ST Engineering will invest S$250M in AI over five years, focusing on robotics, drones, and Physical AI. The plan includes training and hiring 5,000 engineers, advancing human-machine collaboration, and strengthening Singapore’s role as a global AI hub.
Image courtesy of Thales Group
Singapore Technologies Engineering (ST Engineering), a global technology, defense, and engineering group, has unveiled an ambitious plan to invest S$250 million over the next five years in artificial intelligence (AI). This move signals not just a significant corporate pivot, but also highlights Singapore’s growing ambition to position itself as a global hub for advanced AI and robotics.
At the InnoTech Conference in Singapore on September 4, 2025, ST Engineering unveiled a five-year, S$250 million AI research translation programme focused on Physical AI—technology that enables machines to sense, act, and adapt in the real world.
The programme targets advanced implementations such as robotics, swarm systems, and humanoid solutions, with the first phase emphasizing human-machine teaming.
MUMTOS Platform: A cornerstone of the initiative is the Manned-Unmanned Teaming Operating System (MUMTOS)—an AI system designed to coordinate robots, drones, and autonomous vehicles. It assists in fast, informed decision-making across diverse operations, including humanitarian and industrial applications.
Current AI-Ready Workforce: ST Engineering already boasts approximately 10,000 AI-ready staff—engineers who have undergone foundational AI training.
Goal: 5,000 AI Engineers. Upskill 4,000 existing engineers—these training modules span AI systems deployment and foundational AI competencies.
Add 1,000 AI specialists—roles will focus on AI module development, agentic AI systems, and AI cybersecurity. These specialists will be a mix of external hires and internal upgraders.
The group already has close to 2,000 engineers with requisite AI skills, and plans to bolster this number significantly via hiring and training.
ST Engineering and Singapore’s Minister for Digital Development and Information emphasize nurturing “bilingual AI talents”—professionals fluent in both AI and domain-specific fields like mechanical engineering or data science.
Physical AI Leadership: This programme aims to advance ST Engineering’s leadership in technologies where AI interacts with the physical world—a step beyond conventional screen-bound AI systems.
Broader Ecosystem Impact: ST Engineering’s digital business is expected to grow rapidly, forecasted to more than double from about S$600 million in 2024 to S$1.3 billion by the end of 2029. Singapore continues to emerge as a key AI hub, encouraged by efforts to upskill the workforce and foster innovation across sectors.
The investment, announced at the company’s 5th InnoTech Conference in Singapore, centers on Physical AI — a field where AI is embedded in machines that can sense, act, and adapt in the real world. Unlike software-based AI tools that operate within screens and data systems, Physical AI focuses on real-world applications such as autonomous robots, swarm systems, and humanoid solutions.
At the core of the initiative is MUMTOS (Manned-Unmanned Teaming Operating System), a platform designed to seamlessly coordinate drones, robots, and autonomous vehicles with human operators. MUMTOS is expected to revolutionize how industries manage complex, multi-agent operations, from disaster response to logistics and urban planning.
For ST Engineering, the emphasis on Physical AI is strategic. It taps into the company’s heritage in aerospace, defense, and smart city infrastructure, where human-machine teaming could dramatically improve safety, efficiency, and scale.
Talent development is at the heart of this initiative. Today, ST Engineering already has a workforce of around 10,000 engineers who have undergone foundational AI training. But the new programme raises the bar with a goal of cultivating 5,000 specialized AI engineers.
The plan involves a two-pronged approach: Upskilling 4,000 existing engineers in AI deployment and system integration. Hiring 1,000 AI specialists who will work on advanced applications, including agentic AI systems, AI-driven cybersecurity, and robotics operating systems.
This workforce will embody what Singapore’s policymakers call “bilingual AI talent” — professionals who are fluent not only in AI concepts but also in industry-specific domains like aerospace engineering, data analytics, and urban infrastructure.
By upskilling and attracting such talent, ST Engineering aims to ensure that its AI innovations are both technically advanced and deeply practical across industries.
ST Engineering’s AI initiative comes at a critical juncture. Globally, AI investments are accelerating, with leading economies racing to integrate automation and intelligence into manufacturing, defense, and services. According to PwC, AI could contribute up to US$15.7 trillion to the global economy by 2030, with the Asia-Pacific region capturing a significant share.
For Singapore, this move aligns with the nation’s broader strategy to become an AI hub for Asia. Already, Singapore has rolled out its National AI Strategy 2.0, aiming to embed AI across sectors like finance, healthcare, transport, and manufacturing. ST Engineering’s S$250 million programme complements this vision by translating research into real-world, industrial-grade solutions.
Moreover, the digital business segment of ST Engineering is projected to grow from S$600 million in 2024 to S$1.3 billion by 2029. AI will be a critical driver of this growth.
The impact of this investment could be transformative across multiple sectors: Defence and Security – Coordinated drone swarms and autonomous vehicles can assist in surveillance, reconnaissance, and threat response, reducing risks to human personnel. Disaster Response – AI-powered robots could be deployed in hazardous environments, such as collapsed buildings or flood zones, for faster and safer rescue operations. Smart Cities – Autonomous transport systems, AI-powered traffic management, and robotic maintenance could enhance urban living. Industrial Automation – Factories and warehouses could deploy AI-enabled robotics for precision, safety, and efficiency. Healthcare – Humanoid AI assistants and autonomous logistics robots could support hospital operations, from surgery prep to patient care delivery.
ST Engineering is a Singapore-based global technology, defense, and engineering group with a broad portfolio of products and solutions spanning aerospace, defense, electronics, land systems, and smart city infrastructure. Here’s a structured overview of their main products and offerings:
Aerospace
· Aircraft Maintenance, Repair & Overhaul (MRO): One of the world’s largest MRO providers for commercial and military aircraft.
· Passenger-to-Freighter (P2F) Conversions: Converting passenger planes into cargo freighters (notably for Airbus A330, A320, and A321).
· Aerospace Components & Systems: Design and manufacturing of cabin interiors, engine nacelles, and composite aerostructures.
· Unmanned Aerial Systems (UAS): Military-grade drones and surveillance platforms.
Defense & Public Security
· Armored Vehicles: Terrex Infantry Carrier Vehicle, Bronco All Terrain Tracked Carrier, Hunter Armoured Fighting Vehicle.
· Artillery & Weapon Systems: 155mm howitzers, small arms, and advanced munitions.
· Naval Platforms: Patrol vessels, landing ship tanks, and unmanned surface vessels.
· Homeland Security Solutions: Command & control systems, surveillance platforms, cybersecurity.
Digital & Electronics
· Smart Mobility Systems: Intelligent transport management, rail electronics, fare collection systems.
· Cybersecurity Solutions: AI-driven cyber defense and secure communications.
· AI & Physical AI Platforms: Robotics, swarm systems, and human-machine teaming (e.g., MUMTOS).
· Satellite Systems & Communications: Small satellites, satellite communications, and space engineering services.
Land Systems
· Automotive Engineering: Military and specialty vehicles, mobility platforms.
· Robotics & Automation: Autonomous mobile robots (AMRs), warehouse and logistics automation.
· Urban Solutions: Smart city infrastructure, energy management, and public safety systems.
Smart City & Urban Infrastructure
· Smart Lighting & Energy Systems: Sustainable city infrastructure.
· Public Safety & Security: Surveillance cameras, AI-enabled monitoring, emergency response systems.
· Urban Air Mobility: Exploring eVTOL (electric vertical take-off and landing) aircraft concepts for future transport.
ST Engineering’s products range from military vehicles, drones, ships, and defense systems to commercial aerospace services, smart city solutions, and AI-powered digital platforms. This diversity allows the company to serve both government and commercial clients globally, with operations in over 100 cities across 30+ countries.
While the investment is promising, there are hurdles. Recruiting and retaining 1,000 AI specialists will be highly competitive, as global demand for top-tier AI talent continues to surge. Moreover, integrating Physical AI into regulated industries like defense and urban planning will require navigating policy, safety, and ethical considerations.
Another challenge lies in bridging the gap between cutting-edge research and commercial scalability. For AI to succeed at an industrial level, solutions must be cost-effective, secure, and adaptable. ST Engineering’s success will depend on balancing innovation with real-world practicality.
This investment positions ST Engineering not just as a beneficiary of the AI wave, but as a key enabler in shaping the ecosystem. With a strong track record in engineering and government-linked projects, the company has both the credibility and resources to pioneer AI integration in critical infrastructure and industries.
For Singapore, the move represents more than corporate growth — it’s a national bet on the future of AI-driven economies. If successful, the programme could generate new intellectual property, deepen the talent pipeline, and place the city-state at the forefront of Physical AI innovation globally.
ST Engineering’s S$250 million commitment to AI underscores the rising importance of Physical AI and human-machine collaboration. With its focus on talent development, practical applications, and ecosystem impact, the initiative could reshape industries ranging from defense to healthcare.
In many ways, this programme is more than an investment — it is a statement of intent: that Singapore, through its flagship engineering company, is ready to lead in the AI era.
