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“Opportunities Abound forNiche Players,” Boon Tells MAPCIN HIS SPEECH TO THE MAPC, Mr Boon Swan Foo, DeputyChairman and CEO, ST Engg, considered the impact of thecontinuing consolidation activities in the aerospace industry.“The period in the aftermath of the end of the Cold War haswitnessed a sustained pattern of consolidation within theinternational aerospace industry,” he said.“After almost a decade, the trend appears to be approachingstabilisation which will leave a handful of mega American andEuropean companies remaining in the global aerospace industry.We have also observed trends in defence contracts fromthe US Department of Defense (DoD) towards single-points ofresponsibilities or one-stop service providers, where industryplayers form partnerships and consortiums…”While acknowledging the benefits that this trend could bringto both the industry and to end-users, he pointed out thatthere was also a downside.Especially troubling is “the distortion of free market forces,eventually curbing potential benefits.” Real choice and priceoptions for end users may be reduced and barriers erectedagainst new entrants and smaller firms in the industry.Nevertheless, Mr Boon maintained that there was a role forsmaller companies that were imaginative and flexible andcould identify a niche for themselves. They might providespecialised services or products to industry giants, allowingthe latter to concentrate on their core competencies andstrategic activities.“Niche players may also have the potential to partly addressthe issue of control. As specialised actors in the value chain,they will not only contribute to a more efficient global divisionof labour, but also by being small, continue to have the nimblenessfor rapid turnovers and changes in specifications comparedto the industry giants.”“The latter would be the ones with the critical mass and financialstrength to undertake much of the new product developmentin the defence industry, but competitive niche playerswill have a key role to play in the new value chain, as theyfocus on specialised roles which they can fulfill more effectivelyand efficiently. Niche players could also dominatecertain key components and become centres of excellence intheir own right, by focussing on their own research and developmentin core areas, rather than at systems level.”Mr Boon concluded by asserting that “opportunities aboundfor niche players in the evolving landscape of the globaldefence industry” but adding, “success is neither assured norassumed. It has to be earned.”SM Lee and Dr Kissinger Address SummitTHEASIAN AVIATIONSummit took place on11 February and wasjointly organised by ST Enggand The Boeing Company.With the theme “Shapingthe Skies of Asia – Creatingthe Vision,” it provided keyairline CEOs and industrychiefs gathered in Singaporewith an opportunity toconsider the future ofAsian aviation.The keynote speakers atthe event were Singapore’sSenior Minister Lee KuanYew and former USSecretary of State, DrHenry Kissinger. Both discussedthe broader politicalcontext for the Asianaviation industry.SM Lee spoke on “Asia’sRole in Tomorrow’sWorld.” Dr Kissinger’ssubject was “Asia’s FuturePolitical Landscape.” Otherspeakers included Mr LiuCommunicAsia 2000THE COMMUNICATION,encryption and broadcastingcapabilities of STElect went on exhibitionin June at Asia’s largestcommunications showcase,CommunicAsia 2000. Heldat the Singapore Expo, theJian-Feng, Minister fromthe Civil AviationAuthority of China andMr Shinji Fukukawa, CEOof Dentsu Institute, aJapanese think tank.Co-chairs from the sponsoringcompanies wereST Engg’s Deputy Chairmanand CEO, Mr BoonSwan Foo and Boeing’sChairman, Mr Phil Condit.The participants gave verypositive feedback about thesummit, which provided avaluable opportunity forkey players in the Asianaviation industry to interact.exhibition attracted 46,000visitors, one third of themnon-Singaporeans. Juztalk,DABOne,VSAT transceiversand satellite modemsand the Agilink digitalradio system were amongST Elect’s exhibits.ST Engg Showcases New Products at AA 2000OVER 920 COMPANIESexhibited at AsianAerospace 2000 (AA 2000),the first air show of thenew millennium. Heldfrom 22 to 27 February,the show was opened bySingapore’s Prime Minister,Goh Chok Tong.PM Goh was upbeat aboutSingapore’s role in theaerospace industry, citingits track record and goingon to note, “The EconomicDevelopment Board forecaststhat the industry willtriple in size from today’sS$2.3 billion by 2010.”He forecasted thatSingapore’s aerospaceindustry would win 70%of its business from outsidethe Asia Pacific region – upTHE LONGEST LINEof people waiting totry their hands at newweapons on range firingday of TREXPO EASTwas for the SAR 21 AssaultRifle.It was no wonder, as manyof the law enforcementand military personnelattending had already beenimpressed by what theyhad read about the newrifle in magazines such asInternational Defence Reviewand Guns & Weapons.from its present 60%.Pride of place at AA 2000went to ST Engg, whichtook over the SingaporePavilion. It had five mainexhibition areas: aerospace,land systems, electronics,marine andSAR 21 makes impressive debut in USHeld in Washington D.C.from 16 to 18 August,TREXPO EAST markedthe debut of the SAR 21 inthe US, where it receivedrave reviews from theCleveland SWAT team,one of the best performanceteams in the US.Besides the standard SAR 21,visitors could also viewvariants such as the SAR 21with M203 grenadelauncher.The responsefrom those who tried outthe rifle was very positive.advanced engineering.Thecompany seized this opportunityto unveil a range ofnew military and commercialproducts.These includedthe “Falcon ONE” F-16avionics upgrade package,the All Terrain TrackedCarrier and the BluePositive response was alsoreceived when the SAR 21team showcased the rifleat the National DefenseIndustry Association(NDIA) symposium inIndianapolis, an eventattended by industryleaders, programme managersand key decisionmakers from the DoDinvolved in the smallarms business.Horizon Unmanned AirVehicle, which is used forreconnaissance and surveillance.New variants of the SAR21 Assault Rifle and theBionix IFV were alsounveiled.The rifle was also exhibitedat the National GuardsAssociation of the UnitedStates convention inSeptember and at theAssociation of the UnitedStates Army’s gatheringin October.VT Kinetics, Inc. is promotingthe SAR 21 to theUS military and lawenforcement markets.A “ G R E E N ” G R E N A D E ?The 40 mm High Velocity High Explosive Dual Purpose (HEDP)round is often referred to as the “environmentally friendlygreen grenade” because of its mechanical self-destruct fuse.The danger of having unexploded duds lying indiscriminately inthe training or battle ground is of great concern to all armedforces. This is particularly so with soft grounds such asswamps or snow covered areas.The self-destruct fuse ensures complete detonation of theammunitions if they fail to explode on impact. Hence, the chanceof endangering friendly troops and innocent beings will beeliminated.8 • visionscene • 9
S M A R T S T U F FFirst And FastTHE FIRST DC-10Passenger-to-Freighterconversion programmecompleted in South EastAsia was handled by STAero’s subsidiary, SASCO,for Boeing.The conversionprogramme was technicallycomplex and demanded ahigh level of competence.The work included theinstallation of the maindeck cargo door, installationof cargo handlingsystems, conversion of theavionics and electricalsuites to fit the aircraft’snew function and heavymaintenance checks.SASCO successfullycompleted the job 20days ahead of schedule.Bionix Showcased in USTHE BIONIX INFANTRY CARRIER VEHICLE (ICV) drew internationalattention when it became one of the finalists for theUS Army’s Interim Armoured Vehicle programme.This was far from being its only appearance in the US in2000. On the contrary, a publicity drive which included aseries of road shows had taken the Bionix across thousandsof miles and to a string of locations.The drive had two objectives: to show the Bionix ICV to themanagement and workers of our US partners, as well asmembers of the communities where they are based.A vital feature of the Bionix ICV is that it’s air-transportable.A Roll-on/Roll-off demonstration from a C-130 was held inMay at Huntsville, Alabama.The event attracted more than 120 people including dignitarieslike the Mayor of Huntsville, the Mayor of Madison,the Chairman of Madison County, Congressional staffers,army and marine personnel and representatives from theChamber of Commerce.In July, a Bionix Day organised at the Pentagon and onCapitol Hill in Washington D.C. attracted high rankingofficials and members of the media.This was followed by another successful Bionix Day at theRed River Army Depot in Louisiana on 3 August, which alsoattracted a large crowd. After appearances organised withpartners in New York and Michigan, the Bionix ICV endedits US tour with a demonstration before local officials andworkers at International Manufacturing Corp in Garland,Texas, in August .Read All About It!ANEWSERVICEavailable to ST Enggstaff gives them access toan enormous range ofinformation about theircompany and the industriesof which it is a part. LexisNexis aggregates newsfrom 2,500 sources acrossthe world and is madeavailable to staff on STEngg’s own portal.Aggregration of news isimportant in a world inwhich there are numerousinformation sources. Onsome topics, the numberof potential sources is sovast that it is quite difficultfor many internet users topinpoint what they wantand to distinguish betweenwhat is genuinely usefuland accurate and what isnot. By aggregating news,a service such as LexisNexis cuts out a lot ofsearch time for the userand assembles a wealth ofmaterial tailored to a user’sspecific needs.Largest YetTHE NORWEGIAN STAR,a luxurious cruisevessel owned by NorwegianCruise Lines, with a carryingcapacity for 800passengers and 400 crew,is the largest cruise vesselrepaired at ST Marine sofar. Major works carriedout included overhaul ofthe vessel’s steering gearand fin stabiliser, renewalof aluminium and steeldecks, painting of its hulland refurbishment of itscasino, club and lounge,decks and basketball court.ST Marine is optimisticabout the prospects offurther expanding itspresence in the cruise shiprepairmarket following itssuccessful completion of aseries of contracts.Maiden VoyageRSS ENDURANCE, THEfirst in the series offour Landing Ship Tanks(LSTs) which ST Marinedesigned and built for theRepublic of SingaporeNavy (RSN) made itsmaiden voyage around theworld in May.The highlightof this voyage wasRSS Endurance’s participationin InternationalNaval Review 2000 inNew York, the 6th to beheld in the last 100 years.T H E X - F A C T O RThe BIONIX is a light and agile Infantry Fighting Vehicle (IFV)with excellent protection. ST ENGG christened the IFV “BIONIX”through a naming competition held in 1997 with the Singaporepublic. Adding a twist to the word BIONIC, the “X” in BIONIXalludes to the “X” factor that makes the vehicle a vastly superiorfighting machine and is meant to evoke the concept of integrationbetween the human intellect and modern day technology.Big Presence at National Day ParadeWHEN SINGAPORE MARKED ITS 35TH BIRTHDAYin 2000 with its annual National Day Parade,ST Engg’s presence was formidable.The Group’s mostvisible contribution was its contingent marching in theparade, but its products were there in force.The Bionixrolled along the street as part of the army’s column ofvehicles, while soldiers marched past bearing the SAR 21Assault Rifle, newly delivered to the Singapore ArmedForces by ST Kinetics. Overhead flew F-16s, for whichST Aero designed the ‘Falcon ONE’ avionics upgradesuite. Out at sea, a Landing Ship Tank built by ST Marineprovided a take-off and landing platform for the SuperPuma helicopter.Public Likes LEDINROBOTIC ARM: A team from ST Aero demonstrated the F-5Lower Wing Inspection System at Asian Aerospace this year.They mocked up a wing which was then meticulously inspectedby a robotic arm. The arm searches for any sign of cracks.CARRY ALL: A ‘carry-all utility’ cart has been zipping aroundST Aero’s facility to deliver spares to its subsidiaries. The electriccart, a substitute for delivery vehicles, zips through internalperimeter roads within ST Aero’s complex, instead of the mainroads. The advantages have been three-fold; saving time,reducing cost and cutting air pollution.WELL SPOTTED: Closed circuit TV cameras mounted in carparks are not always up to the job of reading the number platesof the vehicles that come and go, which can give thieves alucky break. ST Elect’s Licence Plate Recognition System usesa licensed software engine from Kent Ridge Digital Lab torecognise and record characters (including those in Asianscripts) on licence plates accurately by enhancing their readability.1999, ST ELECT WON A CONTRACT FOR THESingapore-wide replacement of existing halogen orincandescent bulb traffic lights. In their place were fittedLight Emitting Diodes (LED) which provide greatervisibility and better colour contrast for road users.Theywould also be easier to maintain and will consume only athird of the energy used by their incandescent counterparts.The acid test was yet to come.What would the publicthink? In June, a team of Business Studies lecturers andstudents from Ngee Ann Polytechnic conducted a surveyon the new lights as part of a project for ST Elect. Sixhundred and twenty-six people were interviewed at fourmain sites in Singapore and the result was a convincing90% endorsement of the LED lights.10 • visionsccene • 11
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Page 40 and 41: R E : V I E WElectronicsBy Seah Moo
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The SGX’s Listing Manual requires
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BALANCE ASAT 1.1.2000 BALANCE NO. O
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BALANCE SHEETSAS AT 31 DECEMBER 200
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STATEMENTS OF CHANGES IN EQUITY (co
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NOTES TO THE FINANCIAL STATEMENTS31
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Included in the share capital is a
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8. FIXED ASSETS (cont’d)THE GROUP
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EFFECTIVE EQUITYINTEREST HELDBY THE
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COUNTRY OF INCORPORATION/NAME OF SU
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PROVISION FOR DIMINUTION IN VALUE O
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(b) Details of joint ventures are a
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13. STOCKS AND WORK-IN-PROGRESS14.
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20. DUE FROM RELATED CORPORATIONS21
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Lease terms do not contain restrict
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GROUPCOMPANY2000 1999 2000 1999NOTE
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GROUP2000 1999NUMBER OF SHARES (’
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45. SEGMENT INFORMATION (cont’d)L
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their audit to the independent dire
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SINGAPORE TECHNOLOGIES ENGINEERING
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AEROSPACE SECTOR VALUE ADDED STATEM
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ELECTRONICS SECTOR BALANCE SHEETSEL
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international recognition as a majo
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REVIEW OF FINANCIAL PERFORMANCE - M
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MARINE SECTOR FINANCIAL HIGHLIGHTS1
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SINGAPORE TECHNOLOGIES KINETICS LTD
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Professor Lui Pao Chuen is the Chai
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Contacte-mailContacte-mailASSOCIATE
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MARINE SECTORASSOCIATED COMPANIESNO
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PROXY FORMSINGAPORE TECHNOLOGIES EN
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end page• AEROSPACE• ELECTRONIC
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