Philip Yeo Retires as SembCorp Industries' Chairman

Singapore, Sep 24, 1999

SembCorp Industries announces today that Mr Philip Yeo will retire as Chairman and Director of the Company on October 1, 1999.

Succeeding Mr Yeo as non-executive Chairman and Chairman of SembCorp Industries' Executive Committee will be Mr Peter Seah, who is currently one of the two vice chairmen of the Company. Upon assuming his new appointment, Mr Seah will relinquish his position as Chairman of the Audit Committee.

Mr Sat Pal Khattar will become a Vice Chairman of SembCorp Industries and will take over from Mr Seah as Chairman of the Audit Committee.

Mr Lam Chuan Leong will take over the chairmanship of the Budget Committee. Ms Ho Ching, current Vice Chairman of SembCorp Industries, will continue to chair the Executive Resource Committee.

Mr Yeo has been Chairman of SembCorp Industries since the merger of STIC - Singapore Technologies Industrial Corporation - and Sembawang Corporation on October 3, 1998.

Prior to the merger, Mr Yeo was Sembawang Corporation's Chairman, a position he held since January 1994. He also chaired the Board of STIC from June 1983 to January 1994, before joining Sembawang Corporation.

In a tribute to Mr Yeo, SembCorp Industries' President and CEO, Mr Wong Kok Siew said: "As our chairman, Philip Yeo guided SembCorp Industries with vision and passion. He led us through the merger of STIC and Sembawang and transformed us into what we are today -- a new and independent Group directly under Temasek Holdings.

The merger was to a large extent Philip's brainchild -- he saw both Sembawang and STIC could grow together as they have evolved on somewhat parallel paths largely because of his influence at different points in their histories. From the beginning, Philip had a vision that both Groups should work together - so it was Philip who gave us the nudge that set the wheels turning.

You can see the results. SembCorp Industries has transcended both STIC and Sembawang and we are today stronger and more focused. While this is one of Philip's more recent achievements, what he contributed to our respective Groups go back much further.

Almost every company in the STIC stable was directly or indirectly formed by him. Construction, information technology, logistics, food -- all these were born out of his vision to extend the capabilities of the defence industries. In fact, he founded STIC to house these new entities so they could develop their own market-driven culture and move at a pace our customers demanded.

In 1990, Philip led STIC on its regionalisation push. BatamIndo Industrial Park was one major initiative. Our industrial parks in Bintan and Wuxi were also brought into being at his urging.

Philip presided over STIC's listing in June 1993. Going public was good for the management of the company because it made us rise to shareholder demands for professionalism, accountability and value creation.

I know it was painful for him to step down as STIC's Chairman but in a sense his work was done. The Group had enough strength built-in to not only grow profitably, but also to survive the economic slide in 1997.

Philip then moved on to his "next hobby" as he put it. That was to become Sembawang's Chairman.

At Sembawang, he transformed it from a single-business company to a group with a core of strong businesses that could ensure its future competitiveness and longer-term profitability.

His far-sightedness was much in evidence here. Sembawang Corporation acquired the majority control of Jurong Shipyard through a merger with Sembawang Shipyard. He could see back then that to be competitive and survive in the global environment, our shipyards needed critical mass.

Marine logistics became a core business through the acquisition of Sembawang Marine & Logistics. The move into providing utilities for Jurong Island (that is forming Sembawang Utilities and Terminals) and the formation of SembCorp Gas, the first company to import natural gas from Indonesia to Singapore, were Philip's ideas. This pushed Sembawang Engineering into a new direction and one that will be increasingly profitable with time as Jurong Island becomes the hub of the chemical industry cluster in Singapore.

When Philip joined Sembawang, its turnover was just $700 million. Three years later, in 1997, it had grown to almost $2 billion.

Then there was the formation of Pacific Internet -- which is today a leading regional internet service provider. You will recall how PacNet was listed on Nasdaq to a very strong market reception. When Philip founded it, the paid-up capital was just US$12 million. Today, the company has a market capitalisation of some US$500 million.

Far sighted decisions are sometimes controversial and Philip has had his share of controversy. One of the burdens visionaries must bear is the blindness of those who cannot or will not see as far.

But time marches on and Philip has been proven right time and time again. We will carry to fruition the things he has started with us.

On behalf of our management and the entire Board of Directors, I want to thank him and give him recognition for all he has done at STIC, at Sembawang and of course, for bringing us together as SembCorp Industries.""

Released on September 24, 1999

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