Chairman’s Message

Dear Shareholders

Over the last few years, waves of challenges wreaked great disruptions and uncertainties, from the COVID-19 pandemic to the war in Ukraine, the shift away from cheap money and the intensifying geopolitical tensions. Severe consequences arising therefrom will continue to be felt for years to come.

However, ST Engineering’s deep capabilities and resilience built up over the years have served us well, evident in our 2023 financial results. Our growth plan, outlined in the Group’s five-year plan (2022-2026) and centred on strengthening our core businesses as well as pursuing growth in international defence business and smart city verticals, remains on trajectory. Even then, we would not hesitate to make course adjustments when needed as had been done before and as would be expected of any agile company.

Unfortunately, the challenges we faced in recent years are not passing incidents. Rapid technological advancements, the inevitable struggle between incumbent and rising powers, and the insatiable demands for resources will guarantee existing challenges to persist and new ones to emerge.

In response, our journey cannot be about maintaining the status quo. It is about advancing the Group forward with a keen focus on growth through technology and innovation. We will capitalise on what has proven effective, strengthening our foundation and sharpening our competitive edge. Yet, the evolving landscape demands more than resilience – it calls for nimbleness, adaptability and measured risk-taking.

Harnessing technology and innovation to bring about a more secure and sustainable world is an even greater imperative. Technology is the lifeblood of this Group, evident in our substantial R&D investments. We need to not just develop and discover new technologies, but also to better leverage cross-segment and cross-domain capabilities both within and outside our organisation. By doing so, we can not only continue to strengthen our support for existing customers, but also continually identify and exploit new opportunities to build new ones.

At our Board Strategy session held mid-last year, the message resonated strongly among all members. This endorsement was reinforced by the name change of our Research, Development and Technology (RD&T) Board Committee to Research, Innovation, Technology and Enterprise Committee (RITE), serving as a constant reminder to intensify and focus our efforts on research and innovation for technological enterprise. Our goal is to translate our research and innovation into practical applications, bringing them to market expeditiously. This approach ensures that we provide our customers with the most cost-effective solutions, distinguishing us in a way that they might not readily find elsewhere.

As we navigate the increasing complexity ahead, our Board is set to be strengthened with more diverse membership, not just in gender but also in domains and experiences supplemented by co-opted experts and advisory networks.

All Board members are aligned in vision and passion for the journey ahead, guiding an equally dedicated and purposeful Management team supported by a committed group of employees, through the challenges with careful consideration and strategic foresight.

Our collective focus remains resolute—advancing and seeking sustained growth for total shareholder returns across business cycles and delivering lasting value while safeguarding the interests of our shareholders.

The path ahead involves persistent advancement, an unwavering pursuit of excellence and a commitment to pushing boundaries, all while upholding the highest standards of corporate governance. I envision a Group that not only adapts to change but leads it—an ST Engineering that is agile, innovative and positioned for sustained success in a competitive and dynamic world.

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