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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