%20PTE%20LTD%2007-Jun-2006_files/image002.jpg)
MIRA
INFORM REPORT
|
Report Date : |
7th
June 2006 |
IDENTIFICATION
DETAILS
|
Name : |
MULLER
MARTINI (SINGAPORE) PTE LTD |
|
|
|
|
Registered Office : |
7 Jalan Kilang, #06-01, 159407, Singapore |
|
|
|
|
Country : |
Singapore |
|
|
|
|
Financials (as on) : |
31/12/2004 |
|
|
|
|
Date of Incorporation : |
30/05/1997 |
|
|
|
|
Com. Reg. No.: |
199703679M |
|
|
|
|
Legal Form : |
Pte Ltd |
|
|
|
|
Line of Business : |
Traders in graphic-arts equipment and spare parts, and to provide
maintenance services. |
RATING & COMMENTS
|
MIRA’s Rating : |
Ba |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
Status : |
Satisfactory |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
Subject Company
MULLER MARTINI (SINGAPORE) PTE LTD
Line Of Business
TRADE IN GRAPHIC-ARTS EQUIPMENT AND SPARE
PARTS, AND TO PROVIDE
MAINTENANCE SERVICES.
Parent Company
MULLER MARTINI HOLDING AG
(PERCENTAGE OF SHAREHOLDING: 100.00%)
Financial Elements
FY 2004
COMPANY
Sales :
S$26,426,676
Networth :
S$3,590,960
Paid-Up Capital : S$2,000,000
Net result :
S$260,730
Net Margin(%) : 0.99
Return on Equity(%) : 7.26
Leverage Ratio : 2.75
Rating
Credit Requested : -
Credit Rating : Singapore
$1000001 to Singapore $ 5000000
Credit Opinion : -
BUSINESS INFORMATION REPORT
COMPANY IDENTIFICATION
Subject Company: MULLER
MARTINI (SINGAPORE) PTE LTD
Former Name: -
Business Address: 7 JALAN
KILANG
#06-01
Town: SINGAPORE
Postcode: 159407
County: -
Country: Singapore
Telephone: 6276
0656
Fax: 6276
3475
ROC Number:
199703679M
Reg. Town: -
SUMMARY
Legal Form: Pte
Ltd
Date Inc.: 30/05/1997
Previous Legal Form: -
Summary year: 31/12/2004
All amounts in this report are in: SGD
Sales: 26,426,676
Networth: 3,590,960
Capital: 2,000,000
Paid-Up Capital: 2,000,000
Employees: 22
Net result: 260,730
Share value: 1
Auditor: PRICEWATERHOUSECOOPERS
REFERENCES
Report Date: 07/06/2006
Update Date: 07/06/2006
Credit Requested: -
Credit Opinion:
Litigation: No
Company status: TRADING
Started: 30/05/1997
PRINCIPAL(S)
ROLAND BANGERTER F5536148R Managing Director
DIRECTOR(S)
BERNHARD SCHMID 7207 993
Director
Appointed on: 28/07/1997
Street: HOEHENWEG
10
5040, SCHOEFTLAND
Town: -
Postcode: -
Country: Switzerland
ROLAND BANGERTER F5536148R
Director
Appointed on: 30/05/1997
Street: 71
KEW CRESCENT
Town: SINGAPORE
Postcode: 466189
Country: Singapore
ROLAND BANGERTER F5536148R
Managing Director
Appointed on: 09/06/1997
Street: 71
KEW CRESCENT
Town: SINGAPORE
Postcode: 466189
Country: Singapore
LOTUS ISABELLA LIM MEI HUA S2171051B Company Secretary
Appointed on: 20/07/2001
Street: 136B HILLVIEW AVENUE
#10-04
MERAWOODS CONDOMINIUM
Town: SINGAPORE
Postcode: 669607
Country: Singapore
ACTIVITY(IES)
ART GOODS - WHSLE And MFRS Code: 1030
MACHINERY Code: 13260
PRINTING EQUIPMENT Code: 17550
BASED ON ACRA'S RECORD AS AT 01/06/2006
1) HEAD/REGIONAL OFFICES OF ENTERPRISE
OPERATING ABROAD
CHARGES
No Charges On Premises/Property In Our Database
PREMISES/PROPERTY INFORMATIONS
No Premises/Property Information In Our Databases
BANKERS
COMMERZ BANK
AG
SHAREHOLDERS(S)
MULLER
MARTINI HOLDING AG 2,000,000
Company
Street: HERGISWIL
NW
SONNENBERGSTRASSE 13
Town: -
Postcode: -
Country: Switzerland
HOLDING COMPANY
MULLER
MARTINI HOLDING AG
UF32706N
%: 100
SUBSIDIARY(IES)
MULLER
MARTINI (MALAYSIA) SDN BHD
Malaysia
MULLER
MARTINI (THAILAND) COMPANY LIMITED
Thailand
MULLER
MARTINI (INDIA) PRIVATE LIMITED
India
PAYMENT HISTORY AND EXPERIENCES
Trade
Morality: AVERAGE
Liquidity: SUFFICIENT
Payments: REGULAR
Trend: DOWNWARD
Financial
Situation: AVERAGE
LITIGATION(S)
No Litigation
In Our Database
FINANCIAL ELEMENTS
All amounts in this report are in:
SGD
Audit Qualification:
UNQUALIFIED (CLEAN)
UNQUALIFIED (CLEAN)
Date Account Lodged:
23/06/2005
Balance Sheet Date:
31/12/2004
31/12/2003
Number of weeks:
52 52
Consolidation Code:
COMPANY
COMPANY
--- ASSETS
Preliminary Exp
67,000
87,000
Tangible Fixed Assets:
95,855 153,003
Investments
1,471,576
1,471,576
Total Fixed Assets: 1,634,431 1,711,579
Inventories:
1,794,507
3,624,384
Receivables:
6,749,244
2,170,601
Cash, Banks, Securities:
2,271,275
4,064,806
Other current assets:
1,034,396
122,235
Total Current Assets: 11,849,422 9,982,026
TOTAL ASSETS: 13,483,853 11,693,605
--- LIABILITIES
Equity capital:
2,000,000
2,000,000
Profit & loss Account:
1,590,960 1,330,230
Total Equity: 3,590,960 3,330,230
Other long term Liab.:
72,766
85,704
Total L/T Liabilities: 72,766 85,704
Trade Creditors:
4,278,292
5,080,867
Short term liabilities:
16,311
17,148
Due to Bank:
301,518
467,748
Provisions: 9,893 50,000
Prepay. & Def. charges: 637,571 193,033
Other Short term Liab.:
4,576,542
2,468,875
Total short term Liab.: 9,820,127 8,277,671
TOTAL
LIABILITIES:
9,892,893
8,363,375
--- PROFIT & LOSS ACCOUNT
Net Sales
26,426,676
22,454,081
Purchases, Sces & Other Goods:
22,707,262
18,753,832
Gross Profit:
3,719,414
3,700,249
Result of ordinary operations
181,521
80,969
NET RESULT BEFORE TAX:
286,363 545,833
Tax:
25,633
119,658
Net income/loss year:
260,730
426,175
Interest Paid: 8,235 35,297
Depreciation: 58,844 73,824
Directors Emoluments:
464,024
466,980
Wages and Salaries:
1,709,412
1,708,456
Financial Income: 276
220
RATIOS
31/12/2004
31/12/2003
Turnover per employee:
1,201,212.55
1,020,640.05
Net result / Turnover(%): 0.01 0.02
Stock / Turnover(%): 0.07 0.16
Net Margin(%): 0.99 1.90
Return on Equity(%): 7.26 12.80
Return on Assets(%): 1.93
3.64
Net Working capital:
2,029,295.00
1,704,355.00
Cash Ratio: 0.23 0.49
Quick Ratio: 0.92 0.75
Current ratio: 1.21 1.21
Receivables Turnover: 91.94 34.80
Leverage Ratio: 2.75 2.51
Net Margin : (100*Net income loss year)/Net
sales
Return on
Equity : (100*Net income loss year)/Total equity
Return on
Assets : (100*Net income loss year)/Total fixed assets
Net Working
capital : Total current assets - Total short term liabilities
Cash Ratio :
Cash Bank securities/Total short term liabilities
Quick Ratio :
(Cash Bank securities + Receivables)/Total Short term liabilities
Current ratio
: Total current assets/Total short term liabilities
Inventory
Turnover : (360*Inventories)/Net sales
Receivables
Turnover : (Receivable*360)/Net sales
Leverage
Ratio : Total liabilities/(Total equity-Intangible assets)
FINANCIAL COMMENTS
THE OVERALL FINANCIAL CONDITION OF THE COMPANY WAS FAIR IN VIEW OF THE FOLLOWING:
NET WORTH:
THE BALANCE SHEET WAS PASSABLE WITH NET WORTH IMPROVED BY 7.83% TO S$3,590,960, UP FROM S$3,330,230. THIS WAS ATTRIBUTABLE TO THE INCREASE IN ACCUMULATED PROFIT BY 19.60% WHICH AMOUNTED TO S$1,590,960 IN 2004 (2003: S$1,330,230).
LEVERAGE:
IN THE
SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY OTHER SHORT-TERM LIABILITIES WHICH
MADE UP 46.60% (2003: 29.83%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO
S$4,576,542 (2003: S$2,468,875). THE BREAKDOWN IS AS FOLLOWS:
-DEFERRED INCOME – 2004: S$4,566,999 (2003: S$2,462,216)
-OTHER PAYABLES – 2004: S$9,543 (2003: S$6,659)
TRADE CREDITORS OF S$4,278,292 (2003: S$5,080,867) COMPRISED:
-TRADE PAYABLES TO THIRD PARTIES – 2004: S$1,006,586 (2003: S$209,868)
-TRADE PAYABLES TO RELATED CORPORATIONS – 2004: S$2,130,914 (2003: S$4,029,996)
-TRADE PAYABLES TO SUBSIDIARIES – 2004: S$1,140,792 (2003: S$841,003)
SUBJECT WAS ALSO FINANCED BY UNSECURED BANK LOAN OF S$301,518 (2003: S$467,748).
IN THE LONG-TERM, SUBJECT WAS FINANCED BY FINANCE LEASE LIABILITIES OF S$72,766 (2003: S$85,704).
LEVERAGE RATIO ROSE TO 2.75 TIMES (2004: 2.51 TIMES) AS TOTAL LIABILITIES GREW.
LIQUIDITY:
IN GENERAL, LIQUIDITY STATUS OF THE COMPANY WAS CONSIDERED PASSABLE. BOTH CURRENT RATIO (2004: 1.21 TIMES, 2003: 1.21 TIMES) AND QUICK RATIO (2004: 0.92
TIMES, 2003: 0.75 TIMES) WERE SUFFICIENT.
ALSO, NET WORKING CAPITAL INCREASED BY 19.07% TO S$2,029,295 IN 2004 (2003: S$1,704,355).
CASH AND CASH EQUIVALENTS DECLINED BY 44.12% TO S$2,271,275 (2003: S$4,064,806).
PROFITABILITY:
REVENUE ROSE BY 17.69% TO S$26,426,676 (2003: S$22,454,081) BUT THIS RESULTED IN A FALL IN NET PROFIT BY 38.82% TO S$260,730 (2003: S$426,175). THIS COULD BE DUE TO LOWER GROSS MARGIN OF 14.07% (2003: 16.48%) AND THE LACK OF DIVIDEND INCOME FROM SUBSIDIARY IN FY 2004 (2003: S$318,258). HENCE, NET MARGIN DROPPED TO 0.99% (2003: 1.90%).
REVENUE:
-SALE OF GOODS – 2004: S$26,209,201 (2003: S$22,054,170)
-SERVICES RENDERED – 2004: S$217,475 (2003: S$399,911)
DEBT SERVICING:
DEBT SERVICING PROBLEM MIGHT NOT BE ANTICIPATED IF PROFITABILITY AND LIQUIDITY OF THE COMPANY COULD BE MAINTAINED OR IMPROVED. IN ADDITION, INTEREST COVERAGE RATIO WAS SUFFICIENT AT 35.77 TIMES (2003: 16.46 TIMES).
NON-CURRENT ASSET:
DEFERRED INCOME TAX ASSET OF S$67,000 (2003: S$87,000) IS CLASSIFIED UNDER PRELIMINARY.
NOTES TO THE FINANCIAL STATEMENTS:
CONTINGENT
LIABILITIES:
AS AT THE BALANCE SHEET DATE, THE COMPANY HAS PROVIDED A GUARANTEE FOR BANKING FACILITIES GRANTED TO A SUBSIDIARY AMOUNTING TO S$215,000 (2003: S$448,000).
BACKGROUND/OPERATION
THE COMPANY
WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 30/05/1997 AS A LIMITED PRIVATE COMPANY AND IS
TRADING UNDER ITS PRESENT NAMESTYLE AS "MULLER MARTINI
(SINGAPORE) PTE LTD".
AS AT
01/06/2006, THE COMPANY HAS A ISSUED AND PAID-UP CAPITAL OF 2,000,000 SHARES OF A VALUE OF S$2,000,000.
PRINCIPAL
ACTIVITIES:
SUBJECT IS
REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY AUTHORITY (ACRA) BE PRINCIPALLY ENGAGED IN THE
BUSINESS OF:
1)
HEAD/REGIONAL OFFICES OF ENTERPRISE OPERATING ABROAD
DURING THE
FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES ARE TO TRADE IN GRAPHIC-ARTS EQUIPMENT
AND SPARE PARTS, AND TO PROVIDE MAINTENANCE SERVICES.
FROM THE
RESEARCH DONE, SUBJECT ENGAGES IN SALES & SERVICES OF PRINT FINISHING SYSTEMS, BOOKBINDING SYSTEMS, MAIL ROOM
SYSTEMS AND ACCESSORIES.
SERVICES:
*VARIABLE
SIZE WEB PRINTING PRESSES
*PRESS
DELIVERY SYSTEMS
*SADDLE
STITCHERS
*PERFECT
BINDING SYSTEMS
*HARD COVER
BOOK PRODUCTION LINES
*NEWSPAPER
MAILROOM TECHNOLOGY
BRAND:
*MULLER
MARTINI
MARKET
PRESENCE:
*ASIA (SUCH
AS INDONESIA, THAILAND, MALAYSIA, INDIA, ETC)
INDUSTRY
SERVED:
*GRAPHIC ART
SUBJECT IS A
MEMBER OF THE FOLLOWING ENTITY:
*SWISS
BUSINESS ASSOCIATION, SINGAPORE
NO OTHER
TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED ON 07/06/2006.
THE COMPANY'S
IMMEDIATE AND ULTIMATE HOLDING COMPANY IS MULLER MARTINI HOLDINGS AG, A COMPANY INCORPORATED
IN SWITZERLAND.
NUMBER OF
EMPLOYEES (31 DECEMBER):
*2004: 22
(FULL TIME: 21; PART TIME: 1)
*2003: 21
(FULL TIME: 20; PART TIME: 1)
REGISTERED
AND BUSINESS ADDRESS:
7 JALAN
KILANG
#06-01
SINGAPORE
159407
DATE OF
CHANGE OF ADDRESS: 01/10/1997
WEBSITE:
www.mullermartini.com/sg
www.mullermartini.com
EMAIL:
info@sg.mullermartini.com
roland.bangerter@sg.mullermartini.com
simon.leong@sg.mullermartini.com (SALES MANAGER, SEA: MR. SIMON LEONG)
william.lam@sg.mullermartini.com (SERVICES MANAGER: MR. WILLIAM LAM)
MANAGEMENT
THE DIRECTORS
AT THE TIME OF THIS REPORT ARE:
1) BERNHARD
SCHMID, A SWISS
- BASED IN
SWITZERLAND.
2) ROLAND
BANGERTER, A SWISS
- BASED IN
SINGAPORE.
Singapore’s Country Rating 2006
Investment Grade
IN SINGAPORE, THE
POLITICAL SITUATION APPEARS TO BE VERY STABLE.
ECONOMIC GROWTH IS BECOMING MORE MODERATE AS
INVESTMENT HAS BEEN FLAT DUE TO INCREASING OIL PRICES AND LESS BUOYANT DEMAND
FOR ELECTRONIC PRODUCTS.
ECONOMIC PERFORMANCE HAS REMAINED STRONG, UNDERPINNED BY PHARMACEUTICALS AND SERVICES. EXPORTS HAS BENEFITED FROM THE STEADINESS OF DEMAND FROM ITS MAIN TRADING PARTNERS, MALAYSIA, THE UNITED STATES, CHINA AND HONG KONG. OTHER THAN ITS BALANCED PUBLIC SECTOR ACCOUNTS, LIMITED FOREIGN DEBT AND COMFORTABLE FOREIGN CURRENCY RESERVES HAVE CONTRIBUTED TO SINGAPORE’S STRONG FINANCIAL CONDITION.
AS THE ELECTRONICS SECTOR FACES COMPETITION FROM THE ASIAN ECONOMIES, SINGAPORE
HAS BEEN PURSUING DIVERSIFICATION STRATEGY THAT HAS BEEN CONSOLIDATING ITS
POSITION. PHARMACEUTICALS ALREADY REPRESENT 10% OF EXPORTS IN COMPARATIVE TO
ITS INSIGNIFICANT CONTRIBUTION IN YEAR 1995. ELECTRONICS SECTOR SECTOR’S SHARE
HAS DECLINED FROM 80% TO 60% DURING THE SAME PERIOD. THERE IS HIGH RELIANCE ON
DEVELOPMENT OF PETROCHEMICAL PRODUCTS, HIGH VALUE-ADDED SERVICES AND
BIOTECHNOLOGIES.
ASSETS
ONE OF
THE MOST OPEN ECONOMIES IN THE WORLD WITH EXPORTS PLAYING A MAJOR ROLE IN ITS
PERFORMANCE. ONE OF ASIA’S MOST ADVANCED COUNTRIES IN QUALITY COMPETITIVENESS
TERMS.
WORKFORCE’S EDUCATION AND SKILL LEVEL IS VERY HIGH.
A MAJOR EXPORT OF CAPITAL IN ASIA, PARTICULARLY THE STATE-OWNED HOLDING COMPANY, TEMASEK.
THE BUSINESS ENVIRONMENT HAS BEEN VERY FAVOURABLE.
GREAT POLITICAL STABILITY.
WEAKNESSES
ECONOMY
REMAINED OVERSPECIALISED IN THE ELECTRONICS SECTOR.
MUST ACCELERATE DIVERSIFICATION IN SERVICES TO MAINTAIN ITS LEAD OVER OTHER ASIAN ECONOMIES REFORMS ARE STILL NEEDED TO FOSTER INNOVATION AND EDUCATION-SYSTEM MODERNIZATION.
AGING POPULATION COULD ULTIMATELY AFFECT ECONOMIC PERFORMANCE.
OVERVIEW OF SINGAPORE
PAST
PERFORMANCE (EXTRACTS)
THE
SINGAPORE ECONOMY GREW BY 7.0% IN 3Q2005, AN IMPROVEMENT OVER THE 5.4% GROWTH
IN THE SECOND QUARTER. GROWTH MOMENTUM (ON AN ANNUALISED QUARTER-ON-QUARTER
BASIS) REMAINED STRONG AT 7.1%, ALTHOUGH IT SLOWED FROM THE 19% REGISTERED IN
2Q2005.
TOTAL DEMAND POSTED AN
8.7% RISE IN 3Q2005, FOLLOWING A GAIN OF 6.8% IN 2Q2005. THIS REFLECTED
STRONGER CONTRIBUTIONS FROM BOTH EXTERNAL AND DOMESTIC DEMAND IN THE THIRD
QUARTER. EXTERNAL DEMAND EXPANDED BY 11%, UP FROM 9.6% IN THE SECOND QUARTER.
STRONGER EXPORT PERFORMANCE OF BOTH GOODS AND SERVICES UNDERPINNED THIS
IMPROVEMENT. EXPORTS OF GOODS WERE LIFTED BY HIGHER SHIPMENTS OF SEMICONDUCTORS
AND TELECOM EQUIPMENT WHILE SERVICES EXPORTS BENEFITED FROM STRONG RECEIPTS IN
FINANCIAL SERVICES. TOTAL DOMESTIC DEMAND GREW BY 1.1%, COMPARED TO A
CONTRACTION OF 1.6% IN 2Q2005. THE TURNAROUND REFLECTED MAINLY A SMALLER
DRAWDOWN IN BUSINESS INVENTORY, COMPARED WITH 3Q2004. THIS RAISED THE
CONTRIBUTION OF INVENTORY CHANGES TO ECONOMIC GROWTH.
EMPLOYMENT CREATION
CONTINUED TO BE STRONG IN 3Q2005, SUBSTAINING THE TREND IN THE PAST EIGHT QUARTERS.
EMPLOYMENT GREW BY 28,700 IN 3Q2005, WHICH WAS DOUBLED THE 14,100 IN 3Q2004.
THE BULK OF EMPLOYMENT
GAINS ARE IN THE SERVICES SECTOR (18,400). THE MAJORITY OF JOBS CREATED IN THE
SERVICES SECTOR WERE IN BUSINESS SERVICES (8,000), WHOLESALE AND RETAIL TRADE
(2,700), AND THE OTHER SERVICES INDUSTRIES COMPRISING HEALTH, EDUCATION AND
PERSONAL SERVICES (3,500). MANUFACTURING JOBS ALSO ROSE BY 8,000, DRIVEN MAINLY
BY GAINS IN THE MARINE INDUSTRIES. CONSTRUCTION SECTOR CONTINUED TO ADD 2,300
JOBS FOR THE THIRD CONSECUTIVE QUARTER.
PRELIMINARY FINDINGS
FROM A SURVEY OF PRIVATE SECTOR ESTABLISHMENTS EACH WITH AT LEAST 25 EMPLOYEES
SHOW THAT 2,500 WORKERS WERE RETRENCHED TH 3Q2005. TOTAL RETRENCHMENT HAS BEEN
GENERALLY ON A DOWNWARD TREND, ALTHOUGH 3Q2005 POSTED A RISE OF 18% FROM THE
PREVIOUS QUARTER AND 27% FROM THE SAME QUARTER A YEAR AGO.
THE MANUFACTURING
SECTOR LAID OFF 1,700 OR SLIGHTLY MORE THAN TWO-THIRDS OF THE TOTAL WORKERS
RETRENCHED IN THE QUARTER, MAINLY IN ELECTRONICS INDUSTRIES (43% OF TOTAL
RETRENCHEMENTS) AND ELECTRIAL PRODUCTS MANUFACTURING (11%). THE REMAINING 800
OR ONE-THIRD OF THE LAYOFFS WERE CONTRIBUTED BY THE SERVICES SECTOR MAINLY FROM
BUSINESS SERVICES (9.5%), WHOLESALE AND RETAIL TRADE (7.6%), FINANCIAL SERVICES
(5.0%) AND COMMUNITY ANS PERSONAL SERVICES (4.2%).
OVERALL PRODUCTIVITY
ROSE BY 2.1% IN 3Q2005, FROM 1.2% IN 2Q2005. IT WAS MAINLY DUE TO A SHARP
TURNAROUND OF PRODUCTIVITY IN THE MANUFACTURING SECTOR, WHILE MOST OF THE OTHER
SECTORS RECORDED WEAKER PRODUCTIVITY GAINS. WITH SOLID OUTPUT GROWTH,
MANUFACTURING PRODUCTIVITY GROWTH ROSE TO 6.2%, REVERSING THE 0.3% DECLINE IN
2Q2005. IN CONTRAST, THE CONSTRUCTION SECTOR REGISTERED A LARGER 1.5% FELL IN
PRODUCTIVITY IN 3Q2005, FOLLOWING THE 1.2% FALL IN 2Q2005.AS A RESULT OF STRONG
EMPLOYMENT GROWTH, WHOLESALE AND RETAIL TRADE (3.8%), TRANSPORT AND
COMMUNICATIONS (1.9%) AND HOTEL AND RESTAURANTS (0.9%) SECTORS REGISTERED
SLOWER PRODUCTIVITY GROWTH AS COMPARED TO 2Q2005. PRODUCTIVITY FELL IN THE
BUSINESS SERVICES (-3.4%), OTHER SERVICES (-1.1%) AND FINANCIAL SERVICES
(-0.3%) SECTORS. THE CONSUMER PRICE INDEX ROSE MARGINALLY BY 0.7% IN 3Q2005,
COMPARED TO 2Q2005. HIGHER ELECTRICITY TARIFFS AND PETROL PRICES CONTRIBUTED
LARGELY TO THE INCREASE. ON A YEAR-ON-YEAR BASIS, THE CPI WAS 0.5% HIGHER,
COMPARED TO THE 0.1% GAIN IN 2Q2005. THE RISE IN PRICES WAS UNDERPINNED BY
HIGHER ELECTRICITY TARIFFS AND PETROL PRICES, AS WELL AS DEARER CIGARETTES. IN
CONTRAST, LOWER CAR PRICES AND FOREIGN MAID LEVY CONTINUED TO RESTRAIN OVERALL
CONSUMER PRICE INFLATION. AMONG THE MAJOR SEGMENTS OF CONSUMER ITEMS, EDUCATION
AND STATIONERY COSTS ROSE BY 2.4%, WHILE RECREATION AND OTHERS COSTS WAS 1.9%
HIGHER. BOTH FOOD AND HOUSING COSTS ROSE BY 1.1% EACH DURING THE QUARTER. THE
INCREASE IN FOOD COSTS REFLECTED MAINLY HIGHER PRICES OF COOKED FOOD. AS A
RESULT OF THE GREATER DISCOUNTS ON THE PRICES OF READY-MADE GARMENTS DURING THE
GREAT SINGAPORE SALE, THE PRICE INDEX FOR CLOTHING AND FOOTWEAR DECLINED BY
1.3%. A LARGER 2.3% DIP IN TRANSPORT AND COMMUNICATION COST WAS DUE TO THE
CONTINUING DOWNWARD TREND IN CAR PRICES.
AHEAD
THE COMPOSITE LEADING
INDEX (CLI), AN INDICATOR THAT LEADS ECONOMIC ACTIVITY BY ABOUT THREE QUARTERS
AHEAD, REGISTERED A RISE OF 1.2% IN 3Q2005, FOLLOWING A 0.9% RISE IN THE SECOND
QUARTER.OF THE NINE COMPONENTS WITHIN THE INDEX, ONLY THE BUSINESS EXPECTATIONS
FOR WHOLESALE TRADE SHOWED A DECLINE THE PERIOD. THE OTHER COMPONENTS -
BUSINESS EXPECTATIONS FOR STOCK OF FINISHED GOODS, MONEY SUPPLY, STOCK PRICE,
NEW COMPANIES FORMED, US PURCHASING MANAGERS’ INDEX, NON-OIL SEA CARGO HANDLED,
DOMESTIC LIQUIDITY AND NON-OIL RETAINED IMPORTS EITHER REMAINED UNCHANGED OR
ROSE FROM THE PREVIOUS QUARTER.
THE SLOW ECONNOMIC
GROWTH RECORDED IN THE EARLY PART OF THE YEAR HAS BEEN OFFSET BY THE STRENGTH
OF THE REBOUND IN THE SECOND AND THIRD QUARTERS. THIS RESURGENCE WHICH WAS LED
BY MANUFACTURING, FINANCIAL SERVICES AND ENTREPOT TRADE REFLECTED THE IMPROVING
GLOBAL ECONOMY.
THE HEALTHY GROWTH
TREND IS LIKELY TO BE SUBSTAINED IN THE COMING MONTHS. DESPITE THE DISRUPTIONS
OF SEVERE WEATHER CONDITIONS (PARTICULARY TO THE OIL AND NATURAL GAS
INDUSTRIES), US ECONOMIC GROWTH IS FORECASTED TO REMAIN STRONG. EASING
INVENTORY PROBLEMS IN THE GLOBAL ELECTRONICS INDUSTRY IS ALSO EXPECTED TO BOOST
ELECTRONICS PRODUCTION IN SINGAPORE. A SIMILAR OUTLOOK IS SUGGESTED BY THE
COMPOSITE LEADING INDEX FOR THE THIRD QUARTER, WHICH REGISTERED THE LARGEST
QUARTERLY GAIN SINCE 1Q2004.
THE LATEST BUSINESS
EXPECTATIONS SURVEY CONTINUES TO SHOW POSITIVE SENTIMENTS IN ALL MAJOR INDUSTRY
SEGMENTS. NEVERTHELESS, WITH THE STRONG GAINS MADE IN THE PAST HALF YEAR OR SO,
SOME CAUTION HAS TEMPERED WITH THE OPTIMISIM.
FOR 2006, SINGAPORE
SHOULD BE ABLE TO ACHIEVE ITS MEDIUM TERM GROWTH POTENTIAL AS OUTLOOK FOR
GLOBAL ECONOMY AND ELECTRONICS INDUSTRY REMAINS SANGUINE.GROWTH RATES IN BOTH
THE DEVELOPED AND EAST ASIAN DEVLEOPING ECONOMIES ARE PREDICTED TO BE LITTLE
CHANGED FROM 2005. THE SALES OF GLOBAL SEMICONDUCTOR IS EXPECTED TO PICK UP IN
2006. THIS WOULD BOOST MANUFACTURING AND TRADE-RELATED ACTIVITIES IN SINGAPORE.
THE IMPROVING LABOUR MARKET AND THE LOW INFLATIONARY ENVIRONMENT SHOULD ALSO
LIFT DOMESTIC DEMAND FURTHER.
NEVERTHELESS, RISKS TO
ECONOMIC GROWTH ARE MOUNTING. LIMITED SPARE CAPACITIES IN THE GLOBAL OIL
INDUSTRY MEANT THAT SUPPLY DISRUPTIONS WOULD CONTINUE TO SEND PRICES UPWARDS.
IN VIEW OF RISING INFLATION, TIGHTENING MONETARY CONDITIONS IN THE DEVELOPED
ECONOMIES COULD DAMPEN REAL ESTATE PRICES, WHICH WOULD REMOVE AN IMPORTANT
SUPPORT FOR CONSUMER DEMAND IN THESE ECONOMIES. FINALLY, SHOULD THE AVIAN FLU
OUTBREAK ESCALATE INTO A PANDEMIC, IT COULD SEVERELY DISRUPT ECONOMIC
ACTIVITIES WORLDWIDE.
IN VIEW OF THE ABOVE
CONSIDERATIONS, THE MINISTRY OF TRADE AND INDUSTRY HAS RAISED THE 2005 GDP GROWTH FORECAST TO
AROUND 5.0%. ECONOMIC GROWTH IN 2006 IS EXPECTED TO BETWEEN 3.0% AND 5.0%.
SINGAPORE’S FOURTH
QUARTER GDP UP BY 7.7% ON-YEAR:ESTIMATES
ADVANCE ESTIMATES
RELEASED SHOW THAT THE SINGAPORE’S ECONOMY GREW 7.7% IN 4Q2005, COMPARED TO A
YEAR EARLIER. THIS BROUGHT THE FULL-YEAR ECONOMIC GROWTH TO 5.7%. THIS
BETTER-THAN-EXPECTED FULL-YEAR NUMBERS HAD ALREADY BEEN ANNOUNCED BY PRIME
MINISTER LEE HSIEN LOONG IN HIS NEW YEAR’S DAY MESSAGE.
SINGAPORE’S ECONOMY
ENDED THE YEAR 2005 WITH A BANG, DUE TO THE STRONG SHOWING BY THE MANUFACTURING
SECTOR. MANUFACTURING SURGED IN 4Q2005, EXPANDING AT AN ESTIMATED 11.5% FROM A
YEAR AGO. THE CONSTRUCTION SECTOR ALSO GREW BY AN ESTIMATED 0.8% - ITS SECOND
STRAIGHT QUARTER OF GROWTH AFTER 5 CONSECUTIVE QUARTERS OF CONTRACTION.
MEANWHILE, THE SERVICES SECTOR ALSO PUT IN A CREDIBLE PERFORMANCE, GREWING BY
7%, ITS BEST SHOWING IN 6 QUARTERS.
SOME ECONOMISTS SAID
THAT WHEN THE FINAL NUMBERS ARE TAILLED, THE GROWTH DATA MAY BE EVEN STRONGER.
SONG SENG WUN, REGIONAL ECONOMIST, CIMB-GK RESEARCH MENTIONED THAT “THE DATA
FOR 4Q2005 ARE BASED ON ESTIMATES OF DATA AVAILABLE TO DATE IN OCTOBER AND
NOVEMBER, THERE ARE STILL PLENTY OF HOLES TO FILL FOR A GREAT CHUNK OF GROWTH
FROM THE SERVICES SECTOR. IF THE DECEMBER MANUFACTURING DATA PROVE TO BE BETTER
THAN EXPECTED, THERE’S A POSSIBILITY THAT THE FINAL QUARTER GROWTH COULD BE
HIGHER THAN 7.7%. IT COULD BE CLOSER TO 8% OR MORE AND FOR THE FULL-YEAR
GROWTH, IT COULD BE CLOSER TO 6% OR EVEN HIGHER THAN 6%.”
BASED ON ADVANCE
ESTIMATES, MANUFACTURING GREW BY 8.6%, WHILE SERVICES GREW BY 5.4%. ON THE
OTHER HAND, CONSTRUCTION CONTRACTED BY 1.5%. GIVEN A RATHER LOW BASE IN 1Q2005,
WHEN THE ECONOMY GREW BY JUST 2.7%, ECONOMISTS NOW EXPECT 1Q GDP TO RISE BY 8
TO 10% - WITH INDICATORS POINTING TO A STRONG TECH SHOWING IN THE COMING
MONTHS.
WITH THE POSITIVE
ECONOMIC OUTLOOK, SOME ECONOMISTS HAVE UPGRADED THEIR GDP FORECASTS FOR 2006.
BASED ON THE GOVERNMENT ESTIMATES THAT GDP GROWTH FOR 2006 WILL BE BETWEEN 3
AND 5%, PRIVATE SECTOR ECONOMISTS SAID THAT THE HIGH END OF THIS RANGE IS STILL
CONSERVATIVE. DAVID COHEN, DIRECTOR OF ASIAN ECONOMIC FORECASTING AT ACTION
ECONOMICS MENTIONED THAT “6% IS WITHIN REACH, THAT WOULD REQUIRE ONLY MODERATE
QUARTER-ON-QUARTER GROWTH THROUGHOUT 2006.BUT IN VIEW OF THE RISK OF OTHER
SHOCKS THAT COULD DRAG DOWN SINGAPORE’S GROWTH RATE AND WORLDWIDE, THE LOWER
END OF THE RANGE SEEMS APPROPRIATE. FOR EXAMPLE, THERE COULD BE A BIRD FLU
PANDEMIC OR OIL PRICE SHOCK THAT COULD DERAIL THE OPTIMISTIC PROJECTIONS IN
2006.”
WITH THE CURRENT
GROWTH OUTLOOK LOOKING POSITIVE, ECONOMISTS HAVE RAISED THEIR GROWTH FORECASTS
OF 2006 TO BETWEEN 5.5% AND 7%.
EXTRACTED FROM:
MINISTRY OF TRADE AND INDUSTRY, SINGAPORE
SINGAPORE DEPARTMENT
OF STATISTICS
CHANNEL NEWSASIA
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial
base with the strongest capability for timely payment of interest and
principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No
caution needed for credit transaction. It has above average (strong)
capability for payment of interest and principal sums |
Large |
|
56-70 |
A |
Financial & operational base are
regarded healthy. General unfavourable factors will not cause fatal effect.
Satisfactory capability for payment of interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors
carry similar weight in credit consideration. Capability to overcome
financial difficulties seems comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of
interest and principal sums in default or expected to be in default upon
maturity |
Limited with full security |
|
<10 |
C |
Absolute credit risk exists. Caution
needed to be exercised |
Credit not recommended |