Full Annual Report 2006 - Singapore Technologies Engineering

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In 2007, we will continue to grow our business organically
in new markets, with new products and systems innovation,
as well as develop new capabilities to address changing
customer needs. In addition, the Group will focus on
creating synergies among our businesses and leverage
economies of scale in all four sectors.
Looking Ahead
As the Group spreads its wings globally, we are constantly
mindful of the multitude of risks each new market entry brings,
be they natural, political, economic or socio-cultural. The risk
and business management framework that we have put in
place, which is constantly being refined and reviewed, helps
mitigate such business risks.
Hurricane Katrina remains an important lesson of what could
have been had we been less prepared. It is a reminder for us to
stay vigilant and adaptive to an array of business challenges as
we continue to grow our businesses globally.
Going global also means making tough and painful decisions
when necessary. We closed our UK aircraft maintenance
facility in Bournemouth this year after being unable to turn it
around since its setup in 2001. This was decided together
with our joint venture partner in the long term interests of
both companies and stakeholders.
In 2007, we will continue to grow our business organically in
new markets, with new products and systems innovation, as
well as develop new capabilities to address changing customer
needs. In addition, the Group will focus on creating synergies
among our businesses and leverage economies of scale in all
four sectors.
At the same time, the Group will continue to seek companies
and partners that enhance our core business through
acquisitions, joint ventures, partnerships and collaborations.
We adopt a pragmatic approach when developing new markets,
realistically appraising the key performance indicators and
adopting a flexible strategy for a particular environment which
may require the Group to be a subcontractor, licensor, or
supplier to local players.
As an innovative organisation, we increasingly develop
intellectual property to serve as a defensive measure in our
global thrust and as leverage for market entry strategy where
it makes sense.
For the coming year, the Group expects to achieve a
higher turnover and profit before tax, barring unforeseen
circumstances.
Expressing our Appreciation
We formally express our appreciation to shareholders at the
AGM and in the annual report. In reality, our gratitude for
your support extends throughout the year. In the same light,
we thank our customers for their continuing support through
the years.
Our Board of Directors is the beacon which steers Group
strategy and sets Group directions. The Directors’ experience
and depth of knowledge, willingly shared, have mapped our
course and continue to guide our future.
We would like to record our deep appreciation to our Director,
Lieutenant-General Ng Yat Chung, who will be retiring at our
coming AGM.
Not least of all, our special thanks to our family of over 17,000
members around the world. Your dedication and loyalty have
contributed to our success and winning spirit.
Peter SEAH Lim Huat
Chairman
TAN Pheng Hock
President and CEO
16 March 2007