Vincent Chong steers ST Engineering beyond defence as record contracts pile up

Key facts

• ST Engineering's stock has generated a total return of 28.4% since the start of 2026, outperforming the STI's 7.1%.
• The company won S$4.8 billion in new contracts in the first quarter of fiscal 2026.
• Vincent Chong has been at the helm of ST Engineering for a decade.
• ST Engineering's 1HFY2025 earnings rose 19.7% year-on-year to S$402.8 million.
• The stock is the best performer among STI blue-chip stocks year-to-date in 2026.
• Chong stated that 'the best is yet to come' for the group.

A decade of transformation

Vincent Chong took the reins of ST Engineering ten years ago, inheriting a company that many investors still pigeonholed as a mere defence contractor. Under his leadership, the group has steadily diversified into commercial aerospace, smart city solutions, and cybersecurity, reshaping its revenue mix. The strategy has paid off: ST Engineering is now the best-performing stock on Singapore's Straits Times Index (STI) in 2026, with a total return of 28.4% since January.

Record contract wins fuel growth

The company announced S$4.8 billion in new contract wins for the first quarter of fiscal 2026, a record that underscores its broadening portfolio. These contracts span multiple sectors, including defence, commercial aerospace, and urban infrastructure. The inflows have bolstered investor confidence, pushing the stock's total return far above the STI's 7.1% over the same period.

Earnings surge amid global uncertainty

a 19.7% year-on-year increase in net profit for the first half of fiscal 2025, reaching S$402.8 million. The growth was driven by all-round improvements across its business segments, even as geopolitical tensions and rising military budgets globally have lifted the defence industry. Chong, however, insists that the company's success is not merely a byproduct of conflict. 'To see the group as a mere defence proxy cashing in on conflict misses the plot entirely,' he said.

The man behind the strategy

Vincent Chong Sy Feng has built his career on a philosophy of high performance, a journey that has taken him from engineering roles to the top job at one of Singapore's largest conglomerates. His compensation has also drawn attention: CEO salaries in Singapore's top companies place him among the highest earners, with a reported package of S$17.58 million. Yet Chong remains focused on the future, stating that 'the best is yet to come' for ST Engineering.

Beyond defence: a diversified future

The group has been actively expanding its non-defence businesses, including satellite communications, autonomous systems, and data analytics. Recent management changes, including new key appointments, signal a push to strengthen these areas. Analysts are reassessing the company's valuation as the record contract wins come into view, with some noting that the stock's price may still have room to grow.

Outlook and open questions

With a strong order book and a diversified portfolio, ST Engineering appears well-positioned for sustained growth. However, questions remain about how the company will navigate potential headwinds, such as supply chain disruptions and shifting government budgets. Chong's confidence suggests that the next lap of the journey will be defined by innovation and expansion into new markets.

A leader's legacy in the making

As Chong marks a decade in charge, his tenure is increasingly seen as a case study in corporate reinvention. By moving beyond its defence roots, ST Engineering has not only weathered global volatility but thrived. Whether the stock can maintain its blistering pace depends on execution, but for now, Chong's message is clear: the best is yet to come.

The bottom line

• ST Engineering has transformed from a defence contractor into a diversified technology and engineering group under Vincent Chong.
• The company's stock has outperformed the STI by a wide margin in 2026, with a 28.4% total return.
• Record contract wins of S$4.8 billion in Q1 FY2026 signal strong demand across multiple sectors.
• Earnings rose 19.7% in 1HFY2025, driven by broad-based growth rather than defence alone.
• Chong's leadership and strategic vision are central to the company's success, as he looks to the next phase of expansion.