Singtel has launched ST28, a strategic growth initiative aimed at elevating customer experiences and ensuring sustained value creation for shareholders. This initiative builds upon the successful completion of the company’s strategic reset, which began in 2021 to adapt to the rapidly evolving digital landscape catalyzed by the COVID-19 pandemic.
Mr. Yuen Kuan Moon, Singtel’s Group Chief Executive Officer, highlighted the evolution of the company’s strategy, stating, “Three years ago, the reset was a strategy for transformation amid accelerated digitalization brought on by COVID. Today, ST28 is a strategy for growth and sustained value realization.” He emphasized the significant progress made in sharpening the Group’s business focus, implementing operational enhancements, and executing a robust capital recycling program, laying a strong foundation for future growth.
Key Achievements of the Strategic Reset
The strategic reset led to a major restructuring of Singtel’s businesses, with a focus on connectivity, digital services, and digital infrastructure. Significant investments in 5G technology, particularly in Singapore and Australia, have enabled the Group to enhance customer experiences, expand digital businesses, and leverage 5G for various services.
In the connectivity sector, the consolidation of consumer and enterprise units in Singtel Singapore and Optus has driven synergies, innovation, and cost efficiencies, enhancing competitiveness in a challenging market.
New growth opportunities have been identified and scaled in the ICT and data center segments, with divestments of non-core digital businesses contributing to financial stability.
In regional markets, strategic integration efforts such as the merger of IndiHome with Telkomsel in Indonesia and 3BB with AIS in Thailand have positioned the Group for growth in emerging sectors.
A capital recycling program initiated in 2021 has successfully monetized assets, providing funding for growth initiatives and enhancing financial flexibility.
Commitment to Sustainability and People
Singtel has reaffirmed its commitment to climate action, setting ambitious net-zero goals and investing in employee development to adapt to the digital economy.
ST28: Elevating Business Performance and Smart Capital Management
ST28 focuses on elevating business performance and implementing smart capital management strategies to deliver sustainable value to stakeholders.
Efforts to enhance business performance include leveraging synergies from business integration, simplifying product offerings, utilizing AI for improved customer experiences, and driving cost efficiencies.
Strategic growth initiatives involve scaling up key business units such as NCS and Nxera, expanding operational capabilities, and exploring new revenue streams in emerging sectors like AI and edge cloud computing.
Smart capital management entails identifying monetizable assets, attracting external capital partners, and optimizing capital allocation to fund growth initiatives and enhance shareholder returns.
Sustained Value Realization Through Dividends and Growth
Singtel aims to deliver sustained value realization for shareholders through a combination of higher dividends and growth opportunities. A revised dividend policy reflects the importance of lifting core business performance and rewarding shareholders for successful capital management initiatives.
The introduction of a value realization dividend, funded by excess capital and future asset recycling proceeds, underscores Singtel’s commitment to returning capital to shareholders while pursuing growth.
Mr. Lang emphasized the company’s confidence in its performance and outlook, signaling a sustained approach to returning capital to shareholders amidst ongoing investments in growth.
In conclusion, Singtel’s ST28 initiative represents a strategic shift towards sustainable growth, enhanced value realization, and a continued focus on delivering superior experiences for customers and shareholders alike.
