Expanded our Digital Business presence with the deployment of the largest Nutanix secured hybrid cloud infrastructure in Southeast Asia and set up the world’s largest private cloud outside the U.S.
Strengthened core competencies to help governments and enterprises strengthen cross-domain security and protect critical systems data
Expanded our international defence footprint through teaming and joint venture agreements to augment our capabilities, as well as support
Continue to provide professional and managed services for customers to thrive in a multi and hybrid cloud environment and develop progressive solutions alongside emerging new technologies
Capture opportunities in applications of augmented reality, artificial intelligence, robots/drones, IoT and realtime data analysis in the operational concepts of future warfare
Invest and strengthen our defence capabilities to better support our customers
2022 was another eventful year. As the world adapted to living with COVID-19 and began to regain some degree of normalcy, the Russia-Ukraine conflict delivered yet another jolt to the global economy, causing further disruptions to supply chains and pushing up energy prices. The resulting inflation added more pressure on businesses.
Geopolitical conflicts highlighted the importance of national security and defence. Rising tensions among nations also added to the volatile global environment, leading to increased defence budgets in many countries and more export opportunities for our International Defence Business.
The landscape for our Digital Systems & Cyber business also underwent a transition. As digital transformation remained a focus for many businesses, Cloud, AI and Cybersecurity continued to be important issues and opportunities as businesses sought to capitalise on these new technologies to meet customers’ evolving requirements and their own business operations in the evolving post-pandemic world.
The Digital Systems & Cyber business continued to leverage the increasing digital transformation and urgent cybersecurity demands of our customers and stakeholders to deliver solutions for critical information infrastructure and enterprise systems that are smart, secure and sustainable.
To meet growing demand, we intensified efforts to grow our Digital business, particularly in the domains of AI, Cloud and Cybersecurity. We also expanded our enterprise, defence and public security customer base locally and internationally.
One of the year’s highlights was the deployment of the largest Nutanix secured hybrid cloud infrastructure in Southeast Asia. Delving into the future of mobility and healthcare, we partnered with Amazon Web Services to help our customers accelerate digital transformation with cloud as a key enabler.
We continued to build up our core competencies in operational technology and IoT cybersecurity to help governments and enterprises strengthen cross-domain security and protect critical system data from new and complex vulnerabilities. Our Cybersecurity products, comprising IP encryptors, encrypted data storage and data diodes, have been sold in more than 16 countries, with NetCrypt Mini encryptors being used by more than 16,000 remote workers to gain secured access to their organisations’ networks. We also launched Wiz-Knight, a similar device targeted for the international market.
We infused AI technologies into our Emergency Response System for multi-language transcribing, enabling it to understand local accents. Emergency calls can now be transcribed in real time, the enhanced system will further reduce the time taken by the first responder to dispatch the necessary emergency services and resources.
Our training and simulation solutions gained international reputation as the MAK One suite of modeling and simulation solutions was selected to provide the common simulation software system for the Australian Army’s Lands Systems Core 2.0 Program and to support Pakistan Air Force’s large-scale synthetic battlefield training.
We continued to establish strategic partnerships with technology leaders to develop and offer value-added solutions for our customers. For our 5G-in-a-Box solution, we collaborated with Intel, Nokia and EdgeQ to develop an adhoc, rapid deployment of a Private 5G network where ruggedness, size, weight and power are major concerns. Capable of deployment in various settings, the 5G-in-a-Box is especially powerful when installed on a mobile platform, providing a non-infrastructure based private 5G Network. We are also exploring with partners to co-develop solutions in the domains of AI, Adaptive Learning, Training Simulators and Satellite Communications for overseas markets.
In the pursuit of new communications and connectivity technologies, we partnered with Singapore University of Technology & Design to research and develop advanced AI-enabled application platforms in air, land and maritime use cases. At their newly launched Future Communications Connectivity Lab, our 5G engineering teams will deep dive into a research project to provide a reliable and undisrupted connectivity solution for the operations of autonomous tugs and remote pilotage in coastal waters.
We continued to make inroads in our Unmanned Systems business, by adapting our Unmanned Surface Vessel (USV) technology to specific use cases which are risky, routine and manpower intensive. Following trials since 2019, we secured our first contract to deploy our USV for flotsam clearance in territorial waters.
We clinched two awards in the Digital Achievers Team category at the Tech Leader Awards 2022 for our Integrated Water Management System (IWMS) and Operational Medical Networks Informatics Integrator (OMNII). Organised by the Singapore Computer Society, the awards recognise individuals and teams with notable contributions in digital infrastructure, platforms and applications. We also received the CES 2022 Innovation Award by Consumer Technology Association for our NetCrypt Mini, the world’s first ultra-small IP encryptor with multifactor authentication protection.
Developed for Public Utilities Board (PUB) to digitalise its water management process, the IWMS provides real-time data on the status and health of operational systems at reservoirs and plants as well as minimises water supply disruptions through real-time detection and early intervention. The OMNII is a joint project with Singapore Civil Defence Force (SCDF), Ministry of Health and the Defence Science and Technology Agency. It serves as a critical platform for pre-hospital emergency care stakeholders like SCDF and hospitals' emergency departments by providing patient information to medical practitioners for timely decisions, thus improving the chances of patient survival.
Expanding our international defence footprint remains a strategic focus area. We identified international opportunities that are compatible with our flagship platforms and solutions, including the Bronco All Terrain Tracked Carrier and its commercial variant ExtremV that is designed for Humanitarian Assistance and Disaster Relief (HADR) missions.
We made inroads in the HADR segment, working through distributors in Mexico and Peru, and are exploring other South American markets. In addition, we maintained our strong momentum in the sales of our 40mm munitions, with orders by new and repeat customers from Asia, Europe and the Middle East.
While the Oshkosh Cold-Weather All-Terrain Vehicle, which is based on our Bronco family of vehicles, completed trials in Alaska in early 2022, it did not progress further in the bid.
We continued to pursue other opportunities and avenues that will enable us to expand our global presence. These include teaming and joint venture agreements to augment our capabilities as well as supporting in-country operations through licensing or technology transfer. In July, we signed three agreements with the Saudi Arabian Military Industries for the provision of supplies and services of various defence equipment and capabilities as well as technical support and training.
Our U.S. specialty vehicles companies continued to secure new orders as the U.S. economy recovered post-COVID-19, but the industry faces new challenges, including inflationary pressures on material cost and supply chain delays.
As part of our smart manufacturing efforts, we launched the Land Systems Manufacturing Simulation Centre which utilises model-based manufacturing, to create a virtual twin environment for process validation and planning before production.
By using modelling and simulation technologies, we optimise the process, improve production quality and shorten time-to-market. This digital driven approach strengthens our engineering capabilities, increases agility to respond to customers’ requirements and allows for scalability.
In tandem with the ongoing digitalisation of our manufacturing processes, we also upskilled our employees to equip them with relevant skills for the ever-progressive tech and engineering industry. More than 200 engineers and technicians will undergo the Factory Integrated Technology Workforce Upskilling Programmes that we will jointly develop with Temasek Polytechnic, as part of a larger three-year roadmap that covers engineering, operations, MRO, supply chain and facility management.
After an internal strategic review, we divested our U.S. Marine businesses, comprising VT Halter Marine and ST Engineering Halter Marine and Offshore. The Marine business in Singapore, however, remains an important and core segment to the Group, along with Defence Aerospace, Digital Systems & Cyber, Land Systems and is unaffected by the divestment.
Our shipbuilding business in Singapore continued to do well. We delivered the last pair of the 5th Generation PT Class (5GPT) patrol boats to the Police Coast Guard (PCG), Singapore Police Force.
In June, the PCG commissioned 16 5GPT patrol boats. Based on our Super Swift series of fast patrol boat, the 5GPT patrol boat is the latest generation of patrol boats operated by the PCG. They are capable of high speed operations and swift manoeuvrability, including pursuit and arrest, surveillance and force protection, harbour patrol and security, as well as search and rescue.
We continue to make good progress on our other contracts, including the contract for the design and supply of platform equipment and technical assistance for four Falaj 3-class Offshore Patrol Vessels for the UAE Navy.
Our ship repair and conversion business also had a full year of ongoing projects comprising offshore, dredging and specialised vessels. Of these, we successfully delivered the mid-ship block on the Oranje trailing suction hopper dredger for Royal Boskalis Westminster N.V., as part of the Oranje lengthening project as well as converted the Fjell heavy lift vessel into a 14,000t fall pipe vessel.
We launched the Jurong Island Desalination Plant in April. Built by the consortium of Tuas Power and ST Engineering, along with PUB, Singapore’s National Water Agency, the Jurong Island Desalination Plant is Singapore’s fifth desalination plant and has a daily capacity of up to 137,000 cubic metres (about 30 million gallons) – the equivalent of 55 Olympic-sized swimming pools.
In December, we signed a teaming agreement with thyssenkrupp Marine Systems to provide warranty services and in-service support for four Invincible-class submarines that were built for the Republic of Singapore Navy.
We continued to work closely with our customers to enable them to meet and exceed their operational requirements. These customers include our close partners, the Royal Air Force of Oman and Lynden Air Cargo who have sent their C-130/L-382 aircraft to us every year for heavy maintenance for over two decades.
We deepened our relationships with strategic defence industry partners across the world, and signed MOUs for collaboration, in engineering and MRO with Airbus Defence and Space as well as AllClear Aerospace & Defence. We also made strong progress in our Smart MRO journey, with the operationalisation of smart tools management systems, digitalisation of work flows, remote aircraft tugs and aircraft proximity sensors for towing.
The IT landscape is ever-changing and the momentum of digital transformation shows no signs of slowing down as today’s technological trends mature and are improved upon, even as new trends emerge.
AI is expected to continue to grow rapidly, with wide-ranging applications for nearly all industries and in our daily activities. Businesses will continue to use AI applications and platforms such as robotics to enhance business resilience and productivity as well as customer engagement. We continue to rigorously embed AI technologies, such as data processing and speech recognition, into our Enterprise applications. In addition, our Mission Critical Operations Centre and Emergency Response Systems have predictive analytics to drive greater operational efficiency and agility. Deep learning is one of the latest research trends in the field of AI which offers opportunities to go beyond the constraints of traditional machine learning.
As businesses continue to invest and expand their remote work capabilities, demand for cloud computing services such as Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) is expected to account for most of the growth in public cloud services. At the same time, we also watch with keen interest as traditional cloud solutions evolve to segments such as Multi-Cloud, Distributed Anywhere, Industry Clouds and Sovereign Clouds as well as emerging new technologies like edge computing which will improve bandwidth and response time. We continue to provide professional and managed services for customers to thrive in a multi and hybrid cloud environment powered by our Cloud Management Platform that meet their business requirements.
The Cybersecurity segment continues to see strong momentum as businesses, large and small, invest in IT security software and cyber defences to protect themselves from breaches and cyberattacks. We are focused on strengthening our capabilities and differentiating ourselves as a trusted provider of end-to-end IT and OT cybersecurity solutions for critical infrastructure and high security enterprises. We also keep abreast of new developments and are conducting Deep Cybersecurity Research, including red teaming and vulnerability research through InnoEdge Labs, that we set up.
The outlook for our international defence business remains positive for the next few years. Countries have increased their defence budgets, mostly for military transformation and vehicle upgrades. With the increasing digitalisation of traditional military equipment, we see opportunities in applications of augmented reality, artificial intelligence, robots/drones, IoT and real-time data analysis in the operational concepts of future warfare. We continue to improve and enhance our current suite of defence solutions with these new technologies to support the demands of the modern battlefield for superior situational awareness and quicker decision making.
An example is the new hybrid Terrex, displayed at the Singapore Airshow 2022 as the centrepiece of the Group’s manned-unmanned teaming (MUM-T) concept. Its Vehicle Operation Cockpit gives a 360° see-through view for complete situational awareness and Automatic Target Detection and Tracking capabilities for enhanced fighting operations. The vehicle also serves as a central Crew Control Station and launchpad for UAV/UGV MUM-T operations. Its Drive-By-Wire design provides for the possibility of future capability expansion, including unmanned autonomous operations.
We will also work with partners who are looking to localise production, as part of countries’ efforts to overcome the supply chain challenges that they have experienced in the past few years.
Our Marine business continues to sharpen its design and shipbuilding competencies. Our range of multi-mission vessels serves a wide range of missions, including maritime security, search and rescue operations as well as Humanitarian and Disaster Relief.
Leveraging our strong track record in ship repair, we are also looking to expand our footprint internationally in the repair and overhaul of naval vessels and pursue opportunities to provide design, materials and project management through intellectual property and technology transfer. We continue to enhance our service offerings to our ship repair customers, which include retrofitting of ships for green fuel and conversion of vessels to support the growing segments such as the offshore wind segment. Responding to the growing demand for end-to-end maintenance and logistics support, we are offering our comprehensive maintenance and a proprietary fleet logistics information system which uses data analytics and machine learning to ensure the operational readiness of our customers’ vessels and enhance the lifetime of their fleet.
Keeping pace with new technologies as well as growing environmental concerns, we continue to work on innovative concepts including autonomous vessels and developments in renewables and decarbonisation solutions.
