MIRA
INFORM REPORT
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Report Date : |
1st
January, 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, Singapore |
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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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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 Requested : -
Credit Rating : Sing $ 50 000
001 & Over
Credit Opinion : -
BUSINESS INFORMATION REPORT
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
CCMS Number : 702000092878
Report Date : 29/12/2006
Update Date : 29/12/2006
Credit Requested : -
Credit Opinion : -
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
RATING: A1
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.
SOURCES: COFACE COPYRIGHT. ALL RIGHTS
RESERVED.
@RATING COUNTRY
RATING DEFINITION
INVESTMENT GRADE
A1 - THE STEADY POLITICAL AND ECONOMIC
ENVIRONMENT HAS POSITIVE EFFECTS ON AN ALREADY GOOD PAYMENT RECORD OF
COMPANIES. VERY WEAK DEFAULT PROBABILITY.
A2 - DEFAULT PROBABILITY IS STILL WEAK EVEN
IN THE CASE WHEN ONE COUNTRY'S POLITICAL AND ECONOMIC ENVIRONMENT OR THE
PAYMENT RECORD OF COMPANIES IS NOT AS GOOD AS IN A1-RATED COUNTRIES.
A3 - ADVERSE POLITICAL OR ECONOMIC
CIRCUMSTANCES MAY LEAD TO A WORSENING PAYMENT RECORD THAT IS ALREADY LOWER THAN
THE PREVIOUS CATEGORIES, ALTHOUGH THE PROBABILITY OF A PAYMENT DEFAULT IS STILL
LOW.
A4 - AN ALREADY PATCHY PAYMENT RECORD COULD
BE FURTHER WORSENED BY A DETERIORATING POLITICAL AND ECONOMIC ENVIRONMENT.
NEVERTHELESS, THE PROBABILITY OF A DEFAULT IS STILL ACCEPTABLE.
SPECULATIVE
GRADE
B - AN UNSTEADY POLITICAL AND ECONOMIC
ENVIRONMENT IS LIKELY TO AFFECT
FURTHER AN ALREADY POOR PAYMENT RECORD.
C - AN VERY UNSTEADY POLITICAL AND ECONOMIC
ENVIRONMENT COULD DETERIORATE AN
ALREADY BAD PAYMENT RECORD.
D - THE HIGH RISK PROFILE OF A COUNTRY'S
ECONOMIC AND POLITICAL ENVIRONMENT
WILL FURTHER WORSEN A GENERALLY VERY BAD
PAYMENT RECORD.
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 |
|