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THE NEXTSTEPSvision chats with ST Engg’s Deputy Chairman & CEO, BOON SWAN FOO, andPresident & COO, TAN PHENG HOCK, about its past record and plans for the future.Q1: ST Engg has had another good year in 2000.Are yousatisfied with ST Engg’s performance over the past years?BSF: Since ST Engg’s formation in December 1997through the amalgamation of its four business sectors,I think we have come a long way in the last three years.Revenue has been increasing at a Compounded AnnualGrowth Rate (CAGR) of 15%; Profit After Tax has beenincreasing at a CAGR of 34%.Today, ST Engg is one ofthe top 10 listed companies in the Singapore StockExchange. Our market capitalisation has increased fromS$2 billion to S$8 billion during this period. In July, webecame one of the 20 defence companies listed byJane’s Defence Stocks Index, which is a key index usedto indicate the direction where the global defenceindustry is heading.We are the only Asia Pacific defencecompany to be listed on the index.Thus in form, wehave come a long way since the formation of ST Engg.In substance there is still a lot to do and the challengefor us now is to propel the Group into its next phase ofgrowth which is in the US, followed by Europe in themedium term.Q2: What do you think are the key factors of successthat have sustained ST Engg’s performance and growthover the past years?TPH:Two key areas that we have been focusing upon areimproving quality and internal efficiencies, and innovation.Over the past years, programmes such as 6-Sigma andKaizen have been put in place to improve our internalprocesses. On innovation, we roll out new products andservices every few years to ensure the continued revenueand profit growth for each of our business sectors.Examples for Aerospace sector over the years range fromF-5 upgrades, C-130 and F-16 upgrades, to Passenger-toFreighter conversions. For Electronics sector, fromIntelligent Building Management Systems to LightEmitting Diodes traffic lights; for Land Systems sectorfrom the Bionix to the All Terrain Tracked Carrier; and forMarine sector from Patrol Vessels to Landing Ship Tanks.We try to constantly encourage our staff to innovateand develop their new ideas.We have an internal committeethat goes out on road shows to remind our staff about theimportance of developing new ideas and intellectualproperties and to educate them on how to patent theirideas. Incentive schemes have been put in place toencourage new ideas from our staff, and to help themcommercialise ideas with high potential for success.However, we recognise that there is a limit to howmuch we can develop and innovate in-house with ourBOON SWAN FOO (left)emphasises a pointin conversation withTAN PHENG HOCK42 • visionq&a • 43