SINGAPORE (Jan 8): Png Kim Chiang, CEO of SIA Engineering Co, arrives for the interview at a spacious and bright lounge that seems almost too casual for a decades-old aircraft engineering company. In fact, it soon emerges that the space is part of the “innovation and technology” group, initiated by Png himself, to help position SIAEC for the years ahead.

The company started out as the engineering division of Singapore Airlines responsible for the maintenance, repair and overhaul (MRO) works of the group’s planes. It was listed on the Singapore Exchange in 2000 and now services planes for a host of other airlines. The company is still a 78%-owned subsidiary of SIA and known for paying out healthy dividends. For its latest financial year, it paid a total dividend of 18 cents a share, including a special dividend of five cents a share. At its current share price, that represents a yield of 5.6%. 

Over the past decade, the company has expanded outside of Singapore, even as it maintains the lion’s share of maintenance work at Changi. While the SIA group is still a major customer accounting for a big part of its revenue, SIAEC has since established operations in seven other countries, providing line maintenance and heavy checks for various airlines at 37 airports.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook