Singapore Telecommunications (Singtel), on Dec 31, announced that it will reorganise its structure, which is designed to position the group to capture new digital growth.
The group has created a new portfolio under its Group Enterprise division, which is dedicated to driving its 5G Enterprise business across the region by leveraging on Singtel’s regional footprint.
“The move to help businesses accelerate their digital transformation comes as companies embrace new business models and race to go digital in response to Covid-19 and the resulting changes that travel restrictions and lockdowns have had on the broader business landscape,” says the group in a Dec 31 statement.
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Singtel’s ICT arm, NCS, which is the largest ICT services provider in Southeast Asia, will report directly to the group CEO. This is done in a bid to accelerate NCS’s expansion into Asia Pacific, with a special focus on Australia and China.
On the move, group CEO-designate Yuen Kuan Moon says, “5G is going to be more than just a connectivity play for us and this refocus of the business will allow us to go after the digital growth that 5G will fuel as a plethora of use cases and business models emerge”.
“With Covid-19 also changing the game for companies, we see this as an opportune time to reset our business and prioritise areas where we see the greatest opportunities for growth by leveraging our extensive footprint across Asia.”
“NCS has reached scale, having delivered positive revenue growth for seven years running. The greater autonomy will help NCS maximise its potential by expanding its footprint beyond Singapore to build a strategic presence in the major markets for digital transformation. This is part of our longer term plan to create more value for the Group by turning NCS into a leading regional B2B digital services company,” he adds.
The above changes will take effect from Jan 1, 2021.
From April 1, 2021, the International Group, which currently manages Singtel’s portfolio of strategic telecom investments, will be brought under the group CFO office.
“Our regional associates continue to contribute significantly to Singtel’s financial performance as they grow in their respective markets. Having the Group CFO’s office oversee the business and financial management of the associates allows for a holistic view on overall Group operating and financial performance, facilitating capital allocation decisions for long-term value creation,” says Yuen.
The group will also change its management structure due to the changes.
From Jan 1, 2021, NCS CEO Ng Kuo Pin and Anna Yip, deputy CEO of the Consumer Singapore division, will join Singtel’s management committee.
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From April 1, 2021, Arthur Lang, the CEO of the International Group, will become the Group CFO. The role includes the management of the International Group and regional associates.
The Group Strategy and Business Development Unit will be combined with the Group Digital Life division. Together, they will form the Strategic Portfolio unit, and helmed by Samba Natarajan, who is currently the CEO of the Group Digital Life division.
The portfolio will now include strategic planning and business restructuring in addition to overseeing the group’s digital marketing arm Amobee, and the group’s corporate venture fund Innov8.
Singtel’s current Group CFO Lim Cheng Cheng will become Group Chief Corporate Officer.
Two members of the Singtel management committee – Allen Lew, CEO of Group Strategy and Business Development, and Jeann Low, Group Chief Corporate Officer – will be retiring from end April 2021.
They will be taking on advisory roles after their retirement.
“Our renewed management structure will help shape and support our business agenda as we strive to prioritise businesses where we can be relevant in the longer term and grow sustainably,” says Yuen.
“Both Allen and Jeann have served in critical roles across geographies within the organisation. On behalf of the company, I would like to extend my gratitude to them both for contributing immensely to Singtel’s success.”
Shares in Singtel closed flat at $2.32 on Dec 30.
