MIRA
INFORM REPORT
|
Report Date : |
05.06.2008 |
IDENTIFICATION
DETAILS
|
Name : |
CHEVRON PHILLIPS CHEMICALS ASIA PTE LTD |
|
|
|
|
Formerly Known As : |
PHILLIPS PETROLEUM CHEMICALS ASIA |
|
|
|
|
Registered Office : |
5 Temasek Boulevard #05-01 Suntec City Tower Five |
|
|
|
|
Country : |
Singapore |
|
|
|
|
Financials (as on) : |
31.12.2006 |
|
|
|
|
Date of Incorporation : |
25.08.1988 |
|
|
|
|
Com. Reg. No.: |
198803058G |
|
|
|
|
Legal Form : |
Pte Ltd
|
|
|
|
|
Line of Business : |
Manufacturing and Sale of High Density Polyethylene. |
RATING &
COMMENTS
|
MIRA’s Rating : |
Aa |
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
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 |
|
Status : |
Very Good |
|
|
|
|
Payment Behaviour : |
Regular |
|
|
|
|
Litigation : |
Clear |
Subject Company
CHEVRON PHILLIPS CHEMICALS ASIA PTE LTD
Line Of Business
MANUFACTURING AND
SALE OF HIGH DENSITY POLYETHYLENE.
Parent Company
CHEVRON PHILLIPS CHEMICAL
(PERCENTAGE OF SHAREHOLDING: 100.00%)
Financial Elements
FY 2006
COMPANY
Sales :
S$762,614,000
Networth :
S$201,729,000
Paid-Up
Capital : S$286,268,000
Net result : S$ 5,232,000
Net Margin(%) : 0.69
Return on Equity(%) : 2.59
Leverage Ratio : 0.93
COMPANY IDENTIFICATION
Subject Company : CHEVRON PHILLIPS CHEMICALS ASIA PTE. LTD.
Former Name : PHILLIPS PETROLEUM CHEMICALS ASIA
Business Address: 5 TEMASEK BOULEVARD
#05-01
SUNTEC CITY TOWER FIVE
Town : SINGAPORE
Postcode : 038985
Country : Singapore
Telephone : 6337 9700
Fax : 6337 9620
ROC Number : 198803058
PREVIOUS IDENTIFICATION
PHILLIPS PETROLEUM CHEMICALS ASIA PTE. LTD. DATE
SUMMARY
All amounts in this report are in : SGD
Legal Form : Pte Ltd
Date Inc. :
25/08/1988
Previous Legal Form : -
Summary year : 31/12/2006
Sales :
762,614,000
Networth :
201,729,000
Capital :
-
Paid-Up Capital : 286,268,000
Employees :
-
Net result :
5,232,000
Share value :
-
Auditor : ERNST & YOUNG
BASED ON ACRA'S RECORD
NO OF SHARES CURRENCY AMOUNT
ISSUED ORDINARY 500,000 SGD 500,000.00
PAID-UP ORDINARY - SGD 500,000.00
REFERENCES
Litigation : No
Company status : TRADING
Started : 25/08/1988
PRINCIPAL(S)
ROBERT FORD BUESINGER 712596777 Managing Director
DIRECTOR(S)
GREG C GARLAND 133479537 Director
Appointed on : 01/02/2002
Street : 6118 SOARING PINE HOUSTON
Town: TEXAS
Postcode: 77345
Country: United States
JOSEPH MCKEE 154130129 Director
Appointed on : 01/01/2001
Street : 11 BRACEBRIDGE DRIVE
THE WOODLANDS
Town: TEXAS
Postcode: 77382
Country: United States
TIMOTHY GARTH TAYLOR 135397483 Director
Appointed on : 01/01/2001
Street : 71 HERITAGE HILL CIRCLE
THE WOODLANDS
TX 77381
Town:
Postcode:
Country: United States
ROBERT CHNG CHONG POO A17356914 Director
Appointed on : 01/04/2004
Street : 1N PINE GROVE
PINE GROVE
Town: SINGAPORE
Postcode: 591301
Country: Singapore
LEONG YUKE CHUN S0153670B Company Secretary
Appointed on : 15/03/1990
Street : 310 SERANGOON AVENUE 2
#03-170
Town: SINGAPORE
Postcode: 550310
Country: Singapore
ROBERT FORD BUESINGER 712596777 Director
Appointed on : 10/06/2005
Street : 2 LEONIE HILL ROAD
#24-04
LEONIE CONDOTEL
Town: SINGAPORE
Postcode: 239192
Country: Singapore
ROBERT FORD BUESINGER 712596777 Managing Director
Appointed on : 10/06/2005
Street : 2 LEONIE HILL ROAD
#24-04
LEONIE CONDOTEL
Town: SINGAPORE
Postcode: 239192
Country: Singapore
MICHAEL COLLIGAN EMERSON 134330847 Director
Appointed on : 01/07/2007
Street : 50 GREENMEAD AVENUE
HILLCREST PARK
Town: SINGAPORE
Postcode: 289442
Country: Singapore
MICHAEL L. MEISSNER 305530716 Director
Appointed on : 01/07/2007
Street : 2 WEEPING SPRUCE PL.
THE WOODLANDS, TX 77384
Town:
Postcode:
Country: United States
FORMER DIRECTOR(S)
ROFF ALAN LEE S01167620
ANDERSON GAIL PHILIP S01326677
CASSELBERRY D W S08041415
HAMMERLI ALAN RAY S08098354
GUY E SUTHERLAND S12443831
MCKEE JOSEPH MASON S12602210
LI CHI HUNG S2220515C
CARRIG JOHN A S50014923
VANBUSKIRK JOHN REED S81015533
MAXWELL G G S82538528
DANCER JEFFREY WALLACE SE1375553
BENZ JOHN ROBERT SE1634808
WILSON JERRY GLENN SE1852728
JONES W GLENN E453952
HUBBY JOHN SAM SZ6457927
JEROME LEO JARDING SZ7115503
MARK EDWARD LASHIER 710333427
SCOTT FERGUSON HUSSEY 710867688
STEVEN WAYNE PIOTTER 132161568
ACTIVITY(IES)
CHEMICALS Code:3970
PETROLEUM PRODUCTS Code:16350
BUSINESS SERVICES Code:4
BASED ON ACRA'S RECORD
1) WHOLESALE OF CHEMICALS AND CHEMICAL PRODUCTS
2) WHOLESALE OF SOLID, LIQUID AND GASEOUS FUELS AND RELATED PRODUCTS
PREMISES/PROPERTY INFORMATIONS
Date: 12/05/2008
Estimated Value :
Tax rate: 10
Site Address : 21 TUAS AVENUE 3
Town: SINGAPORE
County:
Postcode: 639417
Country: Singapore
Annual Value: 664,000
* 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
BANK OF AMERICA NT & SA
BAYERISCHE LANDESBANK
(F.K.A BAYERISCHE LANDESBANK GIROZE
SHAREHOLDERS(S)
CHEVRON PHILLIPS CHEMICAL 500,000 Company
Street : NORTH MARKET ST WILMINGTON
NEW CASTLE COUNTRY DELAWARE
Town:
Postcode: 19801
Country: United States
FORMER SHAREHOLDER(S)
PHILLIPS PETROLEUM INTERNATIONAL 500,000
HUBBY JOHN SAM 1
HOLDING COMPANY
CHEVRON PHILLIPS CHEMICAL UF28932W % : 100
SUBSIDIARY(IES)
No Participation In Our Database
PAYMENT HISTORY AND
EXPERIENCES
Trade Morality : AVERAGE
Liquidity : SUFFICIENT
Payments : REGULAR
Trend : UPWARD
Financial Situation : GOOD
FINANCIAL ELEMENTS
All amounts in this
report are in : SGD
Audit
Qualification: UNQUALIFIED
(CLEAN) UNQUALIFIED (CLEAN) Date
Account Lodged:
29/06/2007
Balance Sheet
Date: 31/12/2006 31/12/2005 Number
of weeks:
52
52 Consolidation Code: COMPANY COMPANY
--- ASSETS ---
Preliminary
Exp 2,314,000 3,100,000
Tangible Fixed
Assets: 178,757,000 187,794,000
Total
Fixed Assets:
181,071,000
190,894,000
Inventories: 48,179,000 48,338,000
Receivables: 153,833,000 151,774,000
Cash,Banks,
Securitis:
6,214,000 8,634,000
Other current
assets: 536,000 506,000
Total
Current Assets: 208,762,000 209,252,000
TOTAL
ASSETS:
389,833,000
400,146,000
--- LIABILITIES ---
Equity
capital:
286,268,00 282,857,000
Profit
& lost Account: -84,539,000 -89,771,000
Surplus
equity: 3,411,000
Total
Equity: 201,729,000 196,497,000
Long Term
Loans:
70,371,000
87,452,000
L/T deffered
taxes:
Total
L/T Liabilities:
70,371,000
87,452,000
Trade
Creditors:
13,374,000
15,396,000
Prepay. & Def.
charges: 58,010,000 53,631,000
Due to Bank: 46,349,000 47,170,000
Provisions:
Other Short term Liab.:
Total
short term Liab.:
117,733,000
116,197,000
TOTAL
LIABILITIES:
188,104,000
203,649,000
--- PROFIT & LOSS ACCOUNT
---
Net Sales 762,614,000 703,548,000 NET RESULT BEFORE TAX: 6,018,000 3,739,000 Tax : 786,000
Net income/loss
year: 5,232,000 3,739,000 Interest Paid: 6,038,000 5,337,000
Depreciation: 13,836,000 13,717,000 Directors Emoluments: 1,128,000 979,000 Wages and Salaries: 10,816,000 13,013,000 Financial Income:
RATIOS
31/12/2006 31/12/2005
Net result /
Turnover(%): 0.01 0.01 Fin. Charges / Turnover(%): 0.01 0.01 Stock / Turnover(%): 0.06 0.07
Net Margin(%): 0.69 0.53 Return on Equity(%): 2.59 1.90 Return on Assets(%): 1.34 0.93
Net Working
capital: 91029000.00 93055000.00 Cash Ratio: 0.05 0.07 Quick Ratio: 1.36 1.38
Current ratio: 1.77 1.80 Receivables Turnover: 72.62 77.66 Leverage Ratio: 0.93 1.04
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
Receivables
Turnover : (Receivable*360)/Net sales
Leverage Ratio : Total liabilities/(Total equity-Intangible assets)
FINANCIAL COMMENTS
THE FINANCIAL CONDITION
OF THE COMPANY WAS SEEN TO BE LIMITED TO FAIR IN VIEW OF
THE FOLLOWING:
NET
WORTH:
THE BALANCE SHEET
WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 2.66% FROM
S$196,497,000 IN 2005 TO S$201,729,000 IN 2006.
THIS WAS DUE TO
LOWER ACCUMULATED LOSSES OF S$84,539,000 (2005: ACCUMULATED LOSSES OF
S$89,771,000); A FALL OF 5.83% FROM THE PRIOR FINANCIAL YEAR.
LEVERAGE:
IN THE SHORT-TERM,
SUBJECT WAS LARGELY FINANCED BY AMOUNTS DUE TO BANKS WHICH
MADE UP 39.37% (2005: 40.59%) OF THE TOTAL CURRENT
LIABILITIES AND AMOUNTED TO S$46,349,000
(2005: S$47,170,000). THE BREAKDOWN IS AS FOLLOWS:
* FIXED TERM LOAN - 2006: S$10,756,000 (2005:
S$11,660,000)
* TRADE BILLS
DISCOUNTED - 2006: S$35,593,000 (2005: S$35,510,000)
TRADE CREDITORS FELL
BY 13.13% TO S$13,374,000 (2005: S$15,396,000).
SUBJECT'S LONG
TERM LIABILITIES, WHICH CONSIST OF FIXED TERM AND REVOLVING
CREDIT LOANS, FELL BY 19.53% TO S$70,371,000 (2005: S$87,452,000).
IN
ALL, LEVERAGE RATIO FELL FROM 1.04 TIMES TO 0.93 TIMES AS A
RESULT
OF A RISE IN TOTAL EQUITY AND A FALL IN TOTAL LIABILITIES.
LIQUIDITY:
IN
GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE EVEN THOUGH NET WORKING
CAPITAL FELL BY 2.18% TO S$91,029,000 (2005: S$93,055,000).
CURRENT
RATIO FELL TO 1.77 TIMES, DOWN FROM 1.80 TIMES AND QUICK RATIO
DECREASED TO 1.36 TIMES FROM 1.38 TIMES IN 2005.
PROFITABILITY:
REVENUE
POSTED AN INCREASE OF 8.40% FROM S$703,548,000 IN 2005 TO S$762,614,000
AND NET PROFIT ROSE BY 39.93% TO S$5,232,000 (2005: S$3,739,000).
HENCE,
NET MARGIN ROSE TO 0.69% (2005: 0.53%).
REVENUE:
*
EXTERNAL CUSTOMERS - 2006: S$624,876,000 (2005:
S$564,878,000)
* RELATED PARTIES - 2006: S$137,738,000 (2005:
S$138,670,000)
DEBT SERVICING:
DEBT
SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE
MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN ADDITION,
ITS INTEREST COVERAGE WAS HEALTHY AS SHOWN BY ITS INTEREST COVERAGE
RATIO OF 1.99 TIMES (2005: 1.70 TIMES).
NON-CURRENT ASSETS:
THE
FOLLOWING ITEM IS CLASSIFIED UNDER PRELIMINARY:
* DEFERRED TAX ASSET - 2006: S$2,314,000
(2005: S$3,100,000)
NOTES
TO THE FINANCIAL STATEMENTS: FIXED TERM AND REVOLVING CREDIT LOANS
THE
FIXED TERM LOAN IS REPAYABLE IN 16 SEMI ANNUAL EQUL INSTALMENTS COMMENCING
ON 2 OCTOBER 2001. THE REVOLVING CREDIT LOAN IS TO BE REPAID IN
2010.
TRADE
BILLS DISCOUNTED
TRADE
BILLS DISCOUNTED ARE UNSECURED, REPAYABLE WITHIN ONE YEAR AND BEAR AN
AVERAGE INTEREST RATE OF 3.83% (2005: 2.59%) PER ANNUM.
FUTURE
CAPITAL EXPENDITURE
CAPITAL
EXPENDITURE NOT PROVIDED FOR IN THE FINANCIAL STATEMENTS
CAPITAL
EXPENDITURE APPROVED BUT NOT COMMITTED - 2006: S$4,943,000
(2005:
S$7,058,000)
BACKGROUND/OPERATION
THE
COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 25/08/1988 AS
A LIMITED PRIVATE COMPANY AND WAS TRADING UNDER THE NAMESTYLE OF
"PHILLIPS PETROLEUM CHEMICALS ASIA PTE. LTD.".
SUBSEQUENTLY
ON 08/08/2000, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF
"CHEVRON PHILLIPS CHEMICALS ASIA PTE. LTD.".
THE
COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 500,000
SHARES OF A VALUE OF S$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 CHEMICALS AND CHEMICAL PRODUCTS
2)
WHOLESALE OF SOLID, LIQUID AND GASEOUS FUELS AND RELATED PRODUCTS
(EG
BITUMEN)
THE
COMPANY WAS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION
OF: PLASTICS-RAW MATERIALS-POWDERS, LIQUIDS, RESINS, ETC
DURING
THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES
ARE THE MANUFACTURING AND SALE OF OF HIGH DENSITY POLYETHYLENE.
FROM
THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED: ACTIVITIES:
*
PRODUCTION AND SALES OF HIGH DENSITY POLYETHYLENE RESINS; SUPPLY
AND
DISTRIBUTION OF AROMATIC PETROCHEMICALS, ALPHA OLEFINS,
SPECIALTY
CHEMICALS AND DRILLING SPECIALTIES
PRODUCT
PRODUCED:
*
RYLON POLYPHENYLENE SULFIDE
TERMS
OF PAYMENT:
*
TRADE AND OTHER RECEIVABLES: 30 DAY TERMS
*
TRADE AND OTHER PAYABLES : 30-90 DAY
TERMS
SUBJECT
IS A MEMBER OF THE FOLLOWING ENTITIES
*
SINGAPORE INSTITUTE OF MANAGEMENT
*
SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE
*
SINGAPORE MANUFACTURERS' FEDERATION
*
AMERICAN CHAMBER OF COMMERCE
*
SINGAPORE CHEMICAL INDUSTRY COUNCIL
AWARDS:
*
ANNUAL SAFETY PERFORMANCE AWARD 2002
NO
OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY
SUBJECT'S PERSONNEL ON
DURING
THE FINANCIAL YEAR, THE COMPANY IN JOINTLY OWNED BY CHEVRON PHILLIPS
CHEMICAL INTERNATIONAL HOLDINGS LLC,
SUMITOMO CHEMICAL COMPANY LIMITED, AND EDB INVESTMENTS PTE LTD.
HOWEVER,
BASED ON ACRA'S RECORD DATED 03/10/2007, SUBJECTIS NOW A WHOLLY OWNED
SUBSIDIARY OF CHEVRON PHILLIPS CHEMICAL INTERNATIONAL HOLDINGS, A
COMPANY INCORPORATED IN THE UNITED STATES OF AMERICA.
NUMBER
OF EMPLOYEES (31 DECEMBER):
-
COMPANY - 2006: NOT AVAILABLE (2005: 120; 2004: 117; 2003: 112;
2002:
113)
REGISTERED
AND BUSINESS ADDRESS:
5
TEMASEK BOULEVARD
#05-01
SUNTEC
CITY TOWER FIVE
SINGAPORE
038985
DATE
OF CHANGE OF ADDRESS: 10/08/1999
-
RENTED PREMISE
-
OWNED BY: HSBC INSTITUTIONAL TRUST SERVICES (SINGAPORE) LIMITED
OTHER
BUSINESS ADDRESS:
21
TUAS AVENUE 3
SINGAPORE
639417
-
OWNED PREMISE
-
PLASTICS COMPOUNDING & DEVELOPMENT CENTRE
-
TEL: 6861 6991; FAX: 6861 6760
POSTAL
ADDRESS:
RAFFLES
CITY P.O.BOX 3058
SINGAPORE
911799
WEBSITE:
www.cpchem.com (HOLDING COMPANY'S)
EMAIL : chentj@cpchem.com
MANAGEMENT
THE
DIRECTORS AT THE TIME OF THIS REPORT ARE:
1)
GREG C GARLAND, AN AMERICAN
-
BASED IN THE UNITED STATES OF AMERICA.
2)
MICHAEL COLLIGAN EMERSON, AN AMERICAN
-
BASED IN SINGAPORE.
3)
TIMOTHY GARTH TAYLOR, AN AMERICAN
-
BASED IN THE UNITED STATES OF AMERICA.
4)
JOSEPH MCKEE, AN AMERICAN
-
BASED IN THE UNITED STATES OF AMERICA.
5)
MICHAEL L. MEISSNER, AN AMERICAN
-
BASED IN THE UNITED STATES OF AMERICA.
6)
ROBERT FORD BUESINGER, AN AMERICAN
-
BASED IN SINGAPORE.
7)
ROBERT CHNG CHONG POO, A MALAYSIAN
-
BASED IN SINGAPORE.
Singapore’s Country Rating 2007
Investment Grade
IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.
SINGAPORE BOASTS THE
BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION
AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.
EXTERNAL ACCOUNTS HAVE REMAINED
SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND
PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE
INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE
LARGE CURRENT ACCOUNT SURPLUS.
SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN
AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING
AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND
PHARMACEUTICAL SECTORS.
THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP
PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO
ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A
REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.
CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE
HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY
OPENING UP, BUT THE PROGRESS IS SLOW.
AFTER HIGH GROWTH IN 2006, BUOYED
BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS
EXPECTED IN 2007.
ASSETS
- MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED
TEMASEK HOLDING COMPANY.
- HIGH QUALITY COMPETITIVENESS IN ASIA
- EXCELLENT BUSINESS CLIMATE
- POLITICAL STABILITY.
WEAKNESSES
- SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR
DEVELOPMENT.
- AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC
PERFORMANCE.
- GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT
AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
- BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO
WORLD ECONOMIC DOWNTURNS.
WHOLESALE AND
RETAIL TRADE SECTOR
PAST PERFORMANCE
THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.0% IN 4Q 2007, SLOWER
THAN THE 6.8% GROWTH IN 3Q 2007. RETAIL SALES FELL BY 2.5%, FOLLOWING A 1.5%
GROWTH IN 3Q 2007.
DOMESTIC WHOLESALE
TRADE INDEX
THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 22.2% IN 4Q 2007 OVER 4Q
2006.
EXCLUDING PETROLEUM, DOMESTIC SALES GREW BY 4.8%.
THE RISE IN THE OVERALL INDEX WAS MAINLY DUE TO HIGHER SALES OF
PETROLEUM AND PETROLEUM PRODUCTS (47.3%), TIMBER, PAINTS AND CONSTRUCTION
MATERIALS (29.8%). OTHER WHOLESALE SEGMENTS THAT REPORTED DOUBLE-DIGIT GROWTH
WERE WHOLESALING OF GENERAL WHOLESALE TRADE, HOUSEHOLD EQUIPMENT AND FURNITURE
AND CHEMICALS AND CHEMICAL PRODUCTS.
ON THE OTHER HAND, WHOLESALE SEGMENT THAT REPORTED LOWER SALES WERE
ELECTRONIC COMPONENTS (-35.8%).
AT CONSTANT PRICES, THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 1.6% IN
4Q 2007 OVER 4Q 2006. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE SLIGHTLY BY
0.2%.
ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE IN
4Q 2007 ROSE BY 7.1% OVER 3Q 2007. EXCLUDING PETROLEUM, DOMESTIC SALES
CONTRACTED BY 2.9%.
THE MAJORTIY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN
4Q 2007 OVER PREVIOUS QUARTER. PETROLEUM AND PETROLEUM PRODUCTS EXPANDED BY
20.0%. GENERAL WHOLESALE TRADE AND INDUSTRIAL AND CONSTRUCTION MACHINERY ALSO
REGISTERED
DOUBLE-DIGIT GROWTH OVER PREVIOUS QUARTER.
ON THE OTHER HAND, SALES OF FOOD, BEVERAGES
AND TOBACCO AND ELECTRONIC COMPONENTS FELL IN 4Q 2007 OVER 3Q 2007.
FOREIGN
WHOLESALE TRADE INDEX
THE OVERALL FOREIGN WHOLESALE TRADE FOR 4Q 2007 ROSE BY 27.0%, IN
COMPARISON TO 4Q 2006. EXCLUDING PETROLEUM, IT EXPANDED BY 15.3%
MOST OF THE SECTORS REPORTED HIGHER SALES. DOUBLE-DIGIT GROWTH RATES FOR
OVERSEAS SALES WERE RECORDED BY FOOD, BEVERAGES AND TOBACCO (40.6%) PETROLEUM
AND PETROLEUM PRODUCTS (39.9%) SHIP CHANDLERS AND BUNKERING (24.3%) INDUSTRIAL
AND CONSTRUCTION MACHINERY (18.2%) CHEMICALS AND CHEMICAL PRODUCTS (16.4%)
ELECTRONIC COMPONENTS (12.1%) TIMBER, PAINT AND CONSTRUCTION MATERIALS (11.1%).
ON THE OTHER HAND, OVERSEAS SALES OF TELECOMMUNICATIONS AND COMPUTERS
FELL BY 2.8%
IN 4Q 2007 OVER 4Q 2006.
AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 11.5% IN 4Q 2007 OVER 4Q
2006.
EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE GREW BY 15.1%.
ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL FOREIGN WHOLESALE TRADE IN
4Q 2007 ROSE BY 11.7% OVER 3Q 2007. EXCLUDING PETROLEUM, IT GREW BY 6.0%.
ALL WHOLESALE SECTORS RECORDED BETTER BUSINESS IN 4Q 2007 WITH THE
EXCEPTION OF THE ELECTRONIC COMPONENTS SECTOR. THOSE SECTORS THAT REGISTERED
DOUBLE-DIGIT GROWTH WERE WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS,
TELECOMMUNICATIONS AND COMPUTERS, INDUSTRIAL AND CONSTRUCTION MACHINERY AND
CHEMICALS AND CHEMICAL PRODUCTS.
RETAIL
TRADE
THE OVERALL RETAIL SALES CONTRACTED BY 2.5%,
IN CONTRAST TO THE 1.5% GROWTH IN 3Q 2007. THE SECTOR THAT RECORDED THE LARGEST
DECLINE WERE MOTOR VEHICLES, FOLLOWED BY PROVISION AND SUNDRY SHOPS, FOOD AND
BEVERAGES, WATCHES AND JEWELLERY AND MEDICAL GOODS AND TOILETRIES. EXCLUDING
MOTOR VEHICLES, RETAIL SALES ROSE BY 5.2%, A DECLINE FROM THE 6.O% GROWTH IN 3Q
2007.
NEWS
SURPRISING
DROP IN RETAIL SALES
RETAIL SALES FELL UNEXPECTEDLY IN FEBRUARY,
THE FIRST TIME IN SEVEN MONTHS, AS INFLATION HIT 26 YEAR HIGHS AND WORRIES GREW
ABOUT THE WORLD ECONOMY. SHOPS, SUPERMARKETS AND OTHER RETAILERS SAW REVENUES
FELL 1.3% FROM A YEAR EARLIER, AS CAR SALES DECLINED 10.6% AND FOOD AND
BEVERAGES SALES PLUNGED 21.8%.
THE OVERALL CONTRACTION BY THE SECTOR WOULD
HAVE BEEN BIGGER IF NOT FOR MUCH HIGHER PRICES THIS YEAR. IN CONSTANT PRICES
TERMS, SALES FELL 5.7%. THIS IS THE WORST READING SINCE THE 5.0% DECLINE IN
MARCH 2007, IF ONE WERE TO IGNORE THE 2.0% CONTRACTION IN JULY THAT WAS DUE TO
THE HIKE IN THE GOODS AND SERVICES TAX,” SAID HSBC ECONOMIST PRAKRITI SOFAT.
ANALYSTS SAID RISING LIVING COSTS AND
UNCERTAINTY ABOUT THE ECONOMY WOULD AFFECT
SINGAPORE CONSUMER’S SPENDING THIS YEAR. MANY, HOWEVER, REMAIN LARGELY
OPTIMISTIC ABOUT THE DOMESTIC RETAIL SCENE, SAYING THE POOR FEBRUARY SHOWING
COULD BE A STATISTICAL BLIP.
DOMESTIC DEMAND CONDITIONS REMAIN POSITIVE,
HELPED BY THE GOVERNMENT WHICH IS GIVING CASH FROM LAST YEAR’S SURPLUS TO THE
WHOLE POPULATION AND ISSUING FOOD VOUCHERS TO THE POOR. “LOW INTEREST RATES AND
A HEALHY JOBS MARKET SHOULD KEEP SPENDING FIRM,” SAID HSBC’S MS SOFAT. SHE
ADDED THAT FEBRUARY’S DECLINE WAS DUE LARGELY TO A HIGH BASE SET THE PREVIOUS
YEAR AND PREDICTED THAT MARCH SALES WOULD BOUNCE BACK WITH A 15.0% SURGE. ALSO,
IF COMPARED WITH JANUARY, FEBRUARY SALES ROSE 8.8% AFTER ADJUSTING FOR SEASONAL
EFFECTS. THIS WAS THE STRONGEST PERFORMANCE IN FOUR YEARS, SHE SAID.
CIMB-GK ECONOMIST SONG SENG WUN SAID MUCH OF
THE POOR PERFORMANCE CAME ON THE BACK OF WEAKER CAR SALES. EXCLUDING THOSE,
RETAIL SALES WOULD HAVE RISEN 2.9%. CAR SALES HAVE BEEN HURT SINCE OCTOBER BY
RISING CERTIFICATE OF ENTITLEMENT PRICES, CAUSED BY AN EXPECTED CUT IN QUOTAS
FROM NEXT MONTH AND SURGING PUMP PRICES.
OUTLOOK
GENERALLY, WHOLESALERS ARE POSITIVE ABOUT
THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF
4% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THE MAJORITY OF
WHOLESALERS OF PETROLEUM AND PETROLEUM PRODUCTS, CHEMICALS AND CHEMICAL
PRODUCTS, INDUSTRIAL MACHINERY AND EQUIPMENT AND COMPUTERS AND ACCESSORIES
FORECAST BUSINESS OUTLOOK TO REMAIN THE SAME IN THE FIRST SIX MONTHS OF 2008
COMPARED WITH THE LAST SIX MONTHS IN 2007.
A NET WEIGHTED BALANCE OF 12% OF RETAILERS
PREDICTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE PERIOD ENDING JUNE 2008.
AS A RESULT OF THE REDUCED CERTIFICATE OF ENTITLEMENT (COE) QUOTA, MOTOR
VEHICLES RETAILERS ARE ESPECIALLY CONCERNED WITH THE SALES.
EXTRACTED FROM: MINISTRY OF TRADE AND
INDUSTRY, SINGAPORE
SINGAPORE DEPARTMENT OF STATISTICS
THE STRAITS TIMES
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. |
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%)