Singapore Telecommunications (Singtel) has announced the launch of Singtel28, a growth strategy aimed at delivering enhanced customer experiences. This initiative follows the company’s strategic reset, initiated in 2021, which focused on leveraging technology and digitalisation, spurred by the COVID-19 pandemic.
Singtel CEO Yuen Kuan Moon said: “ST28 is a strategy for growth and sustained value realisation. Having sharpened the Group’s business focuses, made significant operational improvements, and executed a proven capital recycling programme, we have built a strong foundation for the Group to move into its next phase of growth.”
Strategic Reset Achievements
A significant outcome of the strategic reset has been the restructuring of Singtel’s businesses into three core areas: connectivity, digital services, and digital infrastructure. Major investments in 5G technology were pivotal, establishing Singtel’s leadership in Singapore and achieving over 80 percent 5G coverage in Australia. This has enabled the company to enhance customer experiences, expand digital businesses, and leverage 5G for infrastructure services.
Key changes included merging the consumer and enterprise units of Singtel Singapore and Optus to drive innovation, cost efficiency, and competitiveness. Additionally, Singtel scaled new growth engines in ICT and data centre spaces through NCS and Nxera, respectively. The divestment of non-core digital businesses, such as Amobee and Trustwave, eliminated S$200 million in annual EBIT losses.
In regional markets, Singtel has explored fixed mobile convergence opportunities by integrating IndiHome with Telkomsel in Indonesia and 3BB with AIS in Thailand. The company’s capital recycling programme, launched in 2021, has monetised S$8 billion from assets like Indara, Airtel, and Nxera to support growth initiatives.
People and Sustainability Initiatives
Singtel has also committed to sustainability, becoming Asia’s first telco to aim for net-zero emissions by 2045 and renewing its science-based targets with SBTi. The company invests approximately S$20 million annually in reskilling and upskilling its workforce for the digital economy.
Looking Ahead with ST28
The ST28 strategy focuses on lifting business performance and smart capital management. Singtel plans to enhance business performance by simplifying product offerings, utilising AI for improved customer experiences, and driving leaner cost structures. A network sharing deal between Optus and TPG in regional Australia exemplifies efforts to improve services and capital efficiency.
Growth engines like NCS will continue to capitalize on technology services leadership, while Nxera aims to expand its data centre capacity to over 155MW across the region, supported by private capital. Singtel also plans to scale Paragon, its 5G and edge cloud computing platform, and explore GPU-as-a-Service as a new revenue stream.
Regional associates will focus on fixed broadband opportunities and enterprise sector growth, leveraging digital and 5G technologies. Singtel will collaborate with them to divest non-core assets and highlight the value of their digital portfolios.
Building on its capital recycling success, Singtel has identified an additional S$6 billion in monetizable assets to fund growth initiatives, including new revenue streams like GPU-as-a-Service and expanding Paragon. The company will continue partnering with external capital investors, exemplified by KKR’s investment in Nxera.
With a presence across Asia, Australia, and Africa, Singtel reaches over 780 million mobile customers in 21 countries and offers infrastructure and technology services spanning 362 cities.
Baburajan Kizhakedath
