ST Engineering gets S$100m foreign state aid to invest to keep jobs

MAINBOARD-LISTED ST Engineering received S$100 million more in government support which it had not expected, but not all of this will be translated into earnings as investments will be made in facilities and talent to help keep jobs and capitalise on upturn post-pandemic.

The company released financial results for the first half of FY2021 ended June on Thursday, and the extra state aid - primarily from governments of foreign jurisdictions where ST Engineering operates - became the focus of an earnings call.

Earlier, it had guided a reduction of S$250 million in state aid in 2021, but now it expects the cut in government support to be only S$150 million, with the impact of the reduction to mainly show up in the second half of 2021.