Singapore Technologies Engineering Ltd’s Management on its Core Strengths and its Core Business

Singapore Technologies Engineering Ltd (SGX: S63) released its annual report earlier this year.

The 2016 annual report included an interview with Vincent Chong, who took the chief executive helm on 1 October 2016. Chong joined the group in April 2014, and was elected as the President and CEO (Designate) in 2015.

The interview provided insights into what Chong sees as the strengths of the group, its core business, and new disruptive technologies.

Powering ST Engineering      

Chong said that his key focus was to ensure that there were good people in the group:

“Key to ensuring this is having good people. Because we are only as strong as the people we have, developing ST Engineering’s human capital is top of my agenda.”

Given the complex nature of a typical conglomerate, it would make sense to ensure that the right people are positioned to run the different businesses. Chong also said that there were opportunities for each division to collaborate:

“At the same time, we will increase cross-sector collaboration and enhance the integration of the strengths and capabilities within the ST Engineering Group. I firmly believe that our whole is much greater than the sum of our parts.”

While there are four businesses, Chong also said that defence remained as a primary business focus:

“The defence business will remain core to us, and we continue to invest in building strategic capabilities to further strengthen our ability to support our long standing customers.”

On this point, there is one special share issued to Singapore’s Minister for Finance.

According to the annual report, the special share “carries the right to approve any resolution to be passed by the Company, either in general meeting or by its Board of Directors, on certain matters specified in the Company’s Constitution”.  

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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.