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This is How Singapore Technologies Engineering Ltd is Powering Smart Nation Mobility

Singapore’s Smart Nation initiative was launched by Prime Minister Lee Hsien Loong on 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 of this initiative.

Smart cities

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).

Mobility challenges

The main pillar to smart nations, according to Lee, is connectivity and big data . The second pillar would be safety and security. The third is challenges in mobility. Lee said:  

When you live in a city, you don’t want to be stuck in a traffic jam. So, mobility is also important. The ability to move around effectively, efficiently, and travel quickly from place to place.”   

For mobility, ST Engineering offers a suite of products including the command, control and communication (C3) systems, automatic fare collection (AFC), platform screen door (PSD), passenger information display system (PIDS) and maintenance management system (MMS).

All these solutions fall under the Intelligent Transport System (ITS). These systems are being used at home and abroad, as summarized by the slide below:

2016-10-05-st-engineering-intelligent-rail

Source: ST Engineering’s earnings report

Lee mused:

In Singapore, we are in almost every line. We are participate in various parts of the program.

But not just in Singapore, we are very, very active overseas in our railway business. We have projects at this moment in more than 20 cities outside Singapore. And we have delivered more than 100 transit systems globally.

ST Engineering’s track record looks impressive but it is early days yet 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.

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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.