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Report Date : |
23rd
June 2006 |
IDENTIFICATION
DETAILS
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Name : |
TONG
TEIK PTE LTD |
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Registered Office : |
7 Temasek Boulevard, #20-02, Suntec Tower One Singapore
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Country : |
Singapore
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Financials (as on) : |
31/12/2005 |
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Date of Incorporation : |
29/04/1998 |
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Com. Reg. No.: |
199802094D |
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Legal Form : |
Pte Ltd |
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Line of Business : |
Engaged in trading of rubber & dealing in
rubber futures |
RATING & COMMENTS
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MIRA’s Rating : |
A |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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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 |
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Status : |
Good |
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Payment Behaviour : |
Regular
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Litigation : |
Clear |
TONG TEIK PTE LTD
TRADING OF RUBBER & DEALING IN RUBBER FUTURES
RCMA COMMODITIES ASIA PTE LTD
(PERCENTAGE OF SHAREHOLDING:
100%)
FY2005
COMPANY
Sales :
US$347,819,164
Networth :
US$6,788,897
Paid-Up
Capital : US$5,000,000
Net result :
-US$909,967
Net Margin(%) : -0.26
Return on Equity(%) : -13.40
Leverage Ratio :
5.21 TIMES
Credit Requested : NA
Credit Rating :
Singapore $ 10000001 to Singapore $ 50
000000
Credit Opinion : NA
Subject Company :
TONG TEIK PTE LTD
Former Name :
DIANY INVESTMENTS PTE LTD
Business Address :
7 TEMASEK BOULEVARD
#20-02
SUNTEC TOWER ONE
Town :
SINGAPORE
Postcode :
038987
County :
-
Country :
Singapore
Telephone :
6332 2282
Fax :
6332 3788
ROC Number :
199802094D
Reg. Town :
-
DIANY INVESTMENTS PTE LTD
(DATE OF CHANGE OF NAME: 18/06/1998)
Legal Form :
Pte Ltd
Date Inc. :
29/04/1998
Previous Legal Form :
-
Summary year :
31/12/2005
All amounts in this report are in : USD
Sales :
347,819,164
Net Worth :
6,788,897
Capital :
5,882,353
Paid-Up Capital :
5,000,000
Employees :
28
Net Result :
-909,967
Share value :
1
Auditor :
BDP RAFFLES
CCMS Number :
702003229183
Report Date :
23/06/2006
Update Date :
23/06/2006
Credit Requested :
NA
Credit Opinion :
NA
Litigation :
No
Company status :
TRADING
Started :
29/04/1998
OEI HONG BIE @ NG KIM TJING @ HABI WIDJAJA S2160222A Managing Director
WEE ENG HWA
S0004624H Director
Appointed on :
01/05/2002
Street :
25 SIGLAP PLAIN
Town :
SINGAPORE
Postcode :
456014
Country :
Singapore
SOON BEE SUAN CATHERINE
S1620182J Director
Appointed on :
31/10/1998
Street :
422 PASIR RIS DRIVE 6
#08-145
Town :
SINGAPORE
Postcode :
510422
Country :
Singapore
OEI HONG BIE @ NG KIM TJING @ HABI WIDJAJA S2160222A Director
Appointed on :
06/07/1998
Street :
27 CLAYMORE ROAD
#19-02
THE CLAYMORE
Town :
SINGAPORE
Postcode :
229544
Country :
Singapore
NG SWAN CHU @ LINDA SOEWARNI
S2165246F Director
Appointed on :
01/02/2000
Street :
29 JALAN SEMPADAN
#04-12
Town :
SINGAPORE
Postcode :
457402
Country :
Singapore
OEI HONG BIE @ NG KIM TJING @ HABI WIDJAJA S2160222A Managing
Director
Appointed on :
09/01/2003
Street :
27 CLAYMORE ROAD
#19-02
THE CLAYMORE
Town :
SINGAPORE
Postcode :
229544
Country :
Singapore
NG SWAN CHU @ LINDA SOEWARNI
S2165246F Managing Director
Appointed on :
20/04/2006
Street :
29 JALAN SEMPADAN
#04-12
Town :
SINGAPORE
Postcode :
457402
Country :
Singapore
CHAN SIEW HONG S1459262H Director
Appointed on :
03/05/2004
Street :
287B JURONG EAST STREET 21
#18-338
Town :
SINGAPORE
Postcode :
602287
Country :
Singapore
CHRISTIAN TOLLKUEHN
S6961341A Director
Appointed on :
13/01/2003
Street :
45 BEDOK ROAD
#05-14
COUNTRY PARK CONDOMINIUM
Town :
SINGAPORE
Postcode :
469565
Country :
Singapore
FRANS ANDREW DE JONG F5512604Q
RUBBER BROKERS And DEALERS Code:
18680
RUBBER - CRUDE Code:
18660
PLYWOOD And VENEERS - WHSLE And MFRS Code:
17190
TIMBER EXPORTERS And IMPORTERS Code: 21720
BASED ON ACRA'S RECORD AS AT 28/04/2006
1) WHOLESALE OF RUBBER (INCLUDING RUBBER BROKERS)
Date : 19/10/1999
Comments : CHARGE
NO: 199904522 (DISCHARGED)
AMOUNT SECURED:
0.00 AND ALL MONIES OWING
CHARGEE(S): THE HONGKONG AND SHANGHAI BANKING
CORPORATION LIMITED
Date : 16/10/1998
Comments : CHARGE
NO: 199805322
AMOUNT SECURED:
0.00 AND ALL MONIES OWING
CHARGEE(S): FORTIS
BANK S.A./N.V.
Date : 11/09/1998
Comments : CHARGE
NO: 199804700 DISCHARGED
AMOUNT SECURED:
0.00 AND ALL MONIES OWING
CHARGEE(S) :
CORPORATIEVE CENTRALE RAIFFEISEN -
BOERENLEEBANK
Date : 03/09/1998
Comments : CHARGE
NO: 199804592
AMOUNT SECURED:
0.00 AND ALL MONIES OWING
CHARGEE(S): FORTIS
BANK S.A./N.V
Date : 14/11/2000
Comments : CHARGE
NO(S): 200005484/ 20005485/ 20005486/ 20005487
AMOUNT SECURED:
0.00 AND ALL MONIES OWING
CHARGEE(S): FOPTIS
BANK (NEDERLAND) N.V. SINGAPORE BRANCH
No Premises/Property Information In Our
Databases
FORTIS BANK S.A./N.V.
THE HONGKONG & SHANGHAI BANKING CORPORATION LTD
RCMA COMMODITIES ASIA PTE LTD 8,500,000 Company
Street :
7 TEMASEK BOULEVARD
#20-02
SUNTEC TOWER ONE
Town :
SINGAPORE
Postcode : 038987
Country :
Singapore
RCMA COMMODITIES ASIA PTE LTD
199801641W
% : 100
No Participation In Our Database
Trade Morality :
AVERAGE
Liquidity :
SUFFICIENT
Payments :
REGULAR
Trend :
LEVEL
Financial Situation :
AVERAGE
No Litigation In Our Database
All amounts in this report are in : USD
Audit Qualification: UNQUALIFIED (CLEAN)
UNQUALIFIED (CLEAN)
Date Account Lodged: 25/04/2006
Balance Sheet Date: 31/12/2005 31/12/2004
Number of weeks: 52 52
Consolidation Code: COMPANY COMPANY
--- ASSETS ---
Tangible Fixed Assets: 183,831 196,368
Investments 26,030 26,030
Total Fixed Assets: 209,861 222,398
Inventories: 9,525,002 5,804,768
Receivables: 30,913,666 14,726,547
Short Term Fin. Assets: 1,209,982 2,002,787
Cash, Banks, Securities: 59,407 623,779
Other current assets: 224,561 23,656
Total Current Assets: 41,932,618 23,181,537
TOTAL
ASSETS:
42,142,479
23,403,935
--- LIABILITIES ---
Equity capital:
5,000,000 5,000,000
Profit & lost Account: 1,788,897 5,698,864
Total Equity: 6,788,897 10,698,864
L/T deferred taxes: 272,373
Total L/T Liabilities:
272,373
Trade Creditors: 3,090,151 3,860,238
Due to Bank: 32,037,754 7,535,505
Provisions: 34,683 412,345
Other Short term Liab.: 12,910 24,496
Prepay. & Def. charges: 178,084 600,114
Total short term Liab.: 35,353,582 12,432,698
TOTAL
LIABILITIES:
35,353,582
12,705,071
--- PROFIT & LOSS ACCOUNT ---
Net Sales 347,819,164 286,147,982
Gross Profit:
2,042,558 5,609,730
NET RESULT BEFORE TAX: -1,182,340 1,651,104
Tax : 272,373 410,623
Net income/loss year: -909,967 1,240,481
Interest Paid: 760,838 422,255
Depreciation: 115,666 135,099
Dividends: 1,050,245
Directors Emoluments: 557,467 744,240
Purchases,Sces & Other Goods: 345,776,606 280,538,252
Wages and Salaries: 884,793 1,994,994
Financial Income: 122,321 214,480
31/12/2005 31/12/2004
Turnover per employee: 12422113.00 10219570.79
Net result / Turnover(%): -0.00 0.00
Stock / Turnover(%): 0.03 0.02
Net Margin(%): -0.26 0.43
Return on Equity(%): -13.40 11.59
Return on Assets(%): -2.16 5.30
Dividends Coverage: 0 1.18
Net Working capital: 6579036.00 10748839.00
Cash Ratio: 0.00 0.05
Quick Ratio: 0.88 1.23
Current ratio: 1.19 1.86
Receivables Turnover: 32.00 18.53
Leverage Ratio: 5.21 1.19
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
Dividends Coverage : Net income loss
year/Dividends
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)
THE FINANCIAL CONDITION OF THE COMPANY WAS
DEEMED TO BE FAIR IN VIEW OF THE FOLLOWING:
NET WORTH:
THE BALANCESHEET WAS CONSIDERED PASSALBLE
WITH TOTAL EQUITY REGISTERING LOWER BY 36.55%, AMOUNTING TO US$6,788,897 (2004:
US$10,698,864). THIS WAS ATTRIBUTED BY A SIGNIFICANT DROP IN RETAINED EARNINGS
OF 68.61%, TOTALLING US$1,788,897
(2004: US$5,698,864).
LEVERAGE:
THE LEVERAGE RATIO INCREASED NOTABLY AND WAS AGGRESSIVE AT 5.21 TIMES (2004: 1.19 TIMES).
IN THE SHORT-TERM, BANK BORROWINGS
(CLASSIFIED UNDER AMOUNT DUE TO BANKS) COMPRISED OF 90.62% (2004: 60.61%) OF
THE TOTAL CURRENT LIABILITIES, ACCOUNTING FOR US$32,037,754 (2004:
US$7,535,505).
THE AMOUNT DUE TO BANKS COMPRISED OF:
* BANK OVERDRAFTS OF US$14,425,975 (2004:
US$73,717)
* BILLS PAYABLES OF US$17,611,779 (2004:
US$7,461,788)
BANK BORROWINGS:
THE COMPANY AND ITS RELATED CORPORATIONS
HAVE ENTERED INTO A FACILITIES AGREEMENT WITH SEVERAL BANKS WHEREBY TRADE
FINANCING AND/OR OTHER CREDIT FACILITIES IN THE AGGREGATE AMOUNT OF US$40.5
MILLION (2004: US$41.5 MILLION) WERE GRANTED TO THE COMPANY. THE COMPANY AND
ITS RELATED CORPORATIONS, NAMED AS CO-DEBTORS UNDER THIS AGREEMENT, ARE JOINTLY
AND SEVERALLY LIABLE FOR ALL SUMS PAYABLE UNDER THE PROVISION OF THIS
AGREEMENT.
THE FACILITIES ARE SECURED BY FIXED AND
FLOATING CHARGES OVER THE ASSETS OF THE COMPANY AND CORPORATE GUARANTEE FROM
THE HOLDING COMPANY.
LIQUIDITY:
THE OVERALL LIQUIDITY SITUATION OF THE
COMPANY WAS FAIRLY HEALTHY BUT SHOWED SIGNS OF DETERIORATING. BOTH QUICK AND
CURRENT RATIOS REGISTERED LOWER AT 0.88 TIMES (2004: 1.23 TIMES) AND 1.19 TIMES
(2004: 1.86 TIMES) RESPECTIVELY. NET WORKING CAPITAL ALSO FELL NOTABLY BY
38.79%, AMOUNTING TO US$6,579,036 (2004: US$10,748,839).
IN ADDITION, CASH AND CASH EQUIVALENTS ALSO
POSTED MUCH LOWER AT US$59,407 (2004: US$ 623,779),
DOWN BY 90.48%.
PROFITABILITY:
REVENUE INCREASED BY 21.55%, ACCOUNTING FOR
US$347,819,164 (2004: US$286,147,982). HOWEVER, THE COMPANY RECORDED A NET LOSS
OF US$909,967 (2004: US$1,240,481), DECREASING BY 1.73 TIMES. THIS COULD BE
ATTRIBUTABLE TO A RISE OF 23.25% IN COST OF SALES AMOUNTING TO US$345,776,606
(2004: US$280,538,252).
AS A RESULT, NET MARGIN POSTED AT -0.26% (2004: 0.43%).
DEBT SERVICING:
DEBT SERVICING PROBLEMS MIGHT BE ANTICIPATED IF THE LIQUIDITY SITUATION OF THE COMPANY CONTINUED TO DETERIORATE AND IF TRADE RECEIVABLES WERE NOT FORTHCOMING.
IN ADDITION, INTEREST COVERAGE RATIO WAS
INSUFFICIENT AT 0.55 TIMES
(2004: -2.91 TIMES).
NOTES TO THE FINANCIAL STATEMENTS:
CURRENT ASSETS:
THIS COMPONENT OF US$224,561 (2004:
US$23,656) COMPRISED OF:
* OTHER RECEIVABLES OF US$60,968 (2004:
US$1,840)
* STAFF ADVANCES OF US$769 (2004: US$1,259)
* DEPOSITS OF US$9,483 (2004: US$9,864)
* PREPAYMENTS OF US$15,321 (2004:
US$10,693)
* DUE FROM RELATED COMPANIES (NON-TRADE) OF
US$138,020 (2004: -)
CONTINGENT LIABILITIES:
AS AT THE BALANCE SHEET DATE, THERE WERE CONTINGENT LIABILITIES IN RESPECT OF GUARANTEE GIVEN BY THE COMPANY TO SUPPORT THE INITIAL AND VARIATION MARGIN WITH THE FUTURES MARKET AND FUTURES BROKERS AMOUNTING TO US$1,676,628 (US$1,735,157).
THE COMPANY WAS INCORPORATED IN THE
REPUBLIC OF SINGAPORE ON 29/04/1998 AS A LIMITED PRIVATE COMPANY AND WAS
FORMERLY KNOWN AS "DIANY INVESTMENTS PTE LTD".
SUBSEQUENTLY ON 18/06/1998, SUBJECT CHANGED
TO ITS PRESENT NAMESTYLE OF "TONG TEIK PTE LTD".
AS AT 28/04/2006, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 8,500,000 SHARES OF A VALUE OF S$8,500,000.
PRINCIPAL ACTIVITIES:
SUBJECT IS REGISTERED WITH THE ACCOUNTING
& CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE
BUSINESS OF:
1) WHOLESALE OF RUBBER (INCLUDING RUBBER
BROKERS) DURING THE FINANCIAL YEAR(S), UNDER REVIEW, THE PRINCIPAL ACTIVITIES
OF THE COMPANY ARE THOSE OF TRADING OF RUBBER AND DEALING IN RUBBER FUTURES.
SUBJECT IS WHOLLY-OWNED SUBSIDIARY OF RCMA
COMMODITIES ASIA PTE LTD, A COMPANY INCORPORATED IN SINGAPORE. FROM THE
RESEARCH CONDUCTED, THE FOLLOWING INFORMATION WAS GATHERED:
SUBJECT IS LISTED IN THE SINGAPORE LOCAL
DIRECTORY UNDER THE CLASSIFICATION OF: RUBBER - CRUDE.
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITY:
* RUBBER AND LATEX MERCHANT
* PLYWOOD
* SAWN TIMBER
BRANDS:
* TONG TEIK
SUBJECT IS A MEMBER OF THE FOLLOWING
ENTITY:
* SINGAPORE INTERNATIONAL CHAMBERS OF
COMMERCE
SUBJECT COVERS THE FAR EASTERN MARKET.
NO OTHER TRADE INFORMATION WAS GATHERED AS
A TELE-INTERVIEW WAS DENIED BY SUBJECT'S PERSONNEL.
NUMBER OF EMPLOYEES (31 DECEMBER):
* COMPANY - 2005: 28 (2004: 30)
REGISTERED AND BUSINESS ADDRESSES:
7 TEMASEK BOULEVARD
#20-02 SUNTEC TOWER ONE
SINGAPORE 038987
DATE OF CHANGE OF ADDRESS: 01/10/2002
WEBSITE:
* http://www.rcma-rubber.com
(PARENT COMPANY'S WEBSITE)
EMAIL:
* stt@tongteik.com.sg
* trading@tongteik.com.sg
THE DIRECTORS AT THE TIME OF THIS REPORT
ARE:
1) CHAN SIEW HONG, A SINGAPOREAN
- HOLDS NO OTHER DIRECTORSHIPS IN OUR
DATABASE
2) SOON BEE SUAN @ LOH BEE SUAN, A
SINGAPOREAN
- HOLDS OTHER DIRECTORSHIPS IN OUR DATABASE
SINGAPORE TONG TEIK (PRIVATE) LIMITED
3) OEI HONG BIE @ NG KIM TJING @ HABI
WIDJAJA, A SINGAPORE PERMANENT RESIDENT
- HOLDS OTHER DIRECTORSHIPS IN OUR DATABASE
SINGAPORE TONG TEIK (PRIVATE) LTD
NEW CONTINENT ENTERPRISES (PRIVATE) LIMITED
RCMA COMMODITIES ASIA PTE LTD
4) NG SWAN CHU @ LINDA SOEWARNI WIDJAYA, A
SINGAPORE PERMANENT RESIDENT
- HOLDS OTHER DIRECTORSHIPS IN OUR DATABASE
NEW CONTINENT ENTERPRISES (PRIVATE) LIMITED
R1 INTERNATIONAL PTE LTD
5) CHRISTIAN TOLLKUEHN, A SINGAPORE
PERMANENT RESIDENT
- HOLDS NO OTHER DIRECTORSHIPS IN OUR
DATABASE
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.
PAST
PERFORMANCE
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 IN 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 FO 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 |