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Straits Times
20-05-2025
- Business
- Straits Times
New CEO has to get Creative, update firm's products amid rapid tech advances
Creative Technology has said it will reveal more on its next strategic steps in the coming months. PHOTO: ST FILE New CEO has to get Creative, update firm's products amid rapid tech advances SINGAPORE - All eyes will be on Creative Technology's new chief executive to drive innovation at the home-grown electronics firm. Mr Freddy Sim, 67, the younger brother of the company's late founder Sim Wong Hoo, is taking the helm at the iconic home-grown brand amid widening losses at the firm, rapid technological advancements and stiff competition. Aletheia Capital's head of consumer and internet Nirgunan Tiruchelvam said Mr Sim will need to come up with more relevant and innovative products to help revive the company, noting that it could do more in terms of advanced voice assistant integration and other relevant businesses. 'The R&D spend is very small compared to what the competitors in the US are spending,' he added. Creative, in its May 16 filing announcing Mr Sim's appointment, noted his experience as an entrepreneur in consumer electronics and technology for over 40 years. Mr Tiruchelvam said: 'As such, he may be open to the challenges that Creative needs to grapple with, which is to adapt their products to face the evolving technology.' Mr Sim, who like his brother will be drawing a nominal monthly salary of $1, said in a statement by the company that Creative is known as the flag bearer for innovation in the technology industry and that the new senior management team have 're-strategised and refocused on our core DNA of innovation'. The company has said it will reveal more on its next strategic steps in the coming months. Mr Sim's appointment follows a global search for a replacement for its CEO Song Siow Hui, a Creative veteran who took over as CEO when Mr Sim Wong Hoo passed away in January 2023. Mr Song retired in February. Executive chairman Tan Jok Tin was the interim CEO. Creative declined a request for an interview at this point, saying that it is in the midst of restructuring. Creative, known for products like the Sound Blaster sound cards under the leadership of Mr Sim Wong Hoo, has faced challenges in recent years. The company has struggled to keep pace with rapid technological advancements and shifting consumer preferences, leading to a diminished market presence, Dr David Leong, CEO of human resources consulting firm PeopleWorldwide, said in a Facebook post on March 18. In March, The Straits Times reported that the company retrenched about 40 staff, or 14 per cent of its workforce, as part of restructuring efforts to adapt to evolving market conditions. Large tech firms such as Microsoft, Meta and Amazon have also cut thousands of jobs, attributing the layoffs to economic challenges and the swift adoption of AI technologies as key drivers behind the downsizing. For the first six months of its fiscal year ended Dec 31, 2024, Creative's net loss widened to US$6.1 million (S$7.9 million) from US$4.1 million from the same period a year earlier. This was despite higher net sales of US$37.4 million, an 18 per cent increase from US$31.8 million a year ago, from selling new audio products such as the Super X-Fi earbuds and headphones. In its earnings report, the firm warned of uncertainties posed by the import tariffs announced by the Trump administration on certain countries and potential retaliatory measures from these countries as such moves could heighten inflationary pressures and impact consumer demand. Creative's stock has fallen nearly 23 per cent this year and close to 60 per cent in the past five years. Mr Tiruchelvam said investors are looking for more evidence of potential value creation given the challenging environment ahead. However, Creative said it expects its new products including speaker products such as Pebble Nova and Sound Blaster GS5, as well as audio products such as Sound Blaster G8, to drive revenue growth in the second half of 2025. Mr Sim Wong Hoo, one of Singapore's most famous tech entrepreneurs, founded Creative in 1981 and grew it substantially in the 1990s. Launched in 1989, its Sound Blaster sound cards, which allowed PCs to generate quality sound, were a success and the firm went on to sell more than 400 million units over the years. Creative became the first Singapore company to be listed on the Nasdaq stock exchange in 1992. But it delisted from Nasdaq in 2007, citing low trading volume. In 2006, Creative won a US$100 million settlement against Apple for patent infringements over the iPod. Creative had launched its Nomad MP3 player in 1999, two years before Apple unveiled the iPod. It later also rolled out other music players such as the Nomad Jukebox Zen, which doubled up as a portable storage device for other media like photos and videos. However, its products ultimately lost out as Apple's music player gained popularity. Singapore-listed shares of Creative Technology were up $0.005 at $0.88 as at 4pm on May 20. Join ST's WhatsApp Channel and get the latest news and must-reads.
Business Times
19-05-2025
- Business
- Business Times
Stocks to watch: Frasers Centrepoint Trust, Sinarmas Land, Creative, Econ Healthcare
[SINGAPORE] The following companies saw new developments that may affect trading of their securities on Monday (May 19). Frasers Centrepoint Trust (FCT): The acquisition of Northpoint City's south wing may be financed either with or without the issuance of perpetual securities, said FCT's manager in a bourse filing on Saturday. Proceeds from FCT's recent equity fundraising have been used to repay its existing debt. The trust will also draw down additional debt financing to pay for its recent acquisition of Northpoint City when the acquisition is finalised. Should the manager issue perpetual securities, the proceeds will be used to pay its existing debts. An illustrative coupon of 4.2 per cent per annum was assumed for the potential issuance of perpetual securities, while an all-in interest rate of 3.3 per cent was assumed for new debt financing. Units of FCT closed 1.4 per cent or S$0.03 higher on Friday at S$2.19. Sinarmas Land : Lyon Investments said on Sunday that its offer price of S$0.375 per share of property developer Sinarmas Land is final, and that it does not intend to revise the current offer price. It will also extend the closing date of the offer from May 29 to Jun 2, 5.30 pm. The announcement comes after it raised the offer price on May 10. The revised offer price represents an increase of 21 per cent or S$0.065 over the initial offer price, and is higher than the highest closing price of the company's shares for more than six years. The counter closed 1.3 per cent or S$0.005 lower at S$0.375 on Friday. Creative Technology : The company has named Freddy Sim, the younger brother of its late founder Sim Wong Hoo, as chief executive officer. The appointment took effective on Friday. Creative said in a bourse filing the same day that the 67-year-old, as an entrepreneur for more than 40 years in the field of consumer electronics and technology, would accelerate Creative's renewal journey. He will be paid a nominal monthly salary of S$1 a month, just like his brother, the founder and CEO of Creative who died in 2023 after having revolutionised sound quality in computers in the late 80s with the Sound Blaster sound card. Creative's interim CEO Tan Jok Tin will remain as executive chairman. The counter closed at S$0.90, S$0.02 or 2.3 per cent higher, before the announcement. Trading halt Econ Healthcare (Asia) : The nursing home operator called for a trading halt before the market opened on Monday, pending announcements to be released. It was previously reported that US private equity firm TPG, through its special purpose vehicle, is looking to take Econ Healthcare private by way of a scheme of arrangement, in a near S$88 million deal. Incorporated in the Cayman Islands, the offeror Enabler Bidco is looking to acquire all of the issued shares of Econ Healthcare. As at the announcement on Feb 14, the Catalist-listed company has an issued and paid-up share capital comprising 265.9 million shares. Each shareholder will be entitled to receive, at their election, either S$0.33 per share in cash, or S$0.224 per share in cash and about 0.32 Enabler Holdco shares. The counter closed flat at S$0.35 on Friday.
CNA
16-05-2025
- Business
- CNA
Creative Technology names late founder Sim Wong Hoo's brother as new CEO
SINGAPORE: Creative Technology has named Mr Freddy Sim, the younger brother of its late founder and billionaire entrepreneur Sim Wong Hoo, as CEO with effect from Friday (May 16). Just like his brother, who served as chairman and CEO until his death in 2023, Mr Freddy Sim will be drawing a nominal monthly salary of S$1 (US$0.80), the company said in an announcement on the Singapore Exchange (SGX) on Friday evening. Creative Technology was founded in 1981 and is best known for its Sound Blaster sound cards. The company designs and manufactures digital entertainment products. "This appointment is an honour and I will undertake this new role in full recognition that we are all building upon what my brother Sim Wong Hoo started all those years ago,' said Mr Freddy Sim. 'Creative is renowned as the flagbearer for innovation in the technology industry. The new senior management team have re-strategised and refocused on our core DNA of innovation, and revitalised the entrepreneurial spirit of daring to venture into the leading edge.' In its announcement, Creative Technology said that Mr Freddy Sim is a "seasoned entrepreneur" with more than 40 years of experience in consumer electronics and technology. "His expertise and seasoned leadership will continue to accelerate Creative on its journey of renewal; and its momentum to deliver industry-leading innovative products," it added.
Business Times
16-05-2025
- Business
- Business Times
Creative appoints Sim Wong Hoo's younger brother as CEO
[SINGAPORE] Creative Technology has named Freddy Sim, the younger brother of its late founder Sim Wong Hoo, as chief executive officer (CEO). The appointment is effective from Friday (May 16). Creative said in a filing with the bourse the same day that the 67-year-old, as an entrepreneur for more than 40 years in the field of consumer electronics and technology, would accelerate Creative's renewal journey. Sim, as he reinvigorates Creative, will be paid a nominal monthly salary of S$1 a month, just like his brother, the founder and CEO of Creative who died in 2023 after having revolutionised sound quality in computers in the late 80s with the Sound Blaster sound card. Creative's interim CEO Tan Jok Tin will remain as executive chairman. Creative shares closed at S$0.90, S$0.02 or 2.3 per cent higher on Friday, before this appointment was announced. ,
