MIRA
INFORM REPORT
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Report Date : |
25.04.2007 |
IDENTIFICATION
DETAILS
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Name : |
YAMAZAKI MAZAK
SINGAPORE PTE LTD |
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Registered Office : |
21 Joo Koon Circle, Jurong, Singapore 629053 |
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Country : |
Singapore |
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Financials (as on) : |
31.03.2006 |
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Date of Incorporation : |
02/09/1988 |
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Com. Reg. No.: |
198803160G |
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Legal Form : |
Pte Limited |
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Line of Business : |
Researching, Developing, Manufacturing, Trading and Servicing of Metal
Working Machines, Metal Machine Tools and Related Spare Parts. |
RATING &
COMMENTS
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MIRA’s Rating : |
Aaa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest capability
for timely payment of interest and principal sums |
Unlimited |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
Subject Company
YAMAZAKI MAZAK SINGAPORE PTE LTD
Line Of Business
RESEARCHING, DEVELOPING, MANUFACTURING, TRADING AND SERVICING OF METAL
WORKING MACHINES, METAL MACHINE TOOLS AND RELATED SPARE PARTS.
Parent Company
YAMAZAKI
MAZAK NEDERLAND B V
(PERCENTAGE
OF SHAREHOLDING: 100%)
Financial Elements
FY2006
COMPANY
Sales : S$192,250,735
Networth : S$ 93,965,574
Paid-Up Capital :
S$ 22,200,000
Net result : S$ 16,756,998
Net Margin(%) : 8.72
Return on Equity(%) : 17.83
Leverage Ratio :
0.53 TIMES
Rating
Credit Rating : Sing $ 50 000 001 & Over
COMPANY IDENTIFICATION
Subject Company : YAMAZAKI MAZAK SINGAPORE PTE LTD
Former Name : -
Business Address : 21 JOO KOON CIRCLE, JURONG
Town : SINGAPORE
Postcode : 629053
County : -
Country : Singapore
Telephone : 6862 1131
Fax : 6861 9281/4
ROC Number : 198803160G
Reg. Town : -
SUMMARY
All amounts in this report are in : SGD
Legal Form : Pte Ltd
Date Inc. : 02/09/1988
Previous Legal Form : -
Summary year : 31/03/2006
Sales : 192,250,735
Net Worth : 93,965,574
Paid-Up Capital : 22,200,000
Employees : -
Net Result : 16,756,998
Auditor : DELOITTE & TOUCHE
REFERENCES
Litigation : No
Company status : TRADING
Started : 02/09/1988
PRINCIPAL(S)
TOSHIMITSU KITO G5679693U Managing Director
DIRECTOR(S)
TOSHIMITSU KITO G5679693U Director
Appointed on : 11/11/2002
Street : 38 ST. THOMAS WALK, #08-02, ST. THOMAS VILLE
Town : SINGAPORE
Postcode : 238118
Country : Singapore
TOMOHISA YAMAZAKI MM3623909 Director
Appointed on : 26/04/1996
Street : #405 78 ISHIGANE-CHO, MEITO-KU NAGOYA CITY AICHI
Town : -
Postcode : -
Country : Japan
TAKASHI YAMAZAKI MZ0057411 Director
Appointed on : 08/04/1996
Street : 5-A 29-1 GOKENYA-CHO SHOWA-KU, NOGOYA
Town : -
Postcode : -
Country : Japan
CHAN LILY S2668267C Company Secretary
Appointed on : 13/11/2000
Street : 259A COMPASSVALE ROAD, #13-609
Town : SINGAPORE
Postcode : 541259
Country : Singapore
NORIHIKO SHIMZU TZ0127098 Director
Appointed on : 18/01/2002
Street : 3-7 MATSUZUKI-CHO, MIZUHO-KU, NAGOYA CITY
Town : -
Postcode : -
Country : Japan
KENJI ESAKI G5746076N Director
Appointed on : 01/07/2004
Street : 12 STIRLING ROAD, #18-13, QUEENS
Town : SINGAPORE
Postcode : 148955
Country : Singapore
TOSHIMITSU KITO G5679693U Managing Director
Appointed on : 02/10/2006
Street : 38 ST. THOMAS WALK, #08-02, ST. THOMAS VILLE
Town : SINGAPORE
Postcode : 238118
Country : Singapore
FORMER DIRECTOR(S)
SUZUKI NORIO SK2601046
NISHIMURA KAZUO H1575578
MIURA YOSHIHIDE SN9148878
NIWA TETSUO L2469461
MASANORI TORIHARA F2340562T
HIROYUKI YAMAZAKI G5668368U
TAKASHI YAMAZAKI MZ0057411
ACTIVITY (IES)
MACHINE TOOLS - REPAIRING And REBUILDING Code: 13255
MACHINERY REBUILDING And REPAIRING Code: 13290
METAL CUTTING MACHINES Code: 13800
BASED ON ACRA'S RECORD AS AT 26/12/2006
1) MANUFACTURING AND REPAIR OF MACHINERY AND MACHINE-TOOLS-METAL CUTTING TYPES
CHARGES
No Charges On
Premises/Property In Our Database
PREMISES/PROPERTY INFORMATIONS
Date : 29/12/2006
Tax rate : 10%
Site Address : 21 JOO KOON CIRCLE, SINGAPORE 629053
Town : SINGAPORE
Postcode : 629053
Country : Singapore
Annual Value : SGD 917,000
*TAX RATE OF 4%
MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS OWNER OCCUPIED.
*TAX RATE OF 10% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS PARTIALLY OR FULLY RENTED OUT BY THE OWNER/OWNED BY COMPANY.
*FOR PROPERTIES
OTHER THAN RESIDENTIAL PROPERTIES REGARDLESS RENTED OUT OR NOT, THE TAX RATE IS
10% (I.E INDUSTRIAL AND COMMERCIAL PROPERTY).
*ANNUAL VALUE IS
THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED OUT. THE
ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE
PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT.
BANKERS
UFJ BANK LIMITED
THE BANK OF TOKYO-MITSUBISHI UFJ, LTD
ASSOCIATED COMPANY(IES)
MAZAK (THAILAND) CO. LTD Thailand
SHAREHOLDERS(S)
YAMAZAKI MAZAK NEDERLAND B V 22,200,000 Company
Street : HOEKENRODE 6 1102 BR, ARMSTERDAM
Town : -
Postcode : -
Country : Netherlands
HOLDING COMPANY
YAMAZAKI MAZAK NEDERLAND B V UF08307K % : 100
SUBSIDIARY (IES)
No Participation In Our Database
PAYMENT HISTORY AND EXPERIENCES
Trade Morality : AVERAGE
Liquidity : ABUNDANT
Payments : REGULAR
Trend : UPWARD
Financial Situation : GOOD
LITIGATION(S)
No Litigation In Our Database
FINANCIAL ELEMENTS
All amounts in this report are in : SGD
Audit
Qualification: "MILD" "MILD" UNQUALIFIED
UNCERTAINTIES UNCERTAINTIES (CLEAN)
Date
Account Lodged: 13/09/2006
Balance Sheet Date: 31/03/2006 31/03/2005
31/03/2004
Number
of weeks: 52 52 52
Consolidation
Code: COMPANY COMPANY COMPANY
ASSETS
Intangible
Fixed Assets: 51,000 51,000 -
Tangible
Fixed Assets: 30,929,177 18,146,697 15,768,869
Investments 715,887 507,809 387,805
Total
Fixed Assets:
31,696,064
18,705,506 16,156,674
Inventories: 28,510,504 24,413,899 16,906,712
Receivables: 46,854,117 47,175,727 33,494,471
Cash,Banks,
Securities: 35,424,770 38,719,277 19,746,843
Other
current assets: 1,484,584 649,703 586,657
Total
Current Assets:
112,273,975 110,958,606 70,734,683
TOTAL ASSETS: 143,970,039 129,664,112
86,891,357
LIABILITIES
Equity
capital: 22,200,000 22,200,000 22,200,000
Profit
& loss Account: 71,765,574
55,008,576
39,218,148
Total
Equity:
93,965,574
77,208,576 61,418,148
L/T
deferred taxes: 29,665 494,000 494,000
Other
long term Liab.: 35,973 76,437 -
Total
L/T Liabilities:
65,638
570,437 494,000
Trade
Creditors: 31,912,455 38,768,281 18,388,947
Short
term liabilities: 38,828 35,111 -
Advanced
payments: 5,622,517 3,244,508 1,980,982
Provisions: 7,935,962 5,501,773 2,192,246
Prepay.
& Def. charges: 4,429,065 4,335,426 2,417,034
Total
short term Liab.:
49,938,827
51,885,099 24,979,209
TOTAL LIABILITIES: 50,004,465 52,455,536 25,473,209
PROFIT & LOSS ACCOUNT
Net
Sales 192,250,735 165,814,321 96,837,025
Purchases,Sces
& Other Gds: 155,173,434
133,023,185
73,821,318
Gross
Profit: 37,077,301 32,791,136
23,015,707
Result
of ordinary operations19,871,354
18,727,496
11,770,298
NET
RESULT BEFORE TAX: 19,861,873 18,968,039 11,812,059
Tax
: 3,104,875 3,177,611 940,853
Net
income/loss year: 16,756,998 15,790,428 10,871,206
Interest
Paid: 9,481 6,348 -
Depreciation: 3,264,876
2,024,217
1,793,049
Directors
Emoluments: 651,341 661,981 590,629
Wages
and Salaries: 11,248,609 9,953,734 7,647,292
Financial
Income: 197,031 170,384 60,142
RATIOS
31/03/2006
31/03/2005 31/03/2004
Net
result / Turnover(%): 0.09
0.10 0.11
Stock
/ Turnover(%): 0.15
0.15 0.17
Net
Margin(%): 8.72
9.52 11.23
Return
on Equity(%): 17.83
20.45 17.70
Return
on Assets(%): 11.64
12.18 12.51
Net
Working capital:
62335148.00
59073507.00 45755474.00
Cash
Ratio: 0.71 0.75 0.79
Quick
Ratio: 1.65 1.66 2.13
Current
ratio: 2.25 2.14 2.83
Receivables
Turnover: 87.74
102.42 124.52
Leverage
Ratio: 0.53 0.68 0.41
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
AUDITORS' REPORT:
THE AUDIT REPORT OF THE FINANCIAL STATEMENTS
OF THE INDIAN BRANCH ("BRANCH")
OF THE COMPANY WAS QUALIFIED AS THE BRANCH'S AUDITORS WERE UNABLE TO
SATISFY THEMSELVES ON LEGAL COMPLEXITIES THAT MAY HAVE A FINANCIAL
IMPACT ON THE FINANCIAL STATEMENTS DUE TO THE BRANCH'S VIOLATION OF
LAWS AND REGULATIONS IN INDIA, INCLUDING ITS FOREIGN EXCHANGE LAW.
THE BRANCH HAD ENTERED INTO CERTAIN TRANSACTIONS WHICH MAY NOT BE
PERMISSIBLE TO BE UNDERTAKEN BY THE BRANCH UNDER THE FOREIGN
EXCHANGE LAW IN INDIA.
TOTAL NET LIABILITIES (EXCLUDING HEAD OFFICE
ACCOUNT) OF THE BRANCH AMOUNTED
TO RS13,554,765 (S$499,255) AS AT MARCH 31, 2006 AND THE NET PROFIT
ATTRIBUTABLE TO THE BRANCH FOR THE FINANCIAL YEAR ENDED MARCH 31,
2006, AMOUNTED TO RS1,810,603 (S$50,821).
THE FINANCIAL CONDITION OF THE COMPANY WAS
DEEMED TO BE FAIR TO STABLE
IN VIEW OF THE FOLLOWING:
NET WORTH:
THE BALANCE SHEET WAS FAIRLY SOUND WITH
TOTAL EQUITY IMPROVING BY
25.59% AMOUNTING TO S$93,965,574 (2005: S$77,208,576). THIS WAS CONTRIBUTED
BY HIGHER RETAINED EARNINGS BROUGHT FORWARD OF S$71,765,574 (2005:
S$55,008,576).
LEVERAGE:
IN THE SHORT TERM, TRADE CREDITORS DECREASED
BY 17.68%, TOTALLING S$31,912,455
(2005: S$38,768,281).
OVERALL, THE LEVERAGE RATIO HAD GONE DOWN TO
0.53 TIMES (2005: 0.68 TIMES),
INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE LESS SUBSTANTIAL
IN RELATION TO ITS TOTAL EQUITY.
LIQUIDITY:
THE OVERALL LIQUIDITY WAS HEALTHY. BOTH THE
QUICK AND CURRENT RATIOS WERE
ADEQUATE AT 1.65 TIMES (2005: 1.66 TIMES) AND 2.25 TIMES (2005: 2.14
TIMES) RESPECTIVELY.
THIS WAS IN TANDEM WITH THE NET WORKING
CAPITAL, WHICH ROSE BY 5.52% ACCOUNTING FOR S$62,335,148 (2005: S$59,073,507).
PROFITABILITY:
REVENUE FOR FY2006 INCREASED BY 15.94%
AMOUNTING TO S$192,250,735
(2005: S$165,814,321). LIKEWISE, NET INCOME ROSE BY 6.12%, TOTALLING
S$16,756,998 (2005: S$15,790,428).
AS A RESULT, NET MARGIN STOOD POSITIVELY AT
8.72% (2005: 9.52%).
DEBT SERVICING:
DEBT SERVICING PROBLEMS WERE UNLIKELY TO BE
ANTICIPATED IN VIEW OF THE
HEALTHY LIQUIDITY, IMPROVED REVENUES AND NET INCOMES, AND IF TRADE
RECEIVABLES WERE FORTHCOMING.
IN ADDITION, AVERAGE COLLECTION PERIOD HAD
SHORTENED TO 88 DAYS (2005:
102 DAYS).
NOTES TO THE FINANCIAL STATEMENTS
CONTINGENT LIABILITIES
DURING THE YEAR, A FINANCIAL INSTITUTION
APPLIED FOR INTERVENTION TO
A FOREIGN COURT ORDER THAT PREVIOUSLY FAVOURED THE COMPANY IN THE RECOVERY
OF PRECISION TOOLING MACHINES SOLD TO A CUSTOMER WHICH AMOUNTED TO
APPROXIMATELY JAPANESE YEN 50 MILLION (OR EQUIVALENT TO S$724,000).
THE FINANCIAL INSTITUTION HAS ALSO APPLIED FOR COURT ORDER THAT
ENTITLED THEM TO THE SAID MACHINES OR ALTERNATIVELY, ENTITLED TO THE
SALES PROCEEDS IN THE EVENT THOSE SAID MACHINES WERE SOLD.
THE COMPANY'S LAWYERS HAVE ADVISED THAT THEY
DO NOT CONSIDER THE CLAIM
AGAINST THE COMPANY HAS ANY MERIT AND THEY HAVE RECOMMENDED THAT IT
BE CONTESTED. NO PROVISION HAS BEEN RECOGNISED IN THE FINANCIAL
STATEMENTS AS THE DIRECTORS DO NOT CONSIDER THAT THERE IS ANY
PROBABLE LOSS. SHOULD THE PROCEEDINGS BE RULED IN FAVOUR OF THE
FINANCIAL INSTITUTION, THE COMPANY'S LAWYERS
HAVE ESTIMATED THAT THE POTENTIAL
LOSS WOULD BE LIMITED TO THE SALE PROCEEDS OF THE SAID MACHINES,
ESTIMATED AT JAPANESE YEN 25 MILLION (OR EQUIVALENT TO S$362,000).
BACKGROUND/OPERATION
THE SUBJECT WAS INCORPORATED IN THE REPUBLIC
OF SINGAPORE ON 02/09/1988
AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT
NAMESTYLE AS "YAMAZAKI MAZAK SINGAPORE PTE LTD".
AS AT 26/12/2006, SUBJECT HAS AN ISSUED AND
PAID-UP CAPITAL OF 22,200,000
SHARES OF A VALUE OF S$22,200,000.
PRINCIPAL ACTIVITIES:
SUBJECT IS REGISTERED WITH THE ACCOUNTING
& CORPORATE REGULATORY
AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF: 1)
MANUFACTURING AND REPAIR OF MACHINERY AND MACHINE-TOOLS-METAL CUTTING
TYPES
DURING THE FINANCIAL YEAR(S), UNDER REVIEW,
SUBJECT'S PRINCIPAL ACTIVITY
IS TO ENGAGE IN RESEARCHING, DEVELOPING, MANUFACTURING, TRADING AND
SERVICING OF METAL WORKING MACHINES, METAL MACHINE TOOLS AND RELATED
SPARE PARTS.
THE COMPANY HAS A BRANCH IN INDIA WITH ITS
PRINCIPAL PLACE OF BUSINESS
AT ELPRO COMPOUND, CHINCHAWAD GAON, PUNE 411033, INDIA.
THE COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF
YAMAZAKI MAZAK NETHERLAND
B.V., INCORPORATED IN THE NETHERLANDS. THE COMPANY'S ULTIMATE HOLDING
COMPANY IS YAMAZAKI MAZAK TRADING CORPORATION, INCORPORATED IN JAPAN.
FROM THE RESEARCH CONDUCTED, THE FOLLOWING INFORMATION WAS GATHERED:
SUBJECT IS LISTED IN THE SINGAPORE LOCAL
DIRECTORY UNDER THE CLASSIFICATION
OF: MACHINE TOOLS.
SUBJECT IS INTO THE BUSINESS OF
MANUFACTURING PARTS FOR MACHINERIES, MANUFACTURING CNC MACHINE TOOLS, TRADING OF MACHINE TOOLS AND
DEVELOPING & DESIGNING SOFTWARE.
SUBJECT PRODUCES AND EXPORTS MACHINE TOOLS
TO MARKETS WORLDWIDE.
SUBJECT ENGAGES IN THE
FOLLOWING ACTIVITIES:
* PRECISION TURNING, LASER CUTTING, METAL
WORKING MACHINE TOOLS
BRANDS:
* MAZAK, MACHINE TOOLS
* INTEGREX, MULTI-TASKING MACHINE TOOL
PURCHASES:
* IMPORTS: NOT PROVIDED
* TERMS OF IMPORT: 30 DAY TERMS, LETTER OF
CREDITS, ETC
* IMPORT COUNTRIES: JAPAN, ETC
MARKETS:
* LOCAL (%): LESS THAN 50
* TERMS SALES: 30 DAY TERMS, ETC
* EXPORT(%): MORE THAN 50
* TERMS OF EXPORT: 30 DAY TERMS, LETTER OF
CREDITS, ETC
* EXPORT COUNTRIES: MALAYSIA, INDIA, JAPAN,
ETC
SUBJECT IS A MEMBER OF
FOLLOWING ENTITY:
* JAPANESE CHAMBER OF COMMERCE &
INDUSTRY (JCCI)
NO. OF EMPLOYEES (31
MARCH):
* COMPANY - 2006: NOT AVAILABLE (2005: 242
(2004: 219; 2003: 170;
2002: 159)
REGISTERED & BUSINESS
ADDRESSES:
21 JOO KOON CIRCLE
SINGAPORE 629053
-- FACTORY CUM OFFICE (OWNED PREMISE)
-- DATE OF CHANGE OF ADDRESS: 02/12/1991
WEBSITE:
* http://www.mazak.co.jp
*
http://www.mazak.com/english/flash/index.html
E-MAIL:
* NA
MANAGEMENT
THE DIRECTORS IN OFFICE AT THE TIME OF THIS
REPORT ARE:
1) TOSHIMITSU KITO, A JAPANESE
- BASED IN SINGAPORE
2) KENJI ESAKI, A JAPANESE
- BASED IN SINGAPORE
3) TOMOHISA YAMAZAKI, A JAPANESE
- BASED IN JAPAN
4) TAKASHII YAMAZAKI, A JAPANESE
- BASED IN JAPAN
5) NORIHIKO SHIMIZU, A JAPANESE
- BASED IN JAPAN
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
SINGAPORE’S ECONOMIC GROWTH MODERATED IN THE SECOND
QUARTER TO 7.5% YEAR-ON-YEAR DUE TO A WEAKER MANUFACTURING SECTOR. PRELIMINARY ESTIMATES
ISSUED SHOWN GROWTH IN REAL GROSS DOMESTIC PRODUCT SLOWED FROM A REVISED 10.7%
IN THE FIRST QUARTER. ON A QUARTER-ON-QUARTER BASIS, SEASONALLY ADJUSTED
ANNUALISED BASIS, GDP GREW 1.1% AFTER A 7% EXPANSION IN THE PREVIOUS QUARTER.
THE MANUFACTURING SECTOR IS FORECASTED TO HAVE
EXPANDED BY A MORE MODERATE 10.2% IN THE SECOND QUARTER, MAINLY ATTRIBUTED TO
LOWER PRODUCTION FROM THE BIOMEDICAL MANUFACTURING CLUSTER. IT FELL BY ABOUT
HALF FROM THE 20.2% IN THE FIRST QUARTER BUT HIGHER THAN THE 9.3% REGISTERED
FOR THE WHOLE OF 2005. THE MANUFACTURING SECTOR ACCOUNTS FOR ABOUT A THIRD OF
SINGAPORE’S ECONOMY WORTH S$194 BILLION.
THE KEY ELECTRONICS SECTOR IN MANUFACTURING IS GROWING
STRONGLY, AGAINST THE VOLATILE BIOMEDICAL SEGMENT. ELECTRONICS ARE SINGAPORE’S
MAIN EXPORT AND THE INDUSTRY ROSE 8.6% YEAR-ON-YEAR IN MAY, BOOSTED BY A 38.9%
GROWTH IN THE SEMICONDUCTOR SEGMENT.
THE ACTUAL FIGURES SHOWN THAT THE CONSTRUCTION SECTOR
GREW 0.2% IN THE SECOND QUARTER OVER 2Q2005. THIS IS IN CONTRAST WITH A 0.8% DECLINE
IN THE TWO PRECEDING QUARTERS AND DECLINES IN THE SIX QUARTERS BEFORE THAT.
THE SERVICES SECTOR ACTUALLY ROSE 7% FROM A YEAR
EARLIER, SLOWER THAN THE 8.2% IN THE FIRST QUARTER BUT ABOVE THE 6% RECORDED IN
2Q2005. SERVICES INDUSTRIES, WHICH RANGE FROM HOSPITALITY TO TRANSPORT, MADE UP
NEARLY TWO-THIRDS OF THE ECONOMY LAST YEAR. THOSE IN FINANCIAL SERVICES,
PARTICULARLY BANKERS, FUND MANAGERS AND STOCKBROKERS, REPORTED STRONG GROWTH OF
9.5% FROM THE SAME PERIOD LAST YEAR AND UP FROM 8.7% IN THE PREVIOUS QUARTER.
WHOLESALE AND RETAIL TRADE ROSE 10.1% IN THE SECOND
QUARTER, AGAINST 15.1% IN THE PREVIOUS QUARTER, AS WHOLESALERS WERE AFFECTED BY
A SLOWDOWN IN NON-OIL RE-EXPORTS.
HOTELS AND RESTAURANTS GAINED 6.1% IN THE SECOND
QUARTER SLOWER THAN 7.1% IN THE LAST QUARTER.
ON THE EMPLOYMENT MARKET, MORE JOBS WERE CREATED IN
THE SECOND QUARTER BUT UNEMPLOYMENT ROSE TO 2.9% AS MORE PEOPLE, ESPECIALLY
TERTIARY GRADUATES, ENTERED THE JOB MARKET. SOME 36,500 MORE JOBS WERE CREATED
IN THE SECOND QUARTER, REFLECTING THE CONTINUED GROWTH IN THE ECONOMY. IT
BROUGHT THE TOTAL NUMBER OF JOBS CREATED IN THE FIRST HALF OF 2006 TO A RECORD
81,500, WHICH IS ABOUT TWO-THIRDS MORE THAN THE 49,500 REGISTERED IN THE SAME
PERIOD LAST YEAR.
THE SERVICE INDUSTRY CONTRIBUTED MOSTLY TO THE JOBS
CREATION, ADDING 24,200 JODS, WHILE MANUFACTURING AND CONSTRUCTION POSTED
INCREASE OF 8,300 AND 4,000 JOBS RESPECTIVELY.
RETRENCHED WORKERS TOTAL 3,100, LOWER THAN THE 3,500
IN THE FIRST QUARTER, BUT HIGHER THAN THE 2,100 IN 2Q2005.
AHEAD
THE OUTLOOK FOR THE ECONOMY REMAINS POSITIVE, AMID
SIGNS OF A SLOWDOWN IN GLOBAL GROWTH. ON 8 AUGUST 2006, PRIME MINISTER LEE
HISEN LOONG ANNOUNCED THAT THE SINGAPORE ECONOMY GREW 9.4% IN THE FIRST HALF OF
2005. AS A RESULT, BARRING AN OIL SHOCK, THE FULL YEAR OFFICIAL FORECAST IS
BEING RAISED TO BETWEEN 6.5% AND 7.5% FOR 2006, UP FROM THE EARLIER 5 TO 7%
RANGE.
IN THE SECOND HALF, MODERATE GROWTH WILL BE REGISTERED
IN LINE WITH THE COOLING GLOBAL ECONOMY. BUT SURPRISINGLY, THE COMPOSITE
LEADING INDEX (CLI), AN INDICATOR THAT LEADS ECONOMIC ACTIVITY BY ABOUT ONE TO
TWO QUARTERS AHEAD, ROSE 1.5% IN ITS FASTEST GROWTH IN OVER TWO YEARS. CLI
COMPRISES NINE COMPONENTS SUCH AS MONEY SUPPLY, LIQUIDITY AND STOCK PRICES.
THE GLOBAL ENERGY PRICES WILL CONTINUE TO FLUCTUATE
WITH THE VIOLENCE IN THE MIDDLE EAST AND POTENTIAL SUPPLY PROBLEMS IN NIGERIA,
IRAN AND IRAQ. OTHER RISK FACTORS INCLUDE AN AVIAN FLU OUTBREAK, A SLOWDOWN IN
THE UNITED STATES ECONOMY, AND THE UNWINDING OF GLOBAL IMBALANCES SUCH AS THE
US TRADE DEFICIT.
HOTELS AND RESTAURANTS ARE BANKING ON SEPTEMBER’S
INTERNATIONAL MONETARY FUND/WORLD BANK MEETING TO MAINTAIN THE GROWTH MOMENTUM.
THE FINANCIAL SERVICES SECTOR IS HOPEFUL THAT WITH THE
PICK-UP IN BUSINESS LOANS, BILLION-DOLLAR HEDGE FUNDS RELOCATING HERE FROM HONG
KONG AND STRONG INSURANCE SALES, THE INDUSTRY WILL BE GROWING ROBUSTLY FOR THE
REST OF THE YEAR.
SLOWER 8.4% GROWTH IN NON-OIL EXPORTS LAST MONTH
SINGAPORE’S NON-OIL DOMESTIC EXPORTS (NODX) GREW AT A
SLOWER-THAN-EXPECTED 8.4% IN JULY 2006 OVER THE SAME MONTH A YEAR AGO, MAINLY
DUE TO WEAKER SHIPMENTS OF ELECTRONICS, PHARMACEUTICALS AND PETROCHEMICALS.
ELECTRONICS EXPORTS, WHICH ACCOUNTED FOR SLIGHTLY LESS
THAN HALF OF OVERALL NODX IN 2005, GREW 5% IN JULY TO S$6.62 BILLION. IT WAS
THE 12TH STRAIGHT MONTH OF EXPANSION BUT WEAKER THAN THE 9.1% GROWTH REGISTERED
IN JUNE. IT WAS HURT BY A 23% FELL IN DISK DRIVE EXPORTS, WHICH WAS BEING
VALUED AT S$843 MILLION IN JULY, AND A 21% DECLINE IN PERSONAL COMPUTER
SHIPMENTS VALUED AT S$86 MILLION.
NON-ELECTRONIC EXPORTS, WHICH CONSIST MAINLY OF
PHARMACEUTICALS AND PETROCHEMICALS, ROSE 11.7% TO S$7.14 BILLION.
PHARMACEUTICALS ROSE 7.1% TO S$1.27 BILLION IN JULY, SIGNIFICANTLY SLOWER THAN
THE JUNE’S RISE OF 25% TO S$1.45 BILLION. PETROCHEMICAL EXPORTS ROSE 11.5% TO
S$1.02 BILLION, IN COMPARISON WITH THE 32% GROWTH IN JUNE TO S$1.1 BILLION.
SHIPMENTS TO SINGAPORE’S MAJOR MARKETS SUCH AS
MALAYSIA, HONG KONG AND THE UNITED STATES GREW IN JULY BUT THESE WERE OFFSET BY
DECLINES IN OTHER DESTINATIONS, INCLUDING JAPAN, CHINA AND EUROPEAN UNION.
TOTAL TRADE IN JULY ROSE 15.9% TO ALMOST S$69 BILLION.
REGIONAL ECONOMIST SONG SENG WUN OF CIMB-GK RESEARCH
PREDICTED THAT THE TECHNOLOGY SECTOR COULD ENJOY A REBOUND IN THE COMING MONTHS
AS DEMAND TYPICALLY PICK UP WITH THE CHRISTMAS SEASON. THE TECHNOLOGY EXPORTS
WILL GROW BY THE LOW-TO-MID TEENS RANGE AS THE DISK DRIVE EXPORTS IMPROVE.
EXTRACTED FROM : MINISTRY OF TRADE AND INDUSTRY,
SINGAPORE
IE SINGAPORE
THE STRAITS TIMES
TODAY
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 |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)