2024 was a significant year in many respects globally as well as for ST Telemedia (STT). At a macro level, a record number of national elections took place, marked by ongoing political, geopolitical and economic shifts that are reshaping the global landscape. At the same time, we faced the unsettling reality of global temperatures crossing the 1.5C threshold for the first time, with more frequent extreme weather events and rising risks for businesses. Meanwhile, the rapid rise of generative Artificial Intelligence (AI) disrupted industries, presenting both challenges and opportunities for innovation and growth.

These changes will continue to have far-reaching implications for businesses, governments and societies, requiring us to continually revisit how we invest, operate and contribute to a more sustainable future. At STT, we remain steadfast in our focus on long-term value creation with the actions we take. Reflecting on STT’s 30-year journey through 2024, we celebrate three decades of delivering value, resilience and adaptability. This milestone also reinforces our vision of building companies that leave a lasting, meaningful impact.

In 2024, as part of dynamically supporting our portfolio companies through their different growth phases, we made a strategic decision to calibrate our shareholding in two companies. We welcomed the KKR-led consortium as the new strategic partner in ST Telemedia Global Data Centres (STT GDC). The completion of the Consortium’s S$1.75 billion investment ─ Southeast Asia’s largest digital infrastructure investment to date ─ signals the beginning of a new chapter for our investment in STT GDC as they propel their growth to meet the insatiable demand for data centres and cloud services.

We announced our decision to reduce our stake in Malaysia’s U Mobile to 20%, strengthening its local ownership as it plays a pivotal role in the country’s second 5G network ─ a critical national priority. While our ownership interest will change upon closing, our commitment to U Mobile’s progress remains strong, and we are excited for its next phase of growth.

Leveraging the group’s collective knowledge and capabilities, we hosted workshops, roundtables and forums where our companies came together to discuss emerging trends and share insights. These sessions are designed to further strengthen our internal capabilities and foster collaboration. For example, we hosted our first Group AI roundtable in 2024, exploring AI integration in operations, product development, and innovation, while addressing regulatory and ethical implications for responsible adoption. We will keep the dialogue going to accelerate the transformational benefits and ensure we are ready for the future.

Portfolio Highlights

Our portfolio delivered solid performance in 2024. The Communications businesses made steady progress in line with their transformation strategies towards digital and cloud. StarHub’s accelerating DARE+ execution generated positive results in terms of new product innovation and growth performance. Nothing is more satisfying than receiving external affirmation in making the inaugural Fortune 500 Southeast Asia list of the largest companies in the region.

U Mobile reinforced its position as one of the leading digital service providers in Malaysia, launching the country’s first ultra-fast 10Gbps fibre internet for businesses, as well as the groundbreaking GSMA Open API Portal. We take pride in its journey, having supported U Mobile’s growth from 500,000 subscribers in 2010 to over 9 million in 2023. With the award of Malaysia’s second 5G network license, U Mobile is set to deepen its participation in advancing the country’s digital vision.

TeleChoice, under new CEO Pauline Wong, turned a corner in 2024 with commendable improvements in all three business divisions supported by its upgraded core competencies and streamlined initiatives. TeleChoice is on track to achieve its performance targets across the board.

With AI and cloud technologies becoming the standard foundation for modern business, our Data Centres and Infrastructure Technology businesses are continually innovating to support the evolving requirements of customers and governments.

STT GDC experienced relentless growth in 2024, supported by forward-thinking strategies from driving technological innovation to expansion funding such as the KKR-led investment. STT GDC entered Vietnam and deepened its presence in existing markets, including a US$3.2 billion commitment over 5 – 6 years to almost triple its IT load capacity in India. It also expanded its AI-ready data centres throughout key markets in Southeast Asia, an initiative recognised by Frost & Sullivan with the ‘2024 APAC Company of the Year’ award for its strong commitment, operational excellence and innovation.

Similarly, GDS saw growing demand in its core China market and continued its international expansion. In 2024, GDS raised US$1.2 billion from private equity investors, primarily from the US, participating in its regional growth.

Just as AI and cloud drive data centre growth, the need for cloud-ready environments and services has become critical. STT’s infrastructure technology companies, including Ollion, Armor and Bespin Global, are prepared to meet this demand with their differentiated offerings. Following their respective mergers in 2023, Ollion and Armor have made significant strides in realising synergies, product innovation and expanding their customer base. For example, Ollion’s commitment to data and AI governance excellence has led to its selection as a launch partner of AWS’ Data & AI Governance and Security initiatives, and Armor collaborated with Microsoft to integrate its specialised intelligent analytics in Microsoft’s security solutions. Meanwhile, Bespin Global earned its third consecutive recognition as Visionary in the Gartner Magic Quadrant for Public Cloud IT Transformation Services.

Green and Good 

The undeniable reality of climate change serves as a continued call to action. At STT, our commitment to sustainable, long-term value creation leads us to take meaningful steps toward a greener, more inclusive future.

In 2024, STT continued our active involvement in community initiatives to empower change, providing seven education awards to Singapore and UK universities, donating S$150,000 to long-term community partners, and facilitating employee volunteerism.

On the environmental front, STT expanded our sustainability framework to include more robust Scope 3 emissions measuring and reporting, taking a deeper look at the entire value chain.

In 2024, STT GDC made advances in green innovation, making several firsts such as the first data centre operator to pilot an AI-powered autonomous control system in Asia, with the potential to reduce energy consumption by 30%. It was also the first in Singapore to deploy Hydrotreated Vegetable Oil (HVO) for backup generators, further reducing carbon emissions.

We continued to promote constructive, open dialogue and collective efforts through our sponsorships of AustCham’s Ministerial Dialogue on sustainability and the Digital Award, celebrating digital innovators who make a difference in creating new opportunities for the future.

Ready to Break New Ground

In my last CEO message, I asked, “Are We Ready?” as we navigate an ever-evolving environment. The answer is a resounding “Yes.”

Operating amid volatility and uncertainty has become the norm but we remain focused on the long-term. Our 30^th anniversary celebrations in 2024 allowed us to recognise and engage with key past and present stakeholders, while showcasing our proven ability to build on our core foundations, adapt and seize new opportunities.

The outlook for 2025 is complicated across a range of different variables. Geopolitical tensions and economic frictions will require us to be agile and strategic. Business conditions are positive, but tough. Financial markets are opening up, but volatile. Yet, I am optimistic about the future and encourage all of you to embrace the possibilities ahead.

As we move forward, STT is vigilant and in a strong position to capitalise on new business areas to drive success. Together, we will turn every challenge into an opportunity. Great appreciation to all employees at STT, as well as our portfolio companies. We have completed the year on a positive note, paving the way for continued growth in the year ahead. An additional thank you to all our stakeholders for your continued support and trust.