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MIRA
INFORM REPORT
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Report Date : |
17.11.2006 |
IDENTIFICATION
DETAILS
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Name : |
MULLER
MARTINI (SINGAPORE) PTE LTD |
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Registered Office : |
7 Jalan Kilang, #06-01, 159407, Singapore |
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Country : |
Singapore |
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Financials (as on) : |
31/12/2004 |
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Date of Incorporation : |
30/05/1997 |
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Com. Reg. No.: |
199703679M |
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Legal Form : |
Pte Ltd |
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Line of Business : |
Traders in graphic-arts equipment and spare parts, and to provide
maintenance services. |
RATING & COMMENTS
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MIRA’s Rating : |
Ba |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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41-55 |
Ba |
Overall operation is considered normal.
Capable to meet normal commitments. |
Satisfactory |
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Status : |
Satisfactory |
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Payment Behaviour : |
Regular |
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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 Rating : Singapore
$1000001 to Singapore $ 5000000
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 |