ST Engineering expects cost savings and partial business recovery to mitigate grant loss

SINGAPORE Technologies Engineering's cost savings measures and expected partial business recovery should help it offset the government grants that will drop off this year.

The mainboard-listed engineering conglomerate said in an earnings call on Friday that the cost savings measures initiated last year will see the full benefits amounting to about S$180 million flow into this year.

Cost savings will come from lower manpower expenses as a result of a reduction of contract labour and outsourced contractors, natural attrition, and less overtime costs, as well as higher productivity.