Case Title: Sembcorp Utilities: Powering Sustainable Growth in Emerging Markets
Author(s): Yvonne Chong, A. Lee Gilbert
Abstract: Tang Kin Fei retired as group president and CEO in April 2017 after 30 years with Sembcorp Industries, a Singapore conglomerate with S$22 billion assets. Sembcorp’s global power portfolio had doubled in the last five years. Overseas operations accounted for 63% of the Utilities business net profit, which formed the bulk of group earnings in 2016. Rapidly developing economies, hungry for energy to fuel growth and urbanisation, were their key targets. However, there were increasing concerns on the execution risks and environmental, social and governance (ESG) challenges involved. How would they manage the inherent risks and complexities of the emerging markets, namely India, Bangladesh, Myanmar and China, albeit ripe with opportunities?