ST Engineering (S63.SI) saw its stock price surge 4.96% during intraday trading on Tuesday, following the announcement of a significant leadership transition. The company revealed that Ravinder Singh, the current Group Chief Operating Officer (Technology & Innovation) and President of Defence & Public Security (DPS), will retire on May 31 after an 11-year tenure.

Investors reacted positively to the news that Mervyn Tan, currently the Managing Director of Investments at venture capital firm Vertex Holdings, will succeed Singh in these roles effective June 1. Tan's appointment seems to have bolstered market confidence, given his extensive experience in venture capital and defense leadership. Prior to his role at Vertex, where he focused on deep-tech startups specializing in artificial intelligence, quantum technologies, and advanced materials, Tan served as CEO of the Defence Science and Technology Agency (DSTA) and held senior positions in Singapore's Ministry of Defence and the Singapore Armed Forces.

The market's enthusiastic response also appears to be influenced by the strong performance of ST Engineering's defense business under Singh's leadership. Since the company's restructuring in 2021, the defense business and defense services segments have recorded revenue growth of over 20%, with the defense services division achieving its 2026 revenue targets two years ahead of schedule. Additionally, the company has secured over S$2.2 billion in new contracts since 2021, expanding into new markets in Europe and the Middle East. As Singh transitions to an advisory role, investors seem optimistic about the company's future trajectory under Tan's leadership, driving the stock's significant intraday gain.