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8 Highlights from Boustead Singapore Limited’s AGM

Boustead Singapore Limited (SGX: F5D), or BSL, held its Annual General Meeting on 26 July 2019. Here are eight highlights from that AGM.

1. For the energy-related engineering’s Oil and Gas division, the outlook is not sanguine. While liquid fuel (i.e. petrol and diesel) will still have its place in the world, technology relating to extraction and refining is already mature and the industry is stagnant. There is a shift towards the use of gas and electricity, and this will become increasingly prevalent as the years go by as the world gradually weans itself off liquid fuels.

2. The oil and gas downturn could last much longer as it has only been five years (2014-2019) so far. The previous bear market in oil and gas lasted 17 long years, and the structural change witnessed in the industry now means that oil prices are unlikely to climb back above the US$100 per barrel mark back in its heyday.

3. For geospatial technology, a BSL staff member who attended a global conference held by Microsoft Corporation (NASDAQ: MSFT) commented that Microsoft is also embracing geospatial technology in all aspects of its business. This underscores the importance of this technology and stands it in good stead for the future.

4. For ESRI Asia, BSL has been representing ESRI USA for around 40 years without any problems and is one of the top three globally in terms of performance. The partnerships that ESRI USA forged used to be a renewable seven-year term, but this has recently been changed globally to a three-year renewable term instead.

5. There are many plans and initiatives to grow the Healthcare Technology division (under WhiteRock) to make its contribution to BSL more sizeable. Chairman and CEO FF Wong considers this a “sunrise” industry where an ageing population around the world, coupled with the need for chronic care, will continue to drive strong demand for WhiteRock’s products and services.

6. The division is in the final stages of setting up a diagnostic assessment centre for hospitals by the end of FY 2020. When it is up, WhiteRock will run the centre for hospitals and provide them with services and equipment to assess patients’ needs, then provide them with products and services catering to these needs. The idea is for Healthcare Technology to shift away from product distribution and focus more on delivering services.

7. WhiteRock also has a patent for the world’s only portable, physiology-based sleep quality assessment from Harvard. It has the sole right in the whole of Asia to do this and can conduct sleep screening to watch out for signs of COPD (Chronic Obstructive Pulmonary Disease), stroke or diabetes. After performing a sleep quality assessment, WhiteRock can then sell their patented CPAP (continuous positive airway pressure) machines to ease sleep apnea and to prevent sufferers from development more chronic diseases later in life.

8. The Healthcare Technology division is also looking at two potential acquisitions but cautioned that these may or may not go ahead depending on the outcome of due diligence conducted.

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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 Royston Yang owns shares in Boustead Singapore Limited. The Motley Fool Singapore has recommended shares of Boustead Singapore Limited. The Motley Fool owns shares in Microsoft Corporation.