Singapore Corporate News - 14 Sep 2007

ST Electronics wins $60m Saudi traffic system deal

SINGAPORE Technologies Engineering (ST Engg), through its electronics arm ST Electronics, has won a contract worth about $60 million to provide integrated traffic management and security systems in three major areas in Saudi Arabia.

The contract was awarded to ST Electronics' wholly owned ST Electronics (Info-Comm Systems) by Saudi Arabia's Ministry of Interior.

The systems, for the automated monitoring and administration of traffic violations, will cover the Eastern Province (Dammam, Khobar and Dharan), Aseer Province (Abha, Khamis Mushait and Ahad Rufaidah), and Tabuk City.

Among projects ST Electronics has won in the Middle East this year was a $123 million contract to design and install data and fare collection systems for the Marmaray subway in Istanbul, Turkey. Another was a $7.5 million contract for security systems in Dubai Festival City.

ST Electronics entered the Middle East market about 3-4 years ago, and secured its first contract (a $2.3 million deal to provide consultancy services in Qatar) in December 2005.

The contract will see ST Electronics work closely with Al-Afandi, a Saudi organisation with some 40 years of local experience in various construction and engineering projects. The $60 million represents ST Electronics' portion of the deal.

ST Electronics will deliver the system over a period of two years from early next year.

SingTel advertising account up for grabs

ONE of the island's biggest advertising accounts is up for grabs.

After a 20-year relationship with Young & Rubicam, Singapore Telecom has begun a global search for a creative agency as it gears up for the next level of expansion.

The account is worth tens of millions of dollars. In 2004 when SingTel renewed its contract with Young & Rubicam, which ends at the end of this year, it was reported to be worth $20 million a year.

SingTel, the largest listed company here with a market capitalisation of more than $58 billion, is Young & Rubicam's biggest client.