very strong in encryptors. We delivered this for various customers, including our military customers. Government customers.”
ST Electronics has strong credentials in the field of cyber-security, Lee noted:
“We are one of the very few to be certified by some international bodies. Recognised as a professional cyber security training house. We are also working with CSA Singapore as a cyber-security associate.”
Protect the house
Lee said that ST Electronics also provides solutions for security in all types of areas. He said:
“We have a whole host of solutions to protect various types of installations, including area wide solutions, point defence for buildings, and emergency response systems for the law enforcement agencies.”
Lee pointed out that ST Engineering has a long track record of implementing its solutions worldwide. The slide below shows some of the customers of ST Engineering:
Source: ST Engineering’s earnings report
ST Engineering’s solutions is being used in a whole host of countries like Qatar, Hong Kong, China, Indonesia, Brunei, Taiwan and so on.
In all, ST Engineering’s track record looks impressive but it is early days for the internet of things. Time will tell if ST Engineering will be able to carve out a place for itself in this emerging industry.
If you'd like to receive investing insights and be 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 contributor Chin Hui Leong doesn’t own shares in any companies mentioned.