Following is the transcript of a CNBC interview with Briand Greer, President, Southeast Asia of Honeywell. The interview was broadcast on CNBC on 18 April 2017.
All references must be sourced to a "CNBC Interview".
Interviewed by Akiko Fujita, Correspondent, CNBC.
Akiko Fujita: You know, I was looking at the numbers in terms of deliveries forecast for Honeywell globally - 9,300 business jets with strong growth here in the APAC region. Where are you seeing the demand coming from in the region?
Briand Greer: Well it's really from across the region, if you will. Singapore really actually is the hub, you know particularly in Southeast Asia for the business jets. But as the middle class grows in this region, with the rise of all the incomes and everything, then business jets is just a natural outcome of that, we've seen that in the West and that's what's happening here in Asia also.
Akiko: And also I understand the helicopter industry also has some big opportunities there. What are you seeing in that specific sector?
Briand Greer: Yeah it really does. You know there's so many opportunities here. Oil and Gas has been a traditional area, that's been down a little bit obviously with what's been going on in the industry, but we see emergency medical services as a real area of growth. Again as the middle class rises and the economies mature, that demand will come, and that's really the financing that slowed it down a little bit. But I think governments will realize that with that demand, they'll need to provide those services to the population.
Akiko: One of the interesting things that we've seen is, you know you look at traditional companies legacy businesses, like Honeywell make that evolution between going from hardware to now software. What specifically is Honeywell doing especially in this region to tailor to that change?
Briand Greer: Yeah we're really focusing on becoming the leading software industrial company in the world. And if you look at, the real theme that's driving the future of what we're all doing here is around 'Connected'. And when you talk about 'Connected' it's around, used to be for the last 20 years or so around digital to digital, now it's around digital-physical. And when you talk about the Internet of Things, well Honeywell has lots and lots of things.
So all of these things are going to get connected as you go forward. And the power of all of that is going to create these ecosystems and these systems of systems. And we're right now building a platform called 'Sentience' which is going to be able to take in all the data from these Edge devices, do some analytics, and either allow us to be able to build better products and systems, give that information back to the product or the system operator, or put together the metadata to be able to sell to people who that data will be valuable to.
Akiko: It's interesting you point out data, because with IoT certainly we hear so much about the need to improve efficiency using all the data that comes in. When you talk about the strategy for Honeywell, how much of this push into software is driven by the need for additional sources of revenue and also the need to improve efficiency?
Briand Greer: I think it's both really and I think it's just, it's also about the endless march of technology -- and where it just continues to go. And if you look at the world that we're living in right now, we're becoming more and more connected. And the reality is people are demanding this now. For example, if you look from an aerospace perspective, Honeywell is a leading provider of connectivity solutions in the aircraft - whether it's the hardware or the software or the service provider whether it's the airlines or business jets or helicopters, this is going to be a demand now.
You know five or 10 years from now people get on an aircraft and forget what it was like to not be completely seamlessly connected. You'll be able to get on board, you will be able to download files or do emails, stream movies, all of those things as our world becomes more and more connected, and that plays very well into Honeywell's overall strengths around the fact that we're in the home and buildings industry, we're in mobility, we're in industrial safety, and all of these physical products will start getting sensors in them.
It will all be connected to a whole ecosystem that allows us to be able to drive the efficiency that people want, and the connectedness that we that we crave frankly.
Akiko: You talk about the strength that you're seeing in the APAC market especially here in Singapore as well. What's the outlook moving forward? Are you expecting that demand to continue?
Briand Greer: Oh absolutely. At Honeywell we're huge believers in this is the century of Asia. It's why we have you know a large headquarters in Shanghai focused on China.
And now over the last couple of years we've established a headquarters in Kuala Lumpur to service all of developing Asia, all of ASEAN, if you will. And while things may have been down a little bit over the last couple of years you know, growth is more in the four and a half to five per cent range as opposed to six to seven.
We think from a long term perspective, you just look what's happening with the growth of the middle class that's going to continue to grow and particularly in the ASEAN area that's 600 million people of middle class and we just think it's going to continue to grow so we're long term committed to the region and that's why we have headquarters and all the investment that we have here right now.
Akiko: Certainly a lot of growth potential in the region. All right, great to have you in the studio. Thank you so much.