Incoming Singtel CEO Yuen Kuan Moon seen as 'rational' pick
Singapore
THE promotion of Singtel's Singapore consumer head to group chief executive is expected to keep the mainboard-listed telco in steady hands after Chua Sock Koong steps down.
Yuen Kuan Moon, who is also group chief digital officer, was named on Thursday as her successor. Ms Chua, 63, has been group CEO since April 2007 and will retire on Jan 1.
The only criteria in the global hunt for a new CEO were "the finesse and posture" to continue Ms Chua's "sterling work", said Singtel chairman Lee Theng Kiat, when asked how Mr Yuen, 53, beat out eight other candidates.
"Our ultimate decision rests on the fact that Moon is a known entity," Mr Lee told a morning press briefing.
Investors seemed to approve: News of the change pushed the counter up by S$0.03, or 1.42 per cent, to S$2.15, albeit amid a rally in the broader market.
Similarly, analysts told The Business Times that the internal transition should be smooth and stressed Mr Yuen's reputation for being "rational".
Calling Mr Yuen "a seasoned senior executive", OCBC Investment Research head Carmen Lee said that he "appears to be rational on pricing".
"At the last earnings call, Mr Yuen articulated his emphasis on quality of network and the need for a seamless 4G-to-5G transition, while also taking a progressive approach to capex and both 4G and 5G needs," she told BT.
Meanwhile, DBS research analyst Sachin Mittal pointed to Mr Yuen's time as Singapore consumer chief in dubbing him "a promising leader".
Despite competition and declining earnings in Singtel's overall core businesses, Mr Mittal noted, Mr Yuen "delivered superior performance" with stable operating profit in his division.
Arthur Pineda, from Citi, also cited Mr Yuen's track record in Singapore and Indonesia as a good sign. Mr Yuen showed no signs of "irrationally aggressive spending" or company-initiated price wars, he added.
He said in a flash note: "We note no material inorganic moves for these businesses he handled, with a bias for organic growth with network quality."
That's even as industry watchers flagged challenges for Singtel, such as the Covid-19 pandemic, the cost of rolling out 5G services in Singapore, and potential non-core asset sales.
"The biggest challenge for any telco operator now is to better transition and monetise the upcoming 5G environment," said Paul Chew, Phillip Securities' head of research, while calling for "an injection of bolder innovations within the organisation".
Mr Yuen joined Singtel in 1993, working in areas such as marketing, business development and sales. He also did a stint at Indonesian associate Telkomsel from 2003 to 2007. He became CEO of the Singapore consumer business in 2012 and added the chief digital officer hat in 2018.
He told reporters on Thursday that meeting the unit heads across Singtel's business groups would be a "key priority" in the months ahead: "This will help formulate my strategy for taking Singtel into the next phase of development, which I will share with you at the earliest opportunity."
Meanwhile, Ms Chua will stay on as senior adviser to the chairman to assist with the transition. BT understands that there is no fixed end-date for this role. "With Singtel well positioned for the future, it's a good time for me to retire," said Ms Chua, who told the board last year of her plans. "As a key member of our management committee, Moon has been exposed to all areas of business and heavily involved in many key operational decisions."
When asked who replaces Mr Yuen as consumer head, she said a search is ongoing and "we hope to make an announcement on that shortly".
READ MORE: What will Singtel's new CEO mean for its share price?
