Singapore Technologies CEO, Peter Seah

Photo Paul Douglass

Singapore Technologies (ST) may be the largest conglomerate in Singapore, but the name will probably not ring a bell with too many Americans. Not yet anyway. But some may recall that it was ST Telemedia, one of the company’s telecommunications subsidiaries, that purchased a controlling stake in the troubled American company known as Global Crossing.

In addition to ST Telemedia, there are 15 other listed companies falling under the Singapore Technologies umbrella in industries ranging from ship-building and commercial real estate development to semiconductors and armored military vehicles.

Singapore is a small pond for such a big fish like ST, so company executives must continually look abroad for growth. The United States is seen as one of the strongest, most attractive and most important markets. Several hundred million dollars in ST-sponsored venture capital has already been invested in U.S. businesses, especially in defense, aerospace and telecom.

ST also controls the largest listed commercial real estate company in Asia and operates one of the largest service apartment companies in the world.

“The successful signing of the Singapore-U.S. Free Trade Agreement is a big plus for us,” says Singapore Technologies CEO, Peter Seah, “We hope that it will facilitate our ability to do more business in the U.S.” The most exciting thing about the U.S., he says, is that the economy “spawns so many new ventures, new technologies.”

A banker for 32 years, Peter Seah has taken his first nine months at the helm of Singapore Technologies in stride. Early on his vision for the company is “to grow a stronger world presence.”

The company is expanding in many areas of the world. ST Electronics sells traffic light systems in Hong Kong, for example. One of ST Engineering’s aerospace facilities is the largest employer in Mobile, Alabama. Together with Hutchinson, ST Telemedia will control the largest telecom infrastructure network in the world. Within ST, the entrepreneurial culture is strong.

Company leaders are aware that competition is growing. As it is involved in nearly every sector of the economy in Singapore, ST is especially mindful of China’s mounting strength in the region.

“Looking ten years down the road, China is going to be a very strong competitor,” says Seah. ST is already seeing a great deal of competition from China’s shipping and ship repair industries. “They will definitely be strong in a lot of other businesses as well.”

Despite this looming challenge, Seah agrees with Singapore’s leaders who point out that China presents an enormous economic opportunity. China “represents a huge market for us. Because we are comfortable with [the] culture [and] language, there is a big talent pool for us.” Likening graduates of Beijing University to the top degree-achievers at prestigious U.S. universities, such as Harvard, Seah observes that one can find “PhDs by the dozens” in China right now.

Each time he returns to China, he finds the landscape so changed, so new. “With so many tall buildings you feel as though you could be in New York.”

Seah characterizes the Chinese as an enormous, expansive population “globally linked in terms of mentality.” Considering that they have been able to “push through not just physical development, but mindset changes without having to dump the ideology that continues to prevail, is an amazing feat.”

“Meeting [Chinese business] people gives you a sense of the flavor. If you talk to senior level people, you are actually meeting young people. Today when you meet a top guy, many are in their early forties, some in their thirties. This represents a huge change from just 10 years ago.” You are looking at a country “run by new blood” with a global mentality.

China is changing, Seah says. “That makes them a very formidable competitor. I look at China and think that they are a huge opportunity and a huge threat.”

“Look back at the amount of reliance the [Asian] region used to have on Japan. If you look 10 years down the road,” surmises Seah, “that’s probably what will happen with China.”

For more information, please visit www.st.com.sg.