2002-Mar04-No01-theedgespore by Edge Singapore

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More radical measures on S$?

Working and living in Soho

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CORPORATE PG20

CITY&COUNTRY PG47

TECHNOVATE PG53

BUSINESS

MITA (P) No. 134/08/2001

INVESTMENT

W E E K LY

THE WEEK OF MARCH 25 — MARCH 31, 2002

MONTAGE BY HONG KIN SIANG; PICTURE: TODAY

NOTEWORTHY

KEPPEL RISING Lim Chee Onn is no Jack Welch, but Keppel Corp shareholders must think the world of him. Keppel shares are up 50 per cent this year — the star performer of the SGX. Our Cover Story on Pages 17 to 20 looks at what Lim has done and is promising to do to deliver more value to his shareholders.

Easter Feast Give thanks with food & fun!

Singaporeborn Rashid Hussain bows out of Malaysia’s banking scene. He tells why. PG60–62

Seksun drives down China lane CORPORATE PG8

Star Cruises rides wave of expanding market CORPORATE PG14

MOREINSIDE SEE PAGE 2

8 885002 090004

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| Joanne Song (joanne.song@bizedge.com); Joyce Teo (joyce.teo@bizedge.com); Kelvin Tan (kelvin.tan@bizedge.com); Matthew Mogul (matthew.mogul@bizedge.com); Serene Goh (serene.goh@bizedge.com)

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Star Cruises rides wave of expanding market

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53 Is Tejon ready to ride?

4 COVER STORY | Easter feast Give thanks with food and fun

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techNovate

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2 Selective viewing Pick of the Singapore International Film Festival

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6 Pulp faction Comics gain newfound respect

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53 MAIN STORY | Electric dreams Will interactive TV really fly this time?

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Options

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8 Got Richard Lim? Meet the man behind the new book, Got Singapore

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59 Oriental plans to float plastics division

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60 Clever scheme but uncertainties remain

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Opinion 63 The currency quandary 63 Recasting global growth

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59 TRI: Rights issue in jeopardy?

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Inside Asia

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61 Rashid calls it a day

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58 OUT OF THE BOX | Treating knowledge as an asset

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50 Healthier economy may push hotel rates up Survival of subsector in Malaysia depends on marketing and promotions

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21 STI bigs caps to ride US recovery Investors may be in for fairly profitable but volatile times

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48 Seeing black and white High-rent colonial bungalows popular with expatriate community

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20 Keppel Corp comes clean

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56 Flagship under scrutiny

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20 Keppel also rises?

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47 MAIN STORY | Work and live in Soho Government takes lead on home offices

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18 Three pillars of growth PRINTER

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City & Country

54 NEW ECONOMIST | Net solace for those affected by failed corporations

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54 INTERNET TIME | It’s the multimedia content, stupid!

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17 Keppel Corp keeps shareholders happy

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MA N A G I N G DI R E CT OR | Tan Boon Kean

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Cover Story

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Lim Lay See

53 Policy dispute over terror coverage

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30 INSIDER MOVES SINGAPORE |

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F I N A N C E + H U MAN RE S OURCE +ADM I N I S T RAT I ON

51 Shangri-La KL to become ‘top hotel’ after makeover

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27 PERSONAL FINANCE | Fund manager comes clean on underperformance

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12 Who’s the tough guy now? It remains to be seen if BIL will emerge from current state of plateau to flex muscles again

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24 RIGHT TIMING | Finance Index to break 1,576

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8 BIG MONEY | Waiting for 3G Godot

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| Christine Ong; Monica Lim; Norazura Abdullah; Tan Siew Ching, Chan Yoke Lin

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22 INVESTING IDEAS SINGAPORE | Osim in a comfortable position

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Dramatically increased broadband access and lower bandwidth prices renew interest in interactive TV

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ThatWeb gives Aztech a shot in the arm

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THEEDGE SINGAPORE | MARCH 25, 2002 • 3

BEHIND THE STORIES

The big and small of Corporate Singapore

onglomerates are no longer viewed in the same way as they were in the past. Big and strong has become big and unwieldy. In the case of Keppel Corp, it is not only a conglomerate but a government-linked (GLC) one at that. And we know that GLCs are today a target of many business gurus who think a shake-up of the way they operate should be a key feature of any remake of Singapore Inc.

That said, can anyone complain about how Keppel has rewarded its shareholders? Its stock price has shot up 50 per cent since the start of the year. It is the star performer of the SGX and has outperformed the blue-chip Straits Times Industrial Index which is up only 11 per cent. Keppel is the subject of our Cover Story this week as we examine what it is that Keppel has done and is doing to justify this

confidence the market has shown in the company. While Keppel is a corporate heavyweight, hard disk drive maker Seksun Corp is a small fry. But that didn’t stop it from making waves last week when Morgan Stanley Private Wealth Group bought a 4.95 per cent stake in the company for S$4.9 million. That may be small money but Seksun got its first international institutional investor and that alone is

LETTERS TO THE EDITOR The Edge, Raffles City Post Office, PO Box 218, Singapore 911708 or e-mail: feedbackspore@bizedge.com Pseudonyms are allowed but please state your full name, address and contact number (tel/fax) for us to verify.

Tech recovery: Hoping for the best I was most impressed by the second issue of The Edge Singapore (March 11-17). I had bought it on an impulse, largely because the cover story — “Tech: Is the recovery finally here?” — poses a pertinent question for today. Most of us are hoping it is indeed here but are still unsure what to believe. In such fragile times, issues like the Enron debacle have added to the uncertainty by seriously undermining the reliability of corporate balance sheets and the judgement of stockmarket gurus and analysts. While it might be true that the worst is finally over, we might be best advised to prepare for an arduous limp back to normalcy. This issue of recovery was well-covered in the articles which tackled specific industry sectors as well as the macro-economic indicators of stock markets and employment. It is also most creditable that The Edge Singapore does not suffer from the usual weakness of most business publications — tedium! Most of the articles were an extremely easy and interesting read — even for a lay person like me. I also found the section on lifestyle and leisure — Options — most entertaining. However, I believe you should introduce a humour/comic strip section (Dilbert might be a fine addition). It would only make the newspaper more complete. Congratulations on a fine publication. Sonali Dhawan Moulmein Road, Singapore This letter wins the Letter of the Week prize of a S$528 Caran d’Ache pen.

A mature society laughs at itself I was very sad to read the column by Jean Angus on “Sending up Singapore” [Issue 2, March 11], and especially her comment about two types of humour and the derogatory remarks about the Onion, which is a very highly valued source of satire in the US and throughout the world. The “God answers prayers” story, for example, touches on one of the most important points about religion, the problem of evil, and ignoring it won’t make it go away. It is hard to say this, very hard, but her comment “the stories avoid treading directly on racial, religious and social sensitivities” sends a chill up my spine. I wholeheartedly hope her views are in a minority amongst younger Singaporeans, for a mature society is, precisely, able to laugh at itself. Julian Roche Singapore

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3/22/02, 1:19 PM

a big leap forward. Our story on Page 8 profiles Seksun’s 56-year-old founder-entrepreneur Felix Ong and his enthusiasm for China. Elsewhere in this issue, our property section City & Country gives an update on how the Small Office and Home Office (Soho) scheme is doing nearly three years after it was launched by the government to promote entreprenuership and technopreneurship. E Read all about it on Page 47.

4 • THEEDGE SINGAPORE

| MARCH 25, 2002

ECONOMIC WATCH

SINGAPORE

Recovery intact, but risks remain y-o-y change (%)

20 10 0 -10 Non-oil intermediate imports

-20 -30

Non-oil domestic exports

-40 -50

Jan 2000

Feb 2002

19.9 per cent drop in the fourth quarter. There are other indicators that recovery is in progress. Manu notes, for example, that Singapore’s non-oil retained intermediate imports have started to recover since the fourth quarter of last year. This suggests that manufacturing activities and factory order books will pick up in the coming months. Singapore’s purchasing manager’s index (PMI) also points to better days ahead for the manufacturing sector. The PMI had been slowly inching up since November last year on improving new domestic and export orders, and higher inventory levels. In particular, last month’s index showed export orders in the electronics sector expanding for the second consecutive month. Furthermore, indicators from the US show that industrial production in Singapore’s largest export market has turned up. Meanwhile, global demand for electronics, Singapore’s largest export items, is on the rise. The Semiconductor Equipment and Materials International (SEMI)’s book-to-bill ratio rose to 0.87 last month, and has been on the uptrend since October last year. This means that US$87 of new orders were received for every US$100 of products shipped in February. SEMI is an association representing semiconductor and flat panel display equipment and materials companies. Some economists believe demand for Singapore’s electronics exports will keep improving. Joseph Tan, an economist at Standard Chartered Bank in Singapore, thinks that US companies faced with dwindling profits will try to increase productivity by investing in computer equipment.

y-o-y change (%)

25 20 15 10 5 0 -5 -10

March 1999

Jan 2002

Retail sales continue to slide, falling to an estimated S$2,465 million in January, pointing to weak consumer spending. The retail sales index fell 6.4 per cent in January from a year ago, and was down 1.7 per cent from December. Excluding the motor vehicle sector which saw sales grow 15.1 per cent from December, the retail sales index fell 4.5 per cent year-on-year and 11.3 per cent month-on-month. The catering trade index also declined in January, by 16.3 per cent mo-m and 15.2 per cent y-o-y, with sales totalling an estimated S$248 million.

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Corruption remains high in many Asian countries, according to Hong Kong-based Political and Economic Risk Consultancy (PERC)'s latest survey on corruption. Of the 12 economies covered by the survey, only Singapore, Japan and Hong Kong scored above average. Singapore also fared well in another PERC survey, in which expatriates living in Asia ranked Singapore as offering the best quality of life in Asia, followed by Thailand, China, Malaysia and Taiwan.

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Retail slump worsens

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Is the uptrend in trade faltering?

DEPARTMENT OF STATISTICS, SINGAPORE

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atest export numbers released by the Trade Development Board (TDB) last Monday showed an unexpected turn for the worse, a sign that Singapore’s economic recovery won’t be smooth sailing all the way. After showing steady improvement in the fourth quarter last year, January’s non-oil domestic exports (NODX) had fallen by only 4.1 per cent year-on-year (y-o-y) in January, the smallest contraction since April last year. But last month, the contraction in exports widened again, with NODX dropping a sharp 23.4 per cent to S$6.3 billion. This was the lowest level of NODX in three years, and 21.2 per cent lower than January’s level. Will this derail Singapore’s nascent economic recovery? With exports accounting for more than 150 per cent of Singapore’s gross domestic product, an upturn in external demand is crucial to spur the economy on to recovery. The sharp fall in NODX undoubtedly caught some economists by surprise. “The numbers are disappointing,” says Dini Foo, an economist at UOB-Kay Hian Securities. Foo had expected exports to decline only 10 to 15 per cent last month. Nevertheless, Foo is confident that the uptrend in exports is still intact, and that February’s plunge in NODX is no cause for alarm — a view shared by most economists. “I wouldn’t worry so much about a single month’s trade data,” says Manu Bhaskaran, head of economic research at Centennial Group Holdings, a policy and strategic adviser. Manu points out that it is quite difficult to predict month-to-month movements of the trade data as random events (like shorter working days) can skew monthly trade changes. Indeed, the TDB attributed the steep plunge in NODX last month to the Chinese New Year effect, because most factories were closed for the long festive holiday. This may also mean that February’s industrial production numbers, due out this week, will be weaker than expected. Kaan Quan Hon, an economist at DBS Bank, notes that the NODX numbers are actually improving, as the average contraction for the January to February period is 13.7 per cent y-o-y, an improvement from the 16.7 per cent decline in December last year, and the

That said, economists caution that there are factors that could still derail Singapore’s economic recovery. Manu points out that rising oil prices, financial shocks in the US or Europe, or a drastic deterioration in the Japanese economy’s (and therefore, the yen’s) outlook, are possible risks for Singapore’s recovery. Tan agrees, noting that rising oil prices may spark inflationary fears in the US and push interest rates up. Higher interest rates could dampen consumption in the US. Kaan also notes that part of the recent increase in demand for Singapore’s NODX is due to dwindling inventories in the US. Therefore, demand in the US must continue to pick up to encourage factories in Singapore to increase their output further and generate growth. Tan is confident, however, that US consumer demand will stay firm. “The crucial link is how the Fed [US Federal Reserve] manages expectations,” says Tan. So far, the Fed has been careful to keep a lid on expectations of inflation, and is holding interest rates steady. The current low level of interest rates has been fuelling consumer spending, the key driver of economic growth for the US. Despite these risks, economists agree that Singapore’s NODX will improve in the coming months. Foo expects a “modest recovery” in NODX in the first half of this year and exports growth to turn positive by May or June. However, Kaan cautions that the turnaround in the second half of the year may be due in part to a low base effect, as Singapore’s exports started to plunged in the second half of last year. Gauging growth in terms of numbers may be misleading at times, especially when the economy is recovering from a downturn, says Kaan. He emphasises the importance of “qualitative”, as opposed to “quantitative”, growth. He notes that Singapore will only be on the path to recovery when there is broadening of growth that is felt by all sectors of the economy. The challenge for Singapore is to ensure the emerging upturn in the export sector will spur continuous and sustainable growth in the other domestic sectors. This in turn should bring a turnaround in the unemployment rate, which now stands at a 15-year high of 4.7 per E cent.

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SINGAPORE TRADE DEVELOPMENT BOARD

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| BY LEE POH FONG |

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6 • THEEDGE SINGAPORE

| MARCH 25, 2002

ECONOMIC WATCH

MALAYSIA

A moderate recovery | BY CINDY THAM |

he local economy is slowly coming out of the woods, but growth is expected to be moderate this year. That’s the modest position taken by Bank Negara Malaysia (BNM) in its annual report 2001, released last Wednesday. The gross domestic product (GDP) is projected to recover to a growth of 3.5 per cent this year, lower than the 4.0 to 5.0 per cent projected by the Ministry of Finance in its Economic Report 2001/2002 last October. Still, it’s a little more optimistic than the 3.0 per cent growth estimate that Prime Minister Datuk Seri Dr Mahathir Mohamad, who is also Finance Minister, made unofficially earlier this year, and the Economist Intelligence Unit’s forecast of 2.5 per cent growth. The central bank is being conservative because the global economic environment is still fragile, say economists. Last year, the Malaysian economy grew only 0.4 per cent amidst a global recession aggravated by the effects of the terrorist attacks in the US. In such weak economic environments, most central banks tend to take a conservative stand, says an economist at a local bank. Dr Yeah Kim Leng, general manager of Rating Agency Malaysia (RAM) Consultancy Services Sdn Bhd, agrees. “The forecast downgrade perhaps reflects BNM’s cautious reading of the US recovery signs, in line with the [Federal Reserve] chairman’s view that the current US recovery is likely to be weaker than previous rebounds,” he says. Most economists think the central bank’s forecast is realistic, falling within the range of 3.0 to 5.0 per cent growth projected by economists, although many think the GDP will likely perform better than the central bank’s modest projection — barring any unforeseen events.

Manufacturing rebound The central bank’s 3.5 per cent growth forecast this year is based on stronger growth in private consumption, a modest recovery in private investment, sustained public sector expenditure and a moderate growth in exports, said BNM governor Tan Sri Dr Zeti Akhtar Aziz at a press conference on the annual report last Wednesday. Current indicators suggest the economy is in the early stages

Sm_6_S4.p65

of recovery, she said, noting that the index of leading economic indicators has registered five straight months of positive growth since July last year. All major sectors of the economy are expected to grow this year, led by manufacturing and services. The services sector, which accounts for 56 per cent of GDP, is expected to grow 3.8 per cent, slower than last year’s growth of 4.9 per cent, but enough to make it the second strongest sector this year. “Since services, particularly shipping and freight, are [closely] tied to manufacturing, while wholesale and retail trade, restaurants and hotels will benefit from increased tourist arrivals and domestic tourism, we see continuing support from this sector in tandem with the overall improvement in economic outlook,” says Yeah of RAM. But the main engine of growth will be the manufacturing sector, which is expected to take the driver’s seat again this year after a one-year hiatus. The central bank expects the sector, which accounts for 31 per cent of GDP, to rebound from its 5.1 per cent contraction last year to grow 4.2 per cent this year. “Both foreign and domestic manufacturers in Malaysia have indicated increased optimism on the outlook for the manufacturing sector in general, and the electronics sector in particular,” says the BNM report. To a large extent, such optimism is based on the anticipated improvement in external demand. Manufactured goods accounted for 85.3 per cent of total exports last year. “As exports account for 105 per cent of total GDP, the revival of exports remains crucial for overall economic recovery even if domestic consumption strengthens,” says Lee Heng Guie, economist at Hong Leong Bank (HLB). Recent signs have been encouraging. Exports shrank only 2.1 per cent in January, breaking its streak of double-digit declines that has persisted since June last year. The central bank expects exports, which dropped 10.4 per cent last year, to grow 4.4 per cent this year. But even with the boost from improved external demand, the manufacturing sector may take a while to recover. The pace of improvement in industrial output and manufacturing sales is still subdued, which could signal excess capacity, says Franklin Tan, an economist at OCBC Investment Research. The latest survey by the Federation of

Malaysian Manufacturers found that a majority of the respondents were still cautious about hiring and building up inventories too aggressively as there is still uncertainty over the extent of the rebound in the US, he points out. Meanwhile, the construction sector is expected to grow 2.4 per cent, marginally better than 2.3 per cent last year, driven by the pump-priming in the civil engineering and residential segments. That’s a modest projection considering the RM7 billion in off-budget fiscal stimulus packages announced last year, much of which was expected to be channelled to the construction sector. Yeah of RAM believes that the sector could have been weighed down by the overhang in commercial and industrial properties. But don’t expect the government to pumpprime much more. “With export manufacturing taking up the slack in domestic output, there may be less impetus for the government to support large-scale construction or infrastructure projects, thus relegating it to a supporting role,” says Yeah.

Real GDP by expenditure (1987=100) 2001p

Domestic demand1

2.3

Private sector expenditure

-2.9

4.2

2.8

5.0

-19.7

1.2

13.9

0.0

Consumption Investment Public sector expenditure

3/22/02, 12:32 PM

2.8

Consumption

11.9

4.1

Investment

15.5

-3.0

Net exports of goods and services

2.3

-0.6

Exports

-7.6

3.7

Imports

-8.6

4.2

Gross domestic product

0.4

3.5

2001p

2002f

1 Excluding stocks

p – Preliminary

f – Forecast

Real GDP by sector (1987=100)

Private sector driving domestic demand Private consumption, which accounts for 45 per cent of GDP, is forecast to grow 5.0 per cent, almost double its growth last year, with the improved economic growth and employment outlook. This will be boosted by the cumulative effects from the government’s measures to raise disposable income, particularly through lower income tax rates and higher salaries for civil servants introduced in Budget 2002. Although the Employees Provident Fund (EPF) recently reversed last year’s move to reduce the rate of employee contributions to the fund, Lee of HLB does not think raising employee contribution from 9.0 per cent back to 11 per cent will put a dent on private consumption. This is because the other measures are still sufficient to encourage spending, he says. Meanwhile, private investment is expected to grow 1.2 per cent, thanks mainly to continued investments in ongoing privatised road projects, residential housing and rail projects, development works on ports and power plants as well as investment in the oil and gas subsector. In contrast, public investment will take a back seat this year. The central bank expects public investment to decline 3.0 per cent af-

2002f

Annual change (%)

Agriculture

2.5

1.0

Mining

0.2

3.0

Manufacturing

-5.1

4.2

Construction

2.3

2.4

Services

4.9

3.8

Real GDP

0.4

3.5

p – Preliminary

f – Forecast

ter growing 15.5 per cent last year. Even so, the government’s development expenditure allocation for this year remains high at RM28.4 billion, with a large chunk going to economic and social sectors. The fiscal policy will remain expansionary in order to sustain domestic demand given the downside risks to the global economic recovery, says the BNM report. But things are looking good enough on the external front to make the central bank keep interest rates steady for now. With the cumulative effects of previous monetary easing still being felt, the central bank does not plan to ease monetary policy further at this point. “The current interest rate levels are appropriate to support the recovery process,” Zeti said E at the press conference last week.

8 • THEEDGE SINGAPORE

| MARCH 25, 2002

CORPORATE

Waiting for 3G Godot

emember Vladimir and Estragon? The duo from Samuel Beckett’s Waiting for Godot sitting on a dirt bench off a remote country road? In the 50 years since the play was written, all sorts of meaning has been read into what was just the theatre of the absurd. In reality, Vladimir and Estragon were just waiting for something to alleviate their boredom. Godot can be understood as one of the many things in life that people wait for. Little wonder, Godot never arrives. But even though that’s an anti-climax, Beckett has us on our toes until the final curtain falls. It seems to me that 3G is turning out to be a latter-day Godot. When 3G does arrive, if ever, it would be an anti-climax. It seems like only yesterday when European companies were paying billions for 3G spectrum and some governments were using spectrum sales to boost budget surpluses, pay for tax cuts or cut government debts. Some US$100 billion was spent in Europe by telcos outbidding each other as if 3G spectrum was the last piece of real estate on the block. In short, 3G spectrum was manna from heaven for the budget makers. Luckily, I haven’t thrown away newspaper clippings that predicted the commercial 3G launch before last Christmas. Well, we are at the end of March and the earliest 3G launches could be, at the very least,

| BY ASSIF SHAMEEN |

six to eight months away in Europe and two years away in Singapore. That’s just the launch date. It could take two years from the launch date for 3G to become ubiquitous. So let’s see. It could be late 2005 before every other Singaporean is seen with smart 3G phones on Orchard Road on a sunny Sunday afternoon. Before I get into techno-gobbledygook, here’s some explanation for those of you who consider yourself non-geek. The GSM handset you carry is basically a second-generation cellphone and is thus called 2G. It is digital, it can send text-like SMS and be used for roaming much of the world. The first-generation phones were the ones that looked like bricks that were more at home in the hands of bulky nightclub bouncers than you and me. The latest technology is 2.5G, or GPRS, which uses packet switching. It is more in line with Japan-based NTT DoCoMo’s i-Mode, which also uses packet switching at 9.6kbs. Minus the alphabet soup and

techno-babble, the real promise of 3G lies in the fact that it will, for the first time, offer multimedia in a wireless environment — live videos and music, surfing the Internet while sitting in a cab or answering e-mail while waiting for the next MRT train. That’s at least four to five years away. Moreover, there is a misconception that 3G will bring in a super-speed wireless Internet. Not true. The super-slow built-in dialup modem that you have works at the speed of 56kbs. Initial 3G speeds will not exceed 40 to 50kbs even though hypemeisters are touting 64kbs. The current GPRS speed in Taiwan is just over 10K. So if you think you don’t have to wait anymore, hang on a second, because waiting may be in your karma. Sure, the potential is there for 3G spectrum to deliver far better speeds. NTT DoCoMo has actually touted an eventual 384kbs for its 3G FOMA services. While reading research material on the Internet, I came across even taller claims of the theoretical limits of 2mbs for W-CDMA and 5mbs eventually for the CDMA 2000 services. I could go on and on. But right now, the problem is that those are still pie-in-the-sky dreams. Yes, we eventually will have that speed but we’ll get there

many years from now. Let’s be realistic. Sure, some day we will all have breakfast on Mars and dinner on the Moon but really… It’s no use talking about it when we know it’s not going to be available in any form in the foreseeable future. Though it may be slower than real broadband, 2.5G, or GPRS, also has the advantage of far lower deployment costs. 2.5G, with its always-on 10kbs speed isn’t the only technology putting pressure on 3G. There is Wi-Fi, also known as IEEE 802.11b or wireless local area network (WLAN). Wi-Fi is designed to solve the problem of portable highspeed wireless access inside build-

Emerging new technologies are starting to make 3G look like the next high-definition television — often described as ‘a great technology with no customers’ ings or around buildings. Indeed, Wi-Fi is increasingly being used in the home and for office networking in place of the much-touted Bluetooth. I use a Macintosh laptop in my apartment with an Air Port card (based on Wi-Fi technology) connected to a cable modem. That al-

lows me not only to carry my laptop anywhere in my apartment but also all the way out to the staircase and near the front door without dangling wires. The important thing is that it gives me Internet access at near 1mbs speed. Sure, Wi-Fi still has some serious security issues. It’s technically possible for my neighbour to buy a similar card and look at my e-mails and banking transactions. But WiFi is becoming more secure by the day. Not since the gold rush or the tulip mania have so many people been taken on so long a ride as they have on 3G. Singapore’s three mobile operators, that are not as burdened by bidding costs as their European counterparts, may be able to add cross-subsidies and roll out 3G services with much lower charges. Yet, emerging new technologies are starting to make 3G look like the next highdefinition television, or HDTV — often described as “a great technology with no customers”. Researchers are already testing two projects that have been dubbed 4G. One of them is MIT Lab’s PersonalRouter, a small wireless device that connects you to the outside world at super high speed. The other is a more advanced form of wireless LAN being developed by researchers at CarnegieMellon University. While the rest of the world waits for its 3G Godot, people like me are getting on the WiFi bandwagon, trying out GPRS and E waiting for 4G.

Hard-driving Seksun cruising down China avenue CHU JUCK SENG/THE EDGE SINGAPORE

| BY JOYCE TEO |

ubbly, gregarious Felix Ong is quite a character on the Singapore corporate scene. An entertainer at heart, he can often be found crooning some popular karaoke number in front of friends and associates. He even had a bit role in a local movie, Money No Enough. But you won’t find Ong’s CDs at Tower Records. The 56-year-old is an entrepreneur by day, moonlighting as a singer only in his spare time. His Seksun Corporation is a leading metal components maker for the resurging hard disk drive (HDD) industry. And it’s going regional. Seksun’s big push is in China, and this publicity-savvy company is exploiting this point to the hilt. Executive chairman Ong claims boldly that its China operations will account for 70 per cent of group turnover in three years’ time, displacing Singapore as its main revenue generator. When the Singapore Exchange recently queried the company on a sharp increase in its price and trading volume earlier this month, its managing director Steven Chong said it was probably because of the company’s proposed listing of its China operations 18 to 24 months from now. Two years is a long lead time, though, and really no excuse for a stock to move like that. Analysts say they like Seksun because the stock is simply undervalued, and the company happens to be in an industry that is currently piping hot. Seksun makes top covers and voice coil mechanism yokes for HDDs.

Sm_8n12_S4.p65

The China angle just makes it all that more attractive. Since setting up shop in Suzhou in 1998, Seksun has been the sole supplier of HDD top covers to Excelstor, China’s sole local HDD maker that recently entered into a joint venture with IBM to produce disk drives in Shenzhen. Production is expected to start in the second half of the year. Excelstor is an affiliate of Great Wall, a leading tech company in Beijing. DBS Vickers Securities said in a report that since Seksun was already a components supplier to Excelstor, “it stands a good chance to supply to the Excelstor-IBM JV as well”. Seksun recently reported a net profit of S$10.9 million for 2001, up 67 per cent from 2000. Seksun’s sales in China reached S$32.7 million or 20 per cent of total revenue, up from S$8.8 million the year before. Amazingly, about half of its profits came from its China operations. Sounds too good to be true? There’s a simple explanation. The China unit is the group’s metal stamping arm, which incurs considerably lower costs than its Singapore operations. When asked about this, Ong tells The Edge Singapore that “the rest of the overheads like R&D, tooling and technical support, lab test support, management support, and even corporate purchases are all done in Singapore”. Gregory Yap, research head at OCBC Investment Research, said in a recent report that the actual yearon-year earnings gain for Seksun was 35 per cent, not the 67 per cent as reported in the papers because of “a restatement of prior year accounts”. He CONTINUES ON PAGE 12

Ong hopes to make it big in China

3/21/02, 10:34 AM

10 • THEEDGE SINGAPORE

| MARCH 25, 2002

CORPORATE

Frontline soldiers on Company uses proceeds from delayed IPO to expand regionally, especially in China IDC, WORLDWIDE BLACKBOOK

| BY MATTHEW MOGUL |

bandoning an initial public offering (IPO) at the last minute is often like a slow walk to the graveyard. October 2000 was a bad time for Frontline Technologies, and the rest of the tech world, recalls Lim Chin Hu, the company’s CEO. Just a day before Frontline had planned to launch its IPO, the bottom seemed to have fallen out for tech stocks around the world. After a quick huddle with the lead manager Deutsche Bank on the dramatic downshift of markets, “we decided at the last moment to hold back”, Lim says. “It wouldn’t have been fair to our investors to buy our shares and see them fall from day one.” The crucial eleventh-hour delay reportedly cost the company S$17 million to S$45 million. That’s because when Frontline finally mustered the willpower to return to the IPO table five months later, equity valuations everywhere had faded to a shadow of their former selves. Frontline could only fetch 22 cents a share, compared with the 36- to 55-cent range talked about the first time around. Substantial shareholders getting a piece of Frontline included Creative Technology, venture capitalist Walden International and the Economic Development Board. Aside from the flashy big names, it wasn’t much of a running start and Frontline was left to limp into public life. Still, by most accounts since then, the company has put the S$37.1 million it raised from the IPO (after expenses) to good use by branching out of its home base and taking stakes in regional companies. That’s crucial, say industry insiders, given that spending on information technology (IT) projects in Singapore shrank last year. It grew elsewhere in Asia, especially in China where Frontline has established a toehold. Better yet, these new additions to the Frontline family are generating cash, allowing the company to hold onto most of its IPO proceeds and fuel its growth-through-acquisition strategy. That said, when this month ends, Frontline management will gladly slam the books shut on fiscal 2002 and fight hard to forget what turned out to be the most miserable of years for the IT industry. Frontline installs computer-related hardware and a suite of software applications like Oracle and Siebel to help everyone, from Fortune 500 corporations, government bodies to universities, to better manage workflows and cash flows. Colloquially, this is called “getting the clients wired”, and Frontline has done so for the likes of Seagate and Singapore Airlines. But with the onset of the global downturn, companies dramatically scaled

Sm_10_S4.p65

back on IT budgets. And now that almost anything that has to do with an Internet strategy has been branded “bad”, managers no longer enjoy the spending smorgasbord they once had. Now they have to scrimp and justify every cent like everyone else. The malaise caused global IT spending last year to dry up, according to figures from technology research outfit IDC, which calculated a meagre 1.5 per cent rise from 2000 following nearly 20 per cent growth the year before. Frontline struggled but stayed profitable on the back of solid government-linked contracts, which yield more than half its revenue. Port operator PSA — whose investment arm holds a 6.6 per cent stake in Frontline — has given the company a good deal of business, says Lim. PSA is looking at utilising technology to fend off a crossCauseway threat from Malaysia’s Port of Tanjung Pelepas. The Malaysian port operator recently FRONTLINE

Whether Lim’s expansion plan pans out will hinge on long-term IT spending trends

managed to woo world-class shipping lines like Maersk Sealand and Evergreen Shipping with cheaper rates. To compete, PSA must offer more upmarket services and focus on its efficiency, analysts say. That’s where Frontline comes in, powering the port operator with customised applications running on powerful Sun Microsystems servers — the company has a strong relationship with Sun where Lim used to work.

Government largesse The importance of such government-backed contracts shouldn’t be overlooked as they generally act as an earnings cushion during tough times, especially in the case of Singapore, which is in the midst of rolling out S$11 billion in off-budget measures to help pump-prime a flagging economy. Frontline has benefited from it. “[The] Prime Minister’s projects, worth several millions

IT spending patterns (US$ mil) Worldwide Services total Total IT

1999 203,807 83,627

2000 392,756 984,279

2001 426,489 999,526

2002 466,461 1,053,152

Asia-Pacific Services total Total IT

1999 54,529 152,096

2000 62,990 181,940

2001 69,174 189,642

2002 76,414 198,117

2003 85,852 222,885

1999 10,915

2000 15,860

2001 19,224

2002 23,870

2003 30,771

China Total IT

2003 2004 518,445 581,043 1,163,641 1,293,285

2005 1995-00 CAGR 650,198 17% 1,436,097 12%

2000-05 CAGR 11% 8%

2004 97,167 251,377

2005 1995-00 CAGR 110,830 10% 283,894 6%

2000-05 CAGR 12% 9%

2004 39,067

2005 1995-00 CAGR 49,166 28%

2000-05 CAGR 25% FRONTLINE

Frontline Technologies 60

Volume (mil)

Price (S$)

0.45

0.40

0.35

Revenue mix by sector

0.28 0.25

0.20

0.15

19%

36% 16%

27%

Manufacturing Finance Telcos* Transport/Logistics*

16% 17% 7%

10%

19%

Government

11% * refers to governmentlinked contracts

March 20, 2001 March 20, 2002

of dollars, were brought forward by three months and awarded to Frontline,” says Kevin Chong, an analyst with Credit Suisse First Boston. Over 100 infrastructure projects have been earmarked to receive funds, including universities and polytechnics — a potential bottomline boost for Frontline because of its strong presence in educational circles. The company has also received unexpected contracts following the terrorist attacks in the US, which prompted many organisations to set up disaster recovery systems that catch, save and store data during an emergency. Still, the company was in no way immune to last year’s fallout. Frontline management started off its financial year predicting 30 to 40 per cent earnings growth but later revised the range down to zero to 5.0 per cent. Other systems integrators aren’t that lucky. Look at Datacraft Asia, which shocked investors last November with a profit warning and then proceeded to turn in a loss for its first six months of operations. That bombshell dragged down stock values for most systems integrators, hitting Frontline shares especially hard because of its moniker as the “mini-Datacraft”. The two are often loosely compared because they both logged in stellar growth figures in recent years and also because each makes a good portion of its sales from high-margin services, not low-margin re-selling of hardware. This latter quality separates them from the rest of the dime-adozen pack that mainly sells hardware for a tiny profit margin of 2.0 to 3.0 per cent. Throw in the services and consulting and those margins can usually balloon to 20 to 30 per cent. However, such comparisons don’t sit easy with Lim, who says

the main similarity is that Frontline also aspires to a pan-Asian strategy. “We focus on different things and rarely find ourselves bidding for the same contracts,” says Lim. “But even when we do compete, the IT space is such a love-hate relationship that our partners on one project are often our competitors on a different one.” He says this also holds true for their bigger local peers like Singapore Computer Systems and CSA. Analysts generally agree that talking about Frontline and Datacraft is the same as comparing apples with oranges. Datacraft’s core business is setting up and managing data networks by installing, for example, Cisco routers and accompanying software for Internet service providers and telcos. Frontline, meanwhile, focuses on implementing customised business applications. As for its Asian strategy, Frontline isn’t off to a bad start with a presence in five countries — Singapore, Malaysia, Thailand, China and the Philippines. Not bad, given that two years ago, it only had operations in Singapore. Datacraft has 13.

Billion dollar company? Another plateau Frontline has boldly displayed on its homepage (www.frontline.com.sg): To be a S$1 billion company. For Frontline to scale those Everest-like heights and join the ranks of Datacraft, its revenue — expected to be around S$160 million for fiscal 2002 — would have to grow at the top end of the company’s 20 to 30 per cent forecast range each year for the rest of the decade, markedly outpacing IT forecasts from the IDC. This could be a tall order, given that Frontline has only taken off from base camp and a lot of things can

3/21/02, 9:52 AM

go wrong on the way up, especially when it’s facing stiff competition in each market, from both regional and local systems integrators. No matter how treacherous the hike, both Lim and Frontline founder and chairman Steve Ting know how crucial it is for the company to continue to grow. So management is sticking to its IPO strategy and betting on buying into markets around the region. Lim has set his sights ambitiously on up to a dozen countries in the next few years. A 30 per cent stake last year in China-based systems integrator Modern Devices for S$18.5 million gave Frontline access to four cities on the mainland, and a presence in a market expected to grow roughly 25 per cent a year through 2005, according to IDC figures. Still, industry observers say everyone is clamouring for a slice of the China pie and Frontline isn’t a sure bet to win over there. No one is. While the delay in its IPO was a kind of setback, the same sour market forces that knocked down its IPO price a year ago is allowing it to do some bottom-fishing for bargains in its expansion drive. “Some Indian companies we looked at a year or two ago carried such high valuations that we wouldn’t touch them,” says Lim. “Now, everyone is a lot more reasonable when we discuss prices.” Of course if Lim had obtained a bigger valuation himself, he would have a bigger shopping list today. Still, Frontline remains a wideeyed upstart with ambition. Whether it can fulfil its dreams will hinge on long-term IT spending trends as well as its fortitude in withstanding downturns like last year. If Lim’s acquisitions pan out, though, perhaps industry analysts will start calling newcomers to the systems integration game “the next mini-Frontline”. E

12 • THEEDGE SINGAPORE

| MARCH 25, 2002

CORPORATE

Who’s the tough guy now? It remains to be seen if BIL will emerge from its current state of plateau to flex its muscles again BIL

| BY ASSIF SHAMEEN |

rierley. The name once conjured images of aggressive acquisitions and merger mania in Asia-Pacific and Europe. That was nearly two decades ago. Then in the late 1980s Brierley Investments faltered, and the name slowly became synonymous with an investment black hole — the company lost over NZ$1.5 billion and looked like it was about to sink into oblivion. Founder Sir Ron Brierley now runs the investment house Guinness Peat in London. In his place came a consortium of Asian investors dubbed Camerlin led by Malaysian tycoon Tan Sri Quek Leng Chan who paved the way for a process of reinvention. Brierley dabbled in everything from running airlines to trying to grab control of Australia’s largest newspaper group — Fairfax — without success. Two years ago, it moved its headquarters from New Zealand to Singapore, got its primary listing on the Singapore Exchange and vowed to have an Asian focus. It brought in gregarious Australian investment banker Greg Terry as CEO. More pain, very little gain and the older, wiser conglomerate late last year changed its name to BIL. Last week, BIL marked another milestone. It celebrated its two years in Singapore and changed its CEO once again. Quek named New Zealand-trained ethnic Indian Arun Amarsi, a 45-year-old accountant, as BIL’s new CEO. Does BIL have any steam left or has it become just another company with a rich history and tradition, but poor future? To be sure, BIL today is a shadow of its former self. It has two main investments — a controlling stake in British hotel group Thistle, and a 10 per cent stake in Singapore’s largest beverage group, Fraser & Neave (F&N). Most of the rest is small opportunistic investments in an array of companies mainly in Asia-Pacific.

Since the sum of Brierley’s parts was supposed to be greater than the whole, many Asian investors bought Brierley stock in the 1990s in the hope that Camerlin would restructure the company and aggressively sell off assets, driving up its share price. It wasn’t to be. BIL was recently forced to delist from the Sydney Stock Exchange because it no longer met listing requirements. Analysts call BIL a strange animal. Even though it moved its headquarters from Auckland to Singapore two years ago and its stock is no longer part of the main indices there, the bulk of the minority shareholders are New Zealanders. Quek controls BIL through his Malaysianlisted vehicle Camerlin. Analysts now see BIL as just another small part of Quek’s sprawling empire. The magic of BIL has long disappeared. Last week, BIL reported a net profit of US$5.1 million for the six months ended December 2001 compared with a loss of US$20.8 million in the previous first half.

Water under the bridge Breaking up Brierley to extract value from its vast under-performing assets was an idea that was never executed well. When BIL sold part of Air New Zealand to Singapore Airlines (SIA) two years ago, Terry talked about “extracting more value” out of the remaining stake. Now as he prepares to leave BIL this week, he wonders whether he could have dumped the shares earlier and gotten something out of it. BIL had bet big on the airline in which it owned a 47 per cent stake until SIA entered as a shareholder. Air New Zealand controlled Australia’s No 2 airline, Ansett Airlines, which went bust recently. Analysts say Brierley had urged Air New Zealand to buy out the 50 per cent of Ansett that it did not own. Then Brierley sold part of its own stake in Air New Zealand to SIA. It held on doggedly to the remaining 30 per cent of the airline.

gradually selling its hotels. “On the contrary, Thistle has undertaken a massive capital expenditure programme — £150 million — to upgrade and refurbish its hotels,” Arun says. “Thistle has sold some provincial hotels but the money raised was to cut its debts and we still have three-year management contracts on the hotels we sold. Collecting management fees on hotel properties rather than owning them outright seemed to us a better way of doing business.” Thistle, Arun says, “is not for sale. It is absolutely a core holding for us. There is still a lot of value to be gotten out of that”.

Arun will try to make BIL ‘a good company that has good return on shareholders’ funds and low debts’

Mum about F&N In the end, Ansett went belly up — Air New Zealand had to be recapitalised. Now BIL has just 5.4 per cent of Air New Zealand. Had it gotten out two years ago, it might have made an extra hundred million or so. Still, it was something that had rattled BIL badly. Arun says he doesn’t want to talk about Air New Zealand. The way he sees it, it’s no use crying over spilt milk. “That’s part of history. We are a very small shareholder of the airline now with just over 5.4 per cent. We have no representative on its board, we have no influence at all now over the airline.”

Core holding BIL’s biggest asset is its 46 per cent stake in Thistle Hotels, one of the largest hotel groups in Britain. Thistle was hit badly because of the tourist downturn in the aftermath of mad cow disease. The terrorist attacks on Sept 11 only made things worse. Two weeks ago, Thistle sold 37 provincial hotels to the Orb Group, a private venture capital group, for S$1.56 billion. Some of the hotels had redevelopment potential. Arun denies that Thistle is a depleting asset or that BIL is slowly quitting the British hotel scene by

BIL built a stake of just over 11 per cent in F&N. It has since sold some of that, bringing its stake down to 10 per cent. Arun won’t say what BIL intends to do. “We are not showing our cards on F&N to anyone and I am not going to tell anyone what our plans are. We bought a strategic stake in a very good company. “We have seen substantial gains on our investments already and we will evaluate our options on F&N as time goes on. We are in no hurry to sell nor are we in any rush to increase our stake in F&N. For now, all I can say is that it would be inappropriate for me to talk about our next move in this game because divulging our ultimate exit strategy will not be in our shareholders’ best interest.”

No more lofty ambitions BIL also has stakes in Weeks Royalty, an oil and gas company in Australia and Molokai Ranch property in Hawaii. That apart, BIL is basically buying and selling shares in the stock markets. Just two years ago, outgoing CEO Terry was scouring the Asian landscape looking for Internet companies to invest in. BIL took a hit but not a big one because it came to the Internet party late and didn’t partake much.

Paving the way for other institutions FROM PAGE 8

added, however, that “the company beat our S$10.5 million forecast for the year to December 2001 by 4.0 per cent” and gave Seksun an outperform rating, raising its target price to S$1.25. Seksun closed on March 21 at S$0.92. It had started the year at S$0.41. Investors may finally be ready to treat Seksun seriously. Several research houses have recently initiated coverage of the stock. Seksun is mainly a retail stock, but last week it got its first institutional investor in the form of Morgan Stanley Private Wealth Group, who bought a 4.95 per cent stake in the company for S$4.9 million. A small stake like that might seem insignificant, but it could just pave the way for other institutions to join the party.

Sm_8n12_S4.p65

Seksun is also hoping to ride on the coattails of the emerging consumer electronics sector which is increasingly incorporating HDDs into a variety of devices. This is particularly so for game console makers. Seagate and Western Digital — both big customers of Seksun — are key suppliers to Microsoft’s Xbox game console. It’s widely expected that Sony’s PlayStation 2 will come with a HDD in the near future. If that happens, it could yet be another boost if Sony were to decide to buy from either Seagate or Western Digital. Currently, Seksun has two plants in China — its own in Suzhou and another, through a joint venture, in Henan. To accommodate future growth, Seksun recently constructed a new S$10 million plant in Suzhou, which

would allow it to triple its capacity there over the next three years. It’s the company’s largest overseas expansion to date, and is designed to allow it to diversify into new product lines. “We don’t want to just depend on HDD covers for our business,” Ong says, adding that he sees Seksun eventually getting into “niche products” like high-end, precision components for HDDs. But diversification has hurt Seksun in the past. For example, it wrote off A$1 million investment for an 8.6 per cent stake in Australian life-sciences company Enzymatics last year, and it also lost some money in local financial portal, ShareInvestor.com. Ong says those were “very small investments” and there are no current plans to

3/21/02, 10:34 AM

“I can’t say off the top of my head how much we lost on the Internet,” Arun said last week. “It wasn’t very much. Really small.” Yet, Arun told The Edge Singapore that he believes BIL can now reinvent itself yet again and become the sort of company that is taken seriously by investors. “The revolution at BIL really started in 1998 when the company made a lot of changes,” Arun said in an interview. “Those changes are transforming the company and have made us a more transparent outfit that can consistently deliver strong returns.” The makeover was necessary. “In the 1990s, our balance sheet had become very weak. We had a very high debt load, we had a lot of under-performing assets, we had huge overheads and we had investments that were spread all around the world.” Says Arun, “Our aim really is to bring some focus into the company” — as much focus an asset-trading conglomerate could possibly have. BIL has actually given up its lofty ambitions. All Arun will be trying to do is to make BIL “a good company that has good return on shareholders’ funds, sufficient free cash flow and low debts”. Arun says, “We are on track to getting to our destination in a few years. We are not there just yet but we are doing our best to get there.” Now that the balance sheet is looking better, BIL gets shown a lot of new investment proposals all the time, says Arun. “That doesn’t mean we are going to jump in and buy the next thing that comes along. It also doesn’t mean that BIL won’t look at whatever is being peddled. We are not going to get into anything speculative.” Arun won’t comment on where BIL might be in three or five years. There is no real long-term blueprint or game plan, he concedes. “We’ll look at opportunities as they come along”, is all he will say. Essentially, BIL will remain just an asset trader with a thick glossy cofE fee table history book.

Seksun Corporation 14000

Volume (‘000)

Price (S$)

1.00 0.92

12000

0.8

10000

0.7

8000

0.6 6000

0.5

4000

0.4

2000

0.3

0.2

March 21, 2001

March 21, 2002

make more investments like that. “We are now concentrating on our core business and its related products,” he promises. Even if Ong fails to impress his investors with his singing voice, such assurances are E probably music to their ears.

THEEDGE SINGAPORE | MARCH 25, 2002 • 13

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Launch Issue

| MARCH 25, 2002 ABDUL GHANI ISMAIL/THE EDGE MALAYSIA

14 • THEEDGE SINGAPORE

CORPORATE

Star Cruises’ expansion is stretching its balance sheet. Last week, chairman Lim Kok Thay was reported as saying that the company is seriously considering issuing new shares.

Creator of Asia’s cruise industry | BY BEN PAUL |

ruising is becoming big business in Asia. Just call any major travel agency and “cruise holidays” are now likely to be one of the options you will be offered by its automatic phone menu system, along with more traditional services like “air ticketing” and “international hotel reservations”. Press the appropriate button and your call will be directed to a chirpy salesperson all prepared to tell you about their latest promotional deals. At the heart of this booming trade is Star Cruises Ltd, a company controlled by billionaire Malaysian gaming magnate Lim Goh Tong. Funded with cash from his Genting Highlands casino resort in Malaysia, Star Cruises has grown by leaps and bounds since it came on the scene almost a decade ago and, in the process, created a vibrant new industry. Already it is the fourth-largest cruise operator in the world and it is still growing its global market share. Indeed, Star Cruises, which began as a distant offshoot of Lim’s sprawling empire, is fast becoming part of the nexus around which the rest of the empire revolves. Star Cruises’ mass-market focus with shorthop itineraries and low-priced cruise packages that start at S$200-S$300 were an immediate hit in Asia’s relatively untapped market, say industry executives. As an added bonus, the casino tables aboard their vessels have been a major money-spinner, say analysts who cover the company. “On-board gaming makes up probably as much as 30 to 40 per cent of its revenue from its Asian operations,” says a Kuala Lumpur-based analyst who tracks Star Cruises as an adjunct to his coverage of related Malaysian-listed companies Genting and Resorts World. But the recent emergence of competing flycruise holiday packages to exotic locales and the arrival of new, albeit small, competitors in Asia are beginning to give would-be holidaymakers alternatives to Star Cruises’ runof-the-mill local itineraries.

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Take Chan Brothers Travel, a well-known local travel company and one of Star Cruises’ largest agents in Singapore. It recently began marketing fly-cruise packages for Holland America Line to Alaska and the Caribbean. Stretching over eight days and costing more than S$2000, these itineraries are quite a bit more elaborate than Star Cruises’ offerings. Holland America Line is owned by Carnival Corp, the world’s largest cruise company. “These long-haul cruises are traditionally regarded as ‘the road less travelled’,” says Ivy Tan, Chan Brothers Travel’s marketing communications manager. “However, since early last year, we stepped up our promotions and have been receiving very, very good response.” Competition is about to get tougher. Silversea Cruises, which targets the exclusive segment of the cruise market with its fleet of small “ultra-luxury” ships, is increasing its presence in Asia. It is introducing new Asian destinations like Japan and Taiwan this year and recently set up a regional office in Singapore. “Asia is seen as an important developing market for Silversea,” says Steve Odell, Silversea’s vice-president of sales and marketing.

Star Cruises has done a great deal of work in creating awareness of the cruise concept in Asia and this is to everyone’s benefit, no matter what market segment — Odell, Silversea Cruises

THE EDGE MALAYSIA

Star Cruises rides the wave of an expanding market short itineraries makes it popular among Asian and expat families with children and people looking for a quick getaway. Local travel agents The Edge Singapore spoke to report a “steady rate” of enquiries from such customers. “Star Cruises is monopolising the short cruises market,” says Tan of Chan Brothers Travel. According to her, because Star Cruises’ itineraries are relatively short and its passengers don’t need much time to prepare for the trip, it enjoys “consistent demand all year round”. Even as new competition emerges in the cruise industry, analysts say Star Cruises is probably well positioned to continue benefiting from the overall growth of the cruise market in Asia. “Star Cruises has done a great deal of work in creating awareness of the cruise concept in Asia and this is to everyone’s benefit, no matter what market segment,” says Odell.

On the verge of an upturn? Star Cruises is controlled by Malaysian gaming magnate Lim Goh Tong

Odell told The Edge Singapore that Silversea plans to draw its passengers not just from the local markets but also from North America and Europe. The cosmopolitan crowd itself might be a lure. By opening a regional office in Singapore, Silversea has made a serious commitment to building its business here as well as in neighbouring markets like Thailand, Malaysia, the Philippines, Hong Kong and Taiwan, he says. “The response has been excellent,” he adds. Still, most industry watchers see these alternatives eventually occupying specialised segments within Asia’s cruise market rather than posing head-on competition to Star Cruises. “We are a niche operator with voyages in the region of eight to 14 days… with fares averaging US$750 per person per day,” Odell points out. “It’s rather like trying to compare The Raffles or the Ritz Carlton with a mass-market hotel on Orchard Road.” Indeed, Star Cruises’ formula of low-priced,

3/22/02, 11:53 AM

That’s what analysts who cover Star Cruises, which is listed in Hong Kong but also traded on the Singapore Exchange, seem to be betting on. A number of them have turned more positive in the wake of its fourth-quarter results. Although its bottom line sank sharply into the red, they say that the worst is probably over and earnings ought to start improving this year as Asia’s economies continue recovering and the company adds more capacity. The bulk of the fourth-quarter net loss of US$57.3 million that the company racked up was due to non-recurring expenses related to its withdrawal from the North Asian markets where it has not had much success. However, from an operational perspective, things are looking up, say some analysts. After a period of consolidation since acquiring NCL Holdings, Star Cruises’ capacity is also set to start rising again, they say. The company took delivery of the newly built 78,000-gross registered tonnage (grt) Norwegian Sun and the even larger 91,000-grt Norwegian Star late last year and the 91,000-grt

THEEDGE SINGAPORE | MARCH 25, 2002 • 15

CORPORATE

Star Cruises funded with Genting’s cash

Some analysts say Star Cruises’ earnings ought to start improving this year as the Asian economies continue to recover and the company adds capacity

Norwegian Dawn is due to arrive later this year. In addition, Star Cruises also purchased Wasa Queen late last year, which will target the China market. Taking into account these factors and other cost rationalisation moves, analysts contacted by The Edge Singapore estimate that Star Cruises will turn in net earnings upwards of US$60 million this year and US$100 million next year. But Star Cruises’ continued expansion is stretching its balance sheet and it looks to be only a matter of time before it will have to make another cash call, say analysts. “Star Cruises has a high gearing ratio of 1.3 times and the nature of its debt covenants will make it difficult for the company to borrow much more without fresh equity capital,” notes an analyst who covers Malaysia’s gaming sector at a foreign brokerage. Just last week, Lim Kok Thay, chairman of Star Cruises and heir to the Genting empire, was reported as saying that the company is “seri-

ously considering” issuing new shares. Lim was speaking at the signing ceremony for a US$450 million loan facility that Star Cruises will use to refinance some of its existing borrowings. When contacted by The Edge Singapore, Star Cruises’ executives said they were not able to comment on future capital raising moves. Any plans that Star Cruises comes up with to raise fresh capital will be of as much interest to shareholders of Genting and Resorts World as its own shareholders. Cash from the Genting group — which owns the only licensed casino in Malaysia — has been repeatedly used over the years to fund Star Cruises’ growth (see accompanying story). Those injections of cash have given Resorts World a 36 per cent stake in Star Cruises. But earnings contributions from this associate stake are still dwarfed by the Genting group’s Malaysian businesses. Most analysts contacted by The Edge Singapore currently have positive recommendations on Genting and E Resorts World shares.

Genting group bolstered by casino operations | From C S TAN in Kuala Lumpur |

tar Cruises Ltd may be in stormy seas but Genting Bhd’s original core business in its Malaysian casino continues to grow like a jackpot. Strong double-digit growth in casino operator Resorts World Bhd, a subsidiary of Genting, continues to fortify the group’s overall earnings in spite of a continuing incursion of red ink from Star Cruises. Genting, the holding company for Resorts, has diversified into other businesses, namely plantations, property development, paper and oil and gas exploration, while Resorts has stayed focused on casino operations including its stake in Star Cruises, which operates “floating casinos”. The profitable divisions of Genting reported combined earnings of RM1.25 billion (S$1 approx RM2.10) before tax and interest for the year ended Dec 31, 2001, of which 86 per cent came from its leisure and hospitality division, which is an oblique reference to its casino operations in Genting Highlands. It’s not that Genting’s other core businesses are small; it’s just that their profits are small relative to the giant-sized contribution from casino operations. Growth was strongest in the casino division as visitor arrivals at Genting Highlands increased substantially last year. Andrew

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Seah, assistant vice-president at DBS Vickers Research Malaysia, says that contrary to perception that all resorts in this country were affected by the Sept 11 terrorist attack in New York, more tourists went to Genting Highlands because they did not want to travel to Western countries. Industry sources say the highest growth in visitor arrivals was from Singapore, which rose 25 per cent from the previous year; the new market of tourists from China posted 8.0 per cent growth in arrivals, while Malaysian domestic arrivals were up 7.0 per cent. These numbers are based on room occupancies in the hotels on Genting Highlands. More important, a large number of the increased arrivals also gambled in the casino. That’s where the money is for Genting, not in the revenue from tourists who only want to enjoy the mountain air. This pattern in the profile of the customers can be inferred from the 10-percentage point increase in Resorts’ profit margin last year, instead of a decline, which would have occurred if most of them had not patronised the casino. More people have flocked to the mountain resort as Genting Highlands added 3,000 rooms on the cluttered peak last year. Most of these were in the new First World, a budget hotel targeted at the middle-income market, including China. Meanwhile, casino profits also provided

There’s nothing like having wealthy relatives to see you through tough times. Star Cruises should know. It has leaned on its rich sister companies in Malaysia for cash more than once since Asia’s financial crisis. And, even before that, cash from Malaysia’s Genting group was indirectly shunted its way via a series of corporate moves. Malaysian gaming tycoon Lim Goh Tong started Star Cruises in the early 1990s. In 1994, Genting International (GIL), a Luxembourg-listed company controlled by Lim, sold its principal assets consisting of a paper mill and power plant to Genting Bhd in Malaysia for RM810 million cash. That provided GIL with the financial wherewithal to purchase Star Cruises in stages from Lim between 1995 and 1997 for a total of US$618 million. In early 1998, Star Cruises was de-merged from GIL and listed separately on the Luxembourg exchange. GIL, nothing more than a shell after the de-merger, recapitalised itself by launching a major issue of new shares at par to Genting for US$92 million. Genting ended up with a 65 per cent stake in GIL as a result. GIL also sold a number of property assets to Genting’s listed subsidiary Resorts World for RM150 million (S$1 approx RM2.10). Shortly after that, Resorts World pumped US$262.5 million directly into Star Cruises in exchange for new shares that gave it a 20 per cent stake in the enlarged company. Resorts World also picked up more shares in Star Cruises from the market, eventually raising its stake in the company to 27.5 per cent. Late the following year, Star Cruises launched a takeover bid for NCL Holdings, which at the time was the fourth largest cruise operator in the world. With weak earnings and a deflated stock, NCL was already under siege by other cruise operators and Star Cruises had to act fast. With lightning speed it swept up 50 per cent of NCL’s stock on the market

the wherewithal to continue upgrading the fine roads leading to the highlands. An analyst says Resorts’ strategy to attract visitors with better facilities is the right one. At the same time, the casino relaxed its stiff dress code for customers, allowing them to enter the casino with just a collared sports shirt; before, they had to wear a tie or batik shirt to enter. This has appealed to a wider range of customers, including those from China, who are a new and promising market. The political atmosphere has also improved. In the last few months, as the public perceived growing popular support for the Barisan Nasional government, investors holding the stock were reassured. A year ago, when Islamic-based opposition party PAS was seen to be gaining ground, there were questions as to whether Genting Highlands was located in Pahang or Selangor since the highlands straddles the states’ border. The casino was seen to be safer as part of Selangor because Pahang is more likely to fall to PAS in the next general elections, and PAS might ban casino activities. This political concern has since subsided. Few businesses are as stable as casino operations. Genting’s diversified interests in plantations and paper are cyclical in their profit performance, with the power division being the only stable business besides the casino. The diversified interests are not small investments. The property and paper divisions, for instance, have assets employed of over RM1 billion each, while the plantations division has assets of RM550 million. The paper division is operated by Genting Sanyen Industrial Paper Sdn Bhd and Genting Sanyen Paper Board Sdn Bhd, which produce industrial-grade paper. This division earned a

3/22/02, 11:58 AM

in December 1999 and launched a general offer for the rest of the shares it didn’t own. NCL’s board did everything to resist the takeover including issuing more shares to dilute Star Cruises’ grip and soliciting a competing offer from Carnival Corp, the largest cruise operator in the world. Star Cruises fought back and persuaded Carnival to join its campaign by offering it 40 per cent of its holdings in NCL. Star Cruises and its affiliates eventually secured over 95 per cent of NCL’s shares through its general offer. Curiously, in March 2000, Carnival dropped out of its partnership with Star Cruises leaving it with complete control of NCL. As the dust settled, it emerged that Star Cruises had once again been given a helping hand by Genting and Resorts World in its pursuit of NCL. According to company filings in Malaysia, Genting and Resorts World had lent Star Cruises US$62 million and US$52 million, respectively. In addition, Genting, Resorts World and GIL had collectively picked up 10.9 per cent of NCL in December 1999 for a total of RM482.6 million. How were these loose ends tied up? The 10.9 per cent stake in NCL was sold to Star Cruises for about RM173.8 million late last year, according to company filings. The reason for this low price was that NCL’s stock price had fallen considerably since the takeover offer. Meanwhile, the loans were treated as cash advances on a US$480 million subscription of floating rate notes that Resorts World had decided to take from Star Cruises. Shortly after, the bulk of those notes were converted into shares valued at about 73 US cents each in late 2000 as part of Star Cruises’ listing on the Hong Kong Stock Exchange. This raised its stake in Star Cruises to about 36 per cent. Star Cruises shares closed at 38 US cents on the Singapore Exchange on March 22. — By Ben Paul

profit of just RM10.6 million last year before tax and interest expense, compared with RM75.4 million in the previous year. An analyst says the weakness was due to weak paper prices. DBS Vickers’ Seah points out: “It put up two new plants and the higher depreciation ate into profits.” Genting’s property division maintained a profit of RM22.9 million last year. This was, however, largely brought in by the sale of a piece of land in the Malaysian state of Malacca. Demand for its housing project is believed to have slowed and earnings will be lacklustre this year. The plantations division, held through public-listed Asiatic Development Bhd, saw a reduced profit of RM31.7 million last year compared with RM39 million in 2000. Earnings are expected to be sharply higher this year in view of higher palm oil prices since the final quarter of last year. Earnings contribution from associated companies doubled to RM102.7 million — this segment includes the power division, which owns 39.1 per cent of Genting Sanyen Power Sdn Bhd. These earnings are expected to be maintained this year. The oil and gas division showed a RM124.9 million loss last year as a result of write-offs of exploration expenses. This division will have such write-offs from time to time as it explores for oil at several sites. It was a forgettable year for Genting’s diversified interests, including Star Cruises, but all the losses can’t hold back the group’s earnings growth, which is supported by its casino E business. C S Tan is associate editor at The Edge Malaysia

16 • THEEDGE SINGAPORE

| MARCH 25, 2002

CORPORATE

Second chance ThatWeb gives Aztech a shot in the arm | BY OON YEOH |

he dotcom boom was an interesting period in Singapore’s corporate history. Many firms that had felt left behind in the corporate rat race embraced the Internet because it gave them the chance to leapfrog and catch up with their former counterparts. Middle-aged, mid-tier executives left old economy firms to join dotcoms because they saw the Net as the vehicle to get ahead. Two years after the Internet bubble burst, there are too few success stories to mention, and way too many failures. Now that the dust has settled, it looks like Aztech Systems’ own dotcom, ThatWeb, might put it among the survivors. Aztech was once a fledgling soundcard maker — a distant second behind Creative Technology — but lost out in that race and went on to do other things. It tried its hand at graphics cards and a host of PC-related components and peripherals before finding its niche in modems. But being the world’s third largest maker of DSL modems doesn’t take you very far these days, what with the wafer-thin margins this sector yields. So, it went out and created an Internet strategy for itself. Aztech CEO Michael Mun tapped his trusty assistant, Dixon Hong, to come up with a dotcom that would allow Aztech to participate in the New Economy. Hong came up with ThatWeb, an innovative web-based e-mail retrieval system. That was in mid-1998. Webbased e-mail services offered by the likes of Hotmail and Yahoo! were already firmly entrenched, so Hong had to do something different. Instead of offering users yet another webbased e-mail account, ThatWeb offered a fast and easy way for any PC with Internet access to retrieve e-mails from regular Internet service providers (ISPs), for example, SingNet or PacNet. Before ThatWeb’s launch, if a person happened to be away from his home or office PC, there were only two ways for him to retrieve and reply to e-mails. The hard way was to reconfigure the e-mail software (like Microsoft’s Outlook or Netscape’s Messenger) at, say, a cybercafe so it can log into the mail server at his regular ISP. This required configuring the post office protocol (POP3) and simple mail transport protocol (SMTP) accounts for retrieving and sending e-mails, respectively. For techno-geeks, such tasks may be simple but for mere mortals, it’s a tedious task. “Asking non-techies to configure their POP3 server is out of the question,” says Hong, vice-president of ThatWeb Solutions. “They just can’t do it.” The easy way was to use free web-based email services like Hotmail or Yahoo! that could actually fetch POP-based mail (for example, from SingNet or PacNet). But in order to do so, users are still required to configure their POP3 accounts. Worse still, the return address would not be from their SingNet or PacNet accounts but from Hotmail or Yahoo! “It’s not very professional for business people to be sending e-mails to business partners and customers using a Hotmail account,” Hong says. ThatWeb solved all that by allowing users to retrieve and send e-mails simply by entering their normal e-mail username and password (from their SingNet or PacNet accounts, for example). No registration is required, nor is there a need to open an account with ThatWeb. Best of all, it is free. ThatWeb’s original business model was that of “a typical dotcom”, says Hong, basically gen-

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erating heavy traffic to either make money through online advertising or lure a big company into an eventual buyout. It seemed a promising prospect at the time. Yahoo! was raking in money through online ads and Hotmail had just been bought out by Microsoft for US$400 million. Hong, however, realised within six months of operations that the dotcom business model just wasn’t going to cut it. He did what many other ailing dotcoms resorted to: becoming an infrastructure player to provide IT solutions. Indeed, Hong actually managed to snare a few private and public sector deals. The first project came through in March last year when the Civil

found it easier to win more. That doesn’t mean ThatWeb steers clear of private sector jobs. It’s a supplier of WAP solutions for SingTel, StarHub and M1, with each deal worth “a few hundred thousand Singapore dollars”. Meanwhile, ThatWeb the website has achieved something few dotcoms have been able to do: cover its own cost. After about two years of giving its service away for free, ThatWeb started charging users this year. In January, a fee of US$2 a month was introduced. Response was good enough for Hong to increase the fee for new subscribers to US$3 a month from February. People didn’t seem to mind, prompting him to increase the fee further to US$5 in March. That led to a backlash and he has since reduced it to US$3 for simple e-mail retrieval. Hong is, however, keeping an optional US$5 monthly fee for those who want to also use his full suite of business tools, such as web-based fax, SMS, PDA sync capability and so on. Declining to reveal how many subscribers he has, Hong maintains that the fees are “more than enough” to cover overheads for running

why he doesn’t just keep it free since it’s no longer expected to be a major income earner for the company, Hong replies, “If we can make it pay for itself, why not?” ThatWeb currently has a staff of 50 people or half the number it had two years ago. It lost S$4.5 million in 2000 and last year, the company was still operating at a loss. However, by cutting its workforce, it managed to reduce the red ink significantly. Since its launch, ThatWeb has lost a total of S$7 million, Hong says. However, he is confident that with an expected turnover of S$10 million this year, the company could be operationally in the black for the whole of this year. Like many Singaporean companies, ThatWeb — the IT solutions provider — also has its eyes on China. It has a small team of five people in Shanghai, all of whom are involved in research and development. Chinaborn Hong plans to open a Hong Kong office by the end of the year, also to cater to the China market. He also intends to boost his Singapore staff strength to about 60 to 80 by year-end, depending on how many more projects the CHU JUCK SENG/THE EDGE SINGAPORE

Hong marks a map with pins to indicate all the places ThatWeb’s e-mail retrieval services are used

ThatWeb the website has achieved something few dotcoms have been able to do: cover its own cost. After about two years of giving its service away for free, ThatWeb started charging users this year. Aviation Authority of Singapore and Changi Airport hired the company to revamp its website and do some programming for its backend utilities. That was worth S$190,000. Not a lot for a systems integrator but a real lifesaver for a dotcom. Later, he landed a S$1.9 million deal from the Ministry of Home Affairs. Hong recently secured a third project from the Infocomm Development Authority, worth S$307,000. ThatWeb is now counting on more government projects though Hong says it was never a conscious decision to go for public sector contracts. He adds, however, that “once you’re into it, you build up a reputation and word gets around about the quality of your work”. After having done a few government projects, he

the service. He refuses to comment on reports that the service has only around 50,000 customers — as reported in the local Chinese media early this year. At its peak last year, ThatWeb had around 1.7 million users. Still, at between US$2 and US$3 a subscriber, the amount collected from 50,000 subscribers each month is not an insignificant sum, especially compared with its early dotcom days when it was only earning S$5,000 to S$6,000 a month from online ads. Hong says this was not even enough to pay a good software engineer’s salary. Even though the website is now self-sufficient, Hong is not expecting it to generate a lot of the revenue. “Our bread and butter is IT solutions,” he says. “The e-mail retrieval service mainly serves as a marketing and branding tool for us.” When asked

3/21/02, 9:52 AM

company wins. “We won’t rush to expand,” he says, adding that the dotcom bust year of 2000 is “something I will never forget”. As a company, ThatWeb has learnt its lessons the hard way. It now has a more grounded business model and is careful about expansion. Hong, a fervent Internet enthusiast, has also learnt that websites and front-end services are great for branding and marketing purposes but aren’t nearly as great for making money. Less glamorous back-end services can be much more profitable. Although ThatWeb won’t be bestowing upon its parent company, Aztech, the kind of windfall that Hotmail gave its original backers, Hong is a happy man. “In many ways, ThatWeb is already more successful than E I ever imagine it would be.”

THEEDGE SINGAPORE | MARCH 25, 2002 • 17

COVER STORY PICTURES: TODAY, KEPPEL CORP

Keeping

Conglomerates are a lot less fashionable now but a reinvented Keppel is winning converts and proving irresistible to investors. The question is, for how long?

| STORIES BY BEN PAUL |

hy and soft-spoken, Lim Chee Onn, a former cabinet minister-turned-corporate captain, may not have the aura of Jack Welch but he sure knows what his shareholders want. Quietly, but almost methodically, Lim, executive chairman of Keppel Corp, is setting about his task of extracting maximum value for them. “Our ultimate goal is to increase shareholder value,” he said on Jan 30 this year when presenting Keppel Corp’s results for financial year 2001. Lim took the helm at Keppel two years ago and has since won accolades from investors. Even though conglomerates are far less fashionable today than they were a year or so ago, Keppel’s stock price has soared 50 per cent since the beginning of the year, making it the best-performing Straits Times Index (STI) stock. Keppel is up 53 per cent versus the STI’s rise of 11 per cent over the same period. Under Lim’s watch, Keppel has finally begun a process of reinvention that will see it focusing on a few key business activities — namely offshore rig building, ship repair and marine services, and infrastructure engineering and property development. Everything else it owns has been dubbed as “non-core”

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shareholders happy

investments and is being put on the block (see “Breaking up is hard to do on Page 19). For the sprawling government-controlled conglomerate whose businesses once ranged from banking and logistics to oil refinery and cellular phone operations, a profound shift in strategy is evident. To be sure, the major businesses that Keppel has since earmarked for sale weren’t in any sort of financial trouble. On the contrary, they were substantial contributors to its bottom line. But the buckets of cash being raised from such divestments have enabled the company to give big dividends to shareholders and tighten its grip over its core businesses, which are staging impressive growth. That’s proving to be an irresistible lure for investors. Against the backdrop of the late 1990s growth bust, Keppel’s newfound focus makes a lot of sense, analysts say. Keppel’s top managers are aware that the days when almost every new business foray was a winner and frothy stock markets provided a handy means of realising their value early, are gone. Now, being selective about the kinds of assets it holds, adopting a leaner capital structure, and concentrating on cash-generating activities is what shareholders want. That’s not to say that there aren’t doubts over whether the longer-term prospects of

Keppel’s chosen core businesses will live up to its projections. Another key question is whether it will actually be able to offload its remaining non-core assets at prices it’s comfortable with anytime soon. But the view that these recent moves are a reflection of a fundamental shift at Keppel towards a more shareholder value-oriented form of management is keeping most investors from throwing in the towel. “Keppel Corp is more than a restructuring story,” Winifred Heap of HSBC Securities said in a recent report. “The key difference is that there is now a change in management’s thinking.”

Refocusing Keppel Keppel has been rationalising its business throughout the past year. A case in point is the privatisation of Keppel Telecommunications & Transportation (Keppel T&T) and Keppel Hitachi-Zosen (KHZ). The moves were a key milestone in Keppel’s remaking. It was Keppel’s announcement last December of its plans to take these two listed subsidiaries private that seemed to convince investors that fundamental change was afoot — and triggered a steep rally in its share price. Not that Keppel’s executive chairman had been reticent about the changes he planned

3/22/02, 12:42 PM

to make. Lim had repeatedly alluded to plans for the group to focus on offshore and marine services, infrastructure works and property development well before the December announcement. And, Keppel’s corporate moves over the course of last year provided more than an inkling of what he had in mind. During the year, Keppel raised a total of S$2.2 billion from asset sales. The bulk of this came from the sale of its stake in financial services group, Keppel Capital (owner of KeppelTat Lee Bank) to OCBC in August, which netted some S$1.85 billion. Other assets sold included three ships owned by Keppel T&T and a clutch of real estate properties. “There was no turning back after this,” said Lim on Jan 30, referring to the sale of Keppel Capital. “We have sold a profitable business that contributed 50 per cent to our bottom line.” Indeed, Keppel didn’t sit on that pile of cash for long. Even before the sale of Keppel Capital was officially completed, it had already launched plans to take Keppel FELS Energy & Infrastructure (KFEI) — its public-listed offshore rig building and infrastructure engineering division — private at a cost of S$402 million. In addition, some S$775 million was spent on the early redemption of its redeemable convertible cumulative preference shares. CONTINUES ON PAGE 18

18 • THEEDGE SINGAPORE

| MARCH 25, 2002

COVER STORY

Three pillars of growth T

hrough its privatisation of Keppel Hitachi Zosen (KHZ) and Keppel T&T, Keppel Corp is effectively tightening its grip over key elements of its chosen core businesses, analysts say. By subsuming KHZ and merging its shipbuilding and repair business with the group’s offshore rig building operations, Keppel plans to create a large integrated marine services group that would benefit from significant economies of scale and synergy. “The merger... is expected to generate revenue and cost synergies of S$10 million post-tax in the first year alone, and these synergies are expected to grow over the next few years,” said Keppel’s group finance director Teo Soon Hoe when the proposal was announced last December. That should boost growth at Keppel’s offshore and marine services division, which will have net assets of S$1.2 billion and a combined order book of S$2.6 billion after the merger. “Profit growth of up to 30 per cent pa [per annum] is expected over the next three years,” Teo said. Keppel has been announcing a steady stream of contracts. In February, the group secured a US$30 million contract to upgrade a rig for GlobalSantaFe Corporation. Early this month, it announced that it had completed a US$60 million upgrading contract on Diamond Offshore Drilling Inc’s Ocean Baroness — for which it earned a cash bonus — and that the deepwater drilling contractor had awarded it another similar contract to upgrade its Ocean Rover rig. Looking ahead, market watchers say that a possible rationalisation of shipyards owned by Keppel and Sembcorp Industries could yield further synergies. The two companies — both of which are ultimately control-

Teo: Revenue and cost synergies from merger expected to grow over the next few years

U ICT

RE:

led by the government — announced in October last year that they were holding discussions on this. But no agreement was reached and, within a month, the two companies announced that talks had ceased. Still, market talk that a merger could take place in the future refuses to die. Keppel T&T houses the group’s burgeoning network engineering business that will form one leg of Keppel’s infrastructure works division. The business unit provides wireless and wired network design, project management and maintenance services for telecommunications companies and is undertaking upgrading works for cable TV operators in Europe. Beginning with only a Southeast Asian base, this business division has grown its revenue from S$160 million in 1998 to S$260 million last year by expanding into North Asia and Europe. It now counts such well-known names as AT&T, Deutsche Telekom and China Mobile among its customers. And, fresh contracts are rolling in, many from repeat customers. With an order book of about S$600 million currently, revenue this year looks likely to double from last year. “We expect revenue this year to reach at least $500 million,” Lim said when he unveiled the group’s financial results for 2001 recently. Hoping to ride on the rollout of 3G cellular phone platforms around the world and the trend for telecommunications companies and equipment suppliers to outsource their network deployment, Keppel plans to commit a substantial amount of resources to expand this business unit. Within three years, annual revenue is targeted to hit S$1 billion, company officials say. Utility engineering is the other leg of Keppel’s infrastructure division. It currently operates a 60MW power plant in Nicaragua and a 100MW co-generation plant in China. And, it has also just clinched a US$400 million contract to install and operate a 190MW barge mounted power plant in Salvador, Brazil. Operations are due to kick off in June this year. In Singapore, Keppel is running an electricity marketing business, where it buys power from a pool of generation companies and sells it to industrial and commercial users, and is developing a 470MW co-generation plant on Jurong Island, which is expected to commence operations in late 2004. Projects that Keppel is eyeing to pad up growth at this division include the privatisation of government-owned power generation plants, construction and operation of Singapore’s fifth incinerator and the development of the country’s first desalination plant. With the strong growth of its offshore and marine and infrastructure business divisions and the group’s moves to turn them into wholly-owned units, Keppel’s earnings profile is expected to change significantly. Keppel officials say they expect these divisions to account for three-quarters of its earnings base within two or three years, up from more than a third a year ago. Keppel Land — the group’s listed property arm — forms the third pillar of Keppel’s core business operations. In keeping with the group-wide plan of focusing on cash generating businesses, Keppel Land is adopting an “asset light” strategy. It plans to concentrate on property development for sale and property management. Other than its slate of ongoing residential projects in Singapore, Keppel Land is also reaching out abroad to emerging economies around the region. Meanwhile, its portfolio of investment properties will be off-loaded from its balance sheet over time through direct sales or, possibly, via securitisation exercises.

Better deal unlikely FROM PAGE 17

And, S$383 million was returned to its shareholders in the form of a special cash payout of 50 cents per share in November. Then came its proposal to take Keppel T&T and KHZ private. Keppel’s cash offers of 60 cents per KHZ share — which has just been completed — and $1.10 per Keppel T&T share is projected to cost it S$425 million. Market watchers have suggested that the offer price of S$1.10 per share for Keppel T&T may have been too low. Recent revelations that two shareholders, Victor and Philip Friedman, who hold a combined 75 million shares in Keppel T&T, are effectively getting US$80 million in exchange for their shares (which values their shares at US$1.07 or S$1.94 apiece) have sparked calls for the offer price for all other shareholders to be raised. Keppel says it made an “error in judgment” in not disclosing an US$80 million interest-free loan Keppel T&T provided as part of an acquisition 18 months ago. Keppel issued shares to the Friedmans as part of a deal in 2000 to acquire a stake in New York-based Computer Generated Solutions Inc. Keppel T&T agreed to help the Friedmans sell the shares and to cover any shortfall if share prices were to fall. Keppel T&T’s share price fell to a low of 72 cents last year, a S$53 million shortfall for the Friedmans. But this hasn’t stopped Keppel T&T’s stock price from creeping above S$1.10 in anticipation of a better offer for all shareholders. Analysts doubt that a better deal will emerge though. In a statement, Keppel said that it “wishes to assure all Keppel T&T shareholders that there is only one offer in the privatisation scheme for all shareholders, that is, at S$1.10 per Keppel T&T share”.

The real change at Keppel But are Keppel’s actions so far really as important as it makes out? After all, the sale of Keppel Capital — the group’s most significant divestment so far — was at least partly driven by the government’s push to consolidate the banking industry, analysts say. And, even if Keppel didn’t have the spare cash from the sale to tighten its grip on its various listed units, the pick-up in earnings from its offshore and marine division and new infrastructure businesses would have boosted the group’s bottom line anyway, says one analyst at a local brokerage. Lim disagrees. “There is nothing cosmetic about such privatisation efforts,” he said recently. “We are ploughing back hard-earned surpluses to earn even better returns for our shareholders.” In addition to being able to account for 100 per cent of the earnings from its fast growing offshore and marine division and its infrastructure businesses, Keppel’s move to subsume these businesses has left investors who want exposure to them no choice but to buy Keppel’s shares. Previously, they would have been able to invest in them directly by buying shares in KHZ, Keppel T&T or KFEI. Shares in Keppel itself — as with most listed holding companies — tended to trade at a discount to the combined value of its assets. But now the market is starting to value Keppel’s shares on the basis of its earnings, analysts say, referring to the steep run-up in its share price. “This change is CONTINUES ON PAGE 19

Sm_17t20_S4.p65

3/22/02, 12:42 PM

PICTURES: KEPPEL CORP

THEEDGE SINGAPORE | MARCH 25, 2002 • 19

COVER STORY

KEPPEL CORP

Keppel’s earnings profile is changing (Profit after tax and minority interests but before exceptional items)

2000

2001

Within 2–3 years

30 15

-10

10 0

Offshore and marine

Infrastructure

Property

Investment

Banking

Breaking up is hard to do E KEPPEL CORP

KEPPEL CORP

Pruning its balance sheet

Redirecting its resources

Divestments in 2001

Major uses of cash raised

S$ mil

37% stake in Keppel Capital

1,850

S$ mil

Capital distribution shareholders

383

Stake in toll road & KE Steam in China

101

Redemption of RCCPS

775

1% stake in OUB

100

Privatisation of KFEI

402

Real estate assets

Privatisation of KHZ and Keppel T&T

5.1% stake in Australand

Total

3 ship owned by Keppel T&T

Bayswater

Aljunied Building

Nana Tai Mansion

50% stake in Apac BizInfo & Call Centre

Total

2,214

FROM PAGE 18

fair as it reflects Keppel’s change to an earnings-based company as well as factoring in the delisting of three of its key subsidiaries,” said HSBC’s Heap in her report. More fundamental than its changing corporate structure, however, are the changes that have been made to Keppel’s organisation and management, says Lim. Key among the reforms here are that management staff now have their remuneration packages linked directly to achieving set performance targets, both personally and at the group level. “For the first time in Keppel’s history, all senior management bonuses this year have been determined by their personal performance and the group’s profitability,” said Lim when presenting Keppel’s results for the 2001 financial year. Some market watchers have expressed surprise that Keppel’s executives have not been overtly rewarded on the basis of their own achievements

Sm_17t20_S4.p65

425 1,985

Keppel Corp 20

Volume (‘000)

Price (S$) 4.30

4.0

3.5

3.0

2.5 2.0

March 21, 2001

March 21, 2002

until now. But assuming their performance hurdles are not set too low, this new management incentive structure may be the best reason for investors to hope that Keppel’s value will continue to be enhanced by a more efficient deployment of its capital and resources. Lim believes positive results are already evident. “I believe we have made a good start as otherwise we would not have rolled out the privatisation exercises so quickly over the past six months,” he said earlier this year. Lim declined to be interviewed for this story. E

very conglomerate CEO knows the gospel. If all else fails, break up the company and for sure, you’ll get the applause. A conglomerate’s sum of parts is often greater than its whole. What to keep and what not to depends on the company’s focus. Anything outside the area is described as non-core. Now that it has decided on its “core” businesses — property, infrastructure engineering, offshore oil rig and ship repair — Keppel says it has some S$5 billion worth of “non-core” assets, which are earmarked for sale. Reflecting their status, Keppel now refers to them as mere “investments”. There won’t be a fire sale. But building on the momentum of Keppel Capital’s sale last year which precipitated banking merger mania, the group says it expects to pull off at least one major divestment this year. That has analysts and market watchers pointing to its 35 per cent stake in Mobile One (M1) and its 77 per cent stake in the Singapore Petroleum Company (SPC) — the largest and most visible of its “investments” — as the most likely candidates to be sold next. However, many analysts question whether there are ready buyers for these assets, or whether the offers it will receive will be acceptable. Just last year, Keppel and M1’s other shareholders — Singapore Press Holdings and Great Eastern Telecommunications - tested the market for interest in the cellular phone company. They were reported to have received bids from Malaysia’s Maxis Communications and a joint venture between Hong Kong’s Pacific Century Cyberworks, and Australia’s Telstra that valued M1 at around US$1.2 billion. That, apparently, was not enough to persuade them to part with the company. In a joint statement last October, M1’s

3/22/02, 12:43 PM

shareholders said that they had “decided to maintain their interests in the company after taking into account the volatile market valuations and global economic conditions”. Valuations for cellular operators have fallen further since and it’s now unclear what Keppel and M1 shareholders would accept for the latter. Simply put, it will be tough to pull off a deal anytime soon. A cellular operator like Maxis would still have strategic reasons for wanting to own a significant operator in a market like Singapore, and M1 does seem to be holding its own in Singapore’s maturing and competitive mobile phone market. However, lower market valuations for telcos in general, and the entry of new players like Virgin could make these interested buyers cautious about offering much more right now, they say. But, most of them seem optimistic that over a longer time horizon of two years or so when 3G services are in place, Keppel may be able to offload its stake in M1 at a better valuation. Going by statements from Keppel’s officials, it looks like more weight will be placed on getting a good price for its non-core assets than on quickly being rid of them. Keppel is “determined to seek out the best way to divest these businesses so as not to affect adversely shareholder value”, said Keppel chairman Lim Chee Onn earlier this year. Lim personally oversees the divestment programme through a top management committee that meets weekly to monitor prospects. Indeed, most analysts The Edge Singapore spoke to aren’t counting on Keppel delivering on its promise of a significant divestment this year. It really doesn’t need to. The group is not strapped for cash and near-term earnings growth is being driven by its designated core businesses, they say.

20 • THEEDGE SINGAPORE

| MARCH 25, 2002

COVER STORY

Keppel Corp comes clean

Keppel also rises? Keppel Corp shares may have soared 50 per cent since the beginning of the year, but the pundits are betting the rally may still have legs and then some. To be sure, Keppel’s management has been giving the market strong “guidance” earnings figures for the next two years. “We are committed to deliver earnings growth of 15 to 20 per cent compound average growth through 2003,” said Keppel executive chairman Lim Chee Onn when he unveiled the company’s final results for 2001, earlier this year. Compared with its 2001 earnings of 36 cents per share before exceptional items, that would put Keppel’s 2003 earnings at anywhere between 48 cents and 52 cents per share. Analysts who cover the stock have clearly been influenced by the company’s bullish message as evidenced by the rounds of earnings upgrades since late last year. But the market’s consensus estimates are still well short of the range indicated by Keppel’s management. And, the variance of these forecasts seems to have widened over the last few months. “The forecasts are all over the place,” notes one institutional salesperson at a foreign brokerage. The reason for this might have

JCF ESTIMATES

Up, up and up 0.5

Earnings per share (S$)

F1 2003 0.4

F1 2002 0.3

0.2

Oct 2001

March 2002

*Analysts have been revising upwards earnings estimates for Keppel since start of 2002

something to do with the lingering baggage of Keppel’s failure to deliver on its promises in the past, say more than a few analysts, alluding to Keppel’s forays into e-commerce and oil refining in recent years. In addition, estimating how steep a cyclical upturn Keppel’s offshore and marine division will stage or guessing at the earnings growth from its network engineering business isn’t an exact science, they say. Still, even with earnings forecasts that fell short of management’s guidance, Keppel’s stock was cheap enough for most analysts to put buy recommendations on it early this year. And, although its stock price is now nudging their “fair value” estimates,

most of them seem willing to hang on in anticipation of more good news. Albert Goh of Kim Eng Securities, for instance, began recommending a buy on Keppel in the wake of its restructuring moves late last year. He is forecasting that the group will rack up net earnings of 38.8 cents and 44.7 cents per share in 2002 and 2003 respectively. After its scorching rally since then, he thinks that Keppel’s stock is now “close to fully valued” but is yet to change his bullish call. Further orders at its offshore and marine division are factors that could lift its stock price higher, he says. Winifred Heap of HSBC Securities would agree. “The recent price appreciation merely reflects the change in management’s thinking and its pro-active approach to improving its capital structure and driving gearing down,” she notes in a recent report on the company. “We believe news about its growing order book should serve as a catalyst for further re-rating.” Heap’s forecasts for Keppel are at the top end of the scale at 42 cents and 52 cents per share for 2002 and 2003 respectively. She values the stock at S$5 per share.

Does S$ liberalisation suggest more radical measures? | BY MANU BHASKARAN |

he Monetary Authority of Singapore (MAS) has announced a further liberalisation of the rules governing the internationalisation of the Singapore dollar, or S$ (see box below for details). Essentially, these changes amount to a material change in the S$ regime. The recently announced measures basically allow non-residents greater flexibility in hedging currency risk if they borrow in S$, thereby boosting S$’s role as a funding currency — but also raising risks for the MAS as it seeks to guide the S$ into its desired trading range. Bold move shows greater MAS confidence. What stands out is the boldness of the policy change in contrast to the incremental S$ liber-

alisation measures announced earlier. All but two restrictions on the international use of the S$ have been removed. MAS is clearly much more confident that it has developed the instruments and resources needed to manage the increased risks to the management of the S$ arising from the liberalisation. Positive implications for bond market. A major implication of allowing more S$ internationalisation is to promote capital market development. The easing of restrictions will boost the bond market and help promote securities lending. Singapore could truly come into its own as a regional funding centre. Previous regulations had made hedging difficult, one reason why the bond market had not taken off in Singapore.

Key changes affecting Singapore dollar • For non-residents, asset swaps, cross currency swaps and cross currency repos can be freely transacted; • Financial institutions in Singapore can lend any amount of S$-denominated securities in exchange for S$ or foreign currencydenominated collateral; • Financial institutions can freely transact S$ foreign exchange options with non-resident entities. Financial institutions no longer need to maintain documentary proof showing that S$ foreign exchange options and transactions with non-resident entities are for hedging purposes; and • Financial institutions will also no longer be required to ensure that S$ credit facilities

Sm_17t20_S4.p65

extended for investment purposes are withdrawn when the investments are either wholly or partially liquidated. Only two key restrictions remain on the use of the S$: • Financial institutions may not extend S$ credit facilities exceeding S$5 million to nonresident financial entities if they have reason to believe that the proceeds may be used for speculation on the S$ exchange rate. • Non-resident entities are still required to swap or convert the proceeds of their S$ loan or funds raised from stocks or bond issues into foreign currencies if these entities intend to use the proceeds offshore.

etting a good deal — or even just the perception of it — sometimes draws the ire of others. That certainly proved to be the case with Keppel Corp’s offer to take Keppel Telecommunications & Transportation (Keppel T&T) private. Many analysts and market watchers grumbled that the S$1.10 offer price was a tad low when the deal was first announced late last year. But when it emerged recently that two shareholders — Philip and Victor Friedman — were effectively being paid US$1.067 or about S$1.94 apiece for their 75 million Keppel T&T shares, the griping got a lot louder and Keppel T&T’s stock climbed above S$1.10 in anticipation that Keppel Corp would have to better its offer. The complaints were so loud, in fact, that Keppel felt obliged to issue a statement in which it said that Keppel T&T had purchased a 20 per cent stake in Computer Generated Solutions Inc in September 2000 from the Friedmans for US$80 million. But instead of raising the cash and paying off the Friedmans immediately, Keppel T&T issued them 75 million shares with an undertaking from Keppel to help them place the shares out to raise the US$80 million. As it turned out, the markets were too weak for the placement to be done. So, Keppel let the Friedmans have the US$80 million cash but called it a loan and held on to the Keppel T&T shares as collateral. The understand-

But S$ liberalisation alone is not enough. Of course, this liberalisation in itself is not sufficient to take the bond market to the take-off stage. For the bond market to grow rapidly, one also needs to see more rating agencies undertaking rating work locally, a benchmark yield curve off which to price and much more liquidity in the secondary market. For this to happen, more policy reforms will be needed. Government bonds of different maturities need to be issued. This is already happening to some extent. But promoting liquid secondary trading of bonds in Singapore will be more difficult and will take more time, given the huge unmet demand for bonds on the part of investors who want to hold them for long periods. Savings regime needs to change as well. Developing a benchmark yield curve and generating more secondary market liquidity in bond markets strike at the heart of the unique savings regime in Singapore — a structure of policies with two key characteristics. First, an extraordinarily high savings rate partly due to government fiscal and housing policies. Second, an unusually high percentage of such a high savings rate flowing into government coffers partly due to the Central Provident Fund (CPF) system and high surpluses of government statutory boards and companies. This savings regime reduces the amount of funds managed by diverse individuals and institutions in Singapore and helps to crimp the development of savings instruments in Singapore such as pension plans, bonds and unit trusts. A radical shift in policy mindset? Remember that not very long ago, any talk about easing the restrictions on the internationalisation of the S$ was taboo. Breaking this longstanding taboo suggests a radical change in the policy mindset — there is a welcome willingness to break the mould. If such a radical change in the policy mindset has indeed occurred, it suggests that the Economic Review Committee will indeed come out with truly ground-breaking moves when its interim report is announced in a month’s time — and more when the final

3/22/02, 12:43 PM

ing between Keppel and the Friedmans was that any shortfall or gain against the US$80 million from the eventual sale of the Keppel T&T shares would be for Keppel’s account. In other words, Keppel effectively bought the 75 million Keppel T&T shares when there were no other buyers. Now, Keppel is effectively buying the 75 million Keppel T&T shares from itself at a loss through its own offer of S$1.10 per share. According to its statement, Keppel has already written off S$53 million in respect of the shortfall in recovery of the loan. And, it has “procured the Friedmans’ agreement to abstain from voting under the privatisation scheme” in order to give minority shareholders a free hand to decide. But, in defending itself against accusations of treating the Friedmans more favourably than other shareholders of Keppel T&T, Keppel has opened itself to criticism for not being completely up front with its shareholders about its financial dealings and for poor business sense. The company admits as much. In its statement, Keppel accepts that it “should have made a public disclosure of the loan” and noted that doing the deal was “poor business judgment in view of the subsequent collapse of technology stocks”. So, will the market accept that Keppel’s offer is fair to minority shareholders of Keppel T&T? Watch Keppel E T&T’s stock price to find out.

report comes out in August. It is still possible then that key features of the savings regime noted above might be changed. Fiscal policy could see radical shift? From public pronouncements made by senior government leaders, it would appear that tax policy is one area where changes are imminent. Perhaps we might see not an incremental shaving of corporate and personal income tax but a sharp reduction in rates that substantially boosts incentives for entrepreneurship. Of course, this is likely to be phased in over several years but we suspect that tax changes would mark at least a modest cut in the large government fiscal surpluses that contribute to the high proportion of savings flowing into the government. Privatisation might help as well. In addition, it is also possible that we might see some genuine privatisation of government-linked companies (GLCs). Policymakers have been cautious in their public pronouncements on this issue — but there have been broad hints that outside strategic GLCs such as SIA, DBS, NOL, SingTel, ST Engineering and other defence-related companies, the government is prepared to sell controlling interests to outside parties. If this happens, then more of the savings of privatised GLCs will be released into Singapore’s capital markets, out of government control. What about risks? With liberalisation comes a higher risk that the MAS may have less ability to guide the S$ into a desired trading range — the foundation of macroeconomic policy in Singapore. We suspect that this will not be a problem in normal foreign exchange markets. It will be in periods of crisis or when unexpected shocks hit that management of the S$ will become an issue. However, in such periods, it will also be feasible for MAS to introduce temporary restrictions to kill speculation. E The risks, we believe, can be managed. Manu Bhaskaran is a partner and member of the board of Centennial Group Inc, an economics consultancy

HIGHLIGHT The Right Timing ........... 24 Personal Finance ......... 27 Insider Moves ............... 30 JCF Estimates Consensus .................... 34

Osim in a comfortable position MARKETS & INVESTING

INVESTING IDEAS PG22

Lipper ........................... 36 Thomson First Call ........ 38 Warrants/Loan Stocks Update .......................... 41

THEEDGE SINGAPORE | THE WEEK OF MARCH 25, 2002

CAPITAL

STI big caps to ride US recovery

MARKET ROUNDUP

STI priming itself 150

Straits Times

volume (million)

1800.20

Investors may be in for fairly profitable but volatile times

1778.08

March15 18

towards the domestic economy, and reflects little in the way of export-oriented or technology stocks, apart from nterest rates are to asset markets what gravity is to Singapore Airlines, Cerebos Pacific, Datacraft Asia and Venthe physical world. The lower they go, the higher ture Manufacturing”. Since the domestic economy will lag, asset prices seem to want to climb. But a bottoming he reckons “there will be a delayed effect in terms of this interest rate cycle also reflects improving economic market’s performance on the back of a global economic growth prospects, which is good news for corporate recovery”. Indeed, many analysts say technology stocks are probearnings. With the US Federal Reserve going into a neutral stance ably the best proxy to Asia’s rebound. But a look at the now after 11 interest rate cuts last year, further gains by region’s top technology and electronics-related companies the Straits Times Index (STI) — if there are any to be had shows that 22 out of 30 of them are Taiwanese. (Thomson — will be driven by a narrow group of big cap stocks First Call has prepared exclusively for The Edge Singapore, whose underlying businesses have a real shot of riding the tables on Pages 38 and 39, which look at the valuation of the top 20 companies by market capitalisation in sethe US economic recovery wave. Analysts say the huge amount of liquidity that has been lected sectors around Asia ex-Japan.) It’s hardly surprising then that pumped into the US economy over global fund managers turn tothe past year is waiting to eventuwards North Asia whenever a ally find its way into Asia and fuel technology-led rebound comes local markets. Lim Say Boon, dialong. That, coupled with the fact rector of OCBC Investment Rethat North Asian stocks tend to search, for example, thinks “Asia be more liquid, and thus have remains a much cheaper play on — Lim Say Boon, OCBC higher weightings in global indiglobal reflation than [the US Investment Research ces such as the Morgan Stanley benchmark] S&P 500. So it would Capital International Indices, make sense for US investors, flushed out by too much cheap money, to ride the recov- means while liquidity is moving towards Asia, it is flowing towards Taiwan, South Korea and China and very litery via Asia, including Singapore.” Hugh Young, chief investment officer of Aberdeen As- tle is actually filtering down to Southeast Asian markets. Singapore’s big tech players such as Chartered Semiset Management is an optimist who believes there is still momentum in the Singapore market, but he cautions that conductor and Creative Technology are therefore not as “the short-term vagaries of markets are still anyone’s “appealing” by regional comparison. Aberdeen’s Young guess” — a sentiment echoed by Lim who warns inves- though, singles out stocks like contract manufacturer Ventors to beware. Though the long-term trend is up, Singa- ture Manufacturing as “a world-class company though its pore investors, he says, should “expect volatility, lots of stock is not cheap anymore”. Chartered Semiconductor, on the other hand, he says is regarded as a poor version of it”. Mark Matthews, chief Asia-Pacific equity strategist at the top Taiwanese foundries like Taiwan Semiconductor Standard and Poor’s (S&P) is another stock guru who be- Manufacturing and UMC. Nothing beats the likes of giant lieves that the Singapore rally may yet have legs, but re- Samsung Electronics of South Korea, he says. minds investors that “the composition of the STI is geared CONTINUES ON PAGE 46

| BY JOANNE SONG |

Scap_21_S4.p65

volume (million)

757.44

752.63

March 18 19

volume (million)

350

10607.23

10479.84

March15 18

800

Dow Jones

Nikkei 11648.01

volume (million)

Expect volatility, lots of it

KLCI

11345.08

March 15 18

350

volume (million)

Hang Seng 11210.25

March 15 18

3/22/02, 12:17 PM

10863.07 19

Against the backdrop of the US Federal Reserve adopting a neutral interest rate stance after repeated cuts, the Straits Times Index (STI) moved forward last week in a seemingly hesitant manner, but volume was rising steadily. The Fed’s neutral stance is confirmation that the US economy is finally on the road to recovery — however gradual that recovery may be. That whiff of a recovery is a huge shot in the arm for Asian economies and markets — Singapore’s included. In the near-term, attention could shift from the small caps to the larger components of the STI as the market comes to terms with the possibility of months or even years of growth ahead, say some analysts. But with stock valuations for many big caps already pumped after months of loose monetary policy, and generally lacklustre corporate earnings recently, it could be a choppy ride. Indeed, as an indication of how slim the pickings have been among the big caps, only four out of the top 20 largest capitalised stocks on the Singapore exchange actually beat the STI’s 11 per cent rise since the beginning of the year. So, expect a rally led by the market’s bigger counters but stay nimble and keep alert to news flow and keep benchmarking the valuations of the stocks you hold against the rest of the market to ensure that they are not out of line.

22 • THEEDGE SINGAPORE

| MARCH 25, 2002

CAPITAL

INVESTING IDEAS SINGAPORE

Osim in a comfortable position OSIM

| BY JOANNE SONG |

Sim attributes Osim’s success to niche marketing and innovative product development, among others

ith the stresses of modern living comes the need for the latest in ventions to make life more comfortable, and founder and chief executive officer of Osim International, Dr Ron Sim, cashed in on this pretty early on. Beginning with only hand-held massage and foot reflexology rollers in the early 1980s, the company has grown tremendously over the years to achieve sales of more than S$168 million in its latest financial year. Analysts are warming to the stock and it has won over some sceptics, especially after delivering strong and better-than-expected results for its 2001 financial year. Year-to-date, Osim’s share price has risen an impressive 63 per cent, outstripping the modest 11 per cent gain in the Straits Times Index. But its valuations are still compelling at 11.1 times 2002 earnings against pure retailers such as Courts Singapore at 6.1 times and Robinson & Co at 12 times. In a recent company report, Julian Wong of Philips Securities described Osim as “a rare good-togreat company that medium- and long-term investors can hope to re-

alise a 20 per cent stock appreciation in the next 12 months”. Lim Beng Eu of DBS Vickers Securities too puts Osim’s value at around 12 to 13 times forward earnings, or 90 cents per share. Osim’s turnover rose 20 per cent last year, driven by strong growth in Singapore where the company had a new product rollout in July. Osim posted a net profit of S$13.4 million during the year, 42 per cent higher than in 2000. However, the bottom line was bolstered by a S$2 million tax savings arising from a preferential tax rate enjoyed for its Business Headquarters status for a six-year period starting 1999, but was granted to Osim only at the end of last year. Nevertheless, stripping out the tax incentive, profit was still up by more than 20 per cent. And to the delight of shareholders, the company also announced a one-for-four bonus issue and paid out annual dividends of 75 cents per share. Sim attributes the company’s success to niche marketing, innovative product development, its extensive distribution network and franchising. The idea of niche marketing is to create branding, and the company

seeks to create a strong brand name not unlike that of Nike and Starbucks. According to Sim, Nike is able to make a difference through brand positioning, coupled with good concepts, design and quality material at the right pricing. And this is the kind of strategy that Osim wants to emulate. Indeed, the company has made some inroads into becoming one of the leading brands in home healthcare products — already, it is recognised as the No 1 home healthcare brand in Singapore, Malaysia and Hong Kong. Osim’s marketing strategy is controlled through its point-of-sales. At the end of last year, Osim had 303 stores and has added Thailand as its sixth key market, on top of signing new franchises for the UK, Canada, Ireland and Australia. Osim’s management is targeting to hit the S$1 billion revenue mark by 2008, when the company will have four concepts — lifestyle, health, nutrition and fitness. This translates into a compounded annual growth rate (CAGR) of around 28 per cent, which according to Kerryn Tay of GK Goh Securities, is not totally impossible given the 34 per cent CAGR Osim has achieved over the past five years focusing on CONTINUES ON PAGE 26

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3/22/02, 9:08 AM

Above 40

THEEDGE SINGAPORE | MARCH 25, 2002 • 23

CAPITAL

INVESTING IDEAS MALAYSIA

MTD Capital — a growth story | From JACQUELINE HO in Kuala Lumpur |

t’s a transformation story. As good as any to get to grips with MTD Capital Bhd, say analysts who like the stock. A quick trawl among analysts puts the target value of the stock at RM7 to RM7.50 a share. KAF Research calculates a RNAV (revised net asset value) of RM10.64 for MTD, with a 30 per cent discount for being a holding company. It closed last Wednesday at RM5.85. It is definitely a growth story. MTD Cap shed its previously unassuming image in a hurry last year when it went on the acquisition trail. Firstly, it reversed subsidiary MTD Prime Sdn Bhd into Dewina Bhd in April last year. MTD Prime is the concessionaire for the Kuala Lumpur-Karak Highway. Dewina was a languishing food manufacturer that had fallen under the ambit of the Kuala Lumpur Stock Exchange’s Practice Note 4, a regulation that in effect marks out a company as poorly and requiring fast financial resuscitation. Then in July, MTD Cap made a voluntary general offer for intra-urban toll operator Metacorp Bhd. It was a sweeping move that initially stunned some sections of the market as Metacorp was linked to United Engineers (Malaysia) Bhd which, at the time, featured in a high-profile takeover by the government. In later days, the move was hailed by analysts as timely and for a good price to boot. Before its shopping spree, MTD Cap, a mostly family-run company under the stewardship of managing director Datuk Azmil Khalili Khalid, figured largely on the radar screens of the investing community by dint of its toll operations and emerging as the sole contractor of Phase 1 of the East Coast Expressway. There was a lot of promise but it was largely organic. In other words, slow. That is, until last year. The downside to MTD Cap’s story is debt. The company was already highly geared before the flurry of corporate activities pushed its gearing over 1 — a danger sign to many.

Still, analysts who like MTD Cap reckon the debt is manageable and the bulk is actually project financing for the construction of the KL-Karak Highway. But more importantly, management has recognised its debt position and is taking steps to address it. “It is comforting that management has made de-gearing a priority,” says Terence Wong,

head of research at Straits-GK Goh Research. And since the usual way to repay debt is via the sale of assets, the promise of more corporate activity is likely to result in sustained market interest in MTD Cap. “After the Metacorp offer and reverse takeover of Dewina, the group will end up with six listed companies, including Metacorp’s 31 per cent owned Trenergy Malaysia Bhd and

MTD Capital 500

Volume (‘000)

Price (RM)

450

6.5

350

6.0 5.85 5.5

300

5.0

400

250 200

4.5

150

4.0

100

3.5

50 0

3.0

Sept 20, 2001

March 20, 2002

Share price: RM5.85 (March 20) Issued shares: 134.9 million Estimated free float: 25 per cent Major shareholders: Nikvest Sdn Bhd (22.7 per cent), Alloy-Consolidated Sdn Bhd (15 per cent), Desiran Realiti Sdn Bhd (9.4 per cent), Bintang Bistari Sdn Bhd (5.26 per cent)

Profit projections year-end Dec 31 NET PROFIT (RM MIL) FY2002 FY2003

Arab-Malaysian Securities DBS Vickers GK Goh KAF Research OCBC #Consensus

80.30 88.9 88.0 62.40 82.2 82.50

110.8 104.5 95.0 98.7 89.0 95.00

EPS (SEN) FY2002 FY2003

50.40 65.9 58.7 48.5 63.7 59.70

66.8 77.5 69.0 76.7 69.0 73.50

#Multex Global Estimates of eight brokers polled

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3/22/02, 6:33 AM

15 per cent owned ACP Industries Bhd. MTD Cap will restructure and streamline the group,” writes Wong in a report on the company. MTD also owns 25 per cent in civil engineering outfit WCT Engineering Bhd. Indeed, the market has been rifling through various scenarios. The accepted one is the sale of Trenergy as the oil and gas support serCONTINUES ON PAGE 26

24 • THEEDGE SINGAPORE

| MARCH 25, 2002

CAPITAL

THE RIGHT TIMING

Chart A

Finance to break 1,576 STI (1,800) Long-term: up; major trend progressively higher; eventual target 2,400; time frame 1 year Intermediate term: Awaiting rebound; support 1,774; break-up point 1,808 Near term: Short-term set to peak on Monday/Tuesday; could pause briefly thereafter ahead of a break. Market structure: It was a fair week for the blue chips, with the STI and key big caps rising on the back of the rebound in the shortterm cycle. The move was corrective rather than impulsive, and we’re approaching the fourth week of March. In the short term, there are still no signs of a breakout. For this, ADX would have to increase over the week but it has, on the contrary, fallen 1.0 per cent. ADX measures the trending tendency of prices and the STI remains sideways. This indicator could gain during the next few sessions. The best signal here would be a break above 23 per cent, the level of the declining ADXR. From a trend point of view, the major uptrend has not been violated, remaining very much intact. On the downside, 1,774 has not given way either. The weekly chart bears testimony to the strength of the support below 1,774. In the first week of March, the STI “gapped” out of a reverse head and shoulder on the weekly chart at 1,758. If this turns out to be a breakaway gap, then the index is unlikely to move back down to cover the gap in this campaign. A quick look through the angles shows the STI locked between a declining 1x4 angle and attempting to regain the key rising 1x1 angle. Time cycles confirm the “gap theory”. They also hint that the 1x1 is set to regain. Both the 12-month and 24-month ROCs are rising in tandem, suggesting that the corrective phase is likely to be resolved on the upside. A Gann “vibration” should occur soon, an occasion when time and price converge. Short term RSI on the 21-day basis still gives no definitive signal for a second week. It has flattened near neutral levels, all signs of a “neglected” phase (see chart B). ADX (also chart B), which measures the market’s trending tendency, is a relatively low 22 per cent, on the back of a set of positive DIs. This confirms that the STI is in a corrective phase in a major uptrend. Stochastics (chart B) is rising and is likely to hit the overbought sell line in a day or two. This is a five-day overbought/oversold indicator with the buy line (oversold level) at 20 per cent and the sell line (overbought level) at 80 per cent. We should see a downturn soon, but rising long-term indicators should keep the decline mild. Medium term Quarterly momentum (chart A), representative of the market’s secondary cycle and measuring its latent strength, continues to trace a series of lower highs and lower lows following the break below the s-h-s top two weeks ago. Usually, in a bull market, this indicator tests or approaches the equilibrium line and

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Chart C

Chart B

| BY GOOLA WARDEN |

turns up from there. This it should do, well, just about… now. MACD: 65/33-days, is declining. Long term There is no change. The Coppock Indicator, which is the market’s long-term indicator based on a very smooth rate-of-change calculation, turned up in December, after a 23-month decline. The Coppock gives a signal once every 12 to 18 months or so (see chart C) — a rising Coppock is the sign of a bull market; a falling one, a bear. According to its parent Edwin Coppock for whom it is named, it gives a buy when it turns up from below the zero line. This it did in December for our STI, pointing once again, the way upwards. The ascent usually lasts for 12 months or more, with prices just about doubling during that window. 24-month ROC (Rate-of-Change) is twice as long as the Coppock, capturing the market’s dominant cycle and is rising noticeably. The market’s most powerful moves occur when both the Coppock and 24-month ROC are moving (up or down) in tandem. This is the first time in two years that both are rising together. Outlook The lift given to the blue chips in the past week may fade as the short-term cycle turns down. The rising weekly 1x1 angle needs to be regained; and quarterly momentum has to stage a decisive upturn, break above its downtrend and reinforce the Coppock for the advance to resume. These are all possible this week. Watch the heavyweight blue chips such as the banks and SPH. They are the market’s leaders and a breakout on one would mean a breakout for all. The corrective phase has lasted for the best part of 1Q — the STI peaked at 1,808 on Feb 1. This should end with the close of 1Q2002, followed by a resumption in the main advance. We’re waiting for the Big One. The breakout is at 1,808, the short-term target 1,890, the medium upside 2,268 and the market’s up-potential 2,400.

Long term Annual momentum has turned up and is likely to maintain this progressive advance for the rest of this year. 24-month ROC has bottomed and is strongly expected to turn up in the next two weeks. This would reinforce the rising annual momentum and lead to a resumption of the main upclimb in 2Q2002. Outlook This sector could be stronger in the early part of the week. Thereafter, there could be some volatility as time cycles oppose one another. The major 50 per cent retracement level of 171, also a Gann natural level, has just been breached. This should provide some semblance of support. The sector remains cushioned by rising annual momentum. The potential upturn of the 24-month ROC next month signals a strong rally. The eventual target is at 256, although there could be hiccups on the way, with the natural resistance at 180 providing the next immediate stoppage.

Long term Annual momentum is rising and is poised to move above equilibrium. 24-month ROC has turned up after a two-year decline and this will underpin the bull phase, limiting the current corrective move. By all accounts, handsome rallies lie ahead for this sector when quarterly indicators turn up, reinforcing annual momentum and 24-month ROC. Conclusion The UOB Sesdaq Index has broken above a reverse head-and-shoulder formation indicating a target of 105. The breakout level at 66 provides initial support for the throw-back move. Small caps look set to remain in the limelight although real leadership and direction are likely to come from the blue chips.

UOB SESDAQ (70) Taking a brief pause

Finance Index (1,579) The breakout

Short term: up; medium term: up; long term: up; target: 105.

Short term: up; medium term: up; long term: up.

Medium and short terms 21-day RSI is rising. Slow stochastics is rising but may peak at the

Short and medium terms 21-day RSI: Upturn 14-day ADX: Possible upturn Five-day stochastics: Still rising, possible minor peak on Tuesday 65-day momentum: Rebounding off equilibrium

Electronics

Long term Annual momentum: Positively placed and rising 24-month ROC: Upturn and positively placed Conclusion The finance sector, as represented by the index, looks poised to sustain a break above the three times tested 1,576 level. Such a move points to a medium-term target of around E 1,800. (The Edge Singapore does not warrant the accuracy or completeness of information contained in this article. Nothing contained hereto should be regarded as solicitation to buy or sell any of the securities referred to. The writer may have positions on the securities discussed. Information and opinion stated here are subject to change without notification. The Edge Singapore and The Right Timing writer shall not be liable for any loss suffered by reliance placed on this article.)

UOB Sesdaq

Glossary ADX — Average Directional Movement, developed by J Welles Wilder, is an indicator designed to measure and rate the trending tendency of prices, by comparing the current day’s range to the previous day’s. DI — Directional Indicator is the ratio of directional movement expressed as a percentage of True Range Lane’s Stochastics named for its founder George Lane, measures the relative closing price within a given interval and is based on observations that as price decreases, the daily closes tend to accumulate closer to their extreme lows of the daily range. MACD is the difference between two EMAs, developed by Gerald Appels and obtains its name from two moving averages that are continually converging and diverging with each other. Momentum and ROC measure the rate of change of price by continually taking price differences for a fixed interval of time. RSI was designed by Welles Wilder to ascertain overbought / oversold and divergent situations and latent strength and weakness.

SECTORS Electronics (172) Breaks above 50 per cent retracement Short term: up; medium term: minor retreat to 170; long term: uptrend intact, upside 256.

overbought sell line in a day or so. This may cause a mild pull-back. ADX is rising and the DIs are positive. Quarterly momentum is trending higher again.

Finance

Medium and short terms ADX (14-days) is rising, suggesting the trend has begun. The DIs are in mildly positive mode. RSI (21-days) is rising. Stochastics (5/3 days slowed) is rising after an upturn from neutral levels. This could peak mid-week, causing a temporary hiccup. Quarterly momentum is easing. Near-term net moves by the SGX Electronics Index may only be marginally lower.

3/22/02, 11:54 AM

26 • THEEDGE SINGAPORE

| MARCH 25, 2002

CAPITAL

INVESTING IDEAS SINGAPORE

Osim targets S$1 bil in revenue by 2008 OSIM

FROM PAGE 22

only one concept. Management means to support this sales target by aiming for 500 point-of-sales by the end of next year and 1,000 by 2008. Most of this anticipated growth will come from North Asia where Osim has outlets in China, Hong Kong, Taiwan and soon, South Korea. Already, Osim has 64 out of 303 outlets in China, more than in any other country — and sales from China more than doubled from 2000 to S$11.6 million last year and now accounts for 7.0 per cent of total sales, but this share is expected to increase. Hong Kong is Osim’s largest market — accounting for 45 per cent of sales, followed by Singapore with 22 per cent. Successful products such as Osim’s massage chair accounted for as much as 50 per cent of sales in 2000, but the three new divisions — hygiene-related, nutrition and fitness — are expected to contribute between 30 and 40 per cent of revenue in the next three years. To achieve this, Osim will also be rolling out new products twice a month, instead of one in every quarter. This is not necessarily in terms of totally new products, rather some will be modifications of existing product ranges for improved technology or aesthetic appeal. According to Gary Lai, Osim’s brand manager, the company allocates about S$2 million annually to research and development, and this amount will likely increase as the business grows. Wong of Phillips Securities sees Osim’s “nutrition-focus products as targeting a very undeveloped market in Asia, and provides the most

Products like its Hydrofresh water purifier is helping Osim make inroads into becoming a leading brand in home healthcare products

exciting fuel for explosive growth in the coming few years”. However, not all are enthusiastic about Osim’s new ventures. A Kim Eng Securities analyst expresses some reservations about vitamins, “which seems out of their specialty and the fitness market is also more challenging”. Indeed, by going into the nutrition business, Osim will be facing direct competition from established brands such as General Nutrition Centres (GNC) and Nature’s Farm. However, Tay of GK Goh points out that

the nutrition industry probably operates on a very fat margin — evidenced by the companies’ ability to offer frequent and heavy price cuts. There is, therefore, plenty of room for other players in the market. Osim has promised a different concept from GNC and Nature’s Farm that if successful, will cause investors to be more receptive towards the stock. As with its penetration of new markets, Osim’s foray into other products is still at the early stages. Much of the upside on the stock will depend

on how it fares on both fronts, though the positive new flow is already generating some investor interest. The company, nonetheless, is in no doubt. “Our track record shows our success in leveraging our brand. We don’t think that the principles of [the] nutrition and fitness business are different. We are confident the nutrition-focus and fitness-focus will succeed,” says Osim’s Lai. According to Sim, Osim has been in Hong Kong since 1986, Taiwan 1987, Malaysia 1993 and China

1994. For these foreign markets, the company works with local partners who know the market better. For the management team in these countries, Osim uses predominantly locals with guidance from the Singapore headquarters. And for new territories such as the UK and South Korea, the company opts for the franchising model. At the official opening of Osim’s global headquarters in Singapore on Jan 25, Minister for Trade and Industry George Yeo was full of praise for the company, describing Osim as an “excellent example of a Singapore company that has successfully expanded far afield in the healthy lifestyle product market”. Lim of DBS Vickers comments that Osim has done a good job so far and only time will tell whether the company will be able to replicate its success in its new product lines. Thus far, the company has been able to carve out a profitable niche market, and Lim foresees that growing consumer sophistication and affluence will create demand for quality healthcare products, which will in turn sustain Osim’s growth going forward. Tay of GK Goh echoes this sentiment, saying that Osim is not only selling quality products, but has also been able to market a concept. However, the stock currently is not accorded a premium given that it is still perceived as a retailer. But if it successfully builds on its new products and leverage the success it has had in the healthcare market, there will be a corresponding re-rating of its market valuation, and Osim could be priced more as a marketE ing company.

INVESTING IDEAS MALAYSIA

Steady earnings in toll collection FROM PAGE 23

vices company is the odd one out in a group of construction, toll and property companies. In fact, MTD had announced last October that Metacorp had received an offer to buy Trenergy. But there has been no further development since then. At last Wednesday’s closing price of RM3.44, the 31 per cent stake would have fetched a decent RM75.75 million. Conversely, there has been little speculation on Metacorp’s shareholding in building materials supplier ACP Industries. At last Wednesday’s closing price of RM3.20, the stake would be worth RM61.17 million. Possible asset sales aside, analysts are also happy to note that the injection of MTD Prime into Dewina is on its last leg, barring the approval of shareholders. The Securities Commission finally gave the nod for the exercise on March 4, 11 months after it was proposed in April last year. The exercise is on course to be completed by mid-2002. An analyst with a local research outfit reckons that MTD Cap has successfully unlocked the hidden value of its toll operations. “When the KL-Karak Highway toll concession was with MTD Cap, it was worth less

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Analysts say MTD Cap is currently negotiating with the government for either a hike in toll rates, which was due last year, or an extension in the concession. If neither is granted, the toll company stands to be compensated by the government. than RM1 billion. Now, it is worth RM1.2 billion, or about RM1.10 to RM1.20 a share,” he says. “There will be a dilution of earnings as the share capital will be huge, 1.2 billion, but the valuation is sustainable as the concession can be extended or the toll rates raised.” The 60km KL-Karak Highway was completed in 1994 and the concession period is for 27 years till July 2021. The concession was extended another five years to 2026 in return for the construction of the Genting slip road. The KL-Karak Highway is an “open toll” road with toll fees collected at two points: RM3 at Gombak and RM1.90 at Bentong. Analysts say MTD Cap is currently negotiating with the government for either a hike in

toll rates, which was due last year, or an extension in the concession. If neither is granted, the toll company stands to be compensated by the government. MTD Cap’s other toll company is Metacorp, which operates four intra-urban toll roads — Jalan Cheras, Jalan Pahang, the East-West Link Expressway and the KL-Seremban Expressway. The first two concessions are expiring next year and in 2004, respectively, while the latter two expire in 2018. MTD Cap’s general offer for Metacorp, through a cash offer of RM3 a share or new MTD shares valued at RM6 apiece, was completed early last month. MTD Cap now controls 85 per cent of Metacorp.

3/22/02, 6:33 AM

Toll collection, as the promoters of Projek Lebuhraya Utara Selatan Bhd will tell you, is a steady earner. PLUS is billed as the largest initial public offering that will hit the market this year. As for MTD Cap, analysts place possible revenue from its toll division at RM76 million to RM89 million this year. Its construction division is at once a strong earnings driver and a possible cause for concern. The analyst with the local research house is worried that the bulk of MTD Cap’s order book belongs to the RM1.3 billion Phase 1 of the East Coast Expressway. He says that is now down to around RM900 million to RM1 billion and will run out in two years. And while he doesn’t doubt that MTD Cap stands to be awarded Phase 2, which is estimated to be worth another RM1.3 billion, he says the company may get caught in the middle of the jostling between the federal government and the Terengganu state governE ment. Jacqueline Ho is a senior writer with the Capital Markets & Companies Desk at The Edge Malaysia

THEEDGE SINGAPORE | MARCH 25, 2002 • 27

CAPITAL

PERSONAL FINANCE

Tech fund manager comes clean on underperformance

“

CHU JUCK SENG/THE EDGE SINGAPORE

| BY KELVIN TAN |

Underperformance” sounds like a dirty word to most fund managers who are paid to beat the market. And to come clean on the reasons for the underperformance of their funds is definitely an uncommon practice for fund managers. But to the forthright Theo Maas — portfolio manager of the ABN AMRO Star-Global Technology Fund — that’s just being honest with yourself and your investors. Like many other technology-related funds, the ABN AMRO Star-Global Technology Fund’s performance in the past two years has been disappointing to its investors — giving gloomy -73.7 per cent returns (as at Feb 28 this year) since its inception on Feb 21, 2000. And many a time, the tech fund of ABN AMRO failed to beat its own benchmark — the MSCI World Info Tech Index. Maas reveals the reason for its underperformance. “I will be totally honest with you; over the last 12 to 18 months, our benchmark — the MSCI World Info Tech Index — has certainly been very difficult to beat. This is because in the benchmark, the three biggest stocks, namely Microsoft, IBM and Intel, which make up roughly about 35 per cent of the index, have held up very strongly versus

Scap_27n28_S4.p65

Maas: I believe we are well placed to outperform the benchmark during the recovery period

the rest of the technology market. We failed to outperform the benchmark because we were not willing to concentrate our portfolio on these three big technology stocks as much as the benchmark,” says Maas, who manages US$300 million in technology money. “Just as it was easy for us in 1999 and early 2000 to outperform the same index because the rest of the market was running much faster than those three big cap names, the situation was sort of reversed last year,” adds Maas.

The tech fund manager observes that in times of difficulty, investors tend to flee to the safety of big cap bellwethers. But foreseeing that it is just a temporary phenomenon, Maas predicts: “In times of recovery, we will probably see the same pattern happening again like we did in 1999 when the rest of the market outperformed the three big cap names like Microsoft, IBM and Intel.” “So, although we are having difficulties keeping up with the benchmark in the shorter term, I believe we are well placed to outperform the benchmark during the recovery period,” Maas enthuses. Besides revealing the reason behind the underperformance of the fund versus its benchmark, the honest and straightforward Maas also divulged the main reasons for the downfall of the ABN AMRO Tech Fund. “In terms of sector weightings, I think we have done relatively OK. It is the stock selection side that causes us to lose most of our money because we are still holding on to positions like EMC, Cisco and Sun Microsystems. On the software side, we are also too early and aggressive, especially in the first and second quarter of last year.” The tech fund manager told The Edge Singapore that although stocks of the three companies underperformed drastically in the past two years, he still has faith in them for the

3/22/02, 9:09 AM

future. “One of the things that really surprised us over the last two years is the severity and the speed of the downturn of Sun Microsystems, Cisco and EMC. We are disappointed as the companies are big positions in our portfolio. But in terms of performance, they haven’t really delivered to us what we expected. Going forward, although their growth will be slower than what we expected, we still believe that companies such as these will still deliver on the profitability front and become winners of the future,” Maas says. He asserts that it is still early and definitely not the right moment to start selling these stocks yet. About 70 to 80 per cent of Maas’ investment portfolio is positioned to outperform only on a three- to five-year horizon based on the identified themes and trends that will drive the technology sector forward. The remaining 20 to 30 per cent is left for shortterm trading play. “I will be quite honest with you, spotting the big trends out there is not the most rewarding investment proposition because a lot of investors are just not paying attention to that. They are still nervous and that can result in very volatile and choppy markets. Currently, I would say that it is a very momentum-driven market,” Maas observes. Although he still abides by the investment philosophy of his company, he is cauCONTINUES NEXT PAGE

28 • THEEDGE SINGAPORE

| MARCH 25, 2002

CAPITAL PERSONAL FINANCE

Gift of the gap Chart A

Breakaway gaps have good forecasting ability | BY GOOLA WARDEN |

n the world of technical analysis, breakaway gaps create excitement because they signal the start of a new trend. The benchmark Straits Times Index (see Chart A) looks like it has just staged a “gap up”, which could have very positive implications. Breakaway gaps occur at the start of a major market move or a fast move in the direction of the main trend after a period of consolidation. Usually, a breakout through a horizontal pattern boundary is likely to be attended by a breakaway gap, for example breakouts from ascending triangles, head and shoulders, double tops or bottoms. What forecasting ability does a breakaway gap have? First of all, it emphasises a breakout. A genuine breakout occurs when prices jump out of a pattern with a gap. False moves are rare in the wake of a gap. Secondly, the buying demand (hence support) produced by a gap is greater than in other patterns with a gap-less break. Against this back-

Chart B

Chart C

drop, prices should carry further and/or faster. From an Elliott viewpoint, breakaway gaps usually occur at the end of top of (1), the end of (2) and the start of (3). In Gann’s language, this would be at the end of the first section of the main trend. Weekly gaps carry greater significance than daily gaps and monthly gaps are rare. Are breakaway gaps always closed? Generally, no. If so, how quickly? When they are closed, that depends on the volume of transactions before and after the gap. If volume was high at the take-off level from which prices jumped out of the gap, then the gap has a 50 per cent chance of being closed during the next pullback move. If volume developed at the other end of the gap, and volume continued to expand from there, then it is unlikely that the next pullback will cover the gap. In this instance, most reactions would stop outside the gap. See bg on charts A, B, C. The weekly STI chart appears to have developed a breakaway gap earlier this month. The top of the CONTINUES ON PAGE 46

Chart D

What are gaps? The Gap Theory has been part of classical bar charting for the best part of a century. W D Gann relied on gaps to identify trend change. “A gap in the language of a technician represents a price range at which no shares changed hands,” say Edwards and Magee in their benchmark book Technical Analysis of Stock Trends. A gap is formed when there is no overlap of price between the low of the current range and the high of the previous range – a gap up. A gap down is caused when there is no overlap between the high of the current range and the low of the previous range. There can be daily gaps, weekly gaps and on rare occasions, monthly gaps. Gaps can provide support and resistance, depending on whether the most volume was done at the top of the gap or the bottom. The most common misconception about gaps is that a “gap must be closed”. Not all gaps are closed. A gap that is closed quickly or not at all has implications for the strength of the market’s move. Gaps formed by thinly traded stocks do not count. Hence, the description of the gaps in the accompanying article is those formed by big-cap stocks with reasonably high trading volume. Broadly, there are four classifications of gaps: 1) The common or area gap; 2) The breakaway gaps; 3) The runaway or measuring gap and 4) The exhaustion gap. (Sources: Technical Analysis of Stock Trends by Edwards and Magee and The W D Gann Home Study Course by Robert Miner)

Likely improvement for tech sector FROM PREVIOUS PAGE

Outlook for technology sector

tioning against putting all his money into stocks based on medium- to long-term trend beliefs and ignoring short-term market patterns. “In the short term, you should be aware of where the market in heading and look out for the potential volatilities. I think it is not wise to hang on to positions if you know that the market is going to correct itself in the coming months,” Maas stresses. The semiconductor and hardware sectors, according to Maas, are “the potential places where you can look at for more short-term trading opportunities due to a change in sentiment or a worsening or improvement in earnings”. “Our shorter term trading strategy will probably help us keep up with the benchmark,” he says.

Maas is confident that the technology sector will see an improvement probably in the second half of the year due to a more positive macroeconomic environment. Beside positive signs such as an improvement in inventory cycles and aggressive cost-cutting by tech companies, he says companies are putting out rather conservative guidance in general, which can help to prevent market shocks due to earnings underperformance. “Companies have learnt their lessons not to be too optimistic for this year because we all know that earnings visibility is still quite low.” “Last year was probably the worst year for most technology companies, so we have a good and low base to start with. In 12 months’ time, if the economic recovery is in full swing and has a positive impact on the tech sector,

Scap_27n28_S4.p65

we will probably see a level higher than the current one. Currently, the tech sector, which is a little on the stretch side, looks fairly valued to me,” says Maas. He thinks the current situation favours the niche areas in the semiconductor and software sectors. “An interesting area of semiconductors is the graphical processors. A company like nVIDIA, for example, is blazing up at the moment and firing on all cylinders to get production as high as possible. I think that it is also winning a lot of market share out there.” The niche areas within the semiconductor sector that are growing very fast at the moment, according to Maas, are companies dealing in digital subscriber line (DSL). DSL is a technology for bringing highbandwidth information to homes and businesses over ordinary copper telephone lines. As observed by Maas, companies such as

3/22/02, 9:09 AM

GlobeSpan Technologies — a US-based company that produces transceiver chipsets for DSL providers — are showing quite healthy growth and profits because telecom operators are starting to roll out DSL services. On the software side, Maas likes enterprise software companies such as SAP and People Soft. “We are beginning to see the first signs of an uptick again in demand in the new types of application software such as the customer relationship management software or supply chain management software. Those are the areas which we focus on quite heavily as well at the moment. In general, I would say that the software sector is probably the best positioned to benefit from an earnings recovery.” He adds that sectors he avoids are the communication equipment makers and Internet E dotcom companies.

THEEDGE SINGAPORE | MARCH 25, 2002 • 29

CAPITAL

PERSONAL FINANCE

New man at INVESCO’s helm US-centric healthcare fund to take more global perspective INVESCO

| BY KELVIN TAN |

he new man in charge of INVESCO’s US$500 million healthcare investment portfolio has over 15 years of hands-on experience in the healthcare industry plus a PhD in immunology. Just two months after taking office, Dr Stephen Rowntree is already on a world tour (including Singapore), visiting companies and giving presentations to INVESCO investors. “I was brought into INVESCO to give a more global perspective to its US-centric healthcare fund,” Rowntree tells The Edge Singapore in an exclusive interview at INVESCO Asset Management’s Singapore office recently. He officially joined INVESCO in January this year from Gartmore — a London-based investment company — where he used to work as a global investment specialist covering pharmaceuticals and other healthcare sectors. Rowntree has yet to make any major changes to the investment portfolio of the healthcare fund. But he reveals that he will soon be increasing the investment exposure of the fund to markets such as Europe and Japan. “Beside US companies, there are many other good healthcare companies in the world such as those in Europe that are producing generic drugs, which are sold to the US market. We will be looking to buy some of these companies to reduce our exposure to the US,” he says. Before Rowntree took over, the Ireland-registered INVESCO GT Healthcare Fund was managed out of INVESCO’s Denver office in the US by fund manager Thomas Wald alongside his domestic US healthcare portfolio. According to INVESCO sources, the supposedly global healthcare fund — the Irelanddomiciled GT Healthcare Fund — over time became too heavily invested in the US as Wald managed the offshore fund in tandem with his domestic healthcare fund and benchmarked it to the S&P 500. As at Jan 31 this year, the INVESCO GT Healthcare Fund was 87.6 per cent invested in the US. From March 4 this year, the management of the healthcare fund was handed to London-based Rowntree in a bid to give the fund a broader investment perspective. Wald still manages the INVESCO US healthcare fund.

Solid credentials Rowntree, who holds an investment management certificate, started his investment career in 1998 with Gartmore. Before that, he worked six years with pharmaceutical giant SmithKline Beecham (which was renamed Glaxo SmithKline after its merger with Glaxo Wellcome) in a business development role, identifying and licensing products. With 15 years of experience in the healthcare industry and his knowledge of the fundamental drivers of the healthcare sector and drug discovery, Rowntree hopes to bring an added dimension to the way INVESCO looks at healthcare companies. “I am able to talk to a professor about immunology; discuss in depth with a CEO on the topic of drug approvals and at the same time, know about the in-and-out working aspects of a healthcare company,” he says.

Stock selections Rowntree says he joined INVESCO because the firm’s investment strategy on stock picks

Scap_29_S4.p65

Rowntree hopes to bring an added dimension to the way INVESCO looks at healthcare companies

is quite similar to his way of stock selection at Gartmore where he worked for four years. Like many other healthcare fund managers, he adopts a fundamental, growth-style, bottom-up-research-driven investment philosophy. “When I look at pharmaceuticals and other healthcare related companies, I basically look at two things: franchise and management. Essentially, I like companies that have a good franchise with a range of products in big and growing markets. The management of our invested healthcare companies will need to demonstrate that the potential of their products is going to be significant going forward,” he explains. In the short to medium term, Rowntree favours stocks with visible earnings growth and companies that are not facing product patent expirations in the near future. His current favourites include Pfizer, American Home Products, Idec Pharmaceuticals, Amgen and Johnson & Johnson.

Positive developments According to Rowntree, demographics and innovation are the two key drivers of growth in the healthcare sector. In terms of demographics, an aging world population and an increase in life expectancy means the demand for drugs and healthcare services will grow. “A person aged 75 and above is estimated to spend more than five times on pharmaceutical products compared to a person between the ages of 25 and 34. That underpins the demand for the healthcare sector,” he says. On the innovation side, pharmaceutical companies — in a bid to boost earnings as Rowntree puts it — are increasingly using technology to help develop new blockbuster drugs that can be sold at a premium. “In 1995, there were only four drugs in the US grossing US$1 billion in sales but today there are 22. The pharmaceutical companies of today want good returns on their drugs and they will aim to develop blockbuster drugs that will garner maximum sales,” he observes. He views recent collaboration between big pharmaceutical firms and biotech companies

in developing drugs as positive for the healthcare sector as a whole. “The endorsement given by big pharmaceuticals to the biotech companies assures investors that their invested biotech companies are now backed and supported by the established names. Many years ago when the biotech sector was fairly new, there were lots of risks involved but now, we are seeing a maturity of the biotech models in the industry.” Besides the pharmaceutical-biotech linkups, Rowntree also regards the recent “biotechbiotech linkups” — such as the recent acquisition of Immunex by Amgen — as beneficial for the sector in the long run. “In my opinion, healthcare is a growth sector rather than a pure defensive sector,” says

Rowntree when asked if healthcare being a defensive sector would lag behind the broader market if the US recovery were to gather pace. “When you invest in healthcare, you will get a natural hedge between the big cap pharmaceuticals, which are defensive in nature, mixed with the biotech companies, which are growth driven,” he adds. Rowntree predicts that earnings growth for the healthcare sector for the next two years will be about 13 per cent. The INVESCO GT Healthcare Fund, which is available to Singapore investors, invests primarily in four areas within the healthcare sector: pharmaceuticals, biotechnology, medical devices and supplies and healthcare E services.

Potential risks for healthcare sector One of the short-term concerns of Rowntree as well as other healthcare fund managers is the effect of product patent expirations on share prices of the affected healthcare companies. For example, in December last year, the stock prices of pharmaceutical giants Bristol Myers Squibb and Merck plunged when both companies revised downward their earnings due to patent expirations, dragging down prices of healthcare stocks in general. “We have seen that a number of drugs that were on patent, which were protected from competition in the past, are coming off patent. When that happened, prices of these drugs will be eroded as the ‘copycats’ will be coming in to provide similar drugs at a cheaper price,” says Rowntree. His view is that some of these pharmaceutical companies, in particular Bristol Myers Squibb, will be able to come through the patent expiration and build up again. But he will mainly invest in companies such as Pfizer that are protected from patent expiration, he says. Companies that are not losing patents on drugs will have a much higher growth profile going forward, he adds.

3/21/02, 10:06 AM

The possibility of price controls being imposed in the US is another risk facing healthcare fund managers. Unlike Europe and other parts of the world where there is some form of price control, in the US, the prices of drugs are determined by the market. Observers say that if price controls were imposed on drugs in the US, the healthcare sector in general will definitely take a hard knock. But according to Rowntree, pharmaceutical companies in the US are beginning to realise that they can’t depend on price increases for growth. Instead, “they are now learning to sell more drugs and get more volume to generate growth”, he says. He says to make drugs more affordable in the US, big pharmaceutical companies are currently offering discount cards to the elderly. “Glaxo SmithKline, Novartis, Pfizer are all providing discount cards on drugs. That can at least help to alleviate the issue of affordability of drugs in the US. However, if you are buying a blockbuster drug that treats illnesses that were previously not treatable, then obviously you have to pay a premium price for it,” observes Rowntree.

30 • THEEDGE SINGAPORE

| MARCH 25, 2002

CAPITAL

INSIDER MOVES SINGAPORE

| BY JOANNE SONG |

Privatisation scheme hiccup In the last week or so, the steady buying of Keppel Telecommunication & Transportation (KT&T) by Keppel Corporation Ltd (KCL) came to a halt. KT&T shares have actually moved above the general offer price of S$1.10 each on speculation that KCL will offer shareholders a better deal. This came about when it was revealed that in October 2000, KCL extended a US$80 million loan to KT&T shareholders Victor and Philip Friedman. And as a result of KCL’s plan to take KT&T private, the outstanding loan will be settled by S$1.10 per

share in cash for the 75 million of KT&T that the Friedmans hold. The estimated shortfall of US$35 million has been written off. The move effectively values the Friedmans’ stake at a higher price of US$1.067 or S$1.95 a share. KCL, however, released a press statement on March 19 to assure all its shareholders that there is only one general offer price — that of S$1.10 per KTT share. It doesn’t look like the company is under any legal obligation to offer another deal, say analysts. Parkway Holding’s privatisation plans Since announcing its intention to privatise

FILING DATE

COMPANY

SHARES ACQUIRED (DISPOSED)

MARCH 20 MARCH 20 MARCH 20 MARCH 13 MARCH 15 MARCH 19 MARCH 11 MARCH 12 MARCH 18 MARCH 11 MARCH 13 MARCH 14 MARCH 11 MARCH 14 MARCH 20 MARCH 20 MARCH 12 MARCH 13 MARCH 18 MARCH 14 MARCH 14 MARCH 14 MARCH 18 MARCH 13 MARCH 11 MARCH 13 MARCH 19 MARCH 12 MARCH 14 MARCH 19 MARCH 12 MARCH 13 MARCH 11 MARCH 11 MARCH 14 MARCH 13 MARCH 18 MARCH 12 MARCH 13 MARCH 14 MARCH 15 MARCH 19 MARCH 13 MARCH 13

ACHIEVA LITD ADROIT INNOVATIONS AIROCEAN GROUP ALLCOM TECHNOLOGIES ALLCOM TECHNOLOGIES ALLCOM TECHNOLOGIES ASCOTT GROUP, THE ASCOTT GROUP, THE ASCOTT GROUP, THE ASIATRAVEL.COM HOLDINGS BIL INTERNATIONAL BRILLIANT MANUFACTURING BROADWAY INDUSTRIAL GROUP BROADWAY INDUSTRIAL GROUP C.K. TANG LTD C.K. TANG LTD CAPITALAND LTD CAPITALAND LTD CAPITALAND LTD CHARTERED SEMICONDUCTOR MANUFACTURING CHARTERED SEMICONDUCTOR MANUFACTURING CHARTERED SEMICONDUCTOR MANUFACTURING CHARTERED SEMICONDUCTOR MANUFACTURING CHUAN HUP HOLDINGS COLOURLAND ANIMATION COLOURLAND ANIMATION COLOURLAND ANIMATION DATACRAFT ASIA DATACRAFT ASIA DELGRO CORPORATION EASTGATE TECHNOLOGY EASTGATE TECHNOLOGY ELLIPSIZ LTD ELLIPSIZ LTD ELLIPSIZ LTD EL-NETS EL-NETS FHTK HOLDINGS FHTK HOLDINGS FHTK HOLDINGS FHTK HOLDINGS FHTK HOLDINGS FIRST ENGINEERING FIRST ENGINEERING

MARCH 13

FIRST ENGINEERING

(4,880,000)

CHIA CHONG LEONG TEMASEK HOLDINGS (PRIVATE) LIMITED CHONG KENG BAN @ JOHNSON CHONG PRIME FUTURE TECHNOLOGY PRIME FUTURE TECHNOLOGY PRIME FUTURE TECHNOLOGY GOH HUP JIN GOH HUP JIN GOH HUP JIN YEO WEE KHIM, CECILIA TEMASEK HOLDINGS (PRIVATE) LIMITED KOH SWEE YONG ORIENTAL DEVELOPMENT COMPANY LIMITED ORIENTAL DEVELOPMENT COMPANY LIMITED FOO TIANG SOOI TANG WEE SUNG TEMASEK HOLDINGS (PRIVATE) LIMITED TEMASEK HOLDINGS (PRIVATE) LIMITED TEMASEK HOLDINGS (PRIVATE) LIMITED ALAN CAPPER ROBERT LINDSAY BAXTER LEOW KIM KEAT JAMES A NORLING TEMASEK HOLDINGS (PRIVATE) LIMITED BENI PRANANTO BENI PRANANTO BENI PRANANTO LIM SENG KONG DIMENSION DATA INTERNATIONAL LTD WOON CHIO CHONG JAFCO INVESTMENT (ASIA PACIFIC) JAFCO INVESTMENT (ASIA PACIFIC) CHONG FOOK CHOY HAY SOOK ANN HAY SOOK ANN THEN KHEK KOON THEN KHEK KOON OVERSEA-CHINESE BANKING CORPORATION OVERSEA-CHINESE BANKING CORPORATION OVERSEA-CHINESE BANKING CORPORATION OVERSEA-CHINESE BANKING CORPORATION OVERSEA-CHINESE BANKING CORPORATION MOK CHUN CHIEW ONG SIN SENG @ SUPARDI & LIM SONG KIE @ LINDA KUSUMAWATI SADIKIN DARMAWAN @ WANG CHAN WEI

MARCH 18 MARCH 19

GIANT WIRELESS TECHNOLOGY GREAT EASTERN HLDGS LTD

84,000 12,655,040

JOYCE LIU KIE HUNG OVERSEA-CHINESE BANKING CORPORATION

MARCH 11 MARCH 12 MARCH 19 MARCH 11 MARCH 18 MARCH 20 MARCH 15 MARCH 18 MARCH 15

HAW PAR CORPORATION HAW PAR CORPORATION HONG LAI HUAT GROUP INCHCAPE MOTORS INTEGRA2000 INTEGRA2000 INTER-ROLLER ENGINEERING INTER-ROLLER ENGINEERING IPC CORPORATION

(3,000) (1,000) (4,937,000) 10,000 (1,250,000) (1,250,000) 55,000 60,000 (3,682)

MARCH 15

IPC CORPORATION

(6,733)

MARCH 15

IPC CORPORATION

MARCH 15

(9,000,000) (3,300,000) (17,000,000) 200,000 100,000 90,000 122,000 90,000 140,000 10,000 (500,000) 50,000 (200,000) (300,000) 1,130,000 100,709,129 (247,000) 257,000 (257,000) 4,720 4,720 4,100 20,000 (500,000) (212,000) (250,000) (100,000) 10,000 1,000,000 (60,400) (1,400,000) (970,000) (1,900,000) 2,000,000 (45,000) (105,000) (1,500,000) (130,000) (100,000) (100,000) (100,000) (100,000) (10,000) 121,000

DIRECTOR/SUBSTANTIAL SHAREHOLDER

Parkway Laboratory Services and Medi-Rad Associates, Healthcare group Parkway Holdings has been actively acquiring shares in both companies. The company will spend about S$46 million on the privatisation scheme, and has offered shareholders 66 cents and 38 cents a share for Parkway Laboratory and MediRad, respectively. Prior to the announcement, Parkway owned 83.5 per cent of Parkway Laboratory and about 67.5 per cent of Medi-Rad. The latter, meanwhile, has signed an agreement with AsiaMedic Ltd to form a joint venture company, marking the first major collaboration between the public SHARES HELD AFTER CHANGE DIRECT DEEMED

18,968,851 — 4,737,112 93,018,340 93,118,340 93,208,340 — — — 11,595,800 — 51,900,000 11,706,345 11,406,345 1,560,000 124,228,129 1,590,721,271 1,590,978,271 1,590,721,271 4,720 343,120 23,428 20,000 — — — — 52,000 240,633,669 100,000 — — 30,249,320 17,601,412 17,556,415 — — 193,255,959 193,155,959 193,055,959 192,955,959 192,855,959 216,998

— 14,637,000 90,307,500 — — — 2,063,000 2,153,000 2,293,000 5,000,000 103,150,848 — — — — 38,726,000 — — — — — — — 77,192,000 13,787,277 13,537,277 13,437,277 — 93,164 14,000 15,040,400 14,070,400 — — — 92,740,000 91,240,000 — — — — — 210,978

19,969,198 80,000

73,250,740 124,420

201,000 220,504,591

— 10,059,219

PHOON THIN YIEN TAN YONG SENG WAVECOM DEVELOPMENT GUINNESS PEAT GROUP PLC CHRISTOPHER CHONG MENG TAK CHRISTOPHER CHONG MENG TAK YAP LEM YAP LEM NGIAM MIA KIAT BENJAMIN

2,000 3,000 15,135,175 — 11,003,386 11,003,386 3,546,837 3,606,837 27,899,333

— — — 17,537,000 9,321,880 8,071,880 13,122,500 13,122,500 413,748,568

NGIAM MIA JE PATRICK

28,009,184

444,840,823

(466)

NGIAM MIA HONG ALFRED

28,202,267

25,173

IPC CORPORATION

(466)

NGIAM MIA HAI BERNARD

29,202,267

25,173

MARCH 15

IPC CORPORATION

(466)

LAUW HUI KIAN

30,902,267

441,947,740

MARCH 15

IPC CORPORATION

24,342

ESSEX INVESTMENT (SINGAPORE) PTE LTD

412,235,245

1,314,490

MARCH 13 MARCH 20 MARCH 20 MARCH 18 MARCH 18 MARCH 19 MARCH 12 MARCH 12 MARCH 13 MARCH 14 MARCH 15 MARCH 18 MARCH 19 MARCH 14 MARCH 15 MARCH 19 MARCH 20

JADE TECHONOLOGIES SINGAPORE JURONG TECHNOLOGIES INDUSTRIAL CORPORATION JURONG TECHNOLOGIES INDUSTRIAL CORPORATION KEPPEL CORPORATION KEPPEL CORPORATION KEPPREL CORPORATION KIM ENG ONG ASIA HOLDINGS KIM ENG ONG ASIA HOLDINGS KIM ENG ONG ASIA HOLDINGS KIM ENG ONG ASIA HOLDINGS KIM ENG ONG ASIA HOLDINGS KIM ENG ONG ASIA HOLDINGS KIM ENG ONG ASIA HOLDINGS KLW HOLDINGS KLW HOLDINGS KLW HOLDINGS KLW HOLDINGS

GOVETT SINGAPORE GROWTH FUND LIN LI FANG LEE FOK FUI @ LEE LOK FOWY TEMASEK HOLDINGS (PRIVATE) LIMITED TEMASEK HOLDINGS (PRIVATE) LIMITED TEMASEK HOLDINGS (PRIVATE) LIMITED ONG SENG GEE YUANTA SECURITIES ASIA FINANCIAL SERVICES YUANTA SECURITIES ASIA FINANCIAL SERVICES YUANTA SECURITIES ASIA FINANCIAL SERVICES YUANTA SECURITIES ASIA FINANCIAL SERVICES YUANTA SECURITIES ASIA FINANCIAL SERVICES YUANTA SECURITIES ASIA FINANCIAL SERVICES PROXEL HOLDINGS PROXEL HOLDINGS PROXEL HOLDINGS PROXEL HOLDINGS

1,580,000 49,825,000 43,925,000 246,227,760 246,227,760 246,227,760 114,000 82,452,566 82,452,566 82,452,566 82,452,566 82,452,566 82,452,566 27,342,000 26,402,000 26,169,000 25,569,000

— 42,650,000 42,650,000 886,500 886,500 879,500 1,287,000 188,000 598,000 648,000 758,000 967,000 1,114,000 — — — —

(71,000) 10,000,000 10,000,000 5,000 5000 (7,000) 159,000 188,000 410,000 50,000 110,000 209,000 147,000 (1,550,000) (940,000) (230,000) (60,000)

and private healthcare sectors in Singapore. Seksun Corporation directors take profit Seksun chairman Dr Felix Ong and managing director Seah Cheong Beng have disposed of a total of six million shares through a married deal. The stake is a deemed interest held through investment vehicle Focus-Tech Holding Pte Ltd. Seksun’s share price has skyrocketed by over 66 per cent to 91 cents from 55 cents since the beginning of the month after the company announced that its facility in China will commence operations next month and that it is considering a public listing in E China within the next 18-24 months.

REASON

OPEN MARKET SALE; (19 & 20/3) OPEN MARKET SALE; DEEMED INTEREST (19/3) SALE THROUGH MARRIED DEAL; DEEMED INTEREST (19/3) OPEN MARKET PURCHASE (12/3) OPEN MARKET PURCHASE (14/3) OPEN MARKET PURCHASE (18/3) OPEN MARKET PURCHASE (8/3) OPEN MARKET PURCHASE (11/3) OPEN MARKET PURCHASE (18/3) OPEN MARKET PURCHASE; DIRECT INTEREST (8/3) OPEN MARKET SALE; DEEMED INTEREST (11/3) OPEN MARKET PURCHASE (13/3) OPEN MARKET SALE (8/3) OPEN MARKET SALE (12/3) RIGHTS ISSUE (19/3) RIGHTS ISSUE; DIRECT INTEREST (19/3) OPEN MARKET SALE (6/3) OPEN MARKET PURCHASE (8/3) OPEN MARKET SALE (11/3) RIGHTS EXERCISE UNDER EMPLOYEE SHARE PURCHASE PLAN (11/3) RIGHTS EXERCISE UNDER EMPLOYEE SHARE PURCHASE PLAN (11/3) RIGHTS EXERCISE UNDER EMPLOYEE SHARE PURCHASE PLAN (11/3) OPEN MARKET PURCHASE (14/3) OPEN MARKET SALE; DEEMED INTEREST (4/3) SALE BY FINANCIAL INSTITUTION TO MEET OBLIGATIONS (4/3) SALE BY FINANCIAL INSTITUTION TO MEET OBLIGATIONS (5 & 6/3) SALE BY FINANCIAL INSTITUTION TO MEET OBLIGATIONS (8/3) EXERCISE OF OPTIONS (8/3) PURCHASE FROM DEREK PETER ALTHORP; DIRECT INTEREST (14/3) OPEN MARKET SALE; DEEMED AND DIRECT INTEREST (15/3) OPEN MARKET SALE (11/3) OPEN MARKET SALE (12/3) OPEN MARKET SALE (7 & 8/3) OPEN MARKET SALE (7/3) OPEN MARKET SALE (11/3) OPEN MARKET SALE; DEEMED INTEREST (11/3) OPEN MARKET SALE; DEEMED INTEREST (14/3) OPEN MARKET SALE (7/3) OPEN MARKET SALE (8/3) OPEN MARKET SALE (11/3) OPEN MARKET SALE (12/3) OPEN MARKET SALE (15/3) OPEN MARKET SALE; DEEMED INTEREST (11/3) OPEN MARKET PURCHASE; DIRECT INTEREST (11/3) OPEN MARKET SALE OF DEEMED INTEREST & EXERCISE OF OPTION; DIRECT INTEREST (12 & 13/3) OPEN MARKET PURCHASE (15/3) DISTRIBUTION IN SPECIE RESULTING IN DECREASE IN DEEMED INTEREST AND CORRESPONDING INCREASE IN DIRECT INTEREST (15/3) OPEN MARKET SALE (8/3) OPEN MARKET SALE (8/3) PLACEMENT/SALE THROUGH FINANCIAL INSTITUTION (14/3) OPEN MARKET PURCHASE; DEEMED INTEREST (8/3) OPEN MARKET SALE; DEEMED INTEREST (15/3) OPEN MARKET SALE; DEEMED INTEREST (18 & 19/3) OPEN MARKET PURCHASE; DIRECT INTEREST (14/3) OPEN MARKET PURCHASE; DIRECT INTEREST (15/3) CONVERSION SHARES TO PARTICIPATING CREDITORS PURSUANT TO A SCHEME OF ARRANGEMENT (18/2) CONVERSION SHARES TO PARTICIPATING CREDITORS PURSUANT TO A SCHEME OF ARRANGEMENT (18/2) CONVERSION SHARES TO PARTICIPATING CREDITORS PURSUANT TO A SCHEME OF ARRANGEMENT (18/2) CONVERSION SHARES TO PARTICIPATING CREDITORS PURSUANT TO A SCHEME OF ARRANGEMENT (18/2) CONVERSION SHARES TO PARTICIPATING CREDITORS PURSUANT TO A SCHEME OF ARRANGEMENT (18/2) CONVERSION SHARES TO PARTICIPATING CREDITORS PURSUANT TO A SCHEME OF ARRANGEMENT (18/2) SALE IN OPEN MARKET (5, 8 & 11/3) PRIVATE PLACEMENT (18/3) PRIVATE PLACEMENT (18/3) OPEN MARKET SALE & PURCHASE; DEEMED INTEREST (11, 12 & 13/3) OPEN MARKET SALE & PURCHASE; DEEMED INTEREST (11, 12 & 13/3) OPEN MARKET SALE; DEEMED INTEREST (14/3) OPEN MARKET PURCHASE; DEEMED INTEREST (12/3) OPEN MARKET PURCHASE; DEEMED INTEREST (11 & 12/3) OPEN MARKET PURCHASE; DEEMED INTEREST (13/3) OPEN MARKET PURCHASE; DEEMED INTEREST (14/3) OPEN MARKET PURCHASE; DEEMED INTEREST (15/3) OPEN MARKET PURCHASE; DEEMED INTEREST (18/3) OPEN MARKET PURCHASE; DEEMED INTEREST (19/3) SALE IN OPEN MARKET (12/3) SALE IN OPEN MARKET (13/3) SALE IN OPEN MARKET (15/3) SALE IN OPEN MARKET (18/3)

The information in Insider Moves Singapore is provided as a service to readers. The explanations filed are at times abridged, indirect interest declarations summarised together with direct interests and figures totalled for space. While every effort is made to ensure accuracy, the information presented is not the official record of shareholder filings. Readers who are interested should check the original filings filed with the SGX.

Scap_30n31_S4.p65

3/21/02, 8:34 AM

THEEDGE SINGAPORE | MARCH 25, 2002 • 31

CAPITAL FILING DATE

COMPANY

SHARES ACQUIRED (DISPOSED)

DIRECTOR/SUBSTANTIAL SHAREHOLDER

SHARES HELD AFTER CHANGE DIRECT DEEMED

MARCH 12 MARCH 19 MARCH 20 MARCH 18 MARCH 14 MARCH 14 MARCH 14 MARCH 15 MARCH 15 MARCH 15 MARCH 18 MARCH 19 MARCH 20 MARCH 20 MARCH 15 MARCH 19 MARCH 20 MARCH 11 MARCH 20 MARCH 20 MARCH 12 MARCH 15 MARCH 19 MARCH 15 MARCH 15 MARCH 14 MARCH 15 MARCH 15 MARCH 18 MARCH 19 MARCH 20 MARCH 11 MARCH 12 MARCH 13 MARCH 9 MARCH 18 MARCH 20 MARCH 20 MARCH 19 MARCH 20 MARCH 20 MARCH 15 MARCH 20 MARCH 12 MARCH 20 MARCH 11 MARCH 12 MARCH 13 MARCH 14 MARCH 15 MARCH 20 MARCH 18 MARCH 20 MARCH 11 MARCH 12 MARCH 13 MARCH 14 MARCH 14 MARCH 18 MARCH 19 MARCH 19 MARCH 20 MARCH 11 MARCH 11 MARCH 12 MARCH 13 MARCH 13

LINDETEVES-JACOBERG LINDETEVES-JACOBERG LINDETEVES-JACOBERG MEDIARING.COM MEDI-RAD ASSOCIATES MEDI-RAD ASSOCIATES MEDI-RAD ASSOCIATES MEDI-RAD ASSOCIATES MEDI-RAD ASSOCIATES MEDI-RAD ASSOCIATES MEDI-RAD ASSOCIATES MEDI-RAD ASSOCIATES MEDI-RAD ASSOCIATES METRO HOLDINGS MULTI-CHEM MULTI-CHEM MULTI-CHEM NEPTUNE ORIENT LINES NM HOLDINGS NM HOLDINGS OVERSEA-CHINESE BANKING CORPORATION OVERSEA-CHINESE BANKING CORPORATION OVERSEA-CHINESE BANKING CORPORATION PACIFIC ANDES (HLDGS) LTD PARKWAY HOLDINGS PARKWAY LABORATORY SERVICES PARKWAY LABORATORY SERVICES PARKWAY LABORATORY SERVICES PARKWAY LABORATORY SERVICES PARKWAY LABORATORY SERVICES PARKWAY LABORATORY SERVICES PNE INDUSTRIES PNE INDUSTRIES PNE INDUSTRIES PRESSCRETE HOLDINGS PROGEN HOLDINGS SEATOWN CORPORATION SEATOWN CORPORATION SEKSUN CORPORATION SEKSUN CORPORATION SEKSUN CORPORATION SEMCORP INDUSTRIES SEMCORP INDUSTRIES SEMCORP LOGISTICS SEMCORP LOGISTICS SERIAL SYSTEM SINGAPORE AIRLINES SINGAPORE AIRLINES SINGAPORE AIRLINES SINGAPORE AIRLINES SINGAPORE AIRLINES SINGAPORE LAND SINGAPORE LAND SINGAPORE TECHNOLOGIES ENGINEERING SINGAPORE TECHNOLOGIES ENGINEERING SINGAPORE TECHNOLOGIES ENGINEERING SINGAPORE TECHNOLOGIES ENGINEERING SINGAPORE TECHNOLOGIES ENGINEERING SINGAPORE TECHNOLOGIES ENGINEERING SINGAPORE TECHNOLOGIES ENGINEERING SINGAPORE TECHNOLOGIES ENGINEERING SINGAPORE TECHNOLOGIES ENGINEERING SINGAPORE TELECOMMUNICATIONS SINGAPORE TELECOMMUNICATIONS SINGAPORE TELECOMMUNICATIONS SINGAPORE TELECOMMUNICATIONS SINGAPORE TELECOMMUNICATIONS

(942,000) (1,224,000) (418,000) (200,000) 2,557,000 (1,000,000) (80,000) (3,000,000) 6,971,000 (300,000) 776,000 1,950,000 2,649,000 1,400,000 (200,000) (500,000) (100,000) 1,000 (1,600,000) (717,000) 642,549 (20,000) 10,182 154,112,750 300,000 3,293,000 (2,293,000) 2,635,000 2,799,000 674,000 251,000 (2,050,000) (2,150,000) (2,894,000) (8,000,000) (2,000,000) (2,000,000) 2,000,000 (197,000) 39,000 (6,000,000) (2,000,000) (1,000,000) 10,000 (439,000) 16,695,569 23,000 13,000 (30,000) 61,000 5,000 218,000 91,000 (849,000) (35,000) 255,000 150,000 32,000 100,000 30,000 (393,000) 19,000 (510) 2,207,000 35,000 2,287,000 305,093

SCHRODER INVESTMENT MANAGEMENT GROUP SCHRODER INVESTMENT MANAGEMENT GROUP SCHRODER INVESTMENT MANAGEMENT GROUP INNOMEDIA PTE LTD PARKWAY HOLDINGS LTD DR LIM CHEOK PENG DR NGOI SING SHANG DR ROBERT KWOK KHOON M&P INVESTMENTS PTE LTD TONY TAN CHOON KEAT PARKWAY HOLDINGS LTD PARKWAY HOLDINGS LTD PARKWAY HOLDINGS LTD PACIFIC CAPITAL INTERNATIONAL FOO SUAN SAI FOO SUAN SAI FOO SUAN SAI TEMASEK HOLDINGS (PRIVATE) LIMITED UOB VENTURE INVESTMENTS LTD UOB VENTURE INVESTMENTS II LTD THE GREAT EASTERN LIFE ASSURANCE COMPANY LTD TAN ELAINE YEOH BAN AIK PETER NG PUAY YEE & NG SWEE HONG HO KIAN GUAN PARKWAY HOLDINGS LTD TONY TAN CHOON KEAT PARKWAY HOLDINGS LTD PARKWAY HOLDINGS LTD PARKWAY HOLDINGS LTD PARKWAY HOLDINGS LTD PNE INVESTMENT PTD LTD PNE INVESTMENT PTD LTD PNE INVESTMENT PTD LTD WONG MENG KHOON YONG KANG INTERNATIONAL ALAN JEFFREY NATTRASS SEE CHENG BENG ONG HONG TAI STEVEN CHONG TECK SIN FOCUS-TECH HOLDING PTE LTD TEMASEK HOLDINGS (PRIVATE) LIMITED TEMASEK HOLDINGS (PRIVATE) LIMITED BARRY DESKER THE CAPITAL GROUP COMPANIES, INC GOH BAK HENG TEMASEK HOLDINGS (PRIVATE) LIMITED TEMASEK HOLDINGS (PRIVATE) LIMITED TEMASEK HOLDINGS (PRIVATE) LIMITED TEMASEK HOLDINGS (PRIVATE) LIMITED TEMASEK HOLDINGS (PRIVATE) LIMITED SILCHESTER INTERNATIONAL INVESTORS LTD SILCHESTER INTERNATIONAL INVESTORS LTD THE CAPITAL GROUP COMPANIES, INC TEMASEK HOLDINGS (PRIVATE) LIMITED TEMASEK HOLDINGS (PRIVATE) LIMITED THE CAPITAL GROUP COMPANIES, INC TAN AH LEE TEMASEK HOLDINGS (PRIVATE) LIMITED TEMASEK HOLDINGS (PRIVATE) LIMITED THE CAPITAL GROUP COMPANIES, INC THE CAPITAL GROUP COMPANIES, INC TEMASEK HOLDINGS (PRIVATE) LIMITED THE CAPITAL GROUP COMPANIES, INC THE CAPITAL GROUP COMPANIES, INC THE CAPITAL GROUP COMPANIES, INC TEMASEK HOLDINGS (PRIVATE) LIMITED

— — — 39,267,680 — 0 0 5,500,220 9,528,000 0 — — — 2,591,000 119,006,500 118,506,500 118,406,500 383,165,362 14,795,637 7,325,567 45,920,740 2,085 11,250 — 500,000 — 0 — — — — 88,452,300 86,302,300 83,408,300 15,091,825 23,900,000 0 395,249,701 500 0 21,563,480 215,054,693 215,054,693 — — 118,981,943 691,451,172 691,451,172 691,451,172 691,451,172 691,451,172 20,802,000 20,893,000 — — — — 226,050 — — — — 12,034,299,579 — — — 12,034,294,486

15,860,000 14,636,000 14,218,000 — 116,324,800 — — — — — 124,071,800 126,021,800 128,670,800 26,250,000 86,104,500 86,104,500 86,104,500 86,105,500 — — 27,321,849 743 — 154,112,750 — 195,693,000 — 198,328,000 201,127,000 201,801,000 202,052,000 — — — — — — 21,596,000 37,500 — — 714,423,175 713,423,175 10,000 88,502,200 — 930,000 943,000 913,000 974,000 979,000 — — 208,051,421 1,615,183,137 1,615,438,137 208,201,421 — 1,615,538,137 1,615,568,137 207,808,421 207,827,421 9,762,009 1,018,356,261 1,018,391,261 1,020,678,261 9,462,009

MARCH 14 MARCH 18 MARCH 19 MARCH 19 MARCH 19 MARCH 19 MARCH 20 MARCH 18 MARCH 12 MARCH 20 MARCH 12 MARCH 13 MARCH 15 MARCH 18 MARCH 20 MARCH 20 MARCH 14 MARCH 13

SINGAPORE TELECOMMUNICATIONS SINGAPORE TELECOMMUNICATIONS SINGAPORE TELECOMMUNICATIONS SINGAPORE TELECOMMUNICATIONS STRIKE ENGINEERING STRIKE ENGINEERING TOTAL AUTOMATION TRANSPAC INDUSTRIAL HLDGS UNITED OVERSEAS LAND UNITED OVERSEAS LAND VENTURE MANUFACTURING VENTURE MANUFACTURING VENTURE MANUFACTURING VENTURE MANUFACTURING VENTURE MANUFACTURING VENTURE MANUFACTURING WANT WANT HOLDINGS ZAGRO ASIA LTD

(250,000) (1,040) 50,000 112,000 (31,317,000) 9,200,000 (2,560,000) 1 (476,000) (5,500,000) (1,558,000) 29,000 (538,000) 112,000 (6,000) 13,000 3,007,418 79,572,000

TEMASEK HOLDINGS (PRIVATE) LIMITED TEMASEK HOLDINGS (PRIVATE) LIMITED TEMASEK HOLDINGS (PRIVATE) LIMITED THE CAPITAL GROUP COMPANIES, INC SIM YEW HENG UMAR ABDUL HAMID RICHARD EDWARD WILLENBROCK CHRISTOPHER LEONG KA CHEONG UNITED OVERSEAS BANK ORIX CORPORATION GROUP SCHRODER INVESTMENT MANAGEMENT GROUP THE CAPITAL GROUP COMPANIES, INC. SCHRODER INVESTMENT MANAGEMENT GROUP SCHRODER INVESTMENT MANAGEMENT GROUP SCHRODER INVESTMENT MANAGEMENT GROUP THE CAPITAL GROUP COMPANIES, INC. LIAO CHING TSUN GOLD COIN MANAGEMENT HOLDINGS LTD

12,034,294,486 12,034,293,446 12,034,293,446 — 70,000,000 9,291,108 9,134,664 163,002 — 29,208,000 — — — — — — 0 79,572,000

9,212,009 9,212,009 9,262,009 1,020,790,261 — 61,605,000 — — 278,882,719 — 18,152,790 14,919,900 17,614,790 17,726,790 17,720,790 14,932,900 3,007,418 —

INSIDER MOVES SINGAPORE

REASON

DISPOSED ON CLIENT BEHALF (7 & 8/3) DISPOSED ON CLIENT BEHALF (11 & 12/3) DISPOSED ON CLIENT BEHALF (15/3) OPEN MARKET SALE (15/3) OPEN MARKET PURCHASE (14/3) OPEN MARKET DISPOSAL OF ENTIRE STAKEHOLDING (14/3) OPEN MARKET DISPOSAL OF ENTIRE STAKEHOLDING (14/3) OPEN MARKET SALE (15/3) OPEN MARKET PURCHASE (15/3) DISPOSAL OF DIRECT INTEREST (15/3) OPEN MARKET PURCHASE (18/3) OPEN MARKET PURCHASE (19/3) OPEN MARKET PURCHASE (20/3) OPEN MARKET PURCHASE; DIRECT INTEREST (19/3) OPEN MARKET SALE OF DIRECT INTEREST (15/3) OPEN MARKET SALE OF DIRECT INTEREST (18/3) OPEN MARKET SALE OF DIRECT INTEREST (19/3) OPEN MARKET SALE & SECURITIES LENDING (5 & 6/3) OPEN MARKET SALE (19 & 20/3) OPEN MARKET SALE (19/3) CHANGE IN NAME OF REGISTERED HOLDER ARISING FROM SHARE TRANSFER (17/1) OPEN MARKET SALE OF DIRECT INTEREST (15/3) EXERCISE OF SHARE OPTIONS (19/3) DEEMED INTEREST (15/3) OPEN MARKET PURCHASE (14/3) OPEN MARKET PURCHASE (14/3) DISPOSAL OF DIRECT INTEREST (15/3) OPEN MARKET PURCHASE (15/3) OPEN MARKET PURCHASE (18/3) OPEN MARKET PURCHASE (19/3) OPEN MARKET PURCHASE (20/3) OPEN MARKET SALE (8/3) OPEN MARKET SALE (11/3) OPEN MARKET SALE (12/3) OPEN MARKET SALE (8/3) PLACEMENT ARRANGED THROUGH FINANCIAL INSTITUTION (14/3) DISPOSAL OF STAKE THROUGH MARRIED DEAL (20/3) PURCHASE OF MR NATTRASS’ STAKE THROUGH MARRIED DEAL (20/3) OPEN MARKET SALE OF DIRECT INTEREST (19/3) OPEN MARKET SALE OF DIRECT INTEREST (20/2) SALE THROUGH MARRIED DEAL (20/3) SECURITIES LENDING TRANSACTION (13/3) SECURITIES LENDING TRANSACTION (15/3) OPEN MARKET PURCHASE (27/2) OPEN MARKET SALE (19/3) COMPENSATION SHARES RECEIVED (7/3) OPEN MARKET SALE & EXERCISE OF CALL OPTIONS; DEEMED INTEREST (7/3) OPEN MARKET SALE & PURCHASE (8/3) PROPRIETARY TRADE (12/3) OPEN MARKET PURCHASE (12 & 13/3) OPEN MARKET PURCHASE (15/3) OPEN MARKET PURCHASE (8/3) OPEN MARKET PURCHASE (15/3) OPEN MARKET SALE (8/3) OPEN MARKET SALE (7/3) OPEN MARKET SALE & PURCHASE (8/3) OPEN MARKET SALE (13/3) EXERCISE OF SHARE OPTIONS (1/3) SECURITIES LENDING TRANSACTION (13/3) OPEN MARKET PURCHASE (14/3) OPEN MARKET SALE (18/3) OPEN MARKET PURCHASE (19/3) TRANSFER OF LOYALTY BONUS SHARES (7/3) OPEN MARKET PURCHASE (8/3) OPEN MARKET PURCHASE (11/3) OPEN MARKET PURCHASE (12/3) OPEN MARKET SALE & PURCHASE OF DEEMED INTEREST; TRANSFER OF LOYALTY BONUS SHARES; DIRECT INTEREST (7, 8 & 11) OPEN MARKET SALE; DEEMED INTEREST (11/3) TRANSFER OF LOYALTY BONUS SHARES; DIRECT INTEREST (14/3) OPEN MARKET PURCHASE; DEEMED INTEREST (14/3) OPEN MARKET PURCHASE; DEEMED INTEREST (18/3) SHARE DISPOSAL THROUGH MARRIED DEAL & OPEN MARKET (18/3) SHARE PURCHASE THROUGH MARRIED DEAL (18/3) OPEN MARKET SALE (19 & 20/3) TRANSFER OF ONE SHARE (13/3) OPEN MARKET SALE (9 & 10/1) OPEN MARKET SALE (19/3) OPEN MARKET SALE (7/3) OPEN MARKET PURCHASE (12/3) OPEN MARKET SALE & PURCHASE (8, 11 & 12/3) IN SPECIE TRANSFER IN ON CLIENT BEHALF (14/3) OPEN MARKET SALE (15/3) OPEN MARKET PURCHASE (18/3) TRANSFER FROM OWN ACCOUNT TO SUB-ACCOUNT WITH OCBC SECURITIES (14/3) CORPORATE RESTRUCTURING; SHARE OWNERSHIP TRANSFERRED FROM GOLD COIN (C.I.) LTD (10/8)

Share buybacks DATE

FEB 1 FEB 1 FEB 4 FEB 5 FEB 6 FEB 7 FEB 8 MARCH 14 FEB 1 FEB 4 FEB 6 FEB 7 FEB 8

COMPANY

SHARES ACQUIRED

HO BEE INVESTMENT HO BEE INVESTMENT HO BEE INVESTMENT HO BEE INVESTMENT HO BEE INVESTMENT HO BEE INVESTMENT HO BEE INVESTMENT HO BEE INVESTMENT HOTEL GRAND CENTRAL HOTEL GRAND CENTRAL HOTEL GRAND CENTRAL HOTEL GRAND CENTRAL HOTEL GRAND CENTRAL

Scap_30n31_S4.p65

43,000 43,000 250,000 130,000 200,000 230,000 150,000 143,000 46,000 71,000 100,000 101,000 89,000

HIGH

SHARE PRICE LOW

CUMULATIVE NUMBER OF SHARES PURCHASED TO DATE

0.255 0.255 0.250 0.245 0.245 0.250 0.250 0.250 0.410 0.410 0.410 0.415 0.410

0.250 0.250 0.250 0.240 0.245 0.245 0.245 0.240 0.405 0.410 0.410 0.410 0.410

8,825,000 8,825,000 9,075,000 9,205,000 9,405,000 9,635,000 9,785,000 9,928,000 2,148,000 2,219,000 2,329,000 2,430,000 2,519,000

DATE

FEB 20 FEB 22 FEB 25 FEB 26 FEB 27 FEB 28 FEB 1 FEB 4 FEB 5 FEB 6 FEB 7 FEB 8

COMPANY

SHARES ACQUIRED

HOTEL GRAND CENTRAL HOTEL GRAND CENTRAL HOTEL GRAND CENTRAL HOTEL GRAND CENTRAL HOTEL GRAND CENTRAL HOTEL GRAND CENTRAL NOBLE GROUP SUPER COFFEEMIX MANUFACTURING SUPER COFFEEMIX MANUFACTURING SUPER COFFEEMIX MANUFACTURING SUPER COFFEEMIX MANUFACTURING SUPER COFFEEMIX MANUFACTURING

3/21/02, 8:34 AM

23,000 68,000 40,000 84,000 17,000 40,000 21,000 29,000 34,000 70,000 61,000 30,000

HIGH

SHARE PRICE LOW

CUMULATIVE NUMBER OF SHARES PURCHASED TO DATE

0.410 0.415 0.415 0.415 0.415 0.415 0.945 0.205 0.205 0.205 0.205 0.210

0.410 0.400 0.410 0.410 0.415 0.410 0.935 0.205 0.205 0.205 0.205 0.210

2,542,000 2,610,000 2,650,000 2,734,000 2,751,000 2,791,000 4,357,000 618,000 625,000 722,000 783,000 813,000

32 • THEEDGE SINGAPORE

| MARCH 25, 2002

CAPITAL | From SIOW CHEN MING in Kuala Lumpur |

ow does one separate rumour from fact? In some stock markets, one important information source is substantial shareholder and director filings. When insiders move, there are reasons; most times it is regular business conduct, but at other times disposal or accumulation of shareholdings is a precursor to major moves. Notable filings Kuala Lumpur Kepong Bhd (KLK) saw significant movements in shareholding, recent filings show. Permodalan Nasional Bhd (PNB) acquired 46.15 million shares or a 6.48 per cent stake in the plantation group on March 1, thus increasing its interest in KLK to 119.35 million shares, or 16.75 per cent. Recently, Malayan Banking Bhd also experienced some significant shareholding changes when PNB disposed of 50 million shares or 1.4 per cent and 30 million shares on Feb 20 and 21, respectively, but then purchased another 30 million shares or a 0.85 per cent stake in Maybank on Feb 27. PNB still owns some 543.92 million shares or a 15.35 per cent stake in Maybank after these transactions. A filing on March 7 reveals that IOI Corp Bhd unloaded 13.07 million shares or a 31.7 per cent stake

INSIDER MOVES MALAYSIA in Nissan-Industrial Oxygen Incorporated Bhd (Nissan-IOI) via direct business transaction to Malaysian Oxygen Bhd on March 4. IOI holds 4.8 million shares or 11.6 per cent in Nissan-IOI after that. There were also some ownership changes in IOI Properties Bhd when Amanah Raya Nominees (Tempatan) Sdn Bhd sold 23.5 million shares in the plantation group on March 1 and ceased to be a substantial shareholder. Meanwhile, PNB bought 23.5 million shares in IOI Properties Bhd on the same date. Separate filings on March 6 revealed that Woo Yew Lam and Lee Kuang Chong, both directors of construction-based Merge Energy Bhd, acquired some 3.01 and 2.68 million shares, respectively, in the company on March 5. Woo owns 3.11 million shares or a 4.64 per cent stake in Merge after the transaction while Lee has 13.17 million shares or a 19.7 per cent stake. Tanah Emas Corp Bhd, an environmental engineering firm, also saw some shareholding movements. Its managing director Yap Phing Cern and chairman Yap Kiew sold 7.5 million shares or a 4.14 per cent stake each on March 4 and 5, respectively. Recent filings also revealed that Pembinaan Bumiasia Sdn Bhd ceased to be a substantial shareholder in construction firm DKLS Industries Bhd after disposing of 2.19

FILING DATE

COMPANY

SHARES ACQUIRED (DISPOSED)

JAN 30 MARCH 7 FEB 28 MARCH 6 MARCH 6 MARCH 6 JAN 30 FEB 28 MARCH 7 MARCH 6 MARCH 7 JAN 30 MARCH 6 FEB 28 MARCH 7 MARCH 11 MARCH 6 MARCH 8 FEB 28 MARCH 7 MARCH 7 MARCH 6 FEB 28

A & M REALTY BHD A & M REALTY BHD AFFIN HOLDINGS BHD AIKBEE RESOURCES BHD AKN TECHNOLOGY BHD AKTIF LIFESTYLE CORPORATION BHD AMALGAMATED INDUSTRIAL STEEL BHD AMANAH CAPITAL PARTNERS BHD AMANAH CAPITAL PARTNERS BHD AMMB HOLDINGS BHD ANALABS RESOURCES BHD ARAB-MALAYSIAN FINANCE BHD ARAB-MALAYSIAN FINANCE BHD BRITISH AMERICAN TOBACCO (M) BHD C.I. HOLDINGS BHD C.I. HOLDINGS BHD CHIN TECK PLANTATIONS BHD CHUAN HUAT RESOURCES BHD CNLT (FAR EAST) BHD COMMERCE ASSET-HOLDING BHD COMPUTER SYSTEMS ADVISERS (M) BHD COMPUTER SYSTEMS ADVISERS (M) BHD COURTS MAMMOTH BHD

(508,000) (237,000) 43,000 (55,000) (300,000) (13,000) (200,000) 272,000 428,000 (1,260,800) 2,000 (50,000) (145,000) 38,600 102,000 23,000 60,000 189,000 (2,002,000) (359,000) (406,000) (100,000) (173,000)

JAN 30 MARCH 6 MARCH 6 MARCH 7 JAN 30 FEB 28 FEB 28 MARCH 6 FEB 28 MARCH 7 MARCH 7 JAN 30 MARCH 6 MARCH 6 JAN 30 JAN 30 MARCH 8 MARCH 7 MARCH 6 MARCH 7 MARCH 11 MARCH 11 MARCH 6 JAN 30 MARCH 7

DIALOG GROUP BHD DIALOG GROUP BHD DIGI.COM BHD DKLS INDUSTRIES BHD D’NONCE TECHNOLOGY BHD EASTERN & ORIENTAL BHD FORESWOOD GROUP BHD GAMUDA BHD GAMUDA BHD GAMUDA BHD GEORGE KENT (M) BHD GLOBETRONICS TECHNOLOGY BHD GLOBETRONICS TECHNOLOGY BHD GOLDEN HOPE PLANTATIONS BHD GULA PERAK BHD HARRISONS HOLDINGS (M) BHD HARRISONS HOLDINGS (M) BHD HEITECH PADU BHD HEXZA CORPORATION BHD HIAP AIK CONSTRUCTION BHD HONG LEONG BANK BHD HONG LEONG PROPERTIES BHD HUME CEMBOARD BHD HUME INDUSTRIES (M) BHD HUME INDUSTRIES (M) BHD

135,000 203,000 (2,000,000) (2,185,000) (10,000) (33,000) (1,112,000) (1,161,000) (35,000) (29,000) (672,000) 250,000 488,000 1,339,000 600,000 2,000 15,000 (380,000) 188,000 (958,000) 300,000 (3,000,000) 524,000 60,000 106,000

MARCH 8 JAN 30 MARCH 11 MARCH 6 MARCH 7 MARCH 8 MARCH 6 JAN 30 MARCH 7 MARCH 11

HUME INDUSTRIES (M) BHD HUNZA PROPERTIES BHD IGB CORPORATION BHD IJM CORPORATION BHD IJM CORPORATION BHD IJM CORPORATION BHD IJM CORPORATION BHD INTI UNIVERSAL HOLDINGS BHD IOI PROPERTIES BHD IOI PROPERTIES BHD

50,000 (248,045) 382,000 3,764,000 286,000 40,000 (15,000) 2,000 23,503,200 (23,503,200)

JAN 30 MARCH 11 JAN 30

IPMUDA BHD JOHN MASTER INDUSTRIES BHD JT INTERNATIONAL BHD

35,000 19,000 (144,000)

million shares or a 2.74 per cent stake on March 7, via open market transaction as well as married deal. Meanwhile, Berjaya VTCY Sdn Bhd sold two million shares in DiGi.Com Bhd on March 1, via married deal. The company still owns 71.83 million shares or a 9.58 per cent stake in the mobile telco. Recent filings reveal that Transmile Group Bhd has a new substantial shareholder on board. Goldenseal Capital Sdn Bhd acquired 6.82 million shares or a 6.65 per cent stake in the aviation services provider on Jan 16, indirect interest via private placement. Suraya Susan Minah Abdullah ceased to be a substantial owner of Foreswood Group Bhd when she sold 1.11 million shares or a 1.94 per cent stake in the timber outfit on Feb 21, via the open market. Suraya still owns 2.45 million shares or a 4.29 per cent stake in Foreswood.

MBM Resources Bhd 1200

Volume (‘000)

DIRECTOR/SUBSTANTIAL SHAREHOLDER

HIL HOLDINGS S/B HIL HOLDINGS S/B LEMBAGA TABUNG ANGKATAN TENTERA TAN AIK HONG LOH SOON GNEE FOCUS PARK S/B DATUK SNG CHEE HUA MIDF INVESTMENT HOLDINGS S/B MIDF INVESTMENT HOLDINGS S/B EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD DATIN MARIAM PRUDENCE YUSOF DATIN MARIAM PRUDENCE YUSOF GOH HAN TENG, S’PORE LIM KHOON HOCK MOHD YUSSOF B ZAINAL EMPLOYEES PROVIDENT FUND BOARD GREAT EASTERN HOLDINGS LTD, S’PORE GREAT EASTERN LIFE ASSURANCE (M) BHD GOVERNMENT OF SINGAPORE INVESTMENT CORPORATION PTE LTD, S’PORE EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD BERJAYA VTCY S/B PEMBINAAN BUMIASIA S/B LAW KIM CHOON UMB NOMINEES (TEMPATAN) S/B SURAYA SUSAN MINAH ABDULLAH EMPLOYEES PROVIDENT FUND BOARD GENERASI SETIA (M) S/B GENERASI SETIA (M) S/B EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD LIM BEE LING BUMI RAYA INTERNATIONAL HOLDING CO LTD, S’PORE BUMI RAYA INTERNATIONAL HOLDING CO LTD, S’PORE PADUJADE CORPORATION S/B SUMMIT HOLDINGS S/B TANJUNG JUARA S/B EMPLOYEES PROVIDENT FUND BOARD HONG LEONG COMPANY (M) BHD HUME INDUSTRIES (M) BHD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD DATUK HJ MOHAMED B YEOP ABDUL RAOF EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD THE CAPITAL GROUP COMPANIES, INC., USA SOO HENG CHIN SOO HENG CHIN LOW HAN SIN PERMODALAN NASIONAL BHD AMANAH RAYA NOMINEES (TEMPATAN) S/B — SKIM AMANAH SAHAM BUMIPUTERA TAN SRI ABU SAHID B MOHAMED MAJUYO S/B EMPLOYEES PROVIDENT FUND BOARD

SHARES HELD AFTER CHANGE

10,727,195 386,641,995 1,800,045 21,679,751 1,314,000 2,799,000 31,661,000 32,089,000 101,152,600 3,384,000 30,851,754 29,650,754 23,825,800 10,559,000 10,582,000 164,250 4,957,174 2,256,000 110,612,174 5,599,000 15,302,000 10,524,600 11,330,600 71,827,825 1,380,000 13,826,675 2,451,000 39,661,250 12,079,000 12,050,000 4,297,083 7,901,500 10,129,500 55,506,667 16,200,000 13,786,800 13,803,800 29,985,685 24,464,505 3,376,014 76,037,934 353,374,211 41,378,000 18,591,800 18,936,800 18,986,800 10,000 34,265,075 23,162,000 21,109,897 100,000 815,000 33,776,000

18,081,000 5,123,000 32,572,000

5.0 4.62

1000 800

4.0

600

3.5

400

3.0

200

2.5 2.0

Sept 20, 2001

March 20, 2002

Sime Darby Bhd 12000

Volume (‘000)

Price (RM)

5.6 5.40

10000

5.2 8000

5.0

6000

4.8 4.6

4000

4.4 2000

4.2

4.0

Sept 20, 2001

Notable price movements Buoyed by the favourable car sales performance of associate Perusahaan Otomobil Kedua (Perodua), the share price of MBM Resources Bhd has risen steadily over the last six months, gaining some 88 per cent since to chart RM4.62 last Wednesday. The Employees Provident Fund (EPF) has been active in the trading of MBM’s shares recently. Since last month, EPF has gradually reduced its shareholdings in MBM to

Price (RM)

March 20, 2002

13.1 million shares or a 9.4 per cent stake following the disposal of 886,000 shares between Feb 19 and March 5. The disposal came after EPF’s accumulation of MBM’s shares in earlier January, when it acquired some 5.2 million shares or a 3.74 per cent stake in MBM between Jan 17 and 31. All transactions were carried out via the open market. MBM posted a net profit of

RM87.5 million or 63 sen a share for the financial year ended Dec 31, 2001, on a turnover of RM624.28 million. Both the company’s net profit and turnover rose 134 per cent and 13.7 per cent, respectively, over the previous corresponding period due to the weaker yen’s exchange rate and the fullyear account of profits shared from Perodua in FY2001, compared with nine months in FY2000. Sime Darby Bhd saw its share price climb steadily over the last nine months, along with the return of foreign funds into selective local blue chips. The counter has risen some 20 per cent since last September. It closed at RM5.40 last Wednesday. Since the beginning of the year, the EPF has accumulated some 21.75 million shares or a 0.94 per cent stake in the plantation conglomerate, but disposed of 7.08 million shares in between. It thus retains a total of 300.23 million shares or a 12.91 per cent equity interest in Sime Darby. For the six months ended Dec 31, 2001, Sime Darby’s net profit stood at RM375.04 million or 16.1 sen a share, on the back of RM5.76 billion in revenue. There was a modest improvement in the group’s earnings performance. Its net profit rose by 16.2 per cent despite revenue declining by 3.53 per cent compared with the previous correE sponding period.

REASON

DISPOSAL OF SHARES (23 TO 25, 28 & 29/1) DISPOSAL OF SHARES. CEASED TO BE A SUBSTANTIAL SHAREHOLDER (4/3) ACQUIRED (18/2) DISPOSAL OF SHARES (27/2) DISPOSED BY MARRIED DEAL (25/2) SOLD BY FINANCIAL INSTITUTION (7/2) DISPOSAL OF SHARES (9/1) ACQUISITION OF SHARES IN OPEN MARKET (14, 15, 18 & 21/2) ACQUISITION OF SHARES IN OPEN MARKET (22, 25, 27 & 28/2) DISPOSAL & ACQUISITION OF SHARES (31/1, 14, 15, 19 TO 21/2) PURCHASE OF SHARES IN OPEN MARKET (19/2) DISPOSAL (31/12/01) DISPOSAL & ACQUISITION OF SHARES (31/1, 19 & 20/2) PURCHASE OF SHARES IN OPEN MARKET (6/2) PURCHASED THROUGH OPEN MARKET, INDIRECT INTEREST (25 TO 28/2 & 1/3) PURCHASED THROUGH OPEN MARKET, INDIRECT INTEREST (4, 7 & 8/3) ACQUISITION OF SHARES BY GOH HAN TENG & CO PTE LTD, DEEMED INTEREST (27/2) INVESTMENT ACQUSITION, INDIRECT INTEREST (6/3) DISPOSAL OF SHARES IN THE OPEN MARKET (9 TO 11, 14, 15, 17, 18, 21 TO 25, 28 TO 31/1) SALES OF EQUITY & PURCHASE OF SHARES IN OPEN MARKET (31/1, 19 & 20/2) SALE OF SHARES BY COMPANY’S SUBSIDIARY, DEEMED INTEREST (18 TO 22, 26 TO 28/2) SALE OF SHARES. CEASED TO BE A SUBSTANTIAL SHAREHOLDER (1/3) DISPOSAL OF SHARES IN THE OPEN MARKET (20/2) PURCHASE OF SHARES MANAGED BY PORTFOLIO MANAGER (31/12/01) PURCHASE OF SHARES (31/1 & 21/2) DISPOSAL VIA MARRIED DEAL (1/3) OPEN MARKET DISPOSAL & MARRIED DEAL. CEASED TO BE A SUBSTANTIAL SHAREHOLDER (7/3) DISPOSAL IN OPEN MARKET (29/1) DISPOSED (20/2) SOLD TO OPEN MARKET. CEASED TO BE A SUBSTANTIAL SHAREHOLDER (21/2) SALES OF EQUITY & PURCHASE OF SHARES IN OPEN MARKET (14, 15 & 18/2) WARRANTS 1996/2006 — DISPOSAL IN THE OPEN MARKET (21 & 22/2) WARRANTS 1996/2006 — DISPOSAL IN THE OPEN MARKET DURING CLOSED PERIOD (6/3) SALES OF EQUITY MANAGED BY PORTFOLIO MANAGER (31/1) OPEN MARKET ACQUISITIONS (11 & 17/1) PURCHASE OF SHARES & PURCHASE OF SHARES MANAGED BY PORTFOLIO MANAGER (31/1, 19 & 21/2) PURCHASE OF SHARES (19 TO 21/2) ACQUISITION (25/1) ACQUIRED (22/1) ACQUIRED (1/3) DISPOSAL VIA OPEN MARKET (1/3) ACQUISITION IN THE OPEN MARKET (5 & 6/3) DISPOSAL OF SHARES IN OPEN MARKET (27, 28/2, 1 & 4/3) PURCHASE OF SHARES IN OPEN MARKET (27/2) DISPOSED, DEEMED INTEREST (5/3) ACQUIRED, DIRECT & DEEMED INTEREST (5/3) PURCHASE OF SHARES (31/12/01) PURCHASE OF SHARES IN OPEN MARKET & PURCHASE OF SHARES MANAGED BY PORTFOLIO MANAGER (31/1, 19 & 20/2) PURCHASE OF SHARES IN OPEN MARKET (22/2) DISPOSED, DIRECT DEAL WITH NEOH SEOW AUN (30/1) ACQUISITION OF SHARES BY NOMURA & BY EPF, DIRECT & INDIRECT INTEREST (31/1, 15, 18 & 26/2) ACQUIRED & DISPOSED BY TRANSACTION OF SECURITIES (31/1, 19 TO 21/2) ACQUIRED, DEEMED INTEREST HELD THROUGH ITS MANAGEMENT/NOMINEE COMPANIES (1 & 4/3) ACQUIRED (4/3) WARRANTS 2000/2004 — DISPOSAL BY TRANSACTION OF SECURITIES (5/3) OPEN MARKET ACQUISITIONS, INDIRECT INTEREST (17/1) PURCHASE OF SHARES (1/3) SALE OF SHARES. CEASED TO BE A SUBSTANTIAL SHAREHOLDER (1/3) ACQUISITION THROUGH OPEN MARKET (21, 23 TO 25/1) PURCHASE FROM OPEN MARKET (5/3) PURCHASE OF SHARES IN OPEN MARKET & SALES OF EQUITY MANAGED BY PORTFOLIO MANAGER (31/12/01, 17, 18/1/02)

The information in Insider Moves is provided as a service to readers. The explanations filed are at times abridged, indirect interest declarations summarised together with direct interests and figures totalled for space. While every effort is made to ensure accuracy, the information presented is not the official record of shareholder filings. Readers who are interested should check the original filings filed with the KLSE.

Scap_32n33_S4.p65

3/21/02, 8:34 AM

THEEDGE SINGAPORE | MARCH 25, 2002 • 33

CAPITAL FILING DATE

COMPANY

SHARES ACQUIRED (DISPOSED)

DIRECTOR/SUBSTANTIAL SHAREHOLDER

SHARES HELD AFTER CHANGE

MARCH 11 FEB 28 FEB 28 MARCH 11 FEB 28 MARCH 11 MARCH 11 JAN 30 JAN 30 MARCH 11 MARCH 6 MARCH 6 MARCH 6

JT INTERNATIONAL BHD JUTAJAYA HOLDING BHD JUTAJAYA HOLDING BHD JUTAJAYA HOLDING BHD JUTAJAYA HOLDING BHD JUTAJAYA HOLDING BHD KFC HOLDINGS (M) BHD KHEE SAN BHD KHIND HOLDINGS BHD KRIS COMPONENTS BHD KUALA LUMPUR KEPONG BHD KUALA LUMPUR KEPONG BHD KUALA LUMPUR KEPONG BHD

141,000 1,952,000 (40,000) (40,000) (40,000) (40,000) 80,000 (20,000) (678,000) (20,000) 1,056,000 (109,000) (1,050,000)

MARCH 6 MARCH 6 FEB 28 JAN 30 JAN 30 JAN 30 FEB 27 MARCH 6 FEB 27

KUALA LUMPUR KEPONG BHD LEADER UNIVERSAL HOLDINGS BHD LONDON BISCUITS BHD MALAYAN BANKING BHD MALAYAN BANKING BHD MALAYAN BANKING BHD MALAYAN BANKING BHD MALAYAN BANKING BHD MALAYAN BANKING BHD

46,148,150 (350,000) (2,798,648) (585,000) (50,000) 2,940,000 (2,320,600) (8,193,600) (700,000)

FEB 27 MARCH 6 MARCH 6 FEB 27 MARCH 6 MARCH 7 FEB 27 JAN 30 MARCH 11 MARCH 6 MARCH 6 MARCH 6 JAN 30 FEB 28

MALAYAN BANKING BHD MALAYAN BANKING BHD MALAYAN BANKING BHD MALAYAN CEMENT BHD MALAYAN CEMENT BHD MALAYSIA INTERNATIONAL SHIPPING CORPORATION BHD MALAYSIAN OXYGEN BHD MARUICHI MALAYSIA STEEL TUBE BHD MARUICHI MALAYSIA STEEL TUBE BHD MBM RESOURCES BHD MERGE ENERGY BHD MERGE ENERGY BHD MESINIAGA BHD MESINIAGA BHD

(50,000,000) (30,000,000) 30,000,000 2,874,000 1,316,000 1,646,000 206,000 379,000 (850,000) (28,000) 3,014,999 2,680,001 (96,000) (29,000)

JAN 30 MARCH 6 MARCH 7 FEB 28 MARCH 7 JAN 30 MARCH 6 MARCH 7 JAN 30 MARCH 6 MARCH 6 JAN 30 JAN 30 MARCH 7 JAN 30 MARCH 6 MARCH 6 MARCH 7 MARCH 7 FEB 28 JAN 30

MHC PLANTATIONS BHD MHC PLANTATIONS BHD MINPLY HOLDINGS (M) BHD MNI HOLDINGS BHD MTD CAPITAL BHD MUHIBBAH ENGINEERING BHD NEGRI SEMBILAN OIL PALMS BHD NISSAN-INDUSTRIAL OXYGEN INCORPORATED BHD NWP HOLDINGS BHD ORIENTAL HOLDINGS BHD ORIENTAL INTEREST BHD OSK HOLDINGS BHD OSK HOLDINGS BHD PARK MAY BHD PERUSAHAAN OTOMOBIL NASIONAL BHD PERUSAHAAN OTOMOBIL NASIONAL BHD PERUSAHAAN OTOMOBIL NASIONAL BHD PHARMANIAGA BHD PHARMANIAGA BHD PK RESOURCES BHD PUBLIC BANK BHD

(100,000) 1,300,000 23,000 243,000 (2,113,054) (46,000) 30,000 (13,073,002) 332,000 545,000 12,000 (50,000) 23,000 (870,000) (100,000) (995,000) (4,000) (93,000) 5,000 4,000 185,000

MARCH 7 MARCH 6

PUBLIC BANK BHD PUNCAK NIAGA HOLDINGS BHD

4,551,000 439,000

EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD

332,051,720 40,034,750

JAN 30 JAN 30 MARCH 6 MARCH 7

RANHILL BHD RHB CAPITAL BHD RHB CAPITAL BHD ROAD BUILDER (M) HOLDINGS BHD

(8,000) 25,000 1,895,000 (276,000)

CHE KHALIB B MOHAMAD NOH EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD

327,543 198,003,375 199,678,375 31,567,000

MARCH 7 FEB 28 MARCH 6 MARCH 6 MARCH 7 FEB 28

ROAD BUILDER (M) HOLDINGS BHD RUBBEREX CORPORATION (M) BHD RUBBEREX CORPORATION (M) BHD SELOGA HOLDINGS BHD SUNWAY HOLDINGS INCORPORATED BHD SYARIKAT KAYU WANGI BHD

3,000,000 8,000 6,000 220,075 (900,000) 3,000

DATUK SRI DR CHUA HOCK CHIN TENG CHENG BON @ TENG KIM TEE TENG CHENG BON @ TENG KIM TEE WONG AH FOOK @ WONG FOOK CHUIN EMPLOYEES PROVIDENT FUND BOARD MOHD SALLEH B JANTAN

FEB 28

SYARIKAT KAYU WANGI BHD

(107,000)

NG YENG KENG @ NG KA HIAT

FEB 28 FEB 27 FEB 28 MARCH 7 MARCH 7 FEB 27 MARCH 7

SYARIKAT KAYU WANGI BHD TAN & TAN DEVELOPMENTS BHD TAN & TAN DEVELOPMENTS BHD TANAH EMAS CORPORATION BHD TANAH EMAS CORPORATION BHD TDM BHD TELEKOM MALAYSIA BHD

(5,000) 230,000 138,000 (7,500,000) (7,500,000) (10,000) (1,940,000)

NG YENG KENG @ NG KA HIAT DATUK TAN CHIN NAM DATUK TAN CHIN NAM YAP PHING CERN YAP KIEW YM RAJA HAJI IDRIS B RAJA KAMARUDDIN EMPLOYEES PROVIDENT FUND BOARD

MARCH 7 FEB 27 FEB 27 MARCH 7 MARCH 8 JAN 30 FEB 27 FEB 27 FEB 28 JAN 30 FEB 28 FEB 27 FEB 27 MARCH 7 FEB 28 FEB 27 MARCH 6 MARCH 7 FEB 27 JAN 30 FEB 27 JAN 30

TONG HERR RESOURCES BHD TRANSMILE GROUP BHD TRU-TECH HOLDINGS BHD UCHI TECHNOLOGIES BHD UCHI TECHNOLOGIES BHD UMW HOLDINGS BHD UNISEM (M) BHD UNISEM (M) BHD UNISEM (M) BHD WCT ENGINEERING BHD WCT ENGINEERING BHD WCT ENGINEERING BHD WCT ENGINEERING BHD WCT ENGINEERING BHD WCT ENGINEERING BHD YCS CORPORATION BHD YCS CORPORATION BHD YONG TAI BHD YTL CEMENT BHD YTL CORPORATION BHD YTL CORPORATION BHD YTL POWER INTERNATIONAL BHD

372,000 6,823,000 (1,000) (2,000) (8,000) (100,000) (472,000) (10,000) (342,000) (4,000) (3,000) (200) (5,000) (5,000) (500,000) (963,000) (6,530,000) 6,000 158,000 1,615,200 23,000 408,360

TSAI MING TI GOLDENSEAL CAPITAL S/B CHUA THIAM CHYE TAN YEW HOCK OW CHOOI KHIM EMPLOYEES PROVIDENT FUND BOARD THE GREAT EASTERN LIFE ASSURANCE CO LTD, S’PORE GREAT EASTERN HOLDINGS LTD, S’PORE GREAT EASTERN HOLDINGS LTD, S’PORE DATUK CAPT AHMAD SUFIAN @ QURNAIN B ABDUL RASHID DATUK CAPT AHMAD SUFIAN @ QURNAIN B ABDUL RASHID MOHD ROSLAN B SARIP MOHD ROSLAN B SARIP MOHD ROSLAN B SARIP WONG SEWE WING TRIPLE GLORY S/B TRIPLE GLORY S/B LAU BAN TIN YEOH TIONG LAY & SONS HOLDINGS S/B EMPLOYEES PROVIDENT FUND BOARD YEOH TIONG LAY & SONS HOLDINGS S/B EMPLOYEES PROVIDENT FUND BOARD

EMPLOYEES PROVIDENT FUND BOARD SEAH POH TEIK @ CHEAH POH TEIK DAPATAN KLASIK S/B DAPATAN KLASIK S/B SPECTRUM CREST S/B SPECTRUM CREST S/B EMPLOYEES PROVIDENT FUND BOARD YEN KOK HIAN & SONS S/B KAMIL B A. RAHMAN DATUK MD SHARIF B SHAMSUDDIN EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD AMANAH RAYA NOMINEES (TEMPATAN) S/B — SKIM AMANAH SAHAM BUMIPUTERA PERMODALAN NASIONAL BHD EMPLOYEES PROVIDENT FUND BOARD DATUK MOHAMED SALLEH B BAJURI AMANAH SSCM C/O EMPLOYEES PROVIDENT FUND BOARD NOMURA C/O EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD AMANAH RAYA NOMINEES (TEMPATAN) S/B — SKIM AMANAH SAHAM BUMIPUTERA PERMODALAN NASIONAL BHD PERMODALAN NASIONAL BHD PERMODALAN NASIONAL BHD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD EMPLOYEES PROVIDENT FUND BOARD WOO YEW LAM LEE KUANG CHONG RAMLI B AMAT AMANAH RAYA NOMINEES (TEMPATAN) S/B — SKIM AMANAH SAHAM BUMIPUTERA DATO SERI OOI AH THIN JUWITAWAN S/B TEKUN USAHA S/B EMPLOYEES PROVIDENT FUND BOARD DESIRAN REALITI S/B TUAN HAJI MOHAMED TAIB B IBRAHIM GOH HAN TENG, S’PORE IOI CORPORATION BHD FIBRE OPTIC WORLD S/B EMPLOYEES PROVIDENT FUND BOARD GOH AIK KEONG DATUK NIK MOHAMED DIN B NIK YUSOFF OVERSEA-CHINESE BANKING CORPORATIO LTD, S’PORE CYCLE & CARRIAGE BINTANG BHD KHAZANAH NASIONAL BHD KHAZANAH NASIONAL BHD EMPLOYEES PROVIDENT FUND BOARD RAZA S/B DATUK MOHAMED AZMAN B YAHYA PERBADANAN KEMAJUAN NEGERI, NEGERI SEMBILAN EMPLOYEES PROVIDENT FUND BOARD

33,309,000 2,173,089 2,113,089 1,857,896 1,797,896 32,976,000 20,850,838 652,000 7,557,000 57,781,500 56,725,500 47,098,150 119,347,150 29,858,000 2,049,600 1,841,900 3,578,800 321,363,049 316,119,849 307,926,249 1,163,261,075 543,916,487 543,916,487 264,303,500 266,286,500 182,876,000 14,005,000 10,284,700 10,108,700 13,770,000 3,110,999 13,169,002 8,200,823 28,351,191 3,879,000 2,608,000 27,883,750 7,185,446 3,097,357 37,400 4,800,000 6,473,099 54,595,080 9,865,663 14,637,241 27,612,500 5,617,000 95,477,000 90,488,000 58,865,000 8,161,094 21,616,000 344,833,820

39,602,200 3,941,944 3,947,944 978,278 49,061,800 56,000

3,850,266 106,182,843 106,320,843 41,944,703 51,662,292 209,000 370,403,000 44,167,400 12,065,220

26,095,533

160,000 148,000

34,102,960 155,272,920 148,742,920 94,004,300 678,721,057

INSIDER MOVES MALAYSIA

REASON

PURCHASE OF SHARES IN OPEN MARKET (26 & 27/2) PURCHASE FROM OPEN MARKET (25/1) DISPOSAL (21 & 22/2) DISPOSAL (5 & 6/3) DISPOSAL (21 & 22/2) DISPOSAL (5 & 6/3) PURCHASE OF SHARES MANAGED BY PORTFOLIO MANAGER (31/1) DISPOSAL THROUGH OPEN MARKET (24 & 25/1) DISPOSED FROM PLEDGED ACCOUNT (10 TO 12/12/01) DISPOSAL BY KUALA LUMPUR CITY NOMINEES (TEMPATAN) S/B IN THE OPEN MARKET (28/2) PURCHASE OF SHARES MANAGED BY PORTFOLIO MANAGER & SALES OF EQUITY (31/1, 19 TO 21/2) PURCHASE OF SHARES IN OPEN MARKET & SALES OF EQUITY (14, 15 & 18/2) SALE OF SHARES (27 & 28/2) PURCHASE OF SHARES (1/3) DISPOSAL (31/1) DISPOSED & ACQUIRED THROUGH OPEN MARKET (31/1, 4 TO 7/2) SALES OF EQUITY MANAGED BY PORTFOLIO MANAGER (31/12/01) SALES OF EQUITY MANAGED BY PORTFOLIO MANAGER (31/12/01) PURCHASE OF SHARES IN OPEN MARKET (15, 17 & 18/1) PURCHASE OF SHARES IN OPEN MARKET & SALES OF EQUITY (5 TO 8/2) PURCHASE OF SHARES IN OPEN MARKET & SALES OF EQUITY (14, 15 & 18/2) SALE OF SHARES, INDIRECT INTEREST (14, 15 & 18/2) SALE OF SHARES (20/2) DISPOSED (21/2) ACQUIRED (27/2) PURCHASE OF SHARES IN OPEN MARKET (25, 29 TO 31/1, 4 TO 8/2) PURCHASE IN THE OPEN MARKET (31/1, 19 TO 21/2) PURCHASE & SALE OF SHARES (5 TO 8, 14 & 15/2) PURCHASE & SALE OF SHARES IN OPEN MARKET (5/2) PURCHASE OF SHARES IN OPEN MARKET (28/12/01, 17 & 18/1/02) SALES OF EQUITY MANAGED BY PORTFOLIO MANAGER (31/1) ACQUIRED & DISPOSAL OF SHARES IN OPEN MARKET (31/1, 19 TO 21/2) ACQUISITION OF SHARES (5/3) ACQUISITION OF SHARES (5/3) DISPOSED (10/12/01 & 2/1/02) SALE OF SHARES (21/2) DISPOSED OFF THROUGH OPEN MARKET (24 & 25/1) ACQUIRED BY OFF MARKET TRANSACTION (1/3) PURCHASE FROM OPEN MARKET (5 & 6/3) PURCHASE OF SHARES IN OPEN MARKET (31/1 & 4/2) DISPOSAL (4/3) DISPOSED BY OPEN MARKET TRANSACTION (12/12/01) ACQUIRED, DEEMED INTEREST (27/2) DISPOSAL OF SHARES VIA DIRECT BUSINESS TRANSACTION TO M’SIAN OXYGEN BHD (4/3) PURCHASED IN THE OPEN MARKET (24, 25 & 29/1) PURCHASE OF SHARES MANAGED BY PORTFOLIO MANAGER (31/1) ACQUIRED, DEEMED INTEREST (1/3) DISPOSAL OF SHARES THROUGH OPEN MARKET (11/1) DISPOSAL & ACQUISITION OF SHARES (14 & 15/1) SALES IN OPEN MARKET (7, 8 & 21/2) NET SALES IN OPEN MARKET (18/1) NET SALES FROM OPEN MARKET (21, 22 & 26/2) SALE & PURCHASE OF EQUITY IN OPEN MARKET (14, 15 & 18/2) DISPOSAL OF SHARES (3, 6/8/01, 4, 29 TO 31/1/02) ACQUISITION OF SHARES BY HIS SPOUSE (25 & 26/2) SHARES BOUGHT IN THE OPEN MARKET (26/2) ACQUISITION OF SHARES MANAGED BY PORTFOLIO MANAGER & DISPOSAL OF SHARES IN THE OPEN MARKET (31/12/01, 17 & 18/1/02) SALE & PURCHASE OF SHARES MANAGED BY PORTFOLIO MANAGERS & SALE OF SHARES (31/1, 19 & 21/2) DISPOSAL & PURCHASE OF SHARES MANAGED BY PORTFOLIO MANAGERS, RASHID HUSSAIN & NOMURA (31/1) DISPOSED IN OPEN MARKET (18/1) PURCHASE OF SHARES MANAGED BY PORTFOLIO MANAGER (31/12/01) PURCHASE OF SHARES MANAGED BY PORTFOLIO MANAGER (31/1) PURCHASE OF SHARES MANAGED BY PORTFOLIO MANAGER & DISPOSED THROUGH OPEN MARKET TRANSACTIONS (31/1, 19 TO 21/2) ACQUIRED BY OFF MARKET TRANSACTION (6/3) PURCHASED IN OPEN MARKET (22 & 25/2) PURCHASED IN OPEN MARKET (26 & 28/2) ACQUISITION THROUGH OFF MARKET (5, 6 & 10/12/01) SALE OF EQUITY MANAGED BY PORTFOLIO MANAGER (21/2) ACQUISITIONS BY ARAB-MALAYSIAN FINANCE BHD THROUGH OPEN MARKET, INDIRECT INTEREST (14 & 22/8/01) WARRANTS — DISPOSAL BY BAN DUNG PALM OIL INDUSTRIES S/B, DEEMED INTERESTS (29, 30/8, 3 & 4/9/01) DISPOSAL BY ASN THROUGH OPEN MARKET, INDIRECT INTEREST (10 & 11/12/01) ACQUISITION (26/2) ACQUISITION (27/2) SALE VIA PRIVATE PLACEMENT (4/3) SALE VIA PRIVATE PLACEMENT (5/3) DISPOSAL & ACQUISITION OF SHARES IN OPEN MARKET (15 & 21/2) PURCHASE OF SHARES IN OPEN MARKET & DISPOSAL OF SHARES IN OPEN MARKET BY PORTFOLIO MANAGER, NOMURA (31/1 & 19/2) ACQUISITION (28/2, 1, 4 & 5/3) ACQUIRED BY PRIVATE PLACEMENT, INDIRECT INTEREST (16/1) DISPOSAL (19/9/01) DISPOSED (5/3) DISPOSED (6/3) SALE OF EQUITY (18/1) SALE OF SHARES/SALE OF SHARES BY SUBSIDIARY. CEASED TO BE A SUBSTANTIAL SHAREHOLDER (20/2) SALE OF SHARES BY SUBSIDIARY, DIRECT & DEEMED INTEREST (20/2) SALE OF SHARES BY SUBSIDIARY. CEASED TO BE A SUBSTANTIAL SHAREHOLDER (21/2) WARRANTS 2000/2005 — DISPOSAL IN OPEN MARKET (17 & 18/1) WARRANTS 2000/2005 — DISPOSAL THROUGH OPEN MARKET (19 & 20/2) WARRANTS 2000/2005, DISPOSED (20/2) DISPOSED (20/2) DISPOSED (6/3) DISPOSAL OF SHARES IN OFF MARKET (28/2) DISPOSAL (8, 14, 15, 18, 20 & 21/2) DISPOSAL (22, 25 TO 28/2 & 1/3) ACQUISITION IN THE OPEN MARKET (1/3) PURCHASE OF SHARES FROM OPEN MARKET, INDIRECT INTEREST (14, 15, 18 TO 22/2) PURCHASE OF SHARES IN OPEN MARKET (31/12/01, 17 & 18/1/02) PURCHASE OF SHARES FROM OPEN MARKET (15, 18 TO 22/2) PURCHASE OF SHARES IN OPEN MARKET (31/12/01)

Share buybacks DATE

MARCH 6 MARCH 6 MARCH 7 MARCH 6 MARCH 7 MARCH 8 MARCH 6 MARCH 7 MARCH 8 MARCH 6

COMPANY

SHARES ACQUIRED

ANCOM BHD BERJAYA SPORTS TOTO BHD BERJAYA SPORTS TOTO BHD CHOO BEE METAL INDUSTRIES BHD INSAS BHD INSAS BHD JAYA TIASA HOLDINGS BHD JAYA TIASA HOLDINGS BHD JAYA TIASA HOLDINGS BHD MULPHA INTERNATIONAL BHD

Scap_32n33_S4.p65

16,000 100,000 50,000 11,000 11,000 17,000 23,000 30,000 10,000 294,000

HIGH

SHARE PRICE LOW

CUMULATIVE NET OUTSTANDING TREASURY SHARES

1.16 6.60 6.60 1.32 0.40 0.41 2.00 2.00 2.02 0.405

1.14 6.45 6.50 1.32 0.39 0.40 1.96 2.00 2.01 0.400

2,642,000 20,946,000 20,996,000 2,385,000 742,000 759,000 15,823,000 15,853,000 15,863,000 25,654,000

DATE

MARCH 7 MARCH 8 MARCH 6 MARCH 7 MARCH 8 MARCH 6 MARCH 8 MARCH 6 MARCH 7 MARCH 8

COMPANY

SHARES ACQUIRED

MULPHA INTERNATIONAL BHD MULPHA INTERNATIONAL BHD OSK HOLDINGS BHD OSK HOLDINGS BHD OSK HOLDINGS BHD V.S. INDUSTRY BHD V.S. INDUSTRY BHD WTK HOLDINGS BHD YTL POWER INTERNATIONAL BHD YTL POWER INTERNATIONAL BHD

3/21/02, 8:34 AM

553,000 276,000 45,000 17,000 111,000 4,000 7,000 35,000 523,000 40,000

HIGH

SHARE PRICE LOW

CUMULATIVE NET OUTSTANDING TREASURY SHARES

0.405 0.410 1.80 1.80 1.80 3.14 3.20 4.04 2.50 2.50

0.395 0.395 1.76 1.79 1.79 3.14 3.16 4.00 2.45 2.48

26,207,000 26,483,000 25,201,000 25,218,000 25,329,000 1,049,000 1,056,000 1,438,000 15,328,415 15,368,415

34 • THEEDGE SINGAPORE

| MARCH 25, 2002

CAPITAL

JCF ESTIMATES CONSENSUS SINGAPORE

COMPANY

PRICE

MARKET CAPITALISATION (S$ MIL)

RECOMMENDATION CONSENSUS 75 DAYS AS OF 14/3/02

RECOMMENDATION CONSENSUS 75 DAYS AS OF 14/12/01

NO OF ESTIMATES (75 DAYS)

P/E 2002 (X)

2002 EPS (75 DAYS)

ACHIEVA LTD ADDVALUE TECHNOLOGIES LTD ADROIT INNOV ADVANCED SYSTEMS AUTOM AEM-EVERTECH ALLGREEN PROPERTIES ASIA DEKOR HLDGS LTD ASIA PACIFIC BREWERIES ASIATRAVEL COM ASTI HOLDINGS AUSSINO COM GROUP BEYONICS TECHNOLOGY BRILLIANT MANUFACTURING LTD CAPITALAND LIMITED CEI CONTRACT MANUFACTURING CEREBOS PACIFIC LTD CHARTERED SEMICONDUCTOR CHINA AVIATION OIL CHINA MERCHANTS HLDGS CHUAN HUP HLDG CITY DEVELOPMENTS LTD CLIPSAL INDUSTRIES HOLDINGS COMFORT GROUP LTD COSCO INVESTMENTS S LTD COURTS SINGAPORE CREATIVE TECHNOLOGY LTD CSA HOLDINGS CSE SYSTEMS & ENGINEERING CYCLE & CARRIAGE LTD CYTECH SOFTWARE LTD DAIRY FARM INTL HLDGS DATACRAFT ASIA LTD DATAPULSE TECHNOLOGY DBS GROUP HLD LTD DEL MONTE PACIFIC DELGRO CORP EASTERN ASIA TECHNOLOGY EASTGATE TECHNOLOGY LTD ECS HOLDINGS ELEC & ELTEK INTL CO LTD ELLIPSIZ LTD ENZER CORPORATION EU YAN SANG INTL LTD FASTECH SYNERGY FIRST CAPITAL CORP LTD FIRST ENGRG LTD FISCHER TECH FLAIRIS TECHNOLOGY FLEXTECH HOLDINGS FRASER & NEAVE LTD FRONTLINE TECHNOLOGIES CORP FU YU MFG LTD GES INTERNATIONAL GIANT WIRELESS TECHNOLOGY GOODPACK GP BATTERIES INTL LTD GREAT EASTERN HOLDINGS LTD GUL TECHNOLOGIES SINGAPORE HAW PAR CORPORATION LTD HAW PAR HEALTHCARE LTD HERSING CORPORATION LTD HONG LEONG SINGAPORE HONGKONG LAND HLDS LTD HOTEL PROPERTIES LTD HUAN HSIN HLDS LTD HYFLUX I COMM TECHNOLOGY IDT HLDG SPORE LTD INCHCAPE MOTORS LTD INFORMATICS HOLDINGS LTD INTL PRESS SOFTCOM IONICS EMS INC ISOFTEL LTD JARDINE MATHESON HLDS LTD JARDINE STRATEGIC HLDS LTD JAYA HLDG LTD JURONG TECHNOLOGIES IND KEPPEL CORP LTD KEPPEL HITACHI ZOSEN KEPPEL LAND LTD KEPPEL TELECOMS & TRANSPORT KINGBOARD COPPER FOIL LANTROVISION LINDETEVES JACOBERG LTD MAGNECOMP INTL MANDARIN ORIENTAL INTL MANUFACTURING INTEGRATION TECHNO MARCO POLO DEVELOPMENTS MCL LAND LTD MEDIARING.COM MENTOR MEDIA METALOCK SPORE LTD MFS TECHNOLOGY MIYOSHI PRECISION MMI HOLDINGS LTD NATSTEEL BROADWAY NATSTEEL LTD NEPTUNE ORIENT LINES LTD NERA TELECOM NOBLE GROUP LTD NORELCO CENTRELINE NORTH 22 TECHNOLGY SERVICES OSIM INTL OVERSEAS CHINESE BANKING OVERSEAS UNION ENTERPRISES PACIFIC ANDES HLDG PARKWAY HOLDINGS LTD PCA TECHNOLOGY LIMITED PCI LTD PENTEX SCHWEIZER CIRCUITS PEOPLE’S FOOD HOLDINGS PKTECH INTL LTD POPULAR HLDS QIAN HU RAFFLES HLDG ROBINSON & CO LTD ROLY INTL HLDS LTD SAMUDERA SHIPPING LINE SBS TRANSIT LTD SEKSUN CORPORATION SEMBCORP INDUSTRIES LTD SEMBCORP LOGISTICS & MARINE SEMBCORP MARINE LTD SIA ENGINEERING CIE SINGAPORE AIRLINES LTD SINGAPORE AIRPORT TERMINAL SINGAPORE COMPUTER SYSTEMS SINGAPORE EXCHANGE LTD SINGAPORE FOOD INDUSTRIES SINGAPORE LAND SINGAPORE PRESS HLDG LTD SINGAPORE TECH ENGRG SINGAPORE TELECOM SMRT SNP CORP LTD ST ASSEMBLY TEST SERVICES STAR CRUISES PLC SUNRIGHT LTD SURFACE MOUNT TECHNOLOGY TECKWAH INDUSTRIAL CORP TELEDATA SPORE THE ASCOTT LTD TOTAL ACCESS COMMUNICATION TRANSVIEW HLDS TREK 2000 LIMITED UNISTEEL TECHNOLOGY UNITED FOOD HLDGS LTD UNITED INDUSTRIAL CORP LTD UNITED OVERSEAS BANK LTD UNITED OVERSEAS LAND VENTURE MFG SINGAPORE LTD WANT WANT HLDS LTD WILLAS ARRAY ELECTRONICS WING TAI HLDS LTD YEO HIAP SENG LTD

0.21 0.18 0.11 0.54 0.20 1.15 0.17 4.68 0.24 0.38 0.44 0.31 0.36 1.92 0.29 2.23 4.90 0.64 0.29 0.43 7.10 2.34 0.67 0.25 0.57 22.60 1.38 0.52 4.28 0.25 1.31 4.35 0.38 14.40 0.45 2.81 0.71 0.18 0.72 5.23 0.44 0.38 0.28 0.37 1.27 0.53 0.32 0.16 0.60 7.70 0.28 0.46 0.83 0.21 0.68 1.68 12.30 0.45 4.18 2.14 0.18 1.80 3.26 1.27 1.38 1.32 0.23 1.45 2.29 1.30 0.25 0.31 0.17 10.56 5.15 0.21 0.35 4.16 0.61 1.85 1.10 0.34 0.31 1.20 0.49 0.78 0.29 1.92 1.00 0.18 0.43 0.36 0.36 0.15 0.36 2.38 1.22 1.18 0.72 1.10 0.62 0.19 0.75 13.10 6.80 0.48 0.89 0.26 0.72 0.25 0.95 0.22 0.27 0.32 0.52 4.74 0.29 0.24 1.78 0.76 1.74 2.19 0.90 1.98 14.30 1.83 1.60 1.39 0.79 3.40 23.10 2.39 1.68 0.68 0.62 2.76 0.67 0.44 0.49 0.17 0.21 0.36 2.82 0.11 0.71 0.73 0.66 0.72 14.30 1.79 17.50 4.30 0.21 0.97 1.84

84.9003 75.6000 27.5000 61.0863 72.3720 1,207.5000 132.2096 1,184.6249 37.5552 65.4383 83.5200 260.2953 144.0000 4,833.3120 64.2986 697.0735 6,782.2861 365.7600 46.9788 488.1747 5,687.2490 264.1649 536.0286 139.2005 91.6988 1,646.8777 178.3043 137.0122 1,020.5832 125.9202 2,238.5142 2,015.1943 225.9100 20,836.9434 508.5682 848.1985 155.1000 67.7302 149.0256 762.7795 87.1200 25.3875 78.5601 56.4108 468.2579 37.1705 66.7800 54.6846 64.5684 2,281.3176 209.7535 207.7374 592.6208 71.7500 223.0400 173.8817 5,796.8672 171.5560 861.8825 441.4649 30.6392 437.2182 7,480.2485 574.7499 345.0000 223.9882 71.2397 254.4533 374.9051 401.7611 102.7089 193.4400 36.5587 6,629.3135 5,469.0557 152.9329 135.8113 3,188.9187 535.6386 1,310.8784 592.8627 227.8000 78.9950 304.1040 97.0000 690.5387 62.6159 765.7977 369.1840 129.8484 86.0000 28.5120 151.2300 42.4139 175.5072 481.2360 442.7160 1,387.7625 257.4000 313.2316 138.7560 125.2187 172.9380 16,872.0137 1,198.9760 101.0621 640.7670 38.3794 137.0584 83.6920 995.3685 44.0320 119.3692 29.1309 1,071.2000 407.3476 111.3694 108.7380 530.4080 92.1713 3,167.7917 1,864.0602 1,266.3989 1,980.0000 17,419.4023 1,830.0000 245.2816 1,390.0000 395.0000 1,169.8517 8,448.4316 6,883.7979 29,947.3418 1,020.0000 35.8149 2,734.0811 2,103.3196 54.1200 118.4006 38.4200 32.8000 550.0121 1,141.2970 15.0595 139.6852 140.4739 633.3548 991.7856 22,470.1602 1,097.2198 4,044.8274 2,524.4148 54.5300 590.6398 1,045.8835

1.50 2.50 2.00 2.00 1.50 1.67 1.50 1.00 3.00 2.00 1.25 1.67 2.25 1.83 1.50 2.50 2.07 1.75 1.83 1.83 2.05 3.00 1.13 1.50 1.67 1.93 2.00 1.50 1.95 2.00 1.67 2.22 1.38 1.84 1.50 1.33 1.50 3.00 1.50 1.56 2.00 3.00 1.25 1.00 2.25 1.50 3.00 1.50 3.00 1.65 1.75 3.00 2.33 1.00 1.00 1.50 1.90 1.83 1.38 1.00 3.00 2.00 2.15 3.00 1.60 2.00 3.00 1.50 2.00 1.50 2.50 1.75 1.00 2.00 1.50 1.50 1.50 1.42 2.31 2.00 2.10 2.17 2.00 1.33 2.17 2.00 3.00 1.61 1.72 2.25 1.00 2.00 1.50 NA 1.80 1.50 2.17 2.29 1.50 1.50 1.17 2.00 1.50 1.86 1.50 2.25 2.33 2.00 2.64 1.50 1.40 2.00 2.00 2.00 2.00 1.25 2.00 3.00 1.00 1.50 1.82 1.88 1.54 1.38 2.07 1.25 1.50 1.70 1.29 2.00 2.07 1.81 1.97 1.72 1.00 2.17 1.67 2.50 1.90 1.00 3.00 1.50 1.50 2.00 2.50 NA 1.38 2.50 1.75 1.60 1.43 1.65 2.00 1.89 NA

1.50 2.00 2.50 2.75 2.00 2.00 — 1.40 — 2.50 1.25 1.67 3.00 1.95 1.50 2.19 2.04 NA — 1.83 1.60 3.00 1.36 1.50 1.50 1.96 2.00 2.33 2.00 1.50 2.67 2.57 1.60 1.62 1.50 1.50 — 2.50 1.75 1.71 2.50 — 1.50 1.50 2.44 NA NA — 2.00 1.63 1.70 — 2.30 — — 1.67 2.00 2.25 1.50 — 3.00 2.00 1.61 2.00 1.83 1.50 2.00 1.00 2.00 1.64 2.00 1.50 2.00 2.50 2.00 1.50 — 1.44 2.40 1.95 1.86 1.50 NA 2.00 2.00 2.17 2.50 1.83 2.10 2.50 1.50 — NA NA 2.33 1.40 2.17 2.65 1.63 1.50 1.50 1.50 1.50 1.77 2.00 2.00 2.14 — 2.70 — 1.25 — 2.00 1.50 2.00 1.25 2.00 1.50 1.50 — 1.61 1.67 1.25 1.38 2.32 1.30 1.67 1.36 1.25 2.07 2.08 1.56 1.93 1.90 — 2.56 2.00 3.00 2.13 — — — 1.80 — 2.00 NA 1.50 2.00 1.75 1.83 1.67 1.25 NA 2.33 NA

2 1 3 3 2 13 1 3 1 4 1 7 2 16 1 7 16 2 3 3 11 1 4 1 2 15 1 3 10 4 4 16 6 17 2 10 2 1 5 9 2 1 2 1 10 1 1 2 2 10 4 1 6 1 2 1 5 2 4 1 1 1 13 1 5 4 1 2 1 6 1 2 1 4 1 1 1 15 8 15 6 3 1 3 3 3 1 10 10 1 2 1 1 1 5 7 7 7 9 1 3 1 4 16 4 2 6 1 5 1 5 1 1 2 1 4 1 1 2 2 15 13 12 5 13 2 8 9 7 9 15 17 17 10 1 13 6 2 5 1 1 1 7 1 2 1 5 2 15 5 15 10 1 8 1

7.07 120.00 NA 35.67 13.77 11.05 4.39 13.74 24.00 25.17 7.13 15.25 15.25 32.22 11.49 12.39 NA 6.68 9.84 8.27 25.63 32.46 7.46 25.00 6.06 16.66 13.81 13.35 8.01 15.51 16.43 30.96 9.70 18.30 15.08 10.52 11.28 16.36 9.90 9.55 28.66 NA 9.48 13.77 15.28 6.65 19.10 21.77 14.12 10.17 15.41 9.58 22.59 9.76 15.28 8.08 23.58 148.33 23.48 12.44 21.07 8.04 17.99 24.42 12.78 24.91 17.83 6.48 13.47 15.03 17.50 7.54 NA 13.33 8.09 9.55 14.38 11.34 14.66 13.91 26.11 5.87 10.10 11.65 10.32 43.00 NA 9.31 14.66 257.14 10.04 60.00 13.65 6.25 21.75 12.93 12.20 NA 15.17 32.46 15.50 9.33 11.06 19.44 40.96 7.33 17.49 15.29 14.30 6.41 6.20 9.35 8.55 10.35 20.60 12.03 7.77 78.33 7.51 8.13 15.82 23.55 12.29 11.65 23.06 9.58 11.25 18.05 13.17 12.14 31.64 18.40 18.67 14.58 10.88 NA 48.72 NA 10.71 3.40 29.29 20.88 9.27 7.29 16.59 15.53 6.80 13.39 18.98 11.03 24.96 13.13 7.72 20.53 12.11

0.03 0.00 -0.02 0.02 0.01 0.10 0.04 0.34 0.01 0.02 0.06 0.02 0.02 0.06 0.02 0.18 -0.55 0.10 0.03 0.05 0.28 0.07 0.09 0.01 0.09 1.36 0.10 0.04 0.53 0.02 0.08 0.14 0.04 0.79 0.03 0.27 0.06 0.01 0.07 0.55 0.02 -0.03 0.03 0.03 0.08 0.08 0.02 0.01 0.04 0.76 0.02 0.05 0.04 0.02 0.04 0.21 0.52 0.00 0.18 0.17 0.01 0.22 0.18 0.05 0.11 0.05 0.01 0.22 0.17 0.09 0.01 0.04 -0.01 0.79 0.64 0.02 0.02 0.37 0.04 0.13 0.04 0.06 0.03 0.10 0.05 0.02 -0.01 0.21 0.07 0.00 0.04 0.01 0.03 0.02 0.02 0.18 0.10 -0.05 0.05 0.03 0.04 0.02 0.07 0.67 0.17 0.07 0.05 0.02 0.05 0.04 0.15 0.02 0.03 0.03 0.03 0.39 0.04 0.00 0.24 0.09 0.11 0.09 0.07 0.17 0.62 0.19 0.14 0.08 0.06 0.28 0.73 0.13 0.09 0.05 0.06 -0.15 0.01 -0.03 0.05 0.05 0.01 0.02 0.30 0.01 0.04 0.05 0.10 0.05 0.75 0.16 0.70 0.33 0.03 0.05 0.15

Scap_34_S4.p65

2002 EPS (45 DAYS)

0.03 0.00 -0.02 0.04 0.01 0.10 0.04 0.30 0.01 0.02 0.06 0.02 0.02 0.06 0.02 0.08 -0.56 0.11 0.23 0.05 0.33 0.07 0.09 0.01 0.09 1.41 0.10 0.04 0.55 0.02 0.08 0.14 0.03 0.75 0.03 0.23 0.06 0.01 0.07 0.55 0.02 -0.03 0.03 0.03 0.06 0.08 0.02 0.00 0.03 0.76 0.02 0.05 0.04 0.02 0.04 0.21 0.52 0.00 0.18 0.17 0.01 0.22 0.18 0.05 0.11 0.05 0.01 0.22 0.17 0.09 0.01 0.04 -0.01 0.71 0.64 0.02 0.02 0.37 0.04 0.13 0.04 0.05 0.03 0.10 0.06 0.02 -0.01 0.23 0.06 0.00 0.05 0.01 0.03 0.02 0.02 0.18 0.10 -0.05 0.05 0.03 0.04 0.02 0.07 0.67 0.17 0.08 0.05 0.02 0.05 0.04 0.15 0.02 0.03 0.03 0.03 0.32 0.04 0.00 0.24 0.09 0.11 0.09 0.07 0.18 0.60 0.19 0.14 0.08 0.06 0.28 0.73 0.13 0.09 0.05 0.06 -0.15 0.02 -0.03 0.04 0.05 0.01 0.02 0.24 0.01 0.04 0.05 0.10 0.05 0.76 0.16 0.70 0.33 0.03 0.03 0.15

2002 EPS GROWTH (%)

35.06 400.00 R+ R+ R+ 32.56 15.20 -9.77 33.33 R+ 35.56 98.02 259.68 R+ 29.38 12.50 R6.88 2.58 9.09 12.35 7.31 9.86 -23.08 31.47 77.67 26.72 153.16 16.62 6.93 139.78 69.65 -3.02 -3.32 -16.58 16.03 26.15 175.00 14.06 28.87 R+ R23.40 R+ R+ 16.18 11.35 R+ R+ 3.93 33.36 77.78 16.76 17.32 16.58 7.46 20.97 — -0.09 2.99 15.41 -25.58 12.66 -39.53 18.31 27.65 67.53 17.27 -34.62 23.90 16.67 27.85 R+ 19.29 30.11 -24.14 26.32 -9.04 9.09 R+ R+ 23.81 22.76 342.86 R+ 14.90 R+ -60.47 50.88 R+ 17.19 100.00 62.50 14.29 12.50 21.05 R+ 61.90 18.92 -4.67 14.29 21.73 16.95 7.29 6.36 18.24 40.83 -48.48 26.92 77.27 20.21 27.93 55.00 -15.58 -77.48 20.47 100.00 -85.00 53.31 12.17 12.73 -11.22 21.76 12.99 203.85 10.19 24.38 34.92 11.11 7.69 -17.47 5.95 -7.29 21.04 21.28 R+ R+ R40.00 19.05 R+ 183.33 52.89 17.07 11.84 20.51 20.86 R+ 2.07 68.04 21.57 18.02 55.56 -37.89 9.35

6 MONTHS PERFORMANCE (%)

7.89 9.09 10.00 37.18 21.21 25.00 24.28 17.00 29.73 7.04 67.31 79.41 71.43 16.36 42.50 0.45 31.72 15.45 34.88 43.33 51.71 -16.43 11.76 31.58 20.00 101.79 -8.00 89.09 37.18 6.52 21.54 -22.32 26.67 13.39 23.61 16.60 71.95 16.13 69.41 7.66 60.00 0.00 61.76 48.98 27.00 150.00 70.27 23.08 29.03 2.67 -3.51 31.43 78.65 46.43 49.45 12.00 33.70 20.27 14.21 25.15 -5.26 17.65 24.89 4.10 76.92 129.57 21.05 22.88 36.31 31.98 44.12 40.91 6.45 6.49 8.89 31.25 91.67 66.64 57.14 8.82 24.29 47.83 19.61 112.39 15.48 -13.46 58.33 11.63 21.95 71.43 16.22 -4.00 -99.83 36.36 53.19 40.00 41.86 34.09 19.17 0.00 169.57 15.67 87.50 22.43 9.68 113.33 -6.81 85.71 27.68 21.95 45.38 34.38 10.42 17.35 17.05 5.80 235.29 20.51 14.10 123.53 37.01 28.07 10.43 66.39 43.00 45.24 28.00 39.00 19.70 6.92 27.62 -0.42 -0.59 -13.92 44.19 97.14 0.58 37.50 24.36 9.68 -14.58 36.54 30.82 0.00 67.86 73.81 28.43 -2.04 34.91 9.82 63.55 76.42 13.89 34.03 31.43

3/21/02, 8:35 AM

THEEDGE /

6 MONTHS PERFORMANCE RELATIVE TO STI (%)

-12.24 -11.27 -10.53 11.57 -1.41 1.67 1.08 -4.84 5.51 -12.94 36.08 45.92 39.43 -5.36 15.90 -18.30 7.13 -6.10 9.71 16.58 23.39 -32.03 -9.10 7.02 -2.40 64.12 -25.17 53.80 11.57 -13.36 -1.15 -36.82 3.02 -7.78 0.54 -5.17 39.86 -5.55 37.79 -12.44 30.13 -18.67 31.57 21.17 3.29 103.34 38.49 0.10 4.95 -16.50 -21.52 6.90 45.30 19.10 21.55 -8.91 8.74 -2.18 -7.11 1.79 -22.95 -4.31 1.58 -15.33 43.90 86.72 -1.54 -0.06 10.87 7.34 17.22 14.61 -13.42 -13.39 -11.44 6.75 55.89 35.54 27.81 -11.49 1.09 20.23 -2.72 72.75 -6.08 -29.61 28.78 -9.21 -0.81 39.43 -5.48 -21.92 -99.86 10.91 24.60 13.87 15.38 9.06 -3.08 -18.67 119.25 -5.92 52.50 -0.42 -10.79 73.51 -24.20 51.05 3.85 -0.81 18.25 9.29 -10.19 -4.56 -4.80 -13.95 172.71 -1.98 -7.20 81.81 11.43 4.16 -10.18 35.33 16.31 18.13 4.11 13.05 -2.65 -13.04 3.80 -19.00 -19.15 -29.99 17.27 60.34 -18.20 11.83 1.15 -10.79 -30.53 11.05 6.40 -18.67 36.53 41.37 4.46 -20.33 9.72 -10.68 33.02 43.49 -7.37 9.01 6.90

The Edge/JCF Estimates Consensus Table presents the earnings forecast of Singaporean equities using the latest and more robust JCF methodology that provides more timely and useful information. JCF utilises only the latest estimates in calculating the consensus. Any estimates that are more than 75 days old are discarded to avoid the possibility of old forecasts polluting the consensus. The latest 45 days forecast EPS not only gives you the more robust consensus but also a glimpse of the earnings trend, while the Recommendation Consensus Rating is the scale that measures how the analysts feel about a stock. JCF Group is Europe’s leading provider of premium services and products to the institutional investor and investment banking community. The company markets its equity-based services and products around the world and currently has offices in London, Paris and Madrid, Singapore and New York. For enquiries, readers are invited to contact JCF. Glossary to JCF Estimates Consensus Table •

Price: Closing price as of stated date

•

Market Capitalisation (S$): Market capitalisation (S$) in millions

•

Recommendation Consensus Rating: The following rating is assigned to each type of recommendation provided by participating brokers: 1 = positive (strong buy) 1.5 = overweight 2 = neutral 2.5 = underweight 3 = negative (strong sell) – = no recommendation from brokers at that point of time

The average of all recommendations is then calculated to give the consensus rating •

No of Estimates (75 days): Number of estimates that are less than 75 days old and are included in the consensus calculation

•

PE 2002: The forecast PE ratio for year 2002 (NA — unable to calculate, for example negative earnings per share figures)

•

EPS 2002 (75 days): The forecast earnings per share for year 2002 using estimates from the latest 75 days

•

EPS 2002 (45 days): The forecast earnings per share for year 2002 using estimates from the latest 45 days

•

EPS Growth: Earnings per share growth compared to last year (R = Recovery)

•

6 months performance: Six months price performance for that equity

•

6 months performance relative to STI: Six months price performance relative to the Straits Times Index.

Disclaimer In no event will JCF or The Edge be responsible for special, indirect, incidental or consequential damages which may be incurred or experienced on account of entering into or relying on the data. JCF acts solely as a transmitter of information provided by certain brokers, certain corporations and certain other sources. Neither JCF, any source or any third party which JCF contracts to effect transmission makes any warranty of merchantability or fitness for a particular purpose with respect to the JCF financial information, nor shall any of them be liable for any error or omission in the information supplied to The Edge or its subscribers or the accuracy, completeness or timeliness of the data. E

To contact the JCF Group:

Patrick Peck, Vice-President for Asia-Pacific, JCF Information (Asia) Pte Ltd 12 Prince Edward Road, Bestway Building Podium B #04-13 Singapore 079212 Tel: (65) 6327 2050 Fax: (65) 6327 2051 E-mail: peck.p@jcfgroup.com www.jcfgroup.com

THEEDGE SINGAPORE | MARCH 25, 2002 • 35

CAPITAL COMPANY

PRICE

MARKET CAPITALISATION (RM MIL)

RECOMMENDATION CONSENSUS 75 DAYS AS OF 14/3/02

RECOMMENDATION CONSENSUS 75 DAYS AS OF 14/12/01

NO OF ESTIMATES (75 DAYS)

P/E 2002 (X)

PUBLIC BANK BAT (MALAYSIA) TENAGA NASIONAL GENTING TELEKOM MALAYSIA COMMERCE ASSET-HOLDING MALAYAN BANKING PERUSAHAAN OTOMOBIL NASIONAL RESORTS WORLD UMW HOLDINGS DIGI.COM GAMUDA IOI CORPORATION MAGNUM CORPORATION MALAKOFF STAR PUBLICATION MALAYSIA TECHNOLOGY RESOURCES INDUSTRY EON (EDARAN OTOMOBIL NASIONAL) IJM CORPORATION NEW STRAITS TIMES PRESS MALAYSIA TANJONG PLC UNISEM MALAYSIAN PACIFIC INDUSTRIES AMMB BERJAYA SPORTS TOTO IOI PROPERTIES MALAYSIAN AIRLINE SYSTEM NESTLE MALAYSIA RHB CAPITAL ROAD BUILDER (M) HOLDINGS SIME DARBY CARLSBERG BREWERY MALAYSIA JT INTERNATIONAL KUALA LUMPUR KEPONG PUBLIC FINANCE TAN CHONG MOTOR HOLDINGS YTL POWER INTERNATIONAL GOLDEN HOPE PLANTATIONS MALAYAN CEMENT MALAYSIA AIRPORTS HOLDINGS MALAYSIA INT‘L SHIPPING PETRONAS GAS SIME UEP PROPERTIES AMWAY (MALAYSIA) HOLDINGS GUINNESS ANCHOR PUNCAK NIAGA HOLDINGS SP SETIA CYCLE AND CARRIAGE BINTANG HONG LEONG BANK MAA HOLDINGS TIME DOTCOM YTL CORPORATION ARAB-MALAYSIAN FINANCE COMPUTER SYSTEMS ADVISERS COURTS MAMMOTH ORIENTAL HOLDINGS CEMENT INDUSTRIES OF MALAYSIA GLOBETRONICS HEITECH PADU KFC HOLDING MALAYSIA MESINIAGA MTD CAPITAL POWERTEK PPPB OIL PALMS ACP INDUSTRIES AIC CORPORATION BINTULU PORT FRASER & NEAVE HOLDINGS JAYA JUSCO STORES KIAN JOO CAN FACTORY KUMPULAN GUTHRIE MALAYSIAN OXYGEN MBM RESOURCES NORTHPORT CORPORATION OYL INDUSTRIES PHARMANIAGA SUNWAY CONSTRUCTION HONG LEONG INDUSTRIES LITRAK LINGKARAN TRANSKOTA TRANSMILE GROUP APM AUTOMOTIVE HOLDING ASIATIC DEVELOPMENT ENG TEKNOLOGI HOLDINGS HUME INDUSTRIES MALAYSIA JAYA TIASA HOLDINGS JOHOR PORT LINGUI DEVELOPMENT PATIMAS COMPUTERS PETRONAS DAGANGAN RANHILL SOUTHERN STEEL SUNWAY HOLDINGS INCORPORATION TA ANN HOLDINGS TRACTORS MALAYSIA HOLDING WTK HOLDINGS ABRIC AFFIN HOLDINGS ALUMINIUM CIE OF MALAYSIA ANALABS RESOURCES APEX HEALTHCARE ARAB-MALAYSIAN CORPORATION CREST PETROLEUM DIALOG GROUP GUTHRIE ROPEL HIGHLANDS & LOWLANDS JERNEH ASIA KONSORTIUM LOGISTIK LOH AND LOH CORPORATION MALAYAWATA STEEL MALAYSIAN NAT‘L REINSURANCE MNI HOLDINGS NYLEX MALAYSIA SCB DEVELOPMENTS SOUTHERN BANK SUNWAY BUILDING TECHNOLOGY SUNWAY CITY UCHI TECHNOLOGIES AKN TECHNOLOGY AUSTRAL ENTERPRISES BANDAR RAYA DEVELOPMENTS CHEMICAL CIE OF MALAYSIA DRB HICOM FORMIS INTI UNIVERSAL HOLDINGS JOHN HANCOCK MALAYSIA INSURANCE KULIM MALAYSIA LAND & GENERAL LION LAND LONDON BISCUITS MALAYSIA MINING CORPORATION MALAYSIAN PLANTATIONS MALAYSIAN RESOURCES CORPORATION MITRAJAYA HOLDINGS MK LAND HOLDINGS MULTI-PURPOSE HOLDING NANYANG PRESS HOLDINGS PALMCO HOLDINGS PETRA PERDANA RAMATEX RELIANCE PACIFIC SAPURA TELECOMMUNICATIONS SHANGRI-LA HOTELS MALAYSIA SUNRISE TIME ENGINEERING TV3 (SISTEM TELEVISYEN MALAYSIA) UNZA HOLDINGS WARISAN TC YEO HIAP SENG MALAYSIA YLI HOLDINGS YTL CEMENT

3.10 34.75 11.40 13.00 9.35 9.80 9.40 11.00 9.25 8.60 4.74 5.70 5.35 2.72 3.46 6.70 2.38 11.30 4.84 6.00 10.20 10.80 18.80 5.45 7.20 5.30 3.58 19.90 2.57 5.40 5.40 11.40 4.24 5.65 6.15 1.55 2.59 3.60 0.96 2.62 7.15 6.80 4.30 5.70 3.60 2.77 3.36 5.60 4.94 6.00 2.35 4.68 4.90 3.96 3.48 3.80 3.50 6.15 4.52 4.48 5.10 6.00 5.60 2.59 3.20 4.86 2.06 3.60 5.45 3.36 2.19 10.10 4.52 2.55 18.60 7.90 2.43 6.70 3.08 2.50 2.48 1.27 3.60 5.10 2.03 1.37 1.14 2.72 5.30 4.68 0.78 0.67 5.00 2.83 4.10 1.87 1.55 1.16 4.26 2.89 1.03 4.06 5.10 3.00 2.81 2.25 1.64 3.42 1.41 2.88 4.06 0.74 4.52 2.51 0.45 1.03 9.50 5.90 3.18 1.49 1.65 1.81 1.84 4.40 2.05 1.73 0.31 0.22 1.76 2.42 1.24 1.31 1.19 1.30 0.86 5.40 4.48 4.10 2.05 1.32 2.95 1.06 1.28 1.49 0.43 4.30 2.49 2.10 3.84 3.00

15,979 9,922 35,416 9,156 28,881 11,604 33,198 5,970 10,100 2,308 3,555 3,792 4,548 4,085 2,933 2,034 2,698 2,582 1,702 1,296 3,885 1,544 3,946 4,859 4,145 1,763 2,757 4,667 4,686 1,757 12,560 1,744 1,109 4,026 1,230 1,042 5,928 3,673 2,763 2,882 13,298 13,455 1,739 937 1,088 1,212 1,123 548 7,055 896 5,947 6,895 2,316 353 981 1,965 462 568 362 863 306 772 1,288 1,091 406 333 824 1,283 478 389 2,191 1,398 628 1,199 2,527 395 437 1,508 1,394 233 500 941 288 1,264 574 452 556 163 2,633 370 220 271 500 917 672 112 1,430 153 170 125 1,080 308 527 381 1,698 233 297 233 284 559 1,148 165 693 2,818 57 350 418 422 461 710 588 1,653 211 277 413 327 164 128 70 2,023 880 1,279 141 462 816 331 730 164 876 130 475 466 232 1,112 73 314 167 176 235 455

1.52 1.56 1.84 1.50 2.03 1.63 1.89 1.42 1.37 1.84 1.93 1.33 1.27 1.92 1.57 2.00 1.61 1.68 1.57 2.21 1.32 1.95 1.65 1.88 1.86 1.88 2.25 1.64 1.92 1.46 1.73 1.64 2.30 1.64 1.44 1.91 2.00 1.95 2.44 1.50 1.55 2.50 2.05 1.72 2.21 1.61 1.56 2.00 1.56 1.56 1.93 2.13 1.44 2.08 2.00 2.14 1.60 1.50 1.42 1.80 1.40 1.58 1.33 1.40 1.70 1.75 1.40 1.33 1.63 1.83 2.50 1.75 1.20 2.20 1.50 1.75 1.63 2.00 1.40 1.63 1.33 1.50 2.50 2.33 2.50 2.17 2.17 1.67 2.00 1.67 2.50 2.00 1.50 2.25 2.50 2.25 2.50 1.50 2.00 1.75 1.25 1.50 1.75 1.50 2.00 1.50 2.17 1.50 1.50 1.67 1.83 2.50 1.83 2.00 2.50 2.25 1.50 1.50 1.50 2.00 2.50 1.50 2.25 1.50 2.00 2.00 2.50 2.00 NA 1.75 1.00 2.00 1.00 2.50 1.00 3.00 2.00 2.00 1.00 2.00 2.00 2.00 1.50 2.00 2.50 2.00 1.00 2.50 1.50 1.25

1.53 1.54 2.09 1.44 2.32 2.03 2.03 1.40 1.63 1.96 2.08 1.38 1.20 1.75 1.54 2.19 1.81 1.96 1.43 2.27 1.27 2.46 2.27 2.29 1.88 1.75 2.58 1.60 2.27 1.29 1.65 1.58 2.14 1.73 1.33 2.08 2.08 1.96 2.44 2.00 1.46 2.61 2.46 1.88 2.17 1.36 1.88 2.50 1.81 1.60 2.43 2.31 1.57 2.00 2.17 2.36 1.50 1.80 1.50 1.93 1.67 1.57 1.67 1.25 1.60 2.25 1.38 1.60 1.75 2.50 2.50 1.80 1.50 2.25 1.50 1.40 1.75 2.17 1.63 1.75 1.50 1.50 2.83 2.33 2.50 2.25 2.17 1.75 2.00 — 2.50 2.50 1.67 2.00 2.75 2.00 2.67 2.00 1.75 1.00 1.50 1.50 1.83 1.00 2.00 — 2.17 2.00 — 1.75 2.00 2.50 2.00 2.00 2.50 2.50 2.00 1.67 1.00 2.00 2.50 NA 2.50 — — — 2.75 2.00 NA 2.25 — 1.50 2.50 NA 1.00 3.00 2.00 2.00 1.00 — 1.50 — — 3.00 2.50 2.00 2.00 — — 1.00

22 20 20 19 19 18 18 18 17 16 15 15 15 15 15 15 15 14 14 14 14 14 13 12 12 12 12 12 12 12 12 11 11 11 11 11 11 10 10 10 10 10 10 9 9 9 9 8 8 8 8 8 7 7 7 7 6 6 6 6 6 6 6 6 5 5 5 5 5 5 5 5 5 5 5 5 5 4 4 4 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

14.66 15.46 19.45 13.58 24.87 20.60 19.80 5.97 18.14 11.17 18.84 17.01 11.56 14.83 8.21 24.21 29.53 5.98 15.36 8.15 12.61 136.71 32.25 16.54 11.99 11.76 NA 20.71 16.01 14.64 15.77 13.17 17.59 17.89 7.60 7.74 12.33 22.45 25.04 14.68 9.91 24.17 17.27 17.46 17.23 6.41 12.38 7.23 12.95 15.77 29.75 19.23 10.00 18.33 10.79 16.74 17.16 22.65 11.60 15.40 14.84 7.95 7.37 12.96 13.04 24.57 9.63 15.93 7.98 15.00 20.28 14.05 7.13 20.49 9.62 10.70 13.59 39.70 13.82 9.54 7.78 15.58 24.83 7.27 NA 6.82 30.99 11.57 8.84 6.02 55.71 12.31 8.58 8.52 27.70 6.62 929.26 3.75 9.54 12.85 2.38 7.94 10.96 13.62 9.56 9.81 15.03 11.19 7.42 9.14 14.36 3.68 8.35 18.58 7.00 57.20 10.10 21.78 9.35 13.65 29.69 9.53 18.21 9.26 12.45 4.04 NA 5.66 8.19 13.94 15.12 58.15 7.13 13.00 1.96 32.93 7.44 8.81 10.20 10.15 34.71 13.77 10.49 NA 28.46 7.98 6.15 10.00 7.84 6.32

Scap_35_S4.p65

2002 EPS (75 DAYS)

0.21 2.25 0.59 0.96 0.38 0.48 0.47 1.84 0.51 0.77 0.25 0.34 0.46 0.18 0.42 0.28 0.08 1.89 0.32 0.74 0.81 0.08 0.58 0.33 0.60 0.45 -1.03 0.96 0.16 0.37 0.34 0.87 0.24 0.32 0.81 0.20 0.21 0.16 0.04 0.18 0.72 0.28 0.25 0.33 0.21 0.43 0.27 0.77 0.38 0.38 0.08 0.24 0.49 0.22 0.32 0.23 0.20 0.27 0.39 0.29 0.34 0.75 0.76 0.20 0.25 0.20 0.21 0.23 0.68 0.22 0.11 0.72 0.63 0.12 1.93 0.74 0.18 0.17 0.22 0.26 0.32 0.08 0.15 0.70 -0.20 0.20 0.04 0.24 0.60 0.78 0.01 0.05 0.58 0.33 0.15 0.28 0.00 0.31 0.45 0.22 0.43 0.51 0.47 0.22 0.29 0.23 0.11 0.31 0.19 0.32 0.28 0.20 0.54 0.14 0.06 0.02 0.94 0.27 0.34 0.11 0.06 0.19 0.10 0.48 0.16 0.43 -0.07 0.04 0.22 0.17 0.08 0.02 0.17 0.10 0.44 0.16 0.60 0.47 0.20 0.13 0.09 0.08 0.12 -0.12 0.02 0.54 0.40 0.21 0.49 0.47

2002 EPS (45 DAYS)

0.22 2.28 0.60 0.96 0.38 0.48 0.48 1.94 0.52 0.77 0.25 0.32 0.48 0.18 0.44 0.28 0.09 1.87 0.32 0.74 0.78 0.08 0.56 0.34 0.60 0.46 -1.09 0.94 0.17 0.37 0.35 0.86 0.25 0.33 0.85 0.18 0.21 0.16 0.04 0.18 0.71 0.28 0.26 0.34 0.22 0.44 0.27 0.70 0.42 0.48 0.08 0.25 0.51 0.22 0.30 0.23 0.20 0.25 0.39 0.26 0.34 0.76 0.77 0.19 0.26 0.20 0.22 0.23 0.68 0.24 0.05 0.73 0.66 0.12 1.93 0.73 0.18 0.23 0.20 0.25 0.32 0.07 0.13 0.83 -0.20 0.20 0.03 0.24 0.82 0.79 0.05 0.00 0.58 0.26 0.14 0.39 0.03 0.31 0.44 0.21 0.43 0.51 0.56 0.16 0.26 0.23 0.11 0.31 0.19 0.32 0.20 0.19 0.52 0.13 0.06 0.02 0.94 0.27 0.34 0.11 0.06 0.19 0.10 0.48 0.16 0.43 -0.07 0.04 0.22 0.17 0.08 0.02 0.17 0.10 0.44 0.16 0.60 0.47 0.20 0.13 0.09 0.08 0.12 -0.12 0.02 0.54 0.40 0.21 0.49 0.47

2002 EPS GROWTH (%)

JCF ESTIMATES CONSENSUS MALAYSIA

6 MONTHS PERFORMANCE (%)

9.42 6.94 -1.09 40.63 -31.57 50.29 18.96 10.45 51.34 14.75 8.72 19.27 29.00 12.50 10.91 23.81 2000.40 1.10 -27.71 R+ 33.55 R+ R+ 58.02 11.08 10.07 R+ 9.20 31.04 31.35 10.88 3.25 10.00 225.68 6.67 16.52 5.05 71.62 73.21 9.57 10.34 14.45 15.46 4.75 5.01 5.36 7.61 8.87 15.76 73.29 R+ 7.02 14.64 7.47 16.50 1.79 66.99 18.30 15.88 15.76 18.34 41.90 6.35 179.78 14.78 83.72 2.39 -2.54 12.77 5.26 R+ -2.29 6.38 24.81 10.75 17.95 53.35 R+ 13.44 15.94 12.13 8.49 -26.02 24.50 R+ 6.35 10.94 60.49 -17.97 20.09 R+ R+ 11.30 8.85 -32.73 55.00 R+ R+ 16.86 11.96 -9.78 8.82 0.84 R+ 9.06 13.77 -4.39 9.80 67.09 23.49 -13.72 17.60 14.18 -22.75 138.12 144.82 11.84 12.67 325.00 4.00 60.98 11.76 -16.11 14.18 15.11 136.27 R+ 0.00 12.57 12.93 R+ R+ 43.97 11.11 22.00 92.94 17.12 10.15 -2.90 18.18 7.59 R+ 8.93 RR+ 16.41 9.68 10.53 44.12 11.12

26.02 -1.42 3.64 19.27 -7.43 20.99 15.69 60.58 25.00 26.47 -22.93 25.55 37.89 19.30 5.93 39.58 19.12 20.21 8.04 28.76 19.30 31.71 36.23 55.71 33.33 8.61 5.29 -2.45 0.00 14.89 9.31 9.62 9.84 6.60 57.69 1.31 -3.36 2.86 -4.02 17.49 2.14 15.25 14.36 17.77 4.05 -7.67 33.33 20.17 41.14 14.29 -10.65 -3.70 53.13 -5.26 2.96 6.74 12.18 21.78 13.00 -10.40 18.06 11.11 21.21 19.35 -4.76 14.08 -0.96 -2.70 17.97 7.69 4.78 -1.94 63.77 -9.57 16.98 6.76 24.62 11.67 6.21 -10.07 22.77 10.43 6.51 30.10 -22.52 1.48 -9.52 0.74 32.50 29.28 -13.81 -16.77 -0.99 -5.67 -9.69 -17.62 11.51 8.41 -13.06 -3.67 19.77 12.15 30.26 -2.60 8.49 11.94 -9.89 14.00 20.51 7.46 1.00 -41.20 18.95 16.74 -2.17 3.00 57.02 25.53 7.80 15.50 -6.25 19.87 -23.33 6.80 -8.89 5.49 -10.29 -45.57 -99.04 18.05 -6.06 -10.27 -13.77 -25.71 -1.72 0.00 -0.88 14.53 -8.48 -6.38 -7.81 -7.83 15.32 -22.80 -45.22 -6.11 18.57 -4.55 32.87 73.41

3/21/02, 9:37 AM

THEEDGE /

6 MONTHS PERFORMANCE RELATIVE TO KLCI (%)

2.49 -19.82 -15.71 -3.00 -24.71 -1.60 -5.90 30.61 1.67 2.86 -37.31 2.12 12.15 -2.97 -13.84 13.53 -3.12 -2.23 -12.13 4.72 -2.97 7.12 10.80 26.65 8.45 -11.67 -14.36 -20.66 -18.67 -6.55 -11.09 -10.85 -10.66 -13.29 28.26 -17.60 -21.40 -16.34 -21.94 -4.44 -16.92 -6.26 -6.98 -4.21 -15.37 -24.90 8.45 -2.26 14.80 -7.05 -27.32 -21.68 24.54 -22.95 -16.26 -13.18 -8.76 -0.95 -8.09 -27.12 -3.98 -9.63 -1.41 -2.92 -22.54 -7.21 -19.45 -20.86 -4.05 -12.41 -14.77 -20.25 33.20 -26.45 -4.85 -13.17 1.35 -9.18 -13.62 -26.86 -0.14 -10.18 -13.37 5.82 -36.98 -17.46 -26.41 -18.06 7.77 5.15 -29.90 -32.31 -19.47 -23.27 -26.55 -33.00 -9.30 -11.82 -29.29 -21.65 -2.59 -8.78 5.95 -20.78 -11.76 -8.95 -26.71 -7.28 -1.98 -12.60 -17.86 -52.18 -3.26 -5.05 -20.43 -16.23 27.71 2.10 -12.32 -6.06 -23.75 -2.51 -37.64 -13.14 -25.90 -14.20 -27.04 -55.73 -99.22 -3.99 -23.60 -27.02 -29.86 -39.58 -20.07 -18.67 -19.39 -6.85 -25.56 -23.86 -25.02 -25.03 -6.21 -37.21 -55.45 -23.64 -3.56 -22.36 8.07 41.04

The Edge/JCF Estimates Consensus Table presents the earnings forecast of Malaysian equities using the latest and more robust JCF methodology that provides more timely and useful information. JCF utilises only the latest estimates in calculating the consensus. Any estimates that are more than 75 days old are discarded to avoid the possibility of old forecasts polluting the consensus. The latest 45 days forecast EPS not only gives you the more robust consensus but also a glimpse of the earnings trend, while the Recommendation Consensus Rating is the scale that measures how the analysts feel about a stock. JCF Group is Europe’s leading provider of premium services and products to the institutional investor and investment banking community. The company markets its equity-based services and products around the world and currently has offices in London, Paris and Madrid, Singapore and New York. For enquiries, readers are invited to contact JCF. Glossary to JCF Estimates Consensus Table •

Price: Closing price as of stated date

•

Market Capitalisation (RM): Market capitalisation (RM) in millions

•

The average of all recommendations is then calculated to give the consensus rating •

No of Estimates (75 days): Number of estimates that are less than 75 days old and are included in the consensus calculation

•

PE 2002: The forecast PE ratio for year 2002 (NA — unable to calculate, for example negative earnings per share figures)

•

EPS 2002 (75 days): The forecast earnings per share for year 2002 using estimates from the latest 75 days

•

EPS 2002 (45 days): The forecast earnings per share for year 2002 using estimates from the latest 45 days

•

EPS Growth: Earnings per share growth compared to last year (R = Recovery)

•

6 months performance: Six months price performance for that equity

•

6 months performance relative to KLCI: Six months price performance relative to the Kuala Lumpur Composite Index

To contact the JCF Group:

36 • THEEDGE SINGAPORE

| MARCH 25, 2002

CAPITAL

LIPPER FUND TABLE SINGAPORE in association with

THEEDGE /

The Edge-Lipper Fund Performance Table, compiled by fund analysis company Lipper Asia Ltd enables existing investors to monitor the performance of their unit trusts and assists first-time investors in their selection of unit trusts.

How to read the table The table shows the performance of each of the funds over the last one and six months, in addition to one, three and five years. The performance is calculated on an NAV (net asset value)-to-NAV basis with all dividends reinvested. The NAV per unit is calculated daily by most funds by taking the current market value of the unit trusts’ total assets, deducting all outstanding charges and then dividing the net assets by the total number of units issued. By measuring the change in the NAV over time (after

Scap_36n37n40_S3.p65

The Consistent Return score shows how likely funds are to have consistently superior risk-adjusted performance, relative to their peers. 6-MONTH RETURN (%) 09/17/2001 TO 03/15/2002

About Lipper

Lipper Asia Limited

I-MONTH RETURN (%) 02/15/2002 TO 03/15/2002

RANK

12/08/1997 10/26/1999 07/22/1997 11/27/1996 03/06/2000

3.2 2.82 15.73 6.7 9.24 7.54

-0.34 -0.08 0.55 1.8 2.28 0.84

5 4 3 2 1 -5

0.43 -0.32 -0.11 0.59 1 0.32

3 5 4 2 1 -5

7.05 10.51 10.07 4.29 14.66 9.32

4 2 3 5 1 -5

9.05 12.02 12.3 2.88 17.18 10.69

4 3 2 5 1 -5

04/27/1999

2.2 2.2

-2.34 -2.34

1 -1

-0.1 -0.1

1 -1

0.31 0.31

1 -1

1.38 1.38

1 -1

10/23/2000 04/16/1999 11/08/1993 12/01/1998 04/02/1997 01/13/1989 09/23/1998 02/11/1998 07/12/1999 07/12/1999 01/01/1999 03/27/2000

1.3 1.59 14.2 2.49 23.43 129.54 11.2 21.92 185.01 29.72 11.68 7.82

-1.8 -2.97 -0.77 0 -2.58 -0.41 -2.21 -0.92 -0.49 -1.67 -1.8 -1.89

15 20 9 4 19 6 18 10 7 12 14 16

-0.91 0 -1.39 0 -0.44 -0.41 0 1.21 -1.46 -1.67 0.66 0.29

16 9 18 9 14 13 9 3 19 20 5 7

3.81 -1.01 -1.46 4.67 -2.16 2.08 -0.56 7.44 1 5.36 -0.14 1.27

6 16 18 5 20 9 15 3 13 4 14 12

2.83 -1.01 -0.39 3.7 -2.3 0.63 -0.2 -0.53 1.62 6.37 -2.47 3.69

7 15 13 3 16 9 12 14 8 2 17 4

3.64 41.9 32.28 15.54 8.09 10.8 11.22 29.65

-0.29 -1.7 -0.61 6.57 5.81 -2.06 -1.41 0.91 -0.51

5 13 8 1 2 17 11 3 -20

0.98 0.12 -0.38 3.18 2.76 -0.52 -1.1 0.33 0.06

4 8 12 1 2 15 17 6 -20

3.41 1.72 1.95 22.7 24.18 -1.55 -1.46 3.71 3.75

8 11 10 2 1 19 17 7 -20

3.25 2.91

0.67 0.89 0.52 0.93 -1.04 0.97 0.4 1.08 0.55

5 4 6 3 8 2 7 1 -8

-0.33 -0.49 0.1 -0.05 -1.04 0 -0.5 0.17 -0.27

5 6 2 4 8 3 7 1 -8

0.17 -0.49 1.08 1.13 4.2 1.46 -0.2 1 1.04

6 8 4 3 1 2 7 5 -8

11/15/1997 03/26/2001 09/06/2000 08/06/1997 08/20/2001 07/12/1999 09/03/2001 05/27/1998

155.82 8.53 161.49 80.01 10.68 154.57

12/16/1995

20.31 20.31

2.55 2.55

1 -1

5.24 5.24

1 -1

28.19 28.19

11/01/1995 07/17/1997 10/31/1996 03/23/1997 10/04/1999 03/07/1995

11.1 5.7 10 43.9 158.03 51.84 46.76

13.06 5.53 6 6.59 9.3 8.01 8.08

1 6 5 4 2 3 -6

8.18 3.17 6 6.59 7.63 7.38 6.49

1 6 5 4 2 3 -6

48.61 33.64 32.5 24.36 35.58 29.98 34.11

12/08/1997 10/26/1999 04/16/1999 12/13/1994 10/10/1984 03/22/2000 05/10/1991 08/14/1992 10/17/1994 09/30/1996 09/26/1995 01/27/1998 10/28/1996 09/01/2000 07/12/1999 12/08/1997 02/14/1997 03/27/2000 07/25/1994 03/11/1996 09/01/1996 10/10/1995 01/01/1990 03/31/1987 05/01/1996 03/31/1993 04/19/1995 05/08/1991 04/30/1992

17.2 9.06 0.95 7.17 92 35.37 0.8 64.82 98.28 17.82 57.6 25.6 26.9 12.7 17.45 7.47 10.69 10.04 9.5 4 7.6

9.83 6.75 10.64 6.35 6.12 9.4 -2.24 9.01 8.28 14.19 8 13.64 18.12 5.56 5.75 7.09 10.83 12.07 7.9 7.94 19.24 3.51 8.14 8.55 8.71 16 8.64 5.81 12.17 9.17

10 22 9 23 24 11 29 12 16 4 18 5 2 27 26 21 8 7 20 19 1 28 17 15 13 3 14 25 6 -29

2.9 2.62 4 1.52 2.63 3.16 0 2.54 2.4 4.45 2.53 2.04 3.82 0 1.66 2.06 3.55 2.67 3.27 3.03 4.18 0.71 3.57 3.68 4.32 7.62 3.58 1.11 5.29 2.93

15 18 6 25 17 13 28 19 21 3 20 23 7 28 24 22 11 16 12 14 5 27 10 8 4 1 9 26 2 -29

39.25 44.46 55.22 52.27 52.94 52.34 0.77 53.16 45.85 34.55 49.08 31.58 33.61 35.71 26.9 53.32 47.77 72.65 41.2 37.75 44.36 29.91 49.49 43.71 48.06 65.84 47.08 46.77 60.64 44.7

5.21 4.82 31.5 24.2 15.9 64.2 52.85 26.13

E-mail: Lipper.asia@reuters.com Tel: (852) 2973 6600 Fax: (852) 2973 6622

Lipper, a Reuters company, is a leading global provider of mutual fund information and analysis. Since 1973,

RANK

23.44 84.93

Lipper information has been the standard of accuracy in the world’s largest fund market, the US, and today provides information to fund companies representing more than 95 per cent of US fund assets. Lipper has anticipated the global expansion in the funds market and now has European offices in Edinburgh, London, Milan, Madrid, Paris and Zurich. In Asia, Lipper has offices in Hong Kong, Seoul, Singapore and Tokyo. Lipper now tracks 70,000 funds domiciled in 46 countries with assets in excess of US$10 trillion and with historical performance data as far back as 1959. Drawing on a deep and extensive resource of internationally-compiled research, Lipper has developed a range of services ranging from sophisticated fund analysis systems for institutional investors, to fund industry directories and information services for retail investors. E

How to read Lipper Leaders scores

YTD RETURN (%) 12/31/2001 TO 03/15/2002

09/03/2001 05/27/1998 02/25/1991 08/17/2001 08/17/2001 09/30/1998 09/30/1998 09/29/1995

RANK

1-YEAR RETURN (%) 03/15/2001 TO 03/15/2002

RANK

3-YEAR RETURN (%) 03/15/1999 TO 03/15/2002

RANK

5-YEAR RETURN (%) 03/17/1997 TO 03/15/2002

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LIPPER LEADERS CAPITAL PRESERVATION SCORE — 02/28/2001

3 2

22.15

23.98 8.09

1 3

-13.45

18.07

-3

-13.45

-1

LIPPER LEADERS CONSISTENT RETURN SCORE — 02/28/2001

CPF APPROVED NO NO NO NO NO NO

0.87 8.3 1.83 11.72 -8.68 -2.45

6 3 5 2 12 8

23.17

18.84

3 5 4 1 4 5

3 3 2

-4.85

5 6

-0.07 5.83

7 4

20.22

2 2

3 1

0 -0.1 7.23 1.48

10 11 1 -17

-4.52 -6.33 12.08 1.14

9 11 1 -12

-1.99 15.06

4 -4

5 5 2

4 5 1

1.61 1.7 2.33 3.33

6 5 3 1

11.94

10.69

5 4

NO NO YES NO YES NO YES NO YES YES NO NO YES YES YES NO NO NO NO NO YES NO NO YES YES YES YES YES

2.48

2.3 2.29

4 -6

8.49 10.37

3 -3

1 -1

0.42 0.42

1 -1

-4.37 -4.37

1 -1

8.56 8.56

1 -1

1 3 4 6 2 5 -6

18.77 4.65 0.95 1.04 3.68 4.73 5.64

1 3 6 5 4 2 -6

30.2 29.12 25 16.38

1 3 4 5

-2.4

14.31

2 5 3 2

3 5 1 4

29.72 26.08

2 -5

12.56 8.16

2 -3

NO NO NO YES YES YES

21 17 4 9 7 8 29 6 16 24 11 26 25 23 28 5 13 1 20 22 18 27 10 19 12 2 14 15 3 -29

18.25 5.52 16.85 17.54 14.71 15.19 -1.66 20.28 8.89 12.07 9.36 9.68 18.12 5.56 11.51 4.37 11.73 24.12 6.27 3.6 8.59 0 4.7 6.41 5.54 21.24 6.7 9.64 23.76 10.98

5 24 8 7 10 9 29 4 17 11 16 14 6 22 13 26 12 1 21 27 18 28 25 20 23 3 19 15 2 -29

51.28

9.84 50.89

19 4

-43.22 -18.14

19 12

3 4

4 1

0.77 12.63 34.58 15.79 53.27 60.88 7.41

22 18 7 15 2 1 20

-44.04 -33.89 7.16 -14.7 -4.01

20 16 3 10 6

-37.85

3 3 3 3 5 5 3

5 4 1 3 1 2 5

4.45 26.25

21 11

2.01

4 3

5 3

16.56 23.64 22.85 -0.56 37.74 29.05 29.75 13.07 13.14 34.47 43.7 25.71

14 12 13 23 6 10 9 17 16 8 5 -23

-14.97 -31.38 7.4 -37.73 12.24 -9.1 -22.98 -25.91 -9.56 -7.22 4.27 -16.08

11 15 2 17 1 8 13 14 9 7 4 -20

4 4 4 2 5 4 4 4 3 4 3

5 3 4 5 2 3 3 4 5 2 1

YES NO NO NO YES NO NO YES YES YES YES YES YES YES YES YES YES NO YES YES YES NO YES NO NO NO YES YES YES

02/21/2000

139.41

6.52

6.27

48.48

3.04

YES

10/18/1999 03/01/2000 07/10/2000 03/09/2001

107 7.3 24.49 1.58 55.96

6.32 7.2 5.11 7.05 6.44

4 1 5 2 -5

7.45 7.75 3.25 5.2 5.98

2 1 5 4 -5

48.53 37.17 48.07 49.13 46.28

2 5 4 1 -5

-4.72 -13.84 -1.97 -0.48 -3.6

4 5 3 2 -5

NO NO YES NO

08/26/1996

2.19 2.19

11.61 11.61

1 -1

2.84 2.84

1 -1

29.4 29.4

1 -1

8.53 8.53

1 -1

08/30/2000 10/13/2000

4.53 11.84 8.19

-8.17 -13.87 -11.02

1 2 -2

3.01 3.03 3.02

2 1 -2

1.13 8.03 4.58

2 1 -2

0.14 -3.87 -1.86

1 2 -2

07/03/2000 07/24/1987 06/28/1995

0.12 6.61 7.32 4.68

6.74 8.8 16.84 10.79

3 2 1 -3

6.4 -1.38 -5.93 -0.3

1 2 3 -3

10.28 18.78 32.14 20.4

3 2 1 -3

2.89 12.99 40.51 18.79

3 2 1 -3

12.77 33.73 23.25

06/18/1996 03/27/2000 04/07/2000

44.79 1.9 44.9 30.53

7.66 8.03 4.92 6.87

2 1 3 -3

2.98 3.12 3.23 3.11

3 2 1 -3

27.52 29.74 23.08 26.78

2 1 3 -3

6.39 9.82 4.92 7.04

2 1 3 -3

5.02

-1

04/27/1999 09/25/2000 02/09/1998 07/15/1998 04/01/1999 07/16/2001 07/12/1999 10/27/1999 05/30/2000 03/27/2000 06/24/1998 08/26/1997

13.44 0.35 12.41 17.17 3.84 0.57 51.98 3.97 14.8 26.23 74.1 39.2 21.5

-2.76 -3.45 -1.79 -2.03 -2.79 2.94 -1.02 -0.84 -1.25 -3.3 -3.3 -1.7 -1.77

8 12 6 7 9 1 3 2 4 10 11 5 -12

5.6 2.44 4.76 3.21 3.39 5.06 4.84 3.67 4.77 3.13 2.33 4.05 3.94

1 11 5 9 8 2 3 7 4 10 12 6 -12

8.71 15.07 15.79 2.12 21.36 15.44 20.37 20.17 15.98 21.94 17.33 12.68 15.58

11 9 7 12 2 8 3 4 6 1 5 10 -12

-17.24 -8.7 -6.78 -13.36 -16.42

11 6 3 8 10

-9.84 -6.74

2 1

1 2

-6.12 -3.69 -6.94 -13.87 -9.28 -8.33 -10.07

2 1 4 9 7 5 -11

-13.28 -16 -11.46

3 4 -4

1 1

07/06/1998 04/16/1999 04/17/2000

7.2 0.92 37.3 15.14

0.1 -4.82 -2.7 -2.47

1 3 2 -3

4.99 2.6 4.35 3.98

1 3 2 -3

29.19 14.49 20 21.23

1 3 2 -3

-4.72 -12.22 -10 -8.98

1 3 2 -3

-0.49

-1

02/26/2001

3.32 3.32

-9.72 -9.72

1 -1

4.84 4.84

1 -1

19.27 19.27

1 -1

-28.18 -28.18

1 -1

10/16/2001 01/09/2001 02/28/2000

0.01 0.93 54.67 18.54

0 -0.86 1.02 0.05

2 3 1 -3

1.02 3.33 1.02 1.79

2 1 2 -3

13.82 11.24 12.53

1 2 -2

-14.42 -23.26 -18.84

1 2 -2

09/21/2000 07/03/2000 09/03/2001 07/06/1996

35.13

3 4 2 1 -4

8.05 3.96 7.41 5.35 6.19

1 4 2 3 -4

17.5 6.98 13.21 19.21 14.23

2 4 3 1 -4

-1.05 2.11

3 2

43.38 39.26

1.08 0 2.35 2.91 1.58

4.82 1.96

1 -3

07/22/2000 03/27/1998 09/25/2000 07/15/1998 07/03/2000

32.6 155.41 0.35 281 0.08

-2.99 -1.91 0 1.94 0.72

33 31 19 10 14

3.34 4.88 2.78 8.25 1.45

32 16 33 1 35

5.69 9.1 8.82 23.53 12.43

32 24 26 3 19

-12.04 -0.55 -7.5 -1.41 9.04

25 7 19 8 2

07/03/2000 01/18/2000 09/05/1997 11/13/1996 09/28/1999 10/06/1997 05/12/1997 05/13/1998 07/07/1997 07/12/1999 01/01/1999 05/30/2000 10/09/2000 08/28/2000 09/03/2001 09/03/2001

0.04 141.98 3.09 15.36 7.3 14.8 47.62 19.96 4.5 547.34 5.24 17 20.49 5.2

5.84 0.65 -0.71 0.87 -0.68 -0.99 2.4 0.85 -0.66 -1.17 -3.46 0.25 -5.62 -0.16 0.18 4.83

1 15 23 12 22 28 7 13 21 29 34 17 35 20 18 3

7.69 4.05 5.3 6.42 5 4.69 6.73 4.32 3.81 4.32 3.83 5.96 3.88 4.14 3.94 6.65

2 26 12 6 15 17 3 20 30 21 29 9 28 24 27 4

4.86 10.79 6.92 18.37 13.08 15.52 17 14.01 11.01 9.03 4.41 15.94 9.56 7.34 15.38 20.72

33 22 30 8 18 14 10 16 20 25 35 12 23 29 15 6

-7.64 -0.5 -12.12 -5.67 -4.81 -8.76 1.72 9.37 -2.04 -1.97 -10.16 -2.79 -11.63 -12.52

20 6 26 17 14 21 5 1 10 9 23 12 24 27

2.74 -6.4

4 18

09/03/2001 09/03/2001 04/24/1997 11/10/1997

The Preservation score shows how likely funds are to have superior ability to preserve capital during a market decline, relative to other funds within their asset class. Funds are scored 1 to 5 (1 highest); funds with a score of 1 is a Lipper Leader of the month. Lipper Leaders scores are produced for equity, bond and mixed asset funds, and applicable to all categories excluding real estate, futures/options and money market funds. Please also note that calculations are only done if the category contains at least five funds that have a three-year continuous performance history. Copyright statement: Lipper Leaders is a trademark owned by Lipper, a Reuters company. Any copying, republication or redistribution of all or any part of Lipper Leaders is expressly prohibited without the prior consent of Lipper.

FUND SIZE (S$ MIL)

LAUNCH DATE

NAME BOND: ASIA PACIFIC ABERDEEN SEL-ASIAN FIXED INCOME ABN AMRO STAR ASIA BOND DEUTSCHE PREMIER ASIAN BOND FIVE ARROWS ASIAN BOND OUB OPTIMIX ASIAN BOND AVERAGE (5) BOND: EUROPE ABN AMRO STAR EUROPE BOND AVERAGE (1) BOND: GLOBAL AIG GLOBAL BOND AIG MULTI-CURRENCY BOND CITI GLOBAL BOND CITISELECT GLOBAL INCOME DBS SHENTON DYNAMIC BOND DBS SHENTON INCOME FIVE ARROWS GLOBAL BOND TRUST FTF-FRANKLIN HIGH YIELD BOND HORIZON GLOBAL BOND SGD HEDGE SGD HORIZON GLOBAL BOND USD HEDGE SGD HSBC IF-GLOBAL FIXED INCOME INVESCO GT BOND OCBC MULTI ADVISOR PROGRAMCONSERVATIVE PORTFOLIO OUB OPTIMIX WORLDWIDE BOND SAVERS GLOBAL BOND FUND UNITED GLOBAL EMERGING MARKETS S$ UNITED GLOBAL EMERGING MARKETS US$ UNITED GP-GLOBAL BOND SGD UNITED GP-GLOBAL BOND USD UNITED INTERNATIONAL BOND AVERAGE (20) BOND: SINGAPORE CITIBOND SINGAPORE A COMMERZBANK SINGAPORE BOND FUND DBS ENHANCED INCOME DEUTSCHE LION BOND FTF-FRANKLIN US GOVERNMENT FUND HORIZON SING FI ENHANCED SGD OCBC SING FIXED INCOME INVESTMENT A OUB OPTIMIX SGD AVERAGE (8) EQUITY: APEC UNITED APEC EQUITY AVERAGE (1) EQUITY: ASIA PACIFIC GOVETT ASIA PACIFIC GROWTH KEPPEL NEW EQUITIES GROWTH FUND SCHRODER NORTH ASIA SCHRODER PAN ASIA FUND UNITED ASIA TOP 50 UNITED REGIONAL GROWTH AVERAGE (6) EQUITY: ASIA PACIFIC EX JAPAN ABERDEEN SEL-PACIFIC EQUITY ABN AMRO STAR ASIAN TIGERS EQUITY AIG ASIAN EQUITIES CITI ASIA INFRASTRUCTURE CMG FIRST STATE ASIA-PACIFIC GROWTH SGD DBS ASIA KNOWLEDGE DBS MENDAKI GROWTH DBS SHENTON ASIA PACIFIC DEUTSCHE ASIA PREMIER TRUST DRESDNER ASIA TIGER FIVE ARROWS ASIA ENTERPRISE TRUST FIVE ARROWS SE ASIA SPECIAL SITUATIONS FTF-TEMPLETON ASIAN GROWTH HENDERSON GS PACIFIC DRAGON HORIZON ASIA EX-JAPAN EQUITY SGD HSBC IF-ASIAN GROWTH INDOCAM ASIA VISION FUND INVESCO GT ASIA ENTERPRISE KEPPEL ASIA BLUE CHIP FUND KEPPEL ASIA FUND KEPPEL SOUTH EAST ASIA FUND NIKKO ORIENTAL GROWTH OUB OPTIMIX ASIAN EQUITY OUB UNION EAST ASIAN SAVERS ASIA INFRASTRUCTURE FUND SAVERS ASPAC RECOVERY FUND SAVERS ENHANCED TRUST FUND SCHRODER ASIAN GROWTH UNITED ASIA AVERAGE (29) EQUITY: ASIA PACIFIC INFO&TECH ACM IF-ASIAN TECH PORTFOLIO CMG FIRST STATE ASIA INNOVATION & TECHNOLOGY SGD SAVERS ASIA TECHNOLOGY FUND SGAM ASIAN NEW ECONOMY FUND UBS (SG) IF-ASIAN TECHNOLOGY AVERAGE (5) EQUITY: ASIA PACIFIC SMALL CO FTF-TEMPLETON ASIAN DEVELOPMENT EQUITY AVERAGE (1) EQUITY: BIOTECHNOLOGY DRESDNER IPF-GLOBAL BIOTECHNOLOGY UBS (SG) IF-BIOTECH AVERAGE (2) EQUITY: COMMODITY & RESOURCES COMMERZBANK GLOBAL ENERGY & RESOURCES INDEX OUB OPTIMIX GOLD & RESOURCE UNITED GOLD & GENERAL AVERAGE (3) EQUITY: EMERGING MKTS GLOBAL FTF-TEMPLETON EMERGING MARKET INVESCO GT DEVELOPING MARKETS SCHRODER EMERGING MARKETS SGD AVERAGE (3) EQUITY: EUROPE ABN AMRO STAR EUROPE EQUITY AIG PAN EUROPEAN EQUITY CITI PAN EUROPE EQUITY DBS SHENTON GREATER EUROPE DRESDNER IPF-EUROPEAN EQUITY FTF-TEMPLETON EUROPEAN EQUITY FUND HORIZON EUROPEAN EQUITY SGD HSBC IF-PAN-EUROPEAN GROWTH INFINITY EUROPEAN STOCK INDEX FUND INVESCO GT PAN EUROPEAN SCHRODER EUROPEAN EQUITY UNITED EUROPEAN EQUITY AVERAGE (12) EQUITY: EUROPE EX UK ABERDEEN SEL-CONTINENTAL EUROPE EQUITY AIG EUROPEAN EQUITIES HENDERSON GS EUROPEAN AVERAGE (3) EQUITY: EUROPE INFO & TECH UNITED EUROTECH FUND AVERAGE (1) EQUITY: EUROPE SMALL CO AIG EUROPE SMALL COMPANIES EQUITY FUND MERCURY EUROPEAN OPPORTUNITIES UNITED EUROPEAN SMALL CAP AVERAGE (3) EQUITY: FINANCE CITIEQUITY GLOBAL FINANCIAL SERVICES COMMERZBANK GLOBAL FINANCE INDEX OCBC GLOBAL FINANCIAL SERVICES INV A UNITED GLOBAL CAPITAL AVERAGE (4) EQUITY: GLOBAL ABERDEEN SEL-GLOBAL MNC ACM IF-GLOBAL GROWTH TRENDS A AIG GLOBAL EQUITY CMG FIRST STATE GLOBAL 100 GROWTH SGD COMMERZBANK GLOBAL LIFESTYLE INDEX COMMERZBANK GLOBAL TRAVEL & TRANSPORTATION INDEX DBS EIGHT PORTFOLIO E DBS MENDAKI GLOBAL DBS SHENTON GLOBAL OPPORTUNITY FIVE ARROWS JUNIOR TRUST FIVE ARROWS WORLDWIDE ENTERPRISE FTF-TEMPLETON GLOBAL GROWTH FTF-TEMPLETON MUTUAL BEACON GOVETT GLOBAL BRANDS HORIZON GLOBAL EQUITY SGD HSBC IF-GLOBAL GROWTH INFINITY GLOBAL STOCK INDEX FUND INVESCO GT WORLDWIDE DYNAMIC THEME KEPPEL GLOBAL ELITE FUND OCBC GLOBAL CONSUMER INVESTMENT A OCBC GLOBAL INDUSTRIALS & RESOURCES INV A OCBC MULTI ADVISOR PROGRAM-AGGRESSIVE PORTFOLIO OCBC MULTI ADVISOR PROGRAM-GROWTH PORTFOLIO OUB OPTIMIX AFFLUENCE OUB OPTIMIX CONTRARIAN

adjustment for reinvestment of dividends), one can measure the investment ability of the fund management company and the approximate returns an investor would have received after deducting any front-end load or sales charges. To ensure that fair comparisons are being made, the funds are broken down by type or sector of investment. Within each sector, the funds are listed alphabetically with their ranking, which shows the position of each fund against its peers for each time period. Average indicates the mean performance of all the funds in the sector and the number of funds with data over that time period. Wherever NA is displayed, it means that either the fund has not been in existence over that time period or the fund company has not supplied the necessary data.

10.99 3.72

-0.98

4.3

13.78

-0.91 1.3 2.93

26 11 6

3.4 6.44 5.72

31 5 10

10.84 23.08 32.08

21 4 1

-23.04 -23.04

1 -1

-53.78 -53.78

1 -1

YES YES NO

2 1 -2

4.92 -39.01 -17.05

1 2 -2

1 2

-23.16

-1

NO NO NO YES NO YES NO NO NO NO YES YES YES NO YES NO YES YES YES NO YES NO YES NO NO

57.85 57.85

1.99 1.99

1 -1

21.03

-6.67

-16.38 -13.43

14 13

2 2

5 5

15.9 9.48 43.84 -5.59

5 6 1 9

2 1 1 1

2 2 1 4

-22.39

16.67 -12.02

4 12

1 4

1 3

-40.82

1 -1

NO NO YES NO

NO YES NO YES NO NO YES YES YES NO NO YES NO NO YES NO YES NO NO YES YES YES

3/21/02, 9:37 AM

YES NO NO

THEEDGE SINGAPORE | MARCH 25, 2002 • 37

CAPITAL NAME OUB OPTIMIX SURE FUND OUB OPTIMIX WORLDWIDE EQUITY PHILLIP GROWTH FUND PRINCIPAL SELECT GLOBAL EQUITY SAVERS GLOBAL TRUST FUND SCHRODER GLOBAL ENTERPRISE SINGAPORE UT-ETHICAL GROWTH FUND SINGAPORE UT-ETHICAL VALUE FUND UNITED GLOBAL UNIFEM SINGAPORE UNITED INTERNATIONAL GROWTH AVERAGE (35) EQUITY: GLOBAL INFO & TECH ABERDEEN SEL-GLOBAL TECHNOLOGY ABN AMRO STAR GLOBAL TECHNOLOGY CMG FIRST STATE INTERNET & COMMUNICATION SGD COMMERZBANK GLOBAL INFOTECHNOLOGY INDEX COMMERZBANK GLOBAL TELECOMMUNICATION INDEX DRESDNER IPF-GLOBAL INTERNET DRESDNER IPF-GLOBAL MULTIMEDIA DRESDNER IPF-GLOBAL SOFTWARE DRESDNER IPF-GLOBAL TECHNOLOGY HENDERSON GLOBAL TECHNOLOGY HSBC IF-GLOBAL TECHNOLOGY GROWTH INVESCO GT TECHNOLOGY SGD OCBC GLOBAL TECHNOLOGY & TELECOM INV A OUB OPTIMIX E-COMMERCE SCHRODER GLOBAL TECHNOLOGY UNITED GLOBAL INTERNET UNITED GLOBAL TECHNOLOGY UNITED GLOBAL TELECOM FUND AVERAGE (18) EQUITY: GLOBAL SMALL CO DBS SHENTON GLOBAL ADVANTAGE FTF-TEMPLETON GLOBAL SMALL CO INVESCO GT GLOBAL ENTERPRISE SCHRODER GLOBAL SMALLER COMPANIES AVERAGE (4) EQUITY: GREATER CHINA ABERDEEN SEL-CHINA OPPORTUNITIES FUND CMG FIRST STATE REGIONAL CHINA SGD DBS SHENTON GREATER CHINA FTF-TEMPLETON CHINA HSBC IF-CHINESE GROWTH SAVERS CHINA GROWTH FUND UNITED GREATER CHINA AVERAGE (7) EQUITY: HEALTHCARE ACM IF-INTERNATIONAL HEALTHCARE A CITIEQUITY GLOBAL HEALTHCARE COMMERZBANK GLOBAL HEALTHCARE INDEX FTF-FRANKLIN LIFE SCIENCE DISCOVERY INVESCO GT HEALTHCARE SGD OCBC GLOBAL HEALTHCARE INV A UNITED GLOBAL HEALTHCARE AVERAGE (7) EQUITY: HONG KONG / SINGAPORE DBS SHENTON TWIN CITY AVERAGE (1) EQUITY: INDIAN SUB-CONTINENT CMG FIRST STATE REGIONAL INDIA SGD HSBC IF-INDIAN GROWTH SAVERS INDIA FUND AVERAGE (3) EQUITY: INDONESIA ABERDEEN SEL-INDONESIA EQUITY AVERAGE (1) EQUITY: JAPAN ABERDEEN SEL-JAPAN EQUITY ABN AMRO STAR BEHAVIOURAL FINANCE JAPAN AIG JAPAN LARGE CAP EQUITY CITI JAPAN FUND DBS JAPAN GROWTH FTF-TEMPLETON JAPAN HORIZON JAPANESE EQUITY SGD HSBC IF-JAPANESE GROWTH INVESCO GT JAPAN KEPPEL JAPAN FUND MERCURY JAPAN OPPORTUNITIES SAVERS JAPAN FUND SCHRODER JAPANESE EQUITY UNITED JAPAN GROWTH AVERAGE (14) EQUITY: KOREA FTF-TEMPLETON KOREA SAVERS KOREA FUND AVERAGE (2) EQUITY: MALAYSIA ABERDEEN SEL-MALAYSIAN EQUITY SAVERS MALAYSIA FUND AVERAGE (2) EQUITY: MALAYSIA/SINGAPORE CMG FIRST STATE SINGAPORE GROWTH SGD KEPPEL SINGAPORE/MALAYSIA FUND OUB OPTIMIX SINGAPORE & MALAYSIA SAVERS CAPITAL FUND SINGAPORE UT-SAVINGS SINGAPORE UT-SINGPORE EQUITY UNIFUND AVERAGE (7) EQUITY: NORTH AMERICA ABERDEEN SEL-AMERICAN OPPORTUNITIES AIG AMERICAN EQUITIES AIG US LARGE CAP EQUITY CITI US AGGRESSIVE GROWTH DBS US GROWTH FTF-FRANKLIN US AGGRESSIVE GROWTH HORIZON US EQUITY SGD HSBC IF-N AMERICAN GROWTH INFINITY US500 STOCK INDEX FUND INVESCO GT NORTH AMERICA MERCURY NORTH AMERICAN AVERAGE (11) EQUITY: PHILIPPINES ABERDEEN SEL-PHILIPPINE EQUITY SAVERS PHILIPPINES FUND AVERAGE (2) EQUITY: REAL ESTATE EUROPE HENDERSON GS EUROPEAN PROPERTY SECURITIES AVERAGE (1) EQUITY: REAL ESTATE GLOBAL SCHRODER WORLDWIDE PROPERTY AVERAGE (1) EQUITY: SINGAPORE ABERDEEN SEL-SINGAPORE EQUITY DBS SHENTON THRIFT HORIZON SINGAPORE EQUITY SGD OUB OPTIMIX SINGAPORE EQUITY SAVERS SINGAPORE TRUST FUND SCHRODER SINGAPORE SINGAPORE INDEX UNITED FOREIGN EQUITY UNITED GROWTH AVERAGE (9) EQUITY: TAIWAN SAVERS TAIWAN FUND AVERAGE (1) EQUITY: THAILAND ABERDEEN SEL-THAILAND EQUITY FTF-TEMPLETON THAILAND SAVERS THAILAND FUND AVERAGE (3) EQUITY: UK ABERDEEN SEL-UK BLUE CHIP HORIZON UK EQUITY SGD AVERAGE (2) GUARANTEED / PROTECTED CITIFOCUS TEL & TECH PROTECTED DBS MENDAKI CAPITAL PROTECTED DBS UP GUARANTEED FUND 2.5/1 DBS UP GUARANTEED FUND 3.5/1 DBS UP GUARANTEED FUND 5.0/1 DBS UP GUARANTEED FUND 5.0/2 DBS UP GUARANTEED FUND 5.0/3 DBS UP GUARANTEED FUND 7.0/2 DBS UP GUARANTEED FUND 7.0/3 DBS UPSWING FUND 5.0/2/100% DBS UPSWING FUND 5.0/2/90% HSBC CPF-EURO WORLD GROWTH CAPITAL PROTECTED FUND HSBC CPF-USD ANGLO-AMERICAN CAPITAL PROTECTED HSBC CPF-USD ASIAN CAPITAL PROTECTED HSBC CPF-USD EUROPEAN CAPITAL PROTECTED HSBC CPF-USD FINANCIAL & HEALTHCARE CAP PROTECTED HSBC CPF-USD GLOBAL TITANS CAPITAL PROTECTED HSBC CPF-USD NASDAQ 100 INDEX CAPITAL PROTECTED HSBC CPF-USD NASDAQ ANNUAL GROWTH CAP PROTECTED HSBC CPF-USD NASDAQ PLUS GROWTH CAPITAL PROTECTED HSBC CPF-USD NASDAQ PLUS GROWTH II CAP PROTECTED HSBC CPF-USD PAN EUROPEAN CAPITAL PROTECTED HSBC CPF-USD PAN-EUROPEAN GROWTH II CAP PROTECTED HSBC CPF-USD WORLD GROWTH CAPITAL PROTECTED FUND HSBC CPF-USD WORLD GROWTH II CAPITAL PROTECTED KEPPEL CAPITAL GTD FUND-SINGAPORE MARKET S1 OCBC CAPITAL GUARANTEED INVESTMENT AUGUST 2003 OCBC CAPITAL GUARANTEED INVESTMENT MARCH 2003 OCBC CAPITAL GUARANTEED INVESTMENT MAY 2003 OUB OPTIMIX CONTINUOUS CLICK FUND S&P 500-SGD SCHRODER S$ CAPITAL PRESERVATION FUNDAUG 2004 SCHRODER S$ GLOBAL RETURN FD II-NOV 05 SCHRODER S$ GLOBAL RETURN FUND-OCT 2005 SCHRODER S$ PROTECTED FUND-JUNE 2004 SCHRODER S$ PROTECTED RETURN FUND-FEB 2004 SCHRODER US$ CAPITAL PRESERVATION FUNDAUG 2004 SCHRODER US$ GLOBAL RETURN FUND II-NOV 2004 SCHRODER US$ GLOBAL RETURN FUND-OCT 2005 SCHRODER US$ PROTECTED FUND-JUNE 2004 SCHRODER US$ PROTECTED RETURN FUND-FEB 2004 SGAM CAPITAL GUARANTEED EUROPE TECH FUND SGAM CAPITAL GUARANTEED GLOBAL GROWTH FUND SGAM CONTINUOUS GROWTH FUND SGAM DYNAMIC TRI-SECTOR FUND SGAM DYNAMIC US CONTINUUM FUND SGAM RETURN GUARANTEED FUND

FUND SIZE (S$ MIL)

YTD RETURN (%) 12/31/2001 TO 03/15/2002

RANK

I-MONTH RETURN (%) 02/15/2002 TO 03/15/2002

RANK

6-MONTH RETURN (%) 09/17/2001 TO 03/15/2002

RANK

04/12/2001 05/27/1998 04/16/2001 03/16/1998 01/12/1998 01/24/1996 09/10/2001 09/10/2001 11/14/1999 03/07/1995

13.49 11.13 4.43 9.4 10.4 17.2 9.66 10.27 9.85 33.79 47.22

3.72 -0.84 0.54 -1.22 -0.84 -1.94 2.04 2.02 3.05 5.7 0.42

4 25 16 30 24 32 8 9 5 2 -35

6.42 5.43 1.59 4.45 5.12 5.21 4.17 4.12 4.65 6.07 4.82

7 11 34 19 14 13 23 25 18 8 -35

19.59 15.78 4.7 6.74 17.27 16.09 7.53 8.6 21.62 30.06 13.75

7 13 34 31 9 11 28 27 5 2 -35

11/01/1999 02/21/2000 04/05/2000 07/03/2000

288.2 42.24 9 1.26

-9.82 -10.62 -1.35 -7.61

10 12 3 6

-0.39 2.51 7.35 -1.35

10 7 1 12

11.73 21.19 35.19 14.4

07/03/2000 02/15/2000 03/15/2000 10/03/2000 04/01/1999 10/13/1997 10/03/2000 02/26/2001 09/03/2001 03/06/2000 01/16/2001 05/02/2000 09/29/1997 07/05/1999

0.16 26.69 5.21 3.63 4.3 174 2.01 3.9 37.14 90.3 27.36 31.86 199.66 55.7

-12.31 -14.93 -11.71 -13.98 -9.01 -13.33 -7.31 -12.91 -7.26 -9.95 -8.96 2.61 1.05 -7.74 -8.62

14 18 13 17 9 16 5 15 4 11 8 1 2 7 -18

4.15 -1.61 -1.51 -2.02 -0.88 -1.38 1.52 -2.48 2.87 2.27 -1.61 5.36 3.96 3.62 1.13

3 15 14 17 11 13 9 18 6 8 16 2 4 5 -18

02/10/1998 09/22/1997 09/18/2000 03/24/1999

21.98 20.48 7.38 45.8 23.91

4.76 7.08 -4.6 -0.72 1.63

2 1 4 3 -4

4.76 4.87 3.26 3.76 4.16

07/13/2001 11/01/1993 05/25/1995 08/26/1996 04/26/2000 04/29/1994 04/28/1997

34.1 130 19.73 6.6 9.59 22.6 81.17 43.4

6.97 -3.01 0.56 5.22 4.54 4.19 1.82 2.9

1 7 6 2 3 4 5 -7

01/12/1999 08/29/2000 07/03/2000 07/31/2000 02/26/2001 09/03/2001 07/11/2000

108.49 32.76 0.28 54.75 6.47 101.8 50.76

-3.46 0 -0.9 -12.52 -6.86 -6.87 2.82 -3.97

03/01/1993

11.56 11.56

08/22/1994 04/26/2000 01/07/1999

LAUNCH DATE

LIPPER FUND TABLE SINGAPORE

1-YEAR RETURN (%) 03/15/2001 TO 03/15/2002

RANK

3-YEAR RETURN (%) 03/15/1999 TO 03/15/2002

RANK

-9.36

5.71

-4.92 -2.48 -4.72

15 11 13

-5.22 -10.18 -18.62

8 11 15

5.3

-4.93 5.42 -3.95

16 3 -27

23.2 1.58

2 -16

21.94 -4.53

1 -3

10 4 1 8

-20.22 -32.55 -7.59 -13.98

7 16 2 4

YES NO NO NO

-2.59 -1.21 3.7 3.31 7.97 6.72 14.37 5.2 15.01 15.41 19.61 28.26 31.36 7.52 13.17

18 17 15 16 11 13 9 14 7 6 5 3 2 12 -18

-23.51 -29.39 -23.44 -32.14 -23.76 -31.58 -23.58 -27.07

9 13 8 15 11 14 10 12

-35.91 -15.28 -2.48 -9.97 -20.11 -21.92

17 5 1 3 6 -17

NO YES YES YES YES YES NO NO YES NO YES NO NO NO

2 1 4 3 -4

25.12 24.06 7.12 14.05 17.59

1 2 4 3 -4

18.28 9.71 -10.68 9.52 6.71

1 2 4 3 -4

4.73 -0.77 -1.64 2.73 1.87 0.44 1.67 1.29

1 6 7 2 3 5 4 -7

30.33 34.38 38.46 34 41.37 44.08 45.17 38.26

7 5 4 6 3 2 1 -7

-0.77 -4.17 3.46 14.95 -2.47 0.51 1.92

4 6 2 1 5 3 -6

4 2 3 7 5 6 1 -7

1.55 1.96 2.05 2.47 1.45 0.97 6.25 2.39

5 4 3 2 6 7 1 -7

6.29 8.33 5.41 9.97 4.05 6.42 17.51 8.28

5 3 6 2 7 4 1 -7

4.79 6.12 4.41 -0.98 7.72

4 3 5 6 2

20.85 7.15

1 -6

7.1

-1

5.03 5.03

1 -1

1.08 1.08

1 -1

31.47 31.47

1 -1

-1.52 -1.52

1 -1

9.89 9.89

1 -1

14 6.58 36.6 19.06

7.52 34.41 10.35 17.43

3 1 2 -3

1.42 5.35 2.7 3.16

3 1 2 -3

36.19 83.99 42.9 54.36

3 1 2 -3

-8.33 33.16 -3.09 7.24

3 1 2 -3

-15.38

41.13 12.87

1 -2

0.7

5-YEAR RETURN (%) 03/17/1997 TO 03/15/2002

RANK

LIPPER LEADERS CAPITAL PRESERVATION SCORE — 02/28/2001

LIPPER LEADERS CONSISTENT RETURN SCORE — 02/28/2001

1 1 1

3 4 5

6.25

3.48

-2

79.59 22.97

1 2

51.28

-2

61.25 20 28.83

1 5 3

1.18 -30.78 -27.08

28.54 32.38 34.2

4 2 -5

7.1

1 1

5 3 3

1 5 4

-4.5

-15.3

-4

4 3

2 3

1 -1

-2.72

-1

NO YES NO NO YES YES NO NO NO YES

NO NO NO YES

1 4 3

-22.66 -22.66

CPF APPROVED

YES YES NO NO NO YES YES YES NO NO YES NO YES YES

NO NO NO NO

12/08/1997

4.1 4.1

27.1 27.1

1 -1

11.93 11.93

1 -1

17.96 17.96

1 -1

37.52 37.52

1 -1

38.25 38.25

1 -1

YES

07/06/1998 02/12/2001 09/25/2000 04/18/1997 04/16/1986 01/05/2000 07/12/1999 10/27/1999 03/27/2000 11/15/1999 01/09/2001 05/18/1999 05/18/1999 07/18/1995

4.8 1.38 0.14 5.93 32.35 10.11 39.15 2.66 10.51 16.8 0.29 19.3 40.8 37.93 15.87

3.37 -4.99 6.45 7.32 4.43 6.08 8.33 9.04 2.36 -0.98 -3.8 5.2 2.99 4.09 3.56

9 14 4 3 7 5 2 1 11 12 13 6 10 8 -14

13.72 7.13 13.79 12.82 13.79 14.86 14.71 18.61 12.21 9.14 11.62 13.4 13.11 11.45 12.88

6 14 4 9 5 2 3 1 10 13 11 7 8 12 -14

8.94 -13.99 10 14.29 10.74 1.31 9.86 10.47 11.42 2.53 -5.32 9.15 6.15 10.33 6.13

9 14 6 1 3 12 7 4 2 11 13 8 10 5 -14

-7.33 -20.63 -9.59 -8.33 -9.12 -15.34 -6.63 -11.48 -11.48 -16.63 -14.43 -11.86 -4.17 -10.78 -11.27

3 14 6 4 5 12 2 9 8 13 11 10 1 7 -14

-8.42

-4.35 -3.97

3 2

6.49

1 3

42.06 6.33

1 -4

62.25 34.37

1 -2

YES YES NO NO YES NO YES NO NO NO NO NO YES YES

10/28/1996 07/01/1998

40.49 10 25.25

24.95 25.85 25.4

2 1 -2

10.89 11.9 11.39

2 1 -2

98.38 110.76 104.57

2 1 -2

62.5 78.46 70.48

2 1 -2

-6.14 121.26 57.56

2 1 -2

-38.47

-1

5 5

YES NO

12/08/1997 04/01/2000

11.5 3.8 7.65

9.35 17.74 13.54

2 1 -2

4.94 8.15 6.54

2 1 -2

29.18 45.04 37.11

2 1 -2

23.31 39.19 31.25

2 1 -2

58.39

-1

YES NO

07/28/1969 01/09/1996 04/17/1980 05/26/1987 07/07/1965 02/12/1979 06/02/1986

84 11.9 4.63 34.1 0 37.97 28.77

11.54 16.31 10.99 16.32 4.64 10.84 11.06 11.67

3 2 5 1 7 6 4 -7

2.01 4.53 2.42 4.71 -0.63 4.55 2.48 2.87

6 3 5 1 7 2 4 -7

47.1 40.38 31.55 47.6 20.61 29.58 37.91 36.39

2 3 5 1 7 6 4 -7

7.98 7.78 0.64 23.87 2.6 6.98 15.36 9.31

3 4 7 1 6 5 2 -7

45.12 28.31 45.93 47.38 47.66 50.82 39.1 43.47

5 7 4 3 2 1 6 -7

07/06/1998 04/16/1999 09/25/2000 05/25/2001 07/08/1991 10/16/2000 07/12/1999 10/27/1999 05/30/2000 03/27/2000 01/09/2001

1 1.4 0.51 18.06 15.45 7.01 10.76 1.38 23.5 8.34 1.08 8.04

-3.49 -4.76 -6.41 -4.26 -6.01 -4.76 -3.11 -2.13 0.23 -7.11 -1.58 -3.94

5 7 10 6 9 7 4 3 1 11 2 -11

2.47 5.26 1.39 7.14 3.5 5.44 2.63 3.38 5.53 0.22 3.06 3.64

9 4 10 1 5 3 8 6 2 11 7 -11

6.11 12.36 5.8 13.92 15.65 24.76 7.59 8.24 17.67 5.06 6.03 11.2

8 5 10 4 3 1 7 6 2 11 9 -11

-7.09 -3.85 -8.75

6 5 9

-30.38

-7.44 -2.14 -1.14 -1.87 1.78 -22.8 -8.38 -6.17

7 4 2 3 1 10 8 -10

-24.04

69.42

-27.21

-2

69.42

-1

12/08/1997 12/01/1996

1.2 4.9 3.05

13.49 20.56 17.03

2 1 -2

-1.02 -0.39 -0.7

2 1 -2

17.99 27.09 22.54

2 1 -2

-10 -7.19 -8.6

2 1 -2

-50.95 -40.83 -45.89

2 1 -2

-73.81 -73.81

1 -1

06/01/1999

5.5 5.5

7.07 7.07

1 -1

1.92 1.92

1 -1

12.77 12.77

1 -1

-0.93 -0.93

1 -1

05/03/1994

12.4 12.4

0 0

1 -1

2.25 2.25

1 -1

10.98 10.98

1 -1

-7.14 -7.14

1 -1

17.76 17.76

1 -1

12/08/1997 08/13/1987 07/12/1999 07/18/1995 03/01/1989 02/01/1993 12/18/1996 12/16/1996 03/02/1990

10.7 45.93 101.51 2.91 17.8 183.2 132.3 5.05 101.52 66.77

10.95 15.18 10.79 10.22 14.81 15.84 9.92 1.38 14.46 11.51

5 2 6 7 3 1 8 9 4 -9

0.79 1.98 0.65 1.6 2.1 3.85 0.71 0.91 1.62 1.58

7 3 9 5 2 1 8 6 4 -9

32.93 44.13 37.5 28.44 42.48 47.85 32.66 30.77 39.17 37.33

6 2 5 9 3 1 7 8 4 -9

13.71 13.13 6.03 -4.58 9.07 24.85 2.65 -6.36 9.82 7.59

2 3 6 8 5 1 7 9 4 -9

69.68 35.6

2 6

43.07 42.57 103.23 20.81 30 41.64 48.33

3 4 1 8 7 5 -8

02/01/2000

22.5 22.5

5.47 5.47

1 -1

-0.36 -0.36

1 -1

66.87 66.87

1 -1

1.08 1.08

1 -1

12/08/1997 11/17/1997 05/10/1999

3.5 16.76 19.6 13.29

15.6 27.36 40.99 27.98

3 2 1 -3

3.21 1.26 3.48 2.65

2 3 1 -3

39.28 48.02 77.75 55.02

3 2 1 -3

39.72 19.49 44.83 34.68

2 3 1 -3

11/01/1999 07/12/1999

3.4 1.62 2.51

-5.6 -3.09 -4.34

2 1 -2

0.71 0.64 0.68

1 2 -2

15.69 9.03 12.36

1 2 -2

-6.47 -4.84 -5.66

2 1 -2

YES YES

04/24/2000 10/19/2001 12/21/2000 12/21/2000 12/21/2000 04/23/2001 07/17/2001 04/23/2001 07/17/2001 03/13/2002 03/13/2001

8.64 6.56 14.97 49.12 89.25 104.27 164.98 58.15 87.31

-1.22

37 23 13 12 7 15 16 32 18

8.8

12 9 6

-0.58 0.42 0.85 0.94 1.22 0.72 0.64 0.01 0.62

7.16

0.89 0.97 1.09

1.55 1.31 1.5

22 25 23

1.86 2.17 2.55

14 12 10

NO NO NO NO NO YES YES YES YES YES YES

04/06/2001 11/15/2000 07/18/2000 11/15/2000

3.91 2.37 6.86 1.73

-1.9 -0.77 -0.61 -0.47

35 27 25 24

2.46 -0.75 -0.72 -0.49

2 41 40 36

0.86 5.4 8.03 6.56

27 15 7 12

3.85 4.25 3.86

7 5 6

10.23

06/01/2001 12/20/2001

60.55 27

-1.01 -2.7

30 38

-0.62 1.74

38 4

6.47

07/18/2000

9.26

-0.65

-1.58

8.47

04/18/2001

8.44

-3.41

0.03

11.15

09/10/2001

95.7

-1.04

-1.34

12.66

12/20/2001 07/18/2000

66.3 10.44

-2.01 -0.78

37 28

-0.64 -0.9

39 43

6.26

09/10/2001

10.17

0.91

0.52

8.68

04/06/2001

9.99

0.89

1.47

6.71

09/10/2001 02/01/2001

4.61 19.4

0.67 5.25

14 1

2.49 1.89

1 3

4.6 6.68

16 11

-2.02 -5.46 -10.55 -15.78 -0.63 12.2 -30.25 -7.5

3 4 5 6 2 1 7 -7

5 5 4 4 5 5 4

1 5 1 4 3 2 5

YES NO NO NO NO NO YES NO NO NO NO NO YES YES NO YES NO NO

2 3

YES NO YES

-12.2 -12.2

1 -1

7.14

4 4

1 4

12.07 26.85 84.7 -6.64 12.76 19.14 22.29

5 2 1 7 4 3 -7

5 4 4 3 5 4

2 3 1 5 4 3

YES YES YES YES YES YES NO NO YES NO

31.9 0.36

1 2

16.13

-2

4 5

YES YES NO

NO NO NO NO NO NO NO NO NO

4.27

NO NO NO NO

1.59

NO NO

02/14/2001

44.8

1.78

0.98

2.79

3.51

YES

09/27/2000 10/10/2000

101.5 73.3

0.98 0.4

8 18

0.2 0.1

27 28

1.99 1.22

21 26

2.29 2.04

11 13

NO NO

08/25/2000

24.73

-0.14

0.03

0.05

-1.84

09/04/2001 12/31/2001 11/30/2001 07/02/2001 03/07/2001

95 62.6 196.4 122.6 87.6

0.14 1.18 2.15 0.55 1.21

20 5 2 15 4

0.75 1.08 1.06 0.63 0.46

14 9 10 17 21

3.6

0.72 2.04

28 19

YES YES YES NO NO

09/04/2001 12/31/2001 11/30/2001 07/02/2001 03/07/2001 01/03/2001 03/07/2001 01/23/2002 04/25/2001 11/07/2001 03/07/2001

51.29 28.94 65.03 131.89 89.76 69.04 38.3 61.84 294.96 111.25 41.81

-0.86 -1.85 -0.38 -0.27 -1.86 0.72 1.06

29 33 23 22 34 13 7

7.55 8.37 1.34 -3.06

8 6 24 31

17 19 36

29 24 19 34 35 33 26 6 22 8 42

10.56

0.43 0.2 -1.99

0.1 0.4 0.52 -0.06 -0.27 0 0.32 1.32 0.43 1.12 -0.77

-3.41

-0.96

-0.3

7.54 -0.2 -5.01

3 17 20

3.1

YES NO NO NO NO NO YES YES YES YES YES

CONTINUES ON PAGE 40

Scap_36n37n40_S3.p65

3/21/02, 9:37 AM

38 • THEEDGE SINGAPORE

| MARCH 25, 2002

CAPITAL

THOMSON FIRST CALL EARNINGS ESTIMATES SINGAPORE

THEEDGE / The Edge/Thomson First Call Earnings Table presents the consensus forecast earnings estimates of select Singapore listed companies tracked by major stock broking firms and research offices. This is an enhanced version of the earlier Buy, Hold, Sell table because it sorts, by emphasis, companies that have had latest upward earnings revised by the brokers. The companies without any earnings revisions in the past two months are also listed showing consensus forecasts for 2001 and 2002 and their PE ratios. Companies that have received more than five forecast revisions either upward or downward are highlighted. About Thomson First Call Thomson First Call (www1.firstcall.com) is the source for real-time broker research and quantitative data serving the global financial community. Internet-based applications pioneered by Thomson First Call deliver integrated content from over 850 brokerage firms to 52,000 institutional desktops worldwide. Thomson First Call provides accurate, comprehensive coverage of more than 18,000 companies in 60 countries, and offers real-time, commingled full-text equity and fixed income research, analyst morning meeting notes, analyst earning estimates, corporate news, shareholdings data, sell-side workflow tools, internal research distribution and outstanding technologybased custom solutions. In the fall of 2000, The Thomson Corporation acquired Primark and its stable of brands, among them I/B/E/S and COMPANY LONG NAME BASIC INDUSTRIES POHANG IRON & STEEL (POSCO) HINDUSTAN LEVER RIO TINTO LIMITED CNOOC LTD WESFARMERS LTD NAN YA PLASTIC WMC LIMITED FORMOSA PLASTICS CORPORATION CHINA STEEL SIME DARBY BERHAD NORMANDY MINING AMCOR LIMITED SOUTHCORP LTD RANBAXY LABORATORIES LTD HINDUSTAN PETROLEUM CORPORATION LTD HYUNDAI MOBIS BHARAT PETROLEUM CORPORATION DR. REDDY’S LABORITORIES CHINA MERCHANTS HOLDINGS INTL CARTER HOLT HARVEY CAPITAL GOODS SAMSUNG ELECTRONICS (1/10) UNITED MICRO ELECTRONICS HON HAI PRECISION INDUSTRY JOHNSON ELECTRIC HOLDINGS LG ELECTRONICS SAMSUNG ELECTRO MECHANICS SINGAPORE TECHNOLOGIES ENGINEERI CHEUNG KONG INFRASTRUCTURE SAMSUNG SDI CO LTD CSR LIMITED WINBOND ELECTRONICS CORPORATION ADVANCED SEMICONDUCTOR ENGR COMPAL ELECTRONICS SIAM CEMENT HYUNDAI HEAVY INDUSTRIES KEPPEL CORPORATION LTD AYALA CORPORATION YTL CORPORATION BERHAD DELTA ELECTRONICS INC YAGEO CORPORATION CONSUMER DURABLES HYUNDAI MOTORS KIA MOTORS BENQ CORPORATION RITEK CORPORATION PERUSAHAAN OTOMOBIL NASIONAL DONGFENG AUTOMOBILE CO. LIMITED LITE-ON TECHNOLOGY CORPORATION INVENTEC COMPANY LTD HERO HONDA SHANGHAI AUTOMOTIVE CO. LIMITED BAJAJ AUTO CHINA MOTOR CO LTD DENWAY MOTORS LIMITED PREMIER CAMERA TAIWAN LTD YULON MOTOR COMPANY PT ASTRA INTERNATIONAL INC EDARAN OTOMOBIL NASIONAL BRILLIANCE CHINA AUTOMOTIVE CYCLE & CARRIAGE LTD SSANGYONG MOTOR CO CONSUMER NON-DURABLES RELIANCE INDUSTRIES FOSTER’S GROUP LIMITED FORMOSA CHEMICAL & FIBRE ITC LIMITED BRITISH AMERICAN TOBACCO BHD KOREA TOBACCO & GINSENG CORPORATION COCA-COLA AMATIL PT GUDANG GARAM TBK PT HM SAMPOERNA YUE YUEN INDUSTRIAL HOLDING SHANGHAI INDUSTRIAL HOLDING LTD PT UNILEVER INDONISIA TBK WANT WANT HOLDINGS LION NATHAN LIMITED (AUST) LION NATHAN FAR EASTERN TEXTILE FRASER & NEAVE NESTLE MALAYSIA UNI-PRESIDENT ENTERPRISES CO HITE BREWERY CO LTD CONSUMER SERVICES HUTCHISON WHAMPOA NEWS CORPORATION LIMITED WIPRO LIMITED WOOLWORTHS COLES MYER BRAMBLES INDUSTRIES SINGAPORE PRESS HOLDINGS LI & FUNG LTD PUBLISHING & BROADCASTING JARDINE MATHESON HOLDINGS LTD JARDINE STRATEGIC HOLDINGS LTD RESORTS WORLD GENTING BERHAD SHINSEGAE DEPT STORE VENTURE MANUFACTURING MAYNE GROUP LTD TABCORP HOLDINGS LTD TELEVISION BROADCASTS LTD HARVEY NORMAN HOLDINGS LTD ESPRIT HOLDINGS LIMITED ENERGY BHP BILLITON LIMITED OIL & NATURAL GAS CORPORATION WOODSIDE PETROLEUM LIMITED PETROCHINA CO LTD ‘H’ INDIAN OIL CORPORATION LTD RELIANCE PETROLEUM CHINA PETROLEUM & CHEMICAL ‘H’ PTT PUBLIC COMPANY S-OIL CORPORATION SANTOS LIMITED PTT EXPLORATION & PRODUCTION SK CORPORATION COAL & ALLIED INDUSTRY

Scap_38n39_S4.p65

Datastream. Since then, Thomson Financial has integrated I/B/E/S, Thomson First Call and Datastream into an organization focused on research and analytics. Also, I/ B/E/S has been fully integrated onto the Thomson First Call website. Collectively, the totally revamped site represents 50 years of experience between I/B/E/S and Thomson First Call, providing best-of-breed financial content and pioneering technology product lines to the global buy-side and sell-side communities. Thomson First Call Real Time Earnings Estimates database features more than 200 data items, including current and previous individual earnings estimates, recommendations, growth rates and Thomson First Call consensus estimates. The database covers over 17,000 companies in 60 countries and is updated by analysts from more than 770 leading brokerage firms worldwide as they make revisions. Thomson First Call Research Direct provides institutional-quality research and quantitative forecast measures for more than 34,000 companies in over 130 countries. The global information originates from 800 contributing firms, corporate documents and public filings. The breadth and depth of Thomson First Calls content offerings are unparalleled in the industry as we now offer integrated access to combined First Call and I/ B/E/S research and data. The Edge/Thomson First Call Earnings Table provides only a brief summary of the detailed Thomson First Call data available in real-time on Singapore equities. For more information readers are invited to contact Thomson First Call at the numbers below or visit the company website. Thomson First Call has offices throughout five continents, covering major markets around the globe, including New York, Boston, Toronto, Sao Paulo, London, Paris, Frankfurt, Tokyo,

Hong Kong, Singapore, Sydney, Seoul and Mumbai. Thomson First Call is part of Thomson Financial, a US$2 billion provider of information and technology solutions to the worldwide financial community. Through the widest range of products and services in the industry, Thomson Financial helps clients in more than 70 countries make better decisions, be more productive and achieve superior results. Thomson Financial is part of The Thomson Corporation (www.thomson.com), a leading global provider of integrated information solutions for business and professional customers. The corporation reported 2000 revenues of approximately US$6 billion and its common shares are listed on the Toronto and London stock exchanges (TSE:TOC). For more information on Thomson Financial, visit www.thomsonfinancial.com. Glossary to First Call • Net Profit Estimates Up Last 1 Month: The number of brokers who have revised upward their net profit estimates in the last one month • Net Profit Estimates Down Last 1 Month: The number of brokers who have revised downward their net profit estimates in the last one month • Last Price: The last quoted price corresponding to the last update of the service • 52 Week High: Highest share price during the 52 weeks leading up to the last update adjusted for capital changes • Net Profit FY1: Consensus estimates of net profit (normalised) (after minority interests and excluding the effects of extraordinary items). (S$ mil) • Net Profit FY2: Consensus estimates of net profit (normalised) (after minority interests and excluding the effects of extraordinary items). (S$ mil) • EPS FY1: The reported earnings per share (EPS) or the

arithmetic average of all the estimates • EPS FY2: The reported EPS or the arithmetic average of all the estimates • PE FY1: Price-Earnings Ratio (price divided by EPS) • PE FY2: Price-Earnings Ratio (price divided by EPS) • No of Brokers’ Estimates: The number of brokers’ estimates used to calculate the consensus estimates Disclaimer In no event will Thomson First Call or The Edge be responsible for special, indirect, incidental or consequential damages that may be incurred or experienced on account of entering into or relying on the data. Thomson First Call acts solely as a transmitter of information provided by certain brokers, certain corporations and certain other sources. Neither Thomson First Call, any source, nor any third party that Thomson First Call contracts to effect transmission, makes any warranty of merchantability or fitness for a particular purpose with respect to the Thomson First Call financial information. Nor shall any of them be liable for any error or omission in the information supplied to The Edge or its subscribers or the accuracy, completeness or E timeliness of the data.

For enquiries, call: Hong Kong (852) 2524 0077 Singapore (65) 6879 4122 Sydney (612) 9233 4855

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COUNTRY NAME

TICKER

MARKET CAPITALISATION (US$)

CURRENCY

PRICE (LATEST)

EPS FY1 MEAN

EPS FY1 P/E

Korea India Australia Hong Kong Australia Taiwan Australia Taiwan Taiwan Malaysia Australia Australia Australia India India Korea India India Hong Kong New Zealand

0549 HLVR RIO 883 WES 1303 WMC 1301 2002 SDY NDY AMC SRP RBXY HPCL 1233 BPCL DRRD 144 CAH

10992.25 10501.31 10287.67 9539.32 6055.67 5861.06 5725.76 5124.94 4170.52 3335.92 2744.04 2682.73 2470.79 2080.34 2059.05 1958.96 1917.34 1663.63 1606.06 1452.37

KRW INR AUD CNY AUD TWD AUD TWD TWD MYR AUD AUD AUD INR INR KRW INR INR HKD NZD

151000.00 232.80 39.35 9.87 31.20 35.30 9.85 42.30 16.10 5.45 2.33 7.88 6.38 873.80 295.45 32000.00 311.20 1060.20 6.10 1.92

8831.35 7.93 2.35 0.98 1.12 1.68 0.41 2.01 0.77 0.31 0.07 0.41 0.26 29.49 25.05 3273.76 25.92 57.59 0.48 0.08

17.10 29.36 16.78 10.09 27.79 21.07 23.80 21.05 20.85 17.68 32.31 19.01 24.44 29.63 11.79 9.77 12.01 18.41 12.61 23.88

Korea Taiwan Taiwan Hong Kong Korea Korea Singapore Hong Kong Korea Australia Taiwan Taiwan Taiwan Thailand Korea Singapore Philippines Malaysia Taiwan Taiwan

0593 2303 2317 179 0261 0915 STE 1038 0640 CSR 2344 2311 2324 SCC/F 0954 KEP AC YTL 2308 2327

39968.31 19009.64 7825.22 4922.38 4915.65 4102.84 3815.22 3656.19 3360.33 3298.12 3213.34 2945.54 2732.33 2579.34 2038.56 1851.26 1845.41 1830.00 1805.25 1700.20

KRW TWD TWD HKD KRW KRW SGD HKD KRW AUD TWD TWD TWD THB KRW SGD PHP MYR TWD TWD

34900.00 49.90 157.00 10.45 42000.00 72800.00 2.42 12.65 96000.00 6.72 25.40 32.00 45.20 932.00 35550.00 4.30 6.60 4.72 54.00 29.00

1706.13 -0.26 6.88 0.29 3192.93 1342.64 0.13 1.58 11301.13 0.52 -2.22 -0.55 2.60 58.31 1941.66 0.37 0.22 0.23 2.88 1.89

20.46 -189.17 22.82 35.46 13.15 54.22 19.15 8.02 8.49 12.95 -11.45 -57.80 17.39 15.98 18.31 11.70 30.25 20.60 18.77 15.33

Korea Korea Taiwan Taiwan Malaysia China Taiwan Taiwan India China India Taiwan Hong Kong Taiwan Taiwan Indonesia Malaysia Hong Kong Singapore Korea

0538 0027 2352 2349 PROT 600006 2346 2356 HH 600104 BJA 2204 203 2394 2201 ASII EOL 1114 CNC 0362

6914.06 3904.15 2842.72 1800.57 1556.74 1535.52 1486.12 1476.49 1443.62 1302.58 1009.65 887.43 869.73 785.99 757.09 699.00 692.31 615.76 566.35 541.57

KRW KRW TWD TWD MYR CNY TWD TWD INR CNY INR TWD HKD TWD TWD IDR MYR CNY SGD KRW

40000.00 14000.00 72.00 37.90 10.90 12.71 71.00 31.10 352.00 7.08 485.85 25.40 2.05 78.50 16.10 2725.00 11.50 1.39 4.34 630.00

4202.75 1370.26 2.01 2.34 1.67 0.42 5.87 1.95 21.10 0.53 40.35 2.41 0.24 2.83 2.37 325.59 1.90 0.27 0.57 -18121.05

9.52 10.22 35.74 16.20 6.54 30.26 12.11 15.98 16.69 13.36 12.04 10.54 8.49 27.75 6.80 8.37 6.04 5.23 7.56 -0.03

India Australia Taiwan India Malaysia Korea Australia Indonesia Indonesia Hong Kong Hong Kong Indonesia Singapore Australia New Zealand Taiwan Singapore Malaysia Taiwan Korea

RIL FGL 1433 ITC ROTH 3378 CCL GGRM HMSP 551 363 UNVR WANT LNN LNN 1402 FNN NESZ 1216 0014

6485.07 5074.32 3591.23 3583.19 2648.67 2377.76 2149.03 2132.62 2117.66 1894.70 1784.20 1741.14 1423.53 1322.75 1315.63 1309.62 1272.84 1252.72 1220.20 1153.43

INR AUD TWD INR MYR KRW AUD IDR IDR HKD HKD IDR SGD AUD NZD TWD SGD MYR TWD KRW

299.65 4.75 34.40 710.90 35.25 16500.00 5.98 11050.00 4550.00 21.00 15.50 22750.00 4.40 4.72 5.65 14.30 7.85 20.30 12.75 84000.00

25.78 0.28 1.91 49.01 2.29 1774.46 0.29 1049.80 350.13 2.49 1.37 1213.86 0.34 0.31 0.37 0.37 0.72 0.95 0.59 4528.98

11.62 17.26 18.04 14.51 15.43 9.30 20.97 10.53 13.00 8.43 11.31 18.74 12.83 15.42 15.46 38.68 10.98 21.34 21.49 18.55

Hong Kong Australia India Australia Australia Australia Singapore Hong Kong Australia Hong Kong Hong Kong Malaysia Malaysia Korea Singapore Australia Australia Hong Kong Australia Hong Kong

13 NCP WPRO WOW CML BIL SPH 494 PBL JM JS RNB GENT 0417 VMS MAY TAH 511 HVN 330

37581.16 15186.22 8166.99 6784.02 5271.24 5049.19 4743.55 3997.60 3531.10 3526.91 2847.33 2772.71 2520.79 2497.35 2365.35 2360.56 2179.82 2038.57 2025.99 1867.72

HKD AUD INR AUD AUD AUD SGD HKD AUD USD USD MYR MYR KRW SGD AUD AUD HKD AUD HKD

68.75 13.84 1710.65 12.39 8.60 9.98 23.70 10.85 10.30 5.50 2.69 9.65 13.60 225000.00 18.70 5.57 11.14 36.30 3.66 12.75

2.40 0.24 37.54 0.50 0.32 0.30 0.77 0.33 0.43 0.50 0.26 0.52 0.98 10713.63 0.68 0.33 0.65 1.38 0.12 0.68

28.64 57.08 45.57 24.74 26.96 33.42 30.84 33.27 24.15 11.06 10.23 18.68 13.88 21.00 27.50 17.00 17.17 26.22 31.53 18.76

Australia India Australia China India India China Thailand Korea Australia Thailand Korea Australia

BHP ONGC WPL 857 IOCL RILP 386 PTT 1095 STO PTTEP/F 0360 CNA

22531.68 7290.74 5207.51 3606.97 2966.61 2863.11 2775.48 2290.18 2064.18 1815.00 1789.39 1724.05 1370.83

AUD INR AUD CNY INR INR CNY THB KRW AUD THB KRW AUD

11.61 248.95 14.90 1.70 185.50 26.80 1.37 35.50 24300.00 5.97 119.00 18000.00 30.20

0.71 37.30 1.09 0.27 37.45 3.10 0.20 7.58 1181.21 0.58 16.10 1664.44 2.37

16.40 6.67 13.61 6.31 4.95 8.66 6.93 4.68 20.57 10.38 7.39 10.81 12.74

3/22/02, 9:10 AM

THEEDGE SINGAPORE | MARCH 25, 2002 • 39

CAPITAL COMPANY LONG NAME ORIGIN ENERGY KOREA GAS CORPORATION CONTACT ENERGY LIMITED GULF INDONESIA RESOURCES LIMITED PETRONAS DAGANGAN SDN BHD RATCHABURI ELECTRIC GEN HOLDING PUB ZHEJIANG SOUTHEAST POWER FINANCE HSBC HOLDINGS PLC NATIONAL AUSTRALIA BANK LTD HANG SENG BANK COMMONWEALTH BANK OF AUST. CHEUNG KONG SUN HUNG KAI PROPERTIES WESTPAC BANKING CORPORATION KOOKMIN BANK/NEW AUST & NZ BANKING GROUP LTD MANULIFE FINANCIAL CORPORATION UNITED OVERSEAS BANK AMP LIMITED DBS GROUP HOLDINGS LIMITED OVERSEA-CHINESE BANKING CORPORATION MALAYAN BANKING CATHAY FINANCIAL HOLDING CO HENDERSON LAND DEVELOPMENT THE WHARF (HOLDINGS) CHINA DEVELOPMENT FINANCIAL WESTFIELD HOLDINGS HEALTH CARE CSL LIMITED RESMED INC CIPLA LIMITED COCHLEAR SONIC HEALTHCARE LIMITED SUN PHARMACEUTICALS INDUSTRY GLAXOSMITHKLINE PHARMACEUTICALS MIA GROUP LTD FISHER & PAYKEL HEALTHCARE AU WOCKHARDT LIMITED AUSTRALIAN PHARMA INDUSTRY LTD SMITHKLINE BEECHAM HENGAN INTL GROUP CO LTD SIGMA COMPANY LIMITED YUHAN CORPORATION DABUR INDIA LTD RAMSAY HEALTH CARE LIMITED OPSM GROUP LIMITED PEPTECH LTD PRIMARY HEALTH CARE PUBLIC UTILITIES CHINA MOBILE (HONG KONG) SK TELECOM CO (1/10) TELSTRA CORPORATION SINGAPORE TELECOM KOREA TELECOM CHUNGHWA TELECOM CO LTD CHINA UNICOM KOREA ELECTRIC POWER (KEPCO) CLP HOLDINGS LIMITED TENAGA NASIONAL HONGKONG ELECTRIC HOLDINGS TELEKOM MALAYSIA HONG KONG & CHINA GAS KOREA TELECOM FREETEL TAIWAN CELLULAR COPORATION PT TELEKOMUNIKASI TELECOM CORP OF NEW ZEALAND PETRONAS GAS BERHAD ADVANCED INFO SERVICES CO FAR EASTONE TELECOMM CO LTD TECHNOLOGY TAIWAN SEMICONDUCTOR MANUFACTRNG ASUSTEK COMPUTER INC QUANTA COMPUTER MEDIATEK INCORPORATED PACIFIC CENTURY CYBERWORKS INFOSYS TECHNOLOGIES LTD CHUNGHWA PICTURE TUBES LTD NANYA TECHNOLOGY CORPORATION CHARTERED SEMICONDUCTOR VIA TECHNOLOGIES INC. LEGEND HOLDINGS LIMITED PRO MOS TECHNOLOGIES INC MACRONIX INTERNATIONAL SUNPLUS TECHNOLOGY CO LTD ACER INC SATYAM COMPUTER REALTEK SEMICONDUCTOR AU OPTRONICS CORPORATION SILICONWARE PRECISION INDUSTRY POWERCHIP SEMICONDUCTOR CORPORATION TRANSPORTATION SINGAPORE AIRLINES MTR CORP SWIRE PACIFIC LTD ‘A’ CATHAY PACIFIC AIRWAYS MALAYSIA INTL SHIPPING CORPORATION QANTAS AIRWAYS LIMITED KOWLOON MOTOR BUS HOLDINGS STAR CRUISES LTD CHINA AIRLINES EVERGREEN MARINE THAI AIRWAYS INTERNATIONAL KOREAN AIRLINE CHINA TRAVEL INTL INV HK AUCKLAND INTERNATIONAL AIRPORT NEPTUNE ORIENT LINES EVA AIRWAYS CORP MALAYSIAN AIRLINE SYSTEM TATA ENGINEERING & LOCOMOTIV WAN HAI LINES LIMITED CHINA NATIONAL AVIATION

THOMSON FIRST CALL EARNINGS ESTIMATES SINGAPORE

COUNTRY NAME

TICKER

MARKET CAPITALISATION (US$)

CURRENCY

PRICE (LATEST)

EPS FY1 MEAN

EPS FY1 P/E

Australia Korea New Zealand Indonesia Malaysia Thailand China

ORG 3646 CEN GRL PETD RATCH 900949

1043.68 988.40 984.11 895.86 725.48 605.28 531.30

AUD KRW NZD USD MYR THB CNY

3.08 16950.00 3.90 10.19 5.55 18.10 6.37

0.18 3536.37 0.20 0.50 0.74 2.58 0.34

17.07 4.79 19.28 20.52 7.50 7.01 18.58

Hong Kong Australia Hong Kong Australia Hong Kong Hong Kong Australia Korea Australia Philippines Singapore Australia Singapore Singapore Malaysia Taiwan Hong Kong Hong Kong Taiwan Australia

5 NAB 11 CBA 1 16 WBC 6000 ANZ MFC UOB AMP DBS OCBC MAY 2882 12 4 2883 WSF

112452.24 28535.99 21755.29 21117.39 21010.68 19316.73 14691.56 14141.98 14097.84 13328.14 12727.11 11519.30 11482.91 9522.32 8813.13 7928.37 7772.41 5724.71 5136.19 4815.84

HKD AUD HKD AUD HKD HKD AUD KRW AUD PHP SGD AUD SGD SGD MYR TWD HKD HKD TWD AUD

93.75 34.87 88.75 32.15 70.75 62.75 15.91 59000.00 17.98 1410.00 14.80 19.45 14.50 13.50 9.45 47.50 35.20 18.25 23.00 16.31

5.43 2.59 5.26 2.01 3.46 3.71 1.13 5112.24 1.35 2.33 0.77 1.13 0.75 0.70 0.40 2.49 1.91 1.20 1.63 0.40

17.28 13.45 16.87 15.96 20.42 16.93 14.09 11.54 13.33 605.15 19.20 17.17 19.46 19.16 23.48 19.06 18.44 15.19 14.15 40.64

Australia Australia India Australia Australia India India Australia New Zealand India Australia India Hong Kong Australia Korea India Australia Australia Australia Australia

CSL RMD CIPLA COH SHL SUNP GLXO MIA FPH WPL API SKB 1044 SIG 0010 DABUR RHC OPS PTD PRY

3462.30 1296.75 1272.30 1174.96 804.84 633.98 530.53 501.31 455.48 397.28 396.77 358.74 344.56 344.06 341.02 337.55 327.39 247.87 246.48 231.69

AUD AUD INR AUD AUD INR INR AUD NZD INR AUD INR HKD AUD KRW INR AUD AUD AUD AUD

41.69 7.75 1032.95 42.69 6.00 660.20 346.85 1.45 10.22 533.45 3.85 384.90 2.70 4.76 68100.00 57.65 4.90 3.54 3.14 4.50

0.78 0.21 37.47 0.80 0.16 37.00 11.63 0.05 0.51 32.92 0.18 32.73 0.22 0.21 6334.94 2.97 0.23 0.17 0.17 0.10

53.71 36.11 27.57 53.49 38.07 17.85 29.84 31.04 20.09 16.21 20.83 11.76 12.56 23.12 10.75 19.39 21.49 20.54 18.92 47.20

Hong Kong Korea Australia Singapore Korea Taiwan Hong Kong Korea Hong Kong Malaysia Hong Kong Malaysia Hong Kong Korea Taiwan Indonesia Australia Malaysia Thailand Taiwan

941 1767 TLS ST 3020 2412 762 1576 2 TNB 6 T 3 3239 4901 TLKM TEL PTG ADVANC/F 4904

58206.70 18700.30 18209.95 15803.56 14439.84 13827.19 12393.17 11905.15 9792.16 9241.75 8195.75 7474.56 7296.62 4833.11 4472.77 3943.23 3909.04 3645.03 3198.31 2123.41

HKD KRW AUD SGD KRW TWD HKD KRW HKD MYR HKD MYR HKD KRW TWD IDR AUD MYR THB TWD

24.40 27800.00 5.41 1.62 61300.00 50.50 7.70 24650.00 31.70 11.30 29.95 9.05 11.00 44900.00 41.90 3900.00 4.03 7.00 47.25 39.30

1.52 1330.36 0.31 0.10 3294.28 3.94 0.32 2593.97 2.81 0.56 3.09 0.37 0.64 2165.56 4.72 401.09 0.28 0.25 2.93 3.56

16.06 20.90 17.49 16.72 18.61 12.82 24.26 9.50 11.28 20.15 9.69 24.58 17.24 20.73 8.87 9.72 14.23 27.74 16.10 11.04

Taiwan Taiwan Taiwan Taiwan Hong Kong India Taiwan Taiwan Singapore Taiwan Hong Kong Taiwan Taiwan Taiwan Taiwan India Taiwan Taiwan Taiwan Taiwan

2330 2357 2382 2454 8 INFO 2475 2408 CSM 2388 992 5387 2337 2401 2306 SCS 2379 2409 2325 5346

44065.68 8680.00 7395.08 6350.83 6000.30 5189.32 4764.77 3849.72 3790.49 3694.63 3247.15 2830.58 2657.62 2024.49 1940.92 1833.36 1822.77 1801.05 1668.76 1667.42

TWD TWD TWD TWD HKD INR TWD TWD USD TWD HKD TWD TWD TWD TWD INR TWD TWD TWD TWD

91.50 155.00 124.00 703.00 2.08 3943.75 38.10 40.90 2.74 136.50 3.38 30.50 28.90 130.00 20.70 283.80 182.00 49.20 31.40 25.40

0.82 8.51 5.52 21.84 0.07 121.78 1.70 -3.64 -0.25 5.76 0.12 -1.59 0.23 3.99 0.69 15.02 6.33 -2.25 -0.50 -2.87

111.31 18.21 22.47 32.19 29.24 32.38 22.37 -11.23 -10.87 23.71 27.37 -19.18 128.10 32.58 29.94 18.90 28.74 -21.90 -63.12 -8.84

Singapore Hong Kong Hong Kong Hong Kong Malaysia Australia Hong Kong Singapore Taiwan Taiwan Thailand Korea Hong Kong New Zealand Singapore Taiwan Malaysia India Taiwan Hong Kong

SIA 66 19 293 MISC QAN 62 STRC 2610 2603 THAI 0349 308 AIA NOL 2618 MAS TELCO 2615 1110

9960.44 7464.13 4978.22 4952.48 3499.57 3398.44 1883.82 1616.19 1053.27 975.59 952.49 936.19 826.73 810.47 778.81 738.42 733.53 689.12 662.51 638.80

SGD HKD HKD HKD MYR AUD HKD USD TWD TWD THB KRW HKD NZD USD TWD MYR INR TWD HKD

14.90 11.60 41.30 11.60 7.15 4.37 36.40 0.39 15.20 16.70 29.50 17450.00 1.70 4.43 0.66 12.30 3.62 131.10 17.60 1.54

0.17 1.06 3.04 0.40 0.67 0.26 3.42 0.01 0.60 0.74 1.93 -6492.63 0.17 0.16 -0.03 -1.41 -1.62 -5.63 1.24 0.09

85.87 10.94 13.60 28.88 10.71 16.59 10.65 57.43 25.29 22.58 15.30 -2.69 10.08 27.79 -22.71 -8.73 -2.24 -23.31 14.15 17.87

Top 40 volume stocks COMPANY LONG NAME

PRICE (LATEST) (S$)

VOLUME (MIL)

EPS FY1 NO OF ESTIMATES RAISED

EPS FY1 NO OF ESTIMATES LOWERED

EPS FY1 NO OF ESTIMATES

MEAN RECOMMENDATION

EPS FY1 MEAN (S$)

EPS FY2 MEAN (S$)

FY1 P/E RATIO (X)

FY2 P/E RATIO (X)

0.69 1.62 0.43 0.78 0.86 0.33 2.18 0.38 0.38 2.74 1.00 2.42 1.56 0.21 0.92 0.66 1.32 0.17 0.66 0.41 0.39 0.85 0.58 0.21 0.31 0.88 0.56 2.42 1.93 0.28 0.12 1.18 0.25 0.19 1.43 1.78 14.50 0.72 1.85 1.30

80.36 49.04 47.50 44.65 40.74 38.76 37.36 35.14 33.18 29.56 27.92 27.02 26.62 26.02 25.53 25.14 24.69 24.69 23.50 20.24 20.09 19.96 19.87 18.70 18.53 17.22 17.12 15.69 15.07 14.83 14.72 14.70 14.17 12.94 12.63 11.46 10.83 10.31 10.12 9.87

4 3 0 1 0 1 2 0 0 5 0 1 2 0 2 0 1 0 1 1 0 0 0 0 0 4 1 0 5 0 0 0 0 0 0 5 6 0 3 1

0 4 0 1 1 1 1 1 2 2 0 2 1 0 0 1 1 1 2 0 1 0 0 0 0 9 1 0 2 0 0 0 0 0 2 9 7 1 2 2

4 24 7 7 5 5 5 1 3 24 1 22 15 1 3 3 7 2 13 1 9 1 3 1 1 23 5 21 21 7 1 3 1 1 6 20 23 4 7 5

1.14 3.18 3.13 1.43 3.50 2.43 2.60 1.00 2.60 2.80 1.00 3.09 3.06 5.00 1.00 1.33 3.67 4.00 3.00 1.00 1.56

0.10 0.10 -0.02 0.07 0.04 0.02 0.08 0.02 0.02 -0.25 0.30 0.04 -0.16 0.00 0.11 0.04 -0.16 -0.02 -0.03 0.03 0.01 0.04 0.06 0.03 0.01 0.05 0.04 0.13 0.05 0.01 -0.03 0.08 0.02 0.01 0.10 0.11 0.75 0.03 0.15 0.05

0.12 0.08 0.01 0.09 0.05 0.03 0.15 0.03 0.03 -0.02

7.10 16.72 -24.27 10.55 20.87 16.84 27.07 16.30 16.30 -10.87 3.32 60.47 -9.61 52.50 8.76 16.92 -8.38 -7.86 -22.71 15.58 57.43 22.37 9.43 7.88 30.50 19.13 13.60 19.15 35.37 20.70 -3.53 15.28 13.61 17.51 13.79 15.57 19.46 22.86 12.54 24.90

5.93 20.79 32.02 8.41 18.38 13.10 14.69 11.36 12.10 -182.24

UNITED FOOD HOLDINGS LIMITED SINGAPORE TELECOM ASTI HOLDINGS LTD ECS HOLDINGS GES INTERNATIONAL LTD BEYONICS TECHNOLOGY LTD SURFACE MOUNT TECH HOLDING LTD JURONG TECHNOLOGIES IND’L CORPORATION DATAPULSE TECHNOLOGY LTD CHARTERED SEMICONDUCTOR TIANJIN ZHONG XIN PHARMACEUTICAL DATACRAFT ASIA LTD ST ASSEMBLY TEST SERVICES LTD EASTGATE TECHNOLOGIES LTD SEKSUN CORPORATION NORELCO CENTRELINE HOLDINGS NATSTEEL FLAIRIS TECHNOLOGY CORPORATION LTD NEPTUNE ORIENT LINES MFS TECHNOLOGY LTD STAR CRUISES LTD TREK 2000 INTERNATIONAL FIRST ENGINEERING ACHIEVA LIMITED ROLY INTL HOLDINGS BHD PARKWAY HOLDINGS LTD CSE SYSTEMS & ENGINEERING SINGAPORE TECHNOLOGIES ENGINEERI CAPITALAND LIMITED FRONTLINE TECHNOLOGIES CORPORATION ADROIT INNOVATIONS CYTECH SOFTWARE LTD PKTECH INTERNATIONAL NORTH 22 TECHNOLOGY SERVICES HUAN HSIN HOLDINGS LIMITED SEMBCORP INDUSTRIES LTD DBS GROUP HOLDINGS LIMITED PCI LIMITED UNITED OVERSEAS LAND HYFLUX LIMITED

Scap_38n39_S4.p65

3/22/02, 9:10 AM

1.00 1.50 3.00 3.29 1.40 2.10 2.48 1.25 3.67 2.80 3.00 1.00 1.67 2.65 2.41 4.71 1.91 3.00

0.07 -0.01 0.01 0.12 0.05 0.12 0.00 -0.04 0.03 0.02 0.04 0.07 0.03 0.02 0.05 0.05 0.14 0.07 0.02 -0.03 0.09 0.02 0.02 0.13 0.13 0.92 0.04 0.09 0.06

32.62 -218.75 19.09 7.54 13.89 11.08 47.14 -18.65 13.97 21.47 21.79 7.95 6.03 15.25 17.37 11.19 16.83 26.76 15.28 -3.87 13.60 10.65 8.80 10.61 13.51 15.75 19.46 20.17 20.72

40 • THEEDGE SINGAPORE

| MARCH 25, 2002

CAPITAL

FUND WATCH WITH STANDARD & POOR’S

10 best-performing funds (March 8-15)

10 worst-performing funds (March 8-15) 7.14

OCBC SAVERS KOREA

7.01

FRANKLIN TEMPLETON F-KOREA 3.37

OCBC TEAM GB HEALTHCARE INVT

2.68

OCBC SAVERS ASPAC RECOVERY

2.54

UBS (SG) IF-BIOTECH HSBC USD WORLD GROWTH II CAP PRO

-3.17

OCBC TEAM GB TECH & TELECOM INVT

-3.22

DRESDNER INTL PROV GLB TECH

-3.70

UOB UNITED EUROTECH FD

-3.70

UOB UNITED GLOBAL CAPITAL

UOB UNITED GLOBAL TECHNOLOGY

CITI GLOBAL HEALTHCARE

1.96

ABN AMRO STAR GLB TECHNOLOGY

1.92 1

SCHRODER BALANCED GROWTH

-6

-5

-4

-3

-2

-1

315.03

SGAM DYNAMIC TRI SECTOR

0.35

AIG INT FDS GLB EQTY FUND

0.35

282.00

COM GLOBAL HEALTH INDEX FD

ABERDEEN GLOBAL TECH

276.80

COM GLOBAL TELECOM INDEX FD

197.70 187.62

COM GLOBAL ENERGY INDEX FD

HORIZON GLOBAL BOND SGD

186.47

COM GLOBAL LIFESTYLE INDEX FD

SCHRODER SINGAPORE TRUST

184.15

COM GLOBAL TRAVEL INDEX FD

200

300

400

500

600

0.14 0.13 0.09 0.06 0.1

0.2

0.3

0.4

0.5

0.6

5 worst-performing sectors (March 8-15)

EQUITY KOREA

EQUITY JAPAN

7.07

-2.06

EQUITY TAIWAN

2.23

-2.27

SECTOR – TMT GLOBAL

1.85

SECTOR – BIOTECHNOLOGY

0.16

S$ 0.0

5 best-performing sectors (March 8-15) SECTOR – HEALTHCARE GLOBAL

0.31

AIG INT FDS JAPAN LARGE CAP EQTY

UOB UNITED GLOBAL TELECOMS

100

0.49

AIG INT FDS PAN EUROPEAN EQTY

CGM FIRST STATE GLOBAL 100 GTH

SCHRODER SGD GLOBAL RET OCT 2005

0.51

COM GLOBAL FINANCE INDEX FD

398.49

-2.78

EQUITY PHILIPPINES

1.33 1.04 1

-7

AIG INT FDS US LARGE CAP EQTY

445.98

EIGHT PORTFOLIO C

-6.16

% -8

559.94

SECTOR – FINANCE GLOBAL

-5.30

10 smallest funds (March 8-15)

HORIZON GLOBAL EQUITY

SMALLER COMPANIES JAPAN

-4.30

OPTIMIX E-COMMERCE

10 largest funds (March 8-15)

S$ 0

-3.88

PRU GLOBAL TECH

1.99

-3.78

UOB UNITED JAPAN GROWTH

2.42

ACMIF INT HEALTH CARE A

-3.33

INVESCO GT TECHNOLOGY

2.82

UOB UNITED GLOBAL HEALTHCARE

SCHRODER GLOBAL TECHNOLOGY

-2.82

SECTOR – TMT EUROPE -3.70 2

% -4.0

-3.5

-3.0

-2.5

-2.0

-1.5

-1.0

-0.5

0.0

LIPPER FUND TABLE SINGAPORE FROM PAGE 37

UNITED CAPITAL GUARANTEED FUNDSSERIES 1 (10/03) AVERAGE (47) MIXED ASSET: ASIA PACIFIC ABN AMRO STAR ASIA BALANCED AIG ACORNS OF ASIA BALANCED FUND AVERAGE (2) MIXED ASSET: EUROPE ABN AMRO STAR EUROPE BALANCED AIG EUROPEAN BALANCED FUND FIVE ARROWS EUR SAVINGS & GROWTH SAVERS EUROPE BALANCE FUND-EURO SAVERS EUROPE BALANCE FUND-SGD AVERAGE (5) MIXED ASSET: GLOBAL AIG WORLD BALANCED FUND CITISELECT ASIA TILT300 BALANCED CITISELECT ASIA TILT400 GROWTH CITISELECT ASIA TILT500 ENH CITISELECT GLOBAL 400 GROWTH PORTFOLIO CMG FIRST STATE GLOBAL BALANCED SGD DBS EIGHT PORTFOLIO A DBS EIGHT PORTFOLIO B DBS EIGHT PORTFOLIO C DBS EIGHT PORTFOLIO D DEUTSCHE PREMIER SELECT DRESDNER IPF-GLOBAL BALANCED FTF-TEMPLETON GLOBAL BALANCED MERCURY INTERNATIONAL BALANCED OCBC MULTI ADVISOR PROGRAM-BALANCE PORTFOLIO PHILLIP INCOME FUND SAVERS VALUE FUND SCHRODER BALANCED GROWTH SINGAPORE UT-GLOBAL TACTICAL UNITED MILLENNIUM 1 UNITED MILLENNIUM 2 UNITED MILLENNIUM 3 AVERAGE (22) MIXED ASSET: SINGAPORE KEPPEL SINGAPORE BALANCE FUND AVERAGE (1) MONEY MARKET: AUSTRALIAN DOLLAR OUB OPTIMIX AUD AVERAGE (1) MONEY MARKET: EURO OUB OPTIMIX EUR AVERAGE (1) MONEY MARKET: JAPANSE YEN OUB OPTIMIX YEN AVERAGE (1) MONEY MARKET: SINGAPOREANDOLLAR ABERDEEN SEL-SINGAPORE DOLLAR FUND AIG MONEY MARKET SGD CITIMONEY SINGDOLLAR B PHILLIP MONEY MARKET FUND PRU PROTECTED GLB TITANS (SGD) SAVERS SGD MONEY MARKET FUND SCHRODER S$ RESERVE FUND AVERAGE (7) MONEY MARKET: STERLING OUB OPTIMIX GBP AVERAGE (1) MONEY MARKET: US DOLLAR AIG MONEY MARKET USD OUB OPTIMIX USD PRU PROTECTED GLB TITANS (USD) SAVERS USD MONEY MARKET FUND AVERAGE (4)

Scap_36n37n40_S3.p65

FUND SIZE (S$ MIL)

YTD RETURN (%) 12/31/2001 TO 03/15/2002

RANK

I-MONTH RETURN (%) 02/15/2002 TO 03/15/2002

RANK

6-MONTH RETURN (%) 09/17/2001 TO 03/15/2002

RANK

1-YEAR RETURN (%) 03/15/2001 TO 03/15/2002

RANK

12/11/2000

10.88 60.52

0.53 -0.05

16 -39

0.32 0.38

25 -45

1.99 4.34

20 -32

0.71 2.76

16 -20

YES

10/26/1999 10/02/2001

1.62 4.6 3.11

2.66 17.92 10.29

2 1 -2

4.23 7.76 5.99

2 1 -2

17.64

2.54

17.64

-1

2.54

-1

NO YES

04/27/1999 10/16/2001 03/09/1999 01/12/1999 10/24/1998

3.62 0.01 7.1 13.79 18.6 8.62

-1.56 -10.47 -2.25 -2.45 -2.53 -3.85

1 5 2 3 4 -5

2.92 -2.53 2.35 3.05 2.79 1.72

2 5 4 1 3 -5

6.79

-4.34

6.75 8.29 7.4 7.31

4 1 2 -4

-6.09 -5.95 -6.45 -5.71

3 2 4 -4

-8.26 -13.59 -13.57 -11.81

1 3 2 -3

1 1

10/16/2001 05/05/1998 05/05/1998 05/05/1998 12/01/1998 02/07/1995 01/18/2000 01/18/2000 01/18/2000 01/18/2000 11/30/1993 04/01/1999 02/11/1998 01/09/2001

0.01 23.85 25.71 19.43 12.84 41 29 56.87 394.1 156.87 84.05 10.97 143.27 3.82

-4.49 0 0.81 2.61 -0.88 1.53 0.53 0 0 0 3.62 -2.85 0 -1.21

22 11 8 2 18 5 10 11 11 11 1 21 11 20

1.19 0.78 2.46 4.42 2.75 5.56 0 0.56 1.18 2.52 1.31 1.49 4.31 2.52

16 19 10 2 7 1 22 21 17 9 15 14 4 8

12.17 22.55 29.67 14.29 13.68 2.69 4.02 6.17 7.95 8.97 3.33 13.08 4.92

9 2 1 5 6 21 19 16 14 12 20 8 17

4.88 4.17 2.61 0.9 0.76 1.52 0.51 0.15 -0.27 1.87 -1.73 3.42 -4.18

1 2 5 8 9 7 10 11 14 6 16 3 19

16.22 14.68 12.38 1.82 0.96

2 4 5 7 8

-27.67

2 3 4 2 5

25.14

1.92

15.24

4.13 18.3 443.9 0 5.57 24.22 32.7 72.89

-0.38 0.62 1.66 -1.03 1.11 0 1.1 1.71 0.2

17 9 4 19 6 11 7 3 -22

1.93 0.67 1.13 4.35 4 1.6 2.22 3.49 2.29

12 20 18 3 5 13 11 6 -22

6.65 4.78 8.04 9.09 15.19 11.11 13.58 20.27 11.06

15 18 13 11 4 10 7 3 -21

3.37 -4 -3.58 0 -0.54 0 0.52

4 18 17 12 15 12 -19

-2.39 -2.43 4

9 10 6

3 2 5

5 4 5

8.56

-10

-12.87

-2

YES NO NO YES NO YES YES YES

09/18/1995

8.8 8.8

7.59 7.59

1 -1

0.71 0.71

1 -1

21.54 21.54

1 -1

3.28 3.28

1 -1

45.38 45.38

1 -1

16.12 16.12

1 -1

YES

05/16/1999

3.86 3.86

1.79 1.79

1 -1

1.68 1.68

1 -1

11.09 11.09

1 -1

13.38 13.38

1 -1

05/16/1999

1.04 1.04

-1.79 -1.79

1 -1

1.04 1.04

1 -1

1.85 1.85

1 -1

2.87 2.87

1 -1

05/16/1999

1.02 1.02

0.02 0.02

1 -1

2.52 2.52

1 -1

-4.57 -4.57

1 -1

-3.48 -3.48

1 -1

10/15/2001 04/16/1999 03/08/2000 04/16/2001 10/31/2001 11/01/1999 10/01/2001

10.4 1.9 22.88 49.51 10.13 40.7 50.8 26.62

0.08 0.14 0.33 0.37 -0.4 0.33 0.3 0.16

6 5 3 1 7 2 4 -7

0.02 0.05 0.11 0.12 0.4 0.09 0.1 0.13

7 6 3 2 1 5 4 -7

0.1 0.96 0.85

4 2 3

0.5 2.01

3 2

1.04

2.21

0.74

-4

1.58

-3

05/16/1999

0.79 0.79

-2.94 -2.94

1 -1

-0.56 -0.56

1 -1

3.27 3.27

1 -1

4.44 4.44

1 -1

04/16/1999 05/16/1999 10/31/2001 11/01/1999

1.24 4.59 8.58 15.57 7.49

-1.33 -1.06 -1.31 -1.08 -1.2

4 1 3 2 -4

-0.49 -0.34 0.29 -0.43 -0.24

4 2 1 3 -4

5.21 6.21

3 1

4.72 6.06

3 2

6.14 5.85

2 -3

6.3 5.69

1 -3

NO NO YES NO

LAUNCH DATE

NAME

09/03/2001 04/16/2001 07/31/1997 05/12/1998 04/10/1998 04/28/1999 04/28/1999 04/28/1999

3-YEAR RETURN (%) 03/15/1999 TO 03/15/2002

3/21/02, 9:37 AM

RANK

5-YEAR RETURN (%) 03/17/1997 TO 03/15/2002

RANK

LIPPER LEADERS CAPITAL PRESERVATION SCORE — 02/28/2001

LIPPER LEADERS CONSISTENT RETURN SCORE — 02/28/2001

CPF APPROVED

NO NO NO NO NO

1 2 3 3 4

NO NO NO NO NO YES YES YES YES YES YES YES YES NO

NO NO NO NO YES NO NO

THEEDGE SINGAPORE | MARCH 25, 2002 • 41

CAPITAL

20 largest premiums

MAIN BOARD

WARRANT PREMIUM/ DISCOUNT^ (%)

GEARING# (X)

1-MTH HIGH

1-MTH LOW

1-WEEK % CHG

3.300

(52.42)

47.14

0.070

0.000

93,750,000

0.335

(1.49)

1.52

0.230

0.135

0.000

54,336,000

1.120

(1.34)

224.00

0.035

0.005

0.000

WARRANT PRICE (S$)

EXERCISE PRICE (S$)

EXPIRY DATE

PERIOD TO EXPIRY (DAYS)

HOTEL NEGARA LTD

0.070

1.500

DECEMBER 9, 2002

187

4,499,000

SUNLIGHT GRP HLDG LTD SESDAQ

0.220

0.110

JULY 14, 2006

1126

KEPPEL TELE AND TRAN LTD

0.005

1.100

MARCH 28, 2002

WANT WANT HLDS LTD USD

1.140

1.250

OCTOBER 24, 2004

WARRANTS OUTSTANDING (UNITS)

MOTHER SHARE PRICE (S$)

676

58,843,000

2.400

(0.42)

2.11

1.260

0.855

(0.010)

ASIA FOOD & PROPERTIES LTD

PREMIUM (%)

1335.714

GLOBAL TECH HLDS

679.310

IPCO INTL LTD

597.368

ACMA LTD

430.000

LINDETEVES JACOBERG LTD

0.455

0.670

AUGUST 7, 2002

34,865,000

1.120

0.45

2.46

0.570

0.020

0.000

GLOBAL TECH HLDS

403.448

AMTEK ENGRG LTD

0.650

0.330

JUNE 10, 2005

841

29,112,000

0.975

0.51

1.50

0.680

0.405

0.000

FREIGHT LINKS EXPRESS HLDGS

369.231

BOUSTEAD SPORE LTD

0.095

0.250

AUGUST 2, 2004

617

40,843,000

0.340

1.47

3.58

0.100

0.090

0.000

CSC HLDS LTD

300.000

LABROY MARINE LTD

0.115

0.225

OCTOBER 26, 2002

156

40,848,000

0.335

1.49

2.91

0.140

0.075

0.000

NEW TOYO INT HLDGS LTD

193.939

UNITED OVERSEAS LAND LTD

0.680

1.250

JUNE 12, 2004

581

177,200,000

1.870

3.21

2.75

0.715

0.590

0.000

TELEDATA SPORE LTD

175.610

SINGAPORE LAND LTD

1.420

2.200

MARCH 23, 2005

784

68,552,000

3.480

4.02

2.45

1.430

1.340

0.000

CHUAN SOON HUAT INDUSTRIAL GP

0.060

0.330

DECEMBER 20, 2003

456

40,999,000

0.370

5.41

6.17

0.075

0.050

0.000

HOTEL GRAND CENTRAL LTD

158.228

ASTI HLDS LTD SESDAQ

0.335

0.160

JUNE 21, 2004

587

26,382,000

0.460

7.61

1.37

0.345

0.200

0.000

NETWORK FOODS INTL LTD

156.522

SEKSUN CORPORATION LIMITED

0.600

0.410

DECEMBER 16, 2004

715

24,252,000

0.915

10.38

1.53

0.620

0.210

0.000

FLEXTECH HLDS LTD

142.400

EASTGATE TECHNOLOGY LTD

0.095

0.130

JULY 1, 2006

1116

74,995,000

0.190

18.42

2.00

0.115

0.085

0.000

CHEMICAL INDUSTRIES FAR EAST LTD

136.310

FLAIRIS TECHNOLOGY CORP LTD SESDAQ

127.273

PENGUIN BOAT INT LTD

0.075

0.150

OCTOBER 10, 2005

927

80,000,000

0.185

21.62

2.47

0.080

0.035

0.000

MMI HLDS LTD

0.075

0.400

NOVEMBER 14, 2002

170

24,376,000

0.385

23.38

5.13

0.075

0.030

0.000

ARMSTRONG INDUSTRIAL CORP LTD

0.055

0.100

MAY 20, 2004

565

35,370,000

0.125

24.00

2.27

0.060

0.035

0.000

CIRCUITS PLUS HLDS LTD SESDAQ

0.105

0.100

OCTOBER 17, 2006

1193

34,859,000

0.165

24.24

1.57

0.105

0.090

0.015

BONVESTS HLDS LTD

0.015

0.500

OCTOBER 15, 2002

148

34,534,000

0.400

28.75

26.67

0.025

0.010

(0.005)

PANPAC MEDIA COM LTD SESDAQ

0.070

0.120

JANUARY 9, 2004

471

55,052,000

0.145

31.03

2.07

0.075

0.065

0.000

MAYFRAN INTL LTD SESDAQ

0.060

0.150

DECEMBER 7, 2002

186

16,250,000

0.160

31.25

2.67

0.060

0.025

0.000

MULTI CHEM LTD

0.080

0.150

NOVEMBER 26, 2005

961

44,000,000

0.170

35.29

2.13

0.080

0.065

0.000

WBL CORP LTD

0.475

2.540

MAY 31, 2005

833

34,260,000

2.140

40.89

4.51

0.485

0.450

0.000

SEE HUP SENG LTD SESDAQ

0.040

0.110

AUGUST 20, 2005

891

32,952,000

0.105

42.86

2.63

0.040

0.030

0.000

STAMFORD LAND CORP

0.005

0.280

MAY 10, 2002

129,504,000

0.195

46.15

39.00

0.005

0.000

EXCEL MACHINE TOOLS LTD

0.005

0.200

JULY 19, 2002

52,498,000

0.125

64.00

25.00

0.010

0.005

0.000

KOH BROTHERS GROUP LTD

0.040

0.170

OCTOBER 6, 2004

664

95,566,000

0.125

68.00

3.13

0.045

0.035

0.000

KIAN ANN ENGRG LTD

0.095

0.320

JUNE 7, 2005

838

40,000,000

0.240

72.92

2.53

0.095

0.075

0.000

KIAN HO BEARINGS LTD

0.010

0.250

OCTOBER 19, 2002

151

25,960,000

0.150

73.33

15.00

0.015

0.005

0.000

JURONG ENGRG LTD

0.010

2.500

JULY 2, 2002

8,250,000

1.310

91.60

131.00

0.010

0.000

SAN TEH LTD

125.862

COMPACT METAL INDUSTRIES LTD

121.739

SUPERBOWL HLDS LTD

107.500

STRIKE ENGINEERING LTD SESDAQ

100.000

GUL TECHNOLOGIES S LTD

93.556

JURONG ENGRG LTD

91.603

20 smallest premiums WARRANT

HOTEL NEGARA LTD GUL TECHNOLOGIES S LTD

0.190

0.681

SEPTEMBER 17, 2005

911

66,888,000

0.450

93.56

2.37

0.225

0.170

0.000

DISCOUNT (%)

-52.4242

SUNLIGHT GRP HLDG LTD SESDAQ

-1.4925

STRIKE ENGINEERING LTD SESDAQ

0.040

0.110

APRIL 5, 2006

1054

183,230,000

0.075

100.00

1.88

0.045

0.035

0.000

KEPPEL TELE AND TRAN LTD

-1.3393

SUPERBOWL HLDS LTD

0.005

0.410

SEPTEMBER 30, 2002

137

49,051,000

0.200

107.50

40.00

0.005

0.000

WANT WANT HLDS LTD USD

-0.4167

COMPACT METAL INDUSTRIES LTD

0.005

0.250

OCTOBER 26, 2002

156

59,441,000

0.115

121.74

23.00

0.005

0.000

LINDETEVES JACOBERG LTD

0.4464

SAN TEH LTD

0.005

0.650

OCTOBER 15, 2002

148

42,173,000

0.290

125.86

58.00

0.010

0.005

0.000

AMTEK ENGRG LTD

0.5128

BOUSTEAD SPORE LTD

1.4706

FLAIRIS TECHNOLOGY CORP LTD SESDAQ

0.055

0.320

JANUARY 31, 2004

486

68,346,000

0.165

127.27

3.00

0.065

0.050

0.000

CHEMICAL INDUSTRIES FAR EAST LTD

0.005

1.980

SEPTEMBER 20, 2002

131

15,225,000

0.840

136.31

168.00

0.010

0.005

(0.005)

FLEXTECH HLDS LTD

0.015

1.500

OCTOBER 22, 2002

153

31,019,000

0.625

142.40

41.67

0.025

0.010

0.000

LABROY MARINE LTD

1.4925

NETWORK FOODS INTL LTD

0.045

0.250

FEBRUARY 1, 2005

748

94,970,000

0.115

156.52

2.56

0.050

0.020

0.000

UNITED OVERSEAS LAND LTD

3.2086

HOTEL GRAND CENTRAL LTD

0.020

1.000

OCTOBER 2, 2002

139

36,687,000

0.395

158.23

19.75

0.025

0.005

0.000

SINGAPORE LAND LTD

4.0230

TELEDATA SPORE LTD

0.005

0.560

JUNE 3, 2002

24,000,000

0.205

175.61

41.00

0.005

0.000

NEW TOYO INT HLDGS LTD

0.035

0.450

OCTOBER 27, 2004

679

43,033,000

0.165

193.94

4.71

0.035

0.020

0.000

CHUAN SOON HUAT INDUSTRIAL GP

5.4054

ASTI HLDS LTD SESDAQ

7.6087

CSC HLDS LTD

0.030

0.230

APRIL 27, 2005

809

29,847,000

0.065

300.00

2.17

0.035

0.025

0.005

FREIGHT LINKS EXPRESS HLDGS

0.005

0.300

JUNE 25, 2002

37,721,000

0.065

369.23

13.00

0.005

0.000

SEKSUN CORPORATION LIMITED

10.3825

GLOBAL TECH HLDS

0.050

0.680

AUGUST 26, 2004

635

527,952,000

0.145

403.45

2.90

0.050

0.025

0.000

EASTGATE TECHNOLOGY LTD

18.4211

ACMA LTD

0.030

0.500

NOVEMBER 16, 2004

693

86,762,000

0.100

430.00

3.33

0.035

0.030

0.000

PENGUIN BOAT INT LTD

21.6216

IPCO INTL LTD

0.025

1.300

DECEMBER 17, 2002

193

11,861,000

0.190

597.37

7.60

0.025

0.020

0.000

MMI HLDS LTD

23.3766

GLOBAL TECH HLDS

0.900

0.230

APRIL 8, 2002

37,251,000

0.145

679.31

0.16

0.900

0.000

ASIA FOOD & PROPERTIES LTD

0.005

1.000

JULY 12, 2002

34,256,000

0.070

1335.71

14.00

0.005

0.000

ARMSTRONG INDUSTRIAL CORP LTD

24.0000

^ Measures the warrants-conversion premium or discount against the mother share price

Scap_41_S4.p65

# Leverage — measures how many warrants you can buy with the cost of one mother share

3/22/02, 9:10 AM

MONEYLINE TELERATE

Data provided by

CIRCUITS PLUS HLDS LTD SESDAQ

24.2424

BONVESTS HLDS LTD

28.7500

PANPAC MEDIA COM LTD SESDAQ

31.0345

MONEYLINE TELERATE

Warrants update (as at March 22, 2002)

WARRANTS/LOAN STOCKS UPDATE SINGAPORE

42 • THEEDGE SINGAPORE

| MARCH 25, 2002

CAPITAL

Bloomberg®

BLOOMBERG

THEEDGE

Bloomberg Financial Markets Commodities News Tel: (65) 6212 1000 | Fax: (65) 6212 1111

SINGAPORE SES All group index movers

MARCH 22, 2002

SES All equity index movers

MARCH 22, 2002

SINGAPORE equity movers Singapore stocks mixed; as SingTel rises, ST Engineering falls

SES All ranked returns (per cent change)

UOB Sesdaq ranked returns (per cent change)

BEST & WORST PERFORMING MEMBERS FOR THE WEEK OF MARCH 15–22, 2002

STI equity index movers

MARCH 22, 2002

UOB Sesdaq equity index movers

MARCH 22, 2002

March 22—Singapore’s Straits Times Index rose for the first time in three days, led by Singapore Telecommunications Ltd, as the company expects increased Internet use in China and other markets to use up capacity on its $2.1 billion Asian undersea cable even as regional economies weaken. The Straits Times Index rose 6.33, or 0.4 per cent, to 1800.20. Within the index, 22 stocks rose, 13 fell and 10 were unchanged. The index rose 1.2 per cent in the week. About 587 million shares worth S$426.7 million (US$233 million) changed hands, less than the six-month daily average of S$512.5 million. Singapore Telecommunications Ltd rose 2 cents, or 1.3 per cent, to S$1.61. Singapore Technologies Engineering Ltd fell 3 cents, or 1.3 per cent, to S$2.36 as investors say its near-term earnings growth is limited. ST Engineering reported a 22 per cent rise in earnings to S$350.1 million last year and said it expects to maintain 2002 profit at the same level. Semiconductor stocks rose after Oracle Corp said companies may spend more on information technology in the next year. Oracle chief financial officer Jeffrey Henley said the worst is over for technology demand and he expects to see information-technology spending increase in the next 12 months to 18 months. Chartered Semiconductor Manufacturing Ltd, added 6 cents, or 1.2 per cent, to S$4.94. ST Assembly Test Services Ltd rose 2 cents, or 0.7 per cent, to S$3.00. Eastgate Technology Ltd, an integrated CD-ROM maker and authorised producer of goods for Microsoft, rose 0.5 cents, or 2.6 per cent, to 19 cents. The company said it swung to a S$5.5 million loss in 2001 after it had E higher operating costs.

WORLD MALAYSIA equity movers

Equity indices: Ranked returns

Currencies: Per cent change

BEST & WORST PERFORMING INDICES FOR THE WEEK OF MARCH 14–22, 2002

BEST & WORST PERFORMING CURRENCIES VS. US$ FOR THE WEEK OF MARCH 15–22, 2002

Malaysian stocks decline, paced by RHB Capital on merger plan March 22—Malaysian stocks fell, led by RHB Capital Bhd, on concern the departure of its founder and potential management changes following a merger with a smaller rival may drive investors away. The Kuala Lumpur Composite Index fell 3.59, or 0.5 per cent, to 752.63. The broader KL Emas Index dropped 0.67, or 0.4 per cent, to 179.71. Falling stocks outpaced rising ones 365 to 321, while 216 were unchanged. Some 279 million shares worth RM666 million (US$175 million) were traded, compared with the six-month daily average of 285 million worth RM515 million. RHB Capital Bhd dropped 32 sen, or 12 per cent, to RM2.33 as investors fret over the implications of founder Abdul Rashid Hussain’s departure following the merger with Utama Banking Group Bhd. Utama is paying RM1.2 billion (US$316 million) for control of RHB Capital’s parent, Rashid Hussain Bhd. The shares were halted on March 18 for the announcement. Rashid Hussain dropped 24 sen, or 10.6 per cent, to RM2.02. Utama gained 5 sen, or 2.8 per cent, to RM1.86. RHB Sakura Merchant Bankers Bhd dropped 12 E sen, or 3.5 per cent, to RM3.34.

Scap_42_S4.p65

3/22/02, 10:05 AM

THEEDGE SINGAPORE | MARCH 25, 2002 • 43

CAPITAL

BARRON’S

Wild ride On the web: Online brokers that have survived seem better for the experience | BY THERESA W CAREY |

arwin was right. Many creatures that thrive in an era of easy living are likely to become extinct when conditions grow harsh. So it is with online brokers, whose ranks have thinned markedly since the wild bull market of a few years ago. Fortunately, another one of Darwin’s maxims applies to the world of online brokers: Those who can adapt to a harsher climate are likely to emerge much stronger. In fact, the online brokers who have survived the latest round of consolidation are offering more and better services to investors. That helps explain why in this, Barron’s seventh annual ranking of online brokers, a record eight of the 22 services we tested received four stars, the highest rating we’ve ever awarded. We were hard-pressed to select a winner in this highly competitive group. But in the end the top performer was Charles Schwab. Besides the eight players who won four stars, another eight earned three and a half stars, five picked up three stars, and just one received two and a half stars. But don’t look at the overall scores alone. If you’re just interested in a few aspects, such as the best executions at the cheapest price, and don’t care so much about mutual funds or bonds, consult the scores for those categories. Now, two years past the Nasdaq’s peak, online trading volume has fallen sharply. Bear Stearns estimates that online trading volume declined to 32 per cent of total retail trades during the fourth quarter of last year, from 35 per cent a year earlier. Those levels are about half the proportion garnered by online trading a few years ago. Other signs of a slowdown: Although the number of investors signing up for online accounts has continued to grow, to 19 million by the end of last year from 17.4 million in 2000, they are trading less, with average daily transactions off 15 per cent in the past year. This year, we checked out brokers that you access via your web browser, the sort most investors are familiar with, as well as direct-access brokers that connect you directly to the broker’s network server, which cater to sophisticated, active traders. We rated both types according to the availability of certain features, such as investments that can be traded online, and on the quality of other features, such as the usability of the trading screens and the site’s overall ease of use. Since 1999, we’ve asked readers to comment about their online brokerage experience and to answer specific questions to help guide us in our reviewing efforts. We’d like to thank the hundreds of folks who responded. We assumed that typical Barron’s readers could avail themselves of benefits available to holders of high balances (more than US$100,000 in assets) and that they are fairly active traders, making three round-trip trades per month. We made significant changes to our rating system, evaluating the brokers’ offerings and performance in six areas, assigning a point value raging from a low of zero to a high of five in each category, then weighted the results according to each area’s importance to investors. We sent the brokers a questionnaire and opened an account that allowed us to make simulated trades for the duration of the review. We had access to top management to answer our questions. Brokers not reviewed here may be examined later in the Electronic Investor column. The winner, Schwab, was closely followed

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by direct-access broker Terra Nova and HarrisDirect, a former winner under its previous moniker of CSFBDirect. Also earning four stars are E*Trade, SiebertNet, OptionsXpress, Wall Street Access and Fidelity. Snaring a respectable three and a half stars are Wall Street Electronica, Datek, TD Waterhouse, Interactive Brokers, JB Oxford, Ameritrade Plus (the former National Discount Brokers), Merrill Lynch Direct and Brown & Co. What would it take to get the so-far unobtainable five stars? For starters, clearly written reports updated in real-time, showing current balances, positions, and margin status. Proprietary research, well-organised links to thirdparty research, and great customer service are also musts. We looked for a streamlined order-entry process, minimising or eliminating the number of verification screens by utilising field-by-field checking during data entry, while maximising the amount of data available at the time of the trade. A real-time quote, presented before the order is entered, is essential. Drop-down list boxes, or links to trading screens from a positions report or a research window, eliminating the need to enter ticker symbols, are a major plus. For example, if you select “Sell,” there should be a drop-down box with the ticker symbols of issues in your portfolio, as well as the number of shares currently held, to avoid data-entry errors and inadvertent short sales. We’d like to see an easy-to-read verification screen that is more than an echo of the orderentry screen: spell out the name of the security being traded, and show the total value of the trade, including commission charges. Barron’s readers this year asked, with vigor, for great executions at the best possible price. We looked for smart order-routing technology, which locates the best bid or offer tied to liquidity, and price improvement on limit orders. Our rating system this year penalises brokers that accept payment for order flow or internalise more than 25 per cent of unrouted orders. Once the order is placed, we want to be able to follow its progress. A pop-up notification of a fill earns points, as do real-time holdings and cash or margin-balance updates. Portfolio analysis reports, with links to news and research, as well as transaction history going back at least 90 days (the longer the better), are most desirable. Readers also have emphasised the importance of tracking the tax consequences of each trade. We ranked the brokers in six key areas, awarding or subtracting points in these categories: Trade execution process: Readers tell us to focus on the process of placing and confirming trades, which can’t be ascertained by using a demo. We broke the points awarded down into six sub-categories: • A real-time quote on the trading screen earns half a point. Brokers that display the real-time quote and then force a move to the trading screen got partial credit. • The quality of the trading screen itself was worth two points. A well-organised screen helps the investor avoid data-entry errors, and locates potential problems before they cause expensive errors. • Brokers offering price improvement (sale above the bid price, buy below the offer) for limit orders received half a point. Brokers that have smart-order routing technology in place earned half a point. Brokers that internalise or accept payment for order flow for more than 25 per cent of

Schwab managed to nose in ahead of HarrisDirect and Terra Nova in a close fight for first place

non-directed orders lose half a point. • A pre-filled order entry screen was worth up to one point. We looked for the ability to click on a trading link while viewing a positions report, and have the order entry screen set up for you. A full point went to brokers who filled in the number of shares available in the investor’s account when placing a “sell” order. • Easily accessible order status reports and pop-up confirmations were worth up to half a point. • We executed equity trades during market hours, performing a market buy and a limit sale of a Nasdaq stock. Following the market buy, we evaluated the execution and portfolio reports. After the limit sell, we examined the open-order reports and looked at ways for the trader to follow the progress of the order. We also examined the mutual fund, bond, and options entry screens though we did not place orders there. A five in this category means the order entry and execution process flowed easily from one step to the next, with real-time information available when needed. The availability of price-improvement strategies and smart order-routing technology, and the absence of payment for order flow are necessary to earn a five. We added 25 per cent to this score to emphasise its importance to Barron’s readers. Ease of use: How easy was it to navigate around the site? Does the layout of the site make sense and minimise the number of mouse clicks it takes to get from one place to another? Sites that keep you just a click or two away from any other area get higher rankings than those that require navigation through an online obstacle course. A five in this category means the site is easy to use, well designed, and doesn’t bog down when moving from screen to screen. Range of offerings: We awarded points for investments that can be traded online, with partial points given for those that can be traded with the broker, but only offline. A fraction of a point was awarded for other online investing opportunities, including futures and banking services. A five in this category means you can execute all of these transactions online. Research amenities: This category measures the quality and accessibility of proprietary research, third-party research, quotes and charting. We assigned up to one point for research available only to account holders, also determining whether additional goodies are

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given to those with large accounts. Up to two points were awarded depending on the third-party research available, and how well it was integrated into the brokerage’s site. Two sites might provide the exact same thirdparty research, but the site that ties the research to the account-holder’s positions and watch lists will get a higher score. Quotes and charts earned up to two points also, with the higher rating going to brokers with access to real-time streaming quotes, powerful charting capabilities, and Level II Nasdaq quote accessibility. The highest points in this category went to brokers giving exceptional research and quote services to high-balance holders. Reports and customer access: This category measures the quality of portfolio analysis (up to one point); the quality of tax reports available, including how far into the past the investor’s transaction history is posted (up to one point); the quality and accessibility of realtime balance and position information (up to half-point) and the availability and quality of online and offline help (up to two points). Brokers received half a point for wireless trading access. Online help includes live-chat capability, frequently asked question files, and investor education. Offline help was assessed by making calls to customer service. We added 25 per cent to the score in this category, emphasising what Barron’s readers want to know: How much am I worth, what are the tax consequences of my trades, and what can you do for me right now? Costs: We looked at commissions for stock and options trades, and margin interest rates, assigning higher points to lower costs. We looked at the cost of three round-trip stock trades, assuming one side of the trade was at market and one side was a limit order. Up to three points were awarded for stock commissions. We also looked at the cost of trading 10 options contracts, with one point allocated to this category. Last but not least, up to one point could be earned for lower margin interest rates on balances of US$25,000 and US$50,000. A five in this category could be earned by a broker with commissions of under US$50 total for three round-trips, of under US$42.50 for 10 options contracts and margin interest rates under 5.0 per cent. We reduced the weight of costs in the overall ranking by 50 per cent to reflect the importance of trade quality and service over price. CONTINUES ON PAGE 44

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New E*Trade site easier to use, and more elegant FROM PAGE 43

Schwab’s website squeaked into the lead by having a wide range of offerings, and by upgrading both research amenities and reporting. Accounts with over US$100,000 can use the Velocity trading screens, which allow investors to place trades in multiple accounts simultaneously, as well as access to streaming news and quotes. Traders with over 120 transactions a year can use StreetSmart Pro, which is essentially the CyberBroker direct-access software. Schwab has continued to quietly upgrade its research and planning tools, and the site now allows you to generate reports by typing your commands in plain English, such as “Compare IBM to HWP”. You can customise the report further by asking for specific information such as analyst ratings or price-earnings ratios, all in English. Another personalised service is MyResearch Report, which allows users to customise the data they want to see when they’re researching a particular stock. In the past, the Schwab planning tools forced the user to add manually the items held in the portfolio, but now the Retirement Planner and Asset Allocator read directly from the holdings list. “Our opinion on research is that more choices are better,” says Schwab spokeswoman Sondra Harris. “We try to offer thirdparty independent analysis, and also offer up sell side/buy side analysis. Our lists will contain as many sells as buys.” Options traders can take advantage of the recently rolled-out OptionStreet, where they’ll find options strategies, then be able to build, price and place orders, all in one spot. The centrepiece of the site is Option Builder, an advanced trading tool that helps clients create, price and place spread and straddle orders. OptionStreet offers simplified trading screens, expanded trading tools, potential price improvement on certain multi-leg trades, educational content and other resources. Schwab’s trade execution rating is lowered by the points we deducted for internalising such a high percentage of non-directed orders. For most investors, the commissions are on the high side, but frequent traders can get discounts. Tied for second place, a mere 0.1 points behind Schwab, are Terra Nova and HarrisDirect, two very different brokers. HarrisDirect is a good site for the one-stop shopper, with a wide range of offerings and good research and reports. HarrisDirect has been working hard on tools that appeal to long-term investors rather than frequent traders. Harris’ point total dropped a bit from last year due to its lack of smart order-routing technology, but its president, Bruce Schwenger notes, “because a lot of our customers are new to do-it-yourself investing, we’ve put in an investment education centre to help our clients learn more about putting their money to work”. Terra Nova, a direct-access brokerage that uses the RealTick trading platform, serves up terrific executions and a wide range of offerings, including futures. The cost per trade also is on the low side. The company purchased MarketWise, a day-trading education centre, and encourages all its customers to travel to its Denver office to learn how to best use the software. RealTick allows the user to place trailing stop-loss orders, conditional orders, and multiple orders simultaneously. You can define a series of conditions, such as a move in the S&P index futures, and then have an order enter automatically when those conditions are met. E*Trade moves into third place, based mostly on the way it has integrated third-party research and charting with customer holdings and watch lists. We continue to receive complaints about the handling of margin calls at E*Trade, but its real-time balance updates are designed to keep traders advised; those trad-

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ing on margin need to keep a close eye on their balances. The new E*Trade site, rolled out in midFebruary, is easier to use and more elegantly designed than its predecessor. MarketCaster, which brings account holders streaming news and quotes, has one-click access to trading functionality as well as charting and other research offerings. MarketCaster allows you to personalise your reports as well. If you qualify for Power E*Trade Pro — direct-access software licensed from AB Watley — you can also choose how your order is routed. E*Trade added basket trading this year. We’d still like to see E*Trade’s telephone support improved. Our next four-star broker is SiebertNet, which also underwent a recent overhaul. We were treated to a preview of the new site, which

and quickly identifies stocks and options that fulfill those criteria. Another key tool is the Option Pricer, which displays the theoretical price of an option based on specific user-defined parameters, such as estimated volatility and the interest rate. Using the Pricer, you can determine whether a specific option is underpriced or overpriced given your parameters. It’s a slick tool. The focus at Wall Street Access is sophisticated, high-end investors with multiple accounts. You can trade options in your individual retirement account (IRA) here, and in a nod to one-stop shoppers, the site recently added fixedincome investing and unit investment trusts. A proprietary options-chain lookup feature lets you filter on “in the money”, “near the money” and “out of the money” possibilities.

These sites earned a respectable three-and-a-half to four star rating in Barron’s ranking exercise

is rolling out after our press time. Dynamic Trader, a Java applet that pops up over your browser window, is a customisable service with numerous tools for single-screen trading: streaming real-time quotes, streaming real-time major market indexes, instant links to the Portfolio Watch feature, and one-click access to trading. There are instant links popping separate windows for company profiles, news, individual real-time quotes, charts, market statistics, alerts and alert history, order status, option chains, real-time positions and balances, and nearly three years of history and account detail. Large-account holders can deal directly with the company to negotiate commissions and margin rates. If you’re interested in options — as a burgeoning number of Barron’s readers tell us they are — check out our next four-star brokers, OptionsXpress and Wall Street Access. OptionsXpress will appeal to online traders who have outgrown their existing broker’s options capabilities. The order-entry screens are set up specifically for particular options strategies, and go far beyond those we’ve seen on other online broker sites. While viewing options chains, which include call and put volume as well as total open interest, you can click on a “buy” or “sell” link that takes you directly to an order-entry screen. The Options Dragon lets you pick a particular screening strategy,

Wall Street Access’ quotes are “industrial strength”, says the company’s president, Eric Alexander. “We have found that our customers appreciate looking at the same quotes our professional traders are using.” The risk analyser on the site uses RiskMetrics to determine the overall portfolio risk characteristics. Wall Street Access is not for novices or small fry, but it’s worth checking if you’re ready to step up from a basic online broker. Also receiving four stars is Fidelity, which added fixed-income offerings to its online products recently. The site is undergoing constant yet subtle tweaking, and the designers are doing a good job of eliminating the convoluted keystroke sequences that plagued it in the past. One welcome enhancement is tax-lot accounting for individual securities, allowing customers to designate which lot is to be sold when there have been multiple purchases. Another improvement is the ability to place stop-loss orders on options. Fidelity is changing the commission schedules and adding the capability for customer to have a “relationship household” which includes 401(k) holdings. The total size of all accounts held at Fidelity determines your commission schedule. This next group of eight brokers earned three and a half stars. Each has a particular strength, but also lacks one or two offferings that keep it out of the top tier. If you don’t

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need everything in one place, or have a particular investing style, one of these brokers may serve you well. Wall Street Electronica, which is positioning itself as a full-service online brokerage, offers three levels of service, depending on how much personal assistance you’d like. “Everything has been organised to prevent financial content overload for the client,” says president Carlos Otalvaro, commenting on the site design. The first page displayed when you log into your WallStreetE account is Moneyline, which presents real-time balances and alerts customers to potential margin calls immediately. One area where WallStreetE stands out is options order entry. Spreads are automated; you can execute both parts of the transaction on the same screen. You can also trade naked puts and calls, and trade options on margin. The “buy” and “sell” buttons on the Holdings display automatically trigger an order-entry ticket, which is a welcome touch. Datek moved up the chart this year, having improved the site design and gained points in the “ease of use” category. The site’s core strengths are its tools for active traders. “We still appeal to the active person who is looking for fast execution,” Datek’s Mike Dunn notes. A recent cut in options commissions, to US$9.99 plus US$1.25 per contract, added half a point to the Costs rating. The Streamer, which displays news and quotes and a trading screen, also displays the last sale, so you can watch your order go through. Datek expects to add pop-up order confirmations in the near future. TD Waterhouse added a “Premier Select” account this year, which is available to their more active customers. When logging in, you have to click on a drop-down box that lets you pick “Premier”, where you’ll find the Waterhouse “trading cockpit”. The cockpit presents a wealth of information on one page: market summaries, an order entry screen, account balances and quotes for items in portfolios. Active customers get streaming news and real-time quotes. Higher net-worth customers who are not eligible for active trader goodies, however, get portfolio holdings only and delayed quotes. They expect additional improvements to their trading capabilities as they add features from recently acquired RJT.com. Interactive Brokers (IB), another direct-access brokerage, also earned three and a half stars. Laura Schueneman, IB’s vice-president of operations, tells Barron’s that their customers want low commissions, direct access and best execution — and don’t care about mutual funds or bonds. “We focus on the actual trade process instead of focusing on making the interface everything to everyone,” she says. Among the features offered by IB is a multicurrency account, allowing customers to fund an account in one currency and trade in four or five others. IB has opened up their application program interface (API), allowing their tech-savvy customers to program their own front-ends in Excel, Visual Basic or Java. JB Oxford, which has been on a buying spree recently, is also on a site-redesign spree. Just in time for this review, the broker added mutual fund trading online. It’s switched to a horizontal navigation system so you can get everywhere on the site in two clicks. Account balances and buying power are now updated in real time, and JB Oxford’s upgrading its portfolio module, which will be integrated with the trading system. Quotes and research listings sport a “Trade Now” button, which automatically enters an order ticket. Ameritrade Plus is the new incarnation of National Discount Brokers, and its point total has dropped somewhat as some services and online offerings have disappeared in the transition. The site navigation is similar, and the CONTINUES NEXT PAGE

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The perfect recovery Research group ISI says the economy is far stronger than most people think | BY SANDRA WARD |

n the summer and fall of 2000, when everyone else fretted about inflation and interest-rate hikes, economists at the International Strategy and Investment Group (ISI) sensed a shift in the wind and took a different tack. The firm warned clients of a coming slowdown in corporate profits and a downturn in the global economy that would be more severe and longer lasting than anyone then imagined. They called it the “perfect storm”, and they were right. This past autumn, with the US reeling from terrorist attacks and outlooks for global economies at their grimmest, Ed Hyman and Nancy Lazar again saw the world differently. The worst was over, they said. The economy was likely to touch bottom in the fourth quarter and a recovery was getting under way. US gross domestic product (GDP) was going to be stronger than expected, their research showed. At the time, they forecast GDP growth of 3.5 to 4.0 per cent for this year. The surge in the stock market in October and November was a “classic end-of-recession” rally. They forecast the “perfect recovery”. They appear to have been right again. ISI is renowned for uncompromising and comprehensive research, which includes a series of proprietary weekly surveys of industries, ranging from housing to autos to capital goods. The firm’s work is always timely and uncannily accurate. It is the reason Hyman, who hired Lazar in 1981 when he was at CJ Lawrence, has been ranked the No 1 economist in each of the past 22 years in a poll of money managers conducted by Institutional Investor magazine. Hyman and Lazar founded ISI in 1991. A staff of 12 has since grown to more than 60.

“We’re big fans,” says Charles McCurdy, a portfolio manager at Veredus Asset Management of Louisville, with US$1.2 billion in assets. “Their greatest advantage is they’re willing to call things as they see them. They take a dispassionate approach.” “If you have Ed Hyman, what else do you need?” reflects Hersh Cohen of Citigroup Asset Management and manager of the Smith Barney Appreciation Fund. “He is the best.” As is typical, Hyman was on the road meeting clients last week, leaving Barron’s to chat with his partner, Lazar. The “diminutive but dynamic” economist, a label assigned to her years ago by a wag at a New York tabloid, credits ISI’s enormous emphasis on research for much of the firm’s success. “We look at a lot of data. We have a great research staff. We talk to our clients a lot and see what they’re looking at. We spend a lot of time looking at charts. We try to have some ideas of what will help create big swings in the economy. Those things can change. We try not to be married to an idea.” Lazar notes that the firm’s weekly surveys are particularly useful when it comes to identifying a turning point. “Our surveys tell us where we are,” she says. “They don’t tell us where we are going. Someone once told me, if you can figure out where you are, that’s more than half the battle.” Now, nearly six months after ISI made its bold call for a perfect recovery, it’s forecasting an even more perfect recovery. A stronger, longer recovery. The aggressive easing of interest rates by the Federal Reserve, especially following the events of Sept 11, a big drop in energy prices in the last year and massive inventory reductions are leading indicators that point to GDP growth of 6.0 per cent this year.

The recovery will be stronger than that of 1991, according to ISI, because historically the pace of the recovery is proportional to decline in G7 rates. G7 rates declined 11 per cent prior to 1991’s rebound; they fell 48 per cent prior to the current snapback in the economy. Importantly, the recovery is happening around the globe, lifting Europe, Brazil, and even Japan. Concerned, however, that any number of risk factors — from trade wars to consumer debt to a shortfall in corporate profits — could undermine such heady growth, ISI is conservatively forecasting real GDP growth of 4.0 per cent. But the bias in the forecast is a positive one. “What seems to be happening is that the recovery is sprouting more legs,” Lazar says as she leans across a conference table in the firm’s midtown Manhattan office to riffle through a fat handout filled with ISI’s signature charts and models and scrawlings. “For the first quarter, the demand side is turning out to be more stable and stronger than we expected. Consumer spending looked like it was going to be about 2.0 per cent, but at least in the first quarter, is going to be closer to 3.0 per cent. Capital spending looked like it was going to decline about 2.0 per cent, and now it looks like it will probably be up 2.0 per cent, maybe even 5.0 per cent.” There is also early evidence the credit crunch may be easing. In the first week of March, issuance of commercial paper rose by US$10 billion; ISI’s bank business loan demand survey showed increases for the second week in a row, and corporate bond yields declined. Promising signs, but still too soon to declare a trend. Lazar blithely dismisses fears of a “dou-

ble-dip” recession occurring in the second half, relying on history as a guide: There’s never been a double dip in the first year of a recovery. There’s never been a down quarter in the first year of a recovery, based on 1954, 1958, 1961, 1971, 1975, 1983 and 1991. On the inflation front, the firm’s outlook couldn’t be more sanguine. ISI is forecasting zero inflation for the year. Not only will growth be stronger than expected, inflation will be lower than expected. Excess capacity and a boost in productivity will keep inflation low, though ISI is predicting the Federal Reserve will raise interest rates by 50 basis points in the fourth quarter. The better inflation news should take the pressure off the bond market. “We think this is a temporary selloff in bonds, and bond yields are likely to be lower as we go into the second and third quarters,” says Lazar. This should also be a good environment for stocks. ISI forecasts a 30 per cent rise in S&P 500 operating earnings this year, to US$50. Admittedly, price-earnings ratios are high, but lower inflation will support higher multiples. ISI expects the market to trade in a 10 per cent range this year. One unknown: the performance of the dollar. ISI’s optimistic outlook on inflation is based on the dollar’s strength now. And if foreign markets were to outperform the US in this synchronised global recovery, it could lead to weakness in the dollar. ISI, of course, has its radar out for any such signals. Indeed, Lazar notes that the S&P 500 will likely indicate any coming plunge in the dollar if its performance begins to trail that of foreign markets. And if that happens all bets for a perfect recovery could be off. — 2002 E Dow Jones & Co, Inc

Fills or frills, online trading is here to stay FROM PREVIOUS PAGE

fees remain the same. Portfolio analysis and tax-lot accounting are performed through an add-on service, GainsKeeper, which involves an additional fee. Merrill Lynch Direct maintains its three-and-a-half-star ranking, mainly through the strength of its research offerings. The Merrill Lynch goal is to help clients develop an investing strategy, so its tools and research offerings are focused on long-term strategies and asset allocation. Merrill doesn’t plan to go in for streaming tools or Level II quote displays, opting instead for information about setting goals, investment types, understanding risk, financial planning — and why you might need a professional to help with some of this. Inexplicably, custom portfolio analysis requires the user to enter holdings manually into a separate area of the site, which seems very awkward. Newly redesigned Brown & Co’s site will soon become the home for Dreyfus Brokerage’s clients as soon as its February takeover is finalised. Brown features low commissions and margin-interest rates, and the updated site is easier to navigate. Using the MarketBrowser feature,

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you can view real-time intraday activity, or price history for the last 24 months, on up to 12 stocks simultaneously; a click on the “Trade” button takes you straight to a trading screen from there. In years past, three stars wasn’t a terrible score. Brokerages that consistently ranked lower than that have either significantly upgraded their websites and services, or, like Elvis, have left the building. The six brokers who follow run the range from one-stop shopping sites to direct access to low cost, but they share similar shortcomings: loosely integrated research amenities, and weakerthan-average reporting. CyberTrader, a subsidiary of Schwab, earns higher scores when it’s reviewed under its PowerStreetPro incarnation, only because there it shares Schwab’s range of offerings. On its own, CyberTrader offers a strong direct-access trading interface, but its research offerings beyond charts and quotes are limited. Ameritrade has been through a corporate remodelling process in the last year, but its standard website maintains the same look and feel in spite of numerous additions. Two nicely designed research products, Super

Stream Machine and Advanced Analyzer, are add-on subscriptions that cost US$100 to US$315 per year. Overall commission rates are low, though, so you don’t have to pay for what you don’t use. You can get a feel for the Ameritrade services by playing the Ameritrade Investors Cup, a stock-picking game that awards a US$2,500 portfolio to the winner. Ameritrade Pro, formerly known as TradeCast, also earns three stars, mainly due to its limited range of offerings (no options online, no mutual funds), lack of real-time portfolio reporting and steep software learning curve. Its direct-access services for stock trading are well designed, however, and we expect Pro’s offerings to improve over the next year. Mr Stock, aimed mostly at options investors, keeps you well informed as your trade is being executed. Complex option strategies are automated (spreads, straddles, strangles, combos, collars, butterflies) and realtime changes are immediately reflected on the Positions screen. You won’t find mutual funds or bonds here, and there’s little help at tax time. Trading costs are low, which may make up for the lack of gainand-loss data.

The MSDW Online site has a neglected feel to it; there’s been little change here since its glory days as Discover Brokerage. You can trade a wide range of equities here, including the Blue Chip Basket, and with some digging you’ll find some Morgan Stanley research, but it’s obvious that the parent company is focusing its attention elsewhere. BrokerageAmerica, a newcomer to the online trading scene, has the lowest commissions of all the brokers studied — free for market orders of 100 shares or more. The site is simple and easy to use, but you don’t get what you don’t pay for: research and reporting are limited. The site is being remodelled. It will add Morningstar and Zack’s research soon, but will eliminate the services from B4Utrade.com. Where is the industry headed this year? Gomez Advisors brokerage group manager Dan Burke notes a trend toward direct-access technology. “Brokers want to keep their frequently trading customers — it’s the next level and you’ve got to keep delivering the goods,” he says. “This is similar to the transition that a few years ago went from delayed quotes, to real time and

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then to streaming. You’ve got to keep those active traders and you have to keep raising the bar.” Comments Amy Butte, who covered brokers for Bear Stearns before joining CSFB last week as the chief strategist and CFO of its financial services division: “This business segment is likely to undergo rapid changes in the years ahead as it adapts to current market condition, new regulations and the competitive pressures wrought by ongoing consolidation.” We’d like to see continuing improvement in portfolio analysis reports, especially when it comes to eliminating data-entry chores and providing better tax summaries. We expect the trends toward smart order routing and customer-directed orders to continue, with the more sophisticated online investors demanding best execution. Online trading is here to stay, and as investors focus on their strengths and interests, they’ll want to work with brokerages that can serve them best. Fills or frills? Both have their appeal, and the savvy broker will define a target market, and fulfill its needs. — 2002, Dow E Jones & Co Inc

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PERSONAL FINANCE

Stronger economic growth figures likely FROM PAGE 21

So, what does Singapore have to offer by way of big cap stocks? Basically, banks, property companies, the national airline Singapore Airlines (SIA) and national telecommunications company Singapore Telecommunications (SingTel). Most analysts and fund managers are upbeat on United Overseas Bank (UOB) and SIA. Young of Aberdeen describes SIA as “a global champion — one of the best airlines in the world”, but S&P’s Matthews says that “if there is indeed a restructuring of Malaysia Inc going on as I suspect there is, SIA probably could face [cut-throat] competitive pressure from Malaysia Airlines as it continues to battle with the likes of Hong Kong’s Cathay Pacific for business in the region. Overall, SIA has a very strong brand name, and outside of the Malaysia Airlines competitive threat, SIA seems fine”. Among banks, Young likes UOB as it is “run by the toughest, most hands-on banker in Singapore”. Matthews of S&P describes UOB as “possibly the best bank in Asia” and he is “fully confident in its ability to grow at home and in markets close to home”. DBS and SingTel stocks, however, have fewer fans at current prices. Young thinks both have made expensive regional acquisitions and while it seems that the benefits have yet to flow through, the moves could yet prove costly. Matthews, on the other hand, likes SingTel, saying beyond integration of Optus, “all the pieces are now in place for it to be a regional telco, which does make good sense as a business model”. But he says he isn’t quite sure about DBS’ “regional bank” business model strategy. “I just don’t see a lot of synergies between

banking in Seoul, for example, and banking in Jakarta. A global bank is something different. But that, as far as I can tell, is not what they are aspiring to be,” he says. Whatever foreign investors may think of some of Singapore’s large cap stocks, the consensus is that Singapore companies are fairly well regulated and investors generally get what they see. Many fund managers talk about a key distinguishing feature of the local market — a

Whatever foreign investors may think of some of Singapore’s large cap stocks, the consensus is that Singapore companies are fairly well regulated and investors generally get what they see. high proportion of government-linked corporations (GLC). Over half of the market capitalisation of the top 50 companies is made up by GLCs. Most are fairly well managed, but don’t have as high a returns-on-equity as some of its entrepreneurial Taiwanese or Hong Kong counterparts. What else does Singapore have to offer investors as US recovery gathers momentum?

UOB 14000

Venture

Volume ('000)

Price (S$) 14.6 14.0

12000

Volume ('000)

18000 16000

gap is at 1755, a level that is unlikely to be covered. For the weekly ST Assembly (Chart B), prices broke out of a reverse head-and-shoulder with a breakaway gap, the top of which is at S$2.55. In the case of Venture’s daily chart (Chart C), the breakaway gap occurred after a sideways consolidation. The top of the gap at S$16.10, where most transactions took place, is unlikely to be violated. In contrast to breakaway gaps, “exhaustion gaps” mark the end of a trend. Exhaustion gaps are quickly covered — usually within two to five trading sessions — making them readily distinguishable from breakaway gaps, which are rarely covered, and the runaway or continuation gap, which are covered in the next major market swing. The closing of an exhaustion gap means that the trend has run out, be it major or intermediate. For instance at the point eg of the STI’s daily movement on Chart D late last year, the gap was followed by a bullish engulfing pattern and covered in three days, signalling the halt or, at the very least, a pause in the decline. In this case, and in retrospect, it signalled the end of the secular downtrend. In the case of eg on Keppel Corp’s daily price chart (see Chart E), the exhaustion gap signalled the end of an intermediate move. For added perspective, check the

Scap_46_S4.p65

chart against time cycles. If the gap occurs after a long campaign, and it is quickly covered while indicators have peaked and turned down, then the gap is an exhaustion gap. Continuation gaps, sometimes called measuring or runaway gaps, occur after a breakaway gap and during any accelerated trend. They are less frequent in appearance, but provide a rough indication of the extent of the subsequent move, hence the name, measuring gap. During a market move, volume tends to jump on the initial breakout (breakaway), then taper off towards the middle of the advance before leaping substantially. This is when the continuation gap makes its appearance — at the runaway stage, before the move ends. They are wide, while market quotations move rapidly and volume expands. This phenomenon tends to occur at the halfway point between the breakout that started the move and the reversal that will end it. In Elliott terms, the gap occurs during the third of the third. In “Gann” language, the runaway takes place in the second section in the direction of the main trend of a campaign. Although these gaps are easy to identify after the event, they can be recognisable during the move as well. A gap not associated with a reversal formation or a consolidation range will be a continuation gap. Continua-

20.0 18.0

14000 16.0

10000

13.0

8000

12.0

10000

14.0

6000

11.0

8000

12.0

4000

10.0

2000

9.0

2000

8.0

March 22, 2001

6000

10.0

4000 8.0 6.0

March 22, 2002

March 22, 2001

SIA 14000

12000

March 22, 2002

SingTel

Volume (‘000)

Price (S$)

12000 10000

2.4

13.0

600

2.2

500

2.0

400

1.8

10.0

300

1.61

8.0

200

1.4

7.0

100

1.2

6.0

9.0

4000 2000 0

March 22, 2001

March 22, 2002

Looking at the market in the near term, some positive news flow could come in the form of stronger economic growth figures for the current year, especially if technology exports surprise on the upside, says Song Seng Wun of brokerage GK Goh. Indeed, the government has upgraded its projected gross domestic product growth for this year slightly to 3.5 per cent, a positive sign that the economy is coming out

tion gaps are usually not covered for a considerable length of time, until perhaps during the next swing of Primary or Intermediate proportion. See rg on Charts D and F. The least significant type of gap in technical analysis is the common or area gap. This usually occurs within a trading range or congestion area, usually during a consolidation within a trend rather than a reversal. Within a range in an uptrend, prices tend to congregate around support levels and, vice versa, in downtrends prices tend to hover around resistances in a congestion. A flurry of trading activity at this point could result in a gap. The forecasting ability of a pattern gap is virtually nil. But, when it materialises, the congestion area is more likely to be a continuation of the trend rather than a reversal. They are usually closed within a short period (see cg on Chart D). In some instances, however, a gap will occur in the last traverse of prices across a pattern area just before a breakout (see gt on Chart D). In such cases, the gap is not closed for a long time. This is sometimes called E a gap of last traverse.

Chart E

Chart F

Glossary bg — breakaway gap rg — runaway gap eg — exhaustion gap gt — gap of last traverse

3/22/02, 11:55 AM

2.6

700

11.0

6000

Price (S$)

800

12.0

8000

Volume (mil)

15.0 14.5 14.0

1.0

March 22, 2001

March 22, 2002

of the doldrums, says Gary Pieters of Optimix OUB Funds. More important, Song of GK Goh says, are the expected government cost-cutting measures in the upcoming budget next month, which should see companies enjoying savings above the line. That would translate into stronger earnings and make the market even more attractive. For investors, it could be a E fairly profitable, if slightly bumpy, ride.

Continuation gaps rough indicator of extent of next move FROM PAGE 28

Price (S$)

HIGHLIGHT

Klang Valley hotel rates may rise due to improved economy PG50

THE PROPERTY EDGE

CHINA SQUARE CENTRAL

THEEDGE SINGAPORE | THE WEEK OF MARCH 25 — MARCH 31, 2002

The Straits Trading Company is the first to get into the private Soho market, with its China Square Central development

Work and live in Soho Government takes lead on home offices | BY JOYCE TEO |

espite the dotcom crash early last year, the world still very much revolves around information technology (IT). In fact, IT start-ups, albeit now in more controllable numbers, were the catalyst for small office and home office (Soho) schemes and development in Singapore. With long hours, hard work and limited capital being the norm for IT start-ups, the idea of a place where one can combine work and live naturally came about. Working from home saves commuting time and more importantly, start-up costs. And to a young entrepreneur, this may be his best option. The whole process of striking out on his own can be considerably quickened, as he won’t have to spend time sourcing for the cheapest and smallest office space, for example. Also, foreign firms will likely find home offices an attractive option as they can save on leasing separate residential and office space for their expatriates. To foster and facilitate the entrepreneurial spirit here, the Singapore government took the lead in allowing homes to operate as offices. But now, private companies are also getting into the home office market.

fice can be used as an office and electricity consumption cannot exceed the normal residential load. In essence, technopreneurs will be allowed to use their homes as offices as long as the character, ambience and environment of the residential estate are preserved, says the EDB. Their business activities must not generate noise, smoke, odour or dust that could become a nuisance or induce extraneous human or vehicular traffic to the surrounding neighbourhood, it adds. According to the EDB, more Singaporeans are setting up businesses under the THO scheme. The cumulative number of approved THO scheme applicants rose 59 per cent from 208 in 2000 to 331 last year. Out of the 331 successful applicants, 66 were non-HDB flat owners. As at December 2001, some 450 parties had applied for the THO scheme. Some approved THO applicants have sought an extension, which is for another calendar year, and almost all of them have been granted an extension, says the EDB. “The THO is a relatively new scheme and is hence expected to continue in its present format for the foreseeable future. It, too, will be reviewed in due course,” says the EDB.

URA fills the gap So what happens to entrepreneurs who aren’t into IT? To cater to them, the Urban Redevelopment Authority (URA) launched a pilot home office scheme last November in five areas that are open to all industries. The URA says the scheme aims to give small-scale businesses the flexibility and option to work from home. So far, it has received over 50 queries on the scheme and three applications. The URA basically identified five mixeduse land areas — Roberts Lane; Beach Road; Lavender Street; Mohamad Sultan Road and Club Street/Cross Street — where over 700 shophouse units can be converted into offices. Up to six employees are allowed in each home-office unit, which should not exceed 200 sq m. Like THO, the URA’s home-office scheme caters mainly to residential use. Interested parties pay S$1,236 to apply to use their homes as home offices for a period of three years. If they don’t own the homes, they can seek their landlord’s permission to convert the place into offices, though that could lead to higher rentals! The URA says it will review the scheme two years from the launch. If there is sufficient demand and no negative impact on

neighbours or the residential neighbourhood, it will look at carving out other mixed-use areas to be approved for use as Sohos and extending the term of the renewed permit, among other things. Setting up shop under under THO or in any of the five URA designated areas means one will be working from home. While this may be comfortable, it could also mean more distractions such as children running around.

The New Economy icon Home office enthusiasts, if they can wait, will be able to get a better environment at One North, the latest government project that professes to be a “city within a city”, or a selfcontained point for research and development and technopreneurial activities. There will be shops, restaurants and entertainment facilities. According to master developer JTC Corporation, the first batch of Soho called “work lofts”, likely totalling 200 to 300 units, will be located at Central Xchange. Plans are still being finalised but the work lofts are expected to be around 50 sq m in size and operational by end2004. Prior to that, JTC is looking at converting existing old houses into work loft units. CONTINUES ON PAGE 48 FAR EAST ORGANISATION

Technopreneurs get all the attention Singapore’s first home office project was the government’s Technopreneur Home Office Scheme (THO) that was launched on July 5, 1999. It enables start-ups in technology-based and knowledge-intensive businesses to use their homes, be it HDB flats or private property, as home offices. The scheme came under the Singapore government’s Technopreneurship 21 (T21) programme, an initiative to facilitate the development of a technology entrepreneurship sector. Eligible parties are either a firm (for instance, sole proprietorships or partnerships) or an unlisted private company registered in Singapore and more than 50 per cent equityowned by Singapore citizens or Singapore permanent residents. Application is free and upon approval by the Economic and Development Board (EDB), the technopreneur can use his home as a home office for a year. But he will have to continue to use his home office primarily for residential purposes. That means only part of the home of-

Scc_47n48_S4.p65

Transport hub at Central

Central has two towers of Soho units

he Singapore River will soon have a new development called Central. Located next to the river, the development will be the first commercial building in Singapore to offer not one, but five, transportation modes. Far East Organisation, the largest private property developer in Singapore, plans to have a privately developed transport hub at the basement level of the development, which sits on 150,000 sq ft of land. Far East says the size of the hub isn’t confirmed yet. At the hub, commuters can choose to take the mass rapid transit (MRT) from the underground Singapore River MRT station, hop on a shuttle bus at the terminal, wait for a cab at the taxi stand, take a public bus or cruise along in a river taxi. Central will have a 25-storey office tower, a four-level shopping mall with food and beverage outlets and two towers of small office and home office (Soho) units. Apart from waterfront restaurants, there will also be facilities such as a gymnasium, an Olympic-sized pool, a roof garden and a tennis court.

Far East expects to complete Central in 2005 and is planning to launch the 99-year leasehold project in the third quarter of the year. The Urban Redevelopment Authority has designated the Central development as a landmark site. As the designation was announced after the land sale, it didn’t bring any significant changes to the development. — By Joyce Teo

3/21/02, 6:09 AM

48 • THEEDGE SINGAPORE

| MARCH 25, 2002

CITY & COUNTRY

Seeing black and white High-rent colonial bungalows popular with expatriate community CHU JUCK SENG/THE EDGE SINGAPORE

| BY JOYCE TEO |

ecause of land constraints, a bungalow in Singapore is already an uncommon sight, let alone a black-andwhite bungalow. With their white plasterwork and timbering painted black, they certainly stand out from the modern homes here. These bungalows, which are mostly for rent only, are sought after for their colonial-style architecture and large compound. Typically located in prime districts, they are very popular with expatriates. There are some privately owned black-andwhite houses and 320 state-owned ones, of which the Singapore Land Authority is the custodian.

What’s the history?

Black-and-white houses are sought after for their colonial-style architecture and spacious compound

Prime examples of local architecture, Singapore’s black-and-white bungalows are actually a cross between an English Tudor cottage and a Malay kampung house. Built using half timber construction with a symmetrical layout that has three bays across the front, they are characterised by a broad, simple, overhanging hipped roof and the sharp definition of openings in the plain white walls. The verandah can stretch along the front and sides. These bungalows were mostly built during 1900 to the 1930s to ca-

ter to senior British civil servants. This explains the mock Tudor style as the houses provided a nostalgic reminder of home. Black and white timber/plaster construction was a popular style of building during the reign of the Tudors (1485-1603). A number of preserved Tudor buildings still exist in Stratford-upon-Avon in England. In Singapore, the black-andwhite houses, which can have one or two storeys, were adapted to suit the tropical climate. They thus pro-

vide invaluable insight into the essence of tropical living. Bungalows are independent dwelling units that are usually one or two storeys high and tend to be located in a serene environment.

Paying a price for history and space Rentals for black-and-white bungalows vary widely. Depending on the size of the bungalow and the location, monthly rentals can range from a reasonable S$4,000 to a high of

S$26,000. According to the Singapore Land Authority, the land area of the bungalows ranges from about 2,000 sq m to 47,000 sq m while the built-up floor area varies from about 150 sq m to 1,900 sq m. Most of the black-and-white bungalows are located in areas such as Goodwood Hill, Malcolm Road/Park, Tanglin, Adam Road/ Park, Nassim Road, Mount Pleasant, Buona Vista, Alexandra Park and Mount Faber. For such old houses, mainte-

nance work is inevitable and can prove to be quite a burden. But for those renting the state-owned houses, Singapore Land Authority’s two managing agents carry out maintenance throughout the year. The agents, Premas International Ltd and DTZ Debenham Tie Leung, are paid an agency fee for the management and maintenance of the properties. DTZ Debenham Tie Leung manages more than 100 blackand-white houses, all of which are occupied. Premas International manages more and has pumped in money to renovate several bungalows along Mount Pleasant road. There are more expatriates than locals living in these homes. One reason for this could be that locals are put off by the high rentals. The Singapore Land Authority says about 20 per cent of its blackand-white bungalows are let out to locals, with the remaining to foreigners. Most of the large bungalows in Singapore, including the black-andwhites, were built prior to World War II and constitute a significant part of Singapore’s heritage. But the pressure of rapid urbanisation has led to many of them being demolished. Fortunately, Singapore’s national conservation authority, the Urban Redevelopment Authority, has singled out 19 privately owned blackand-white bungalows to be gazetted E as conservation buildings.

New concept at China Square In the meantime, private developers are set to fill the gap with their 99-year developments. The Straits Trading Company is the first to get into the private Soho market with its China Square Central development, which aims to be a community with live/work spaces, as it prefers to call them. It is converting rows of old shophouses into live/work units, offices, shops and restaurants. The live/work units vary from as small as 28 sq m to 93 sq m. Because it is converting a whole row of shophouses into live/work units or offices, it is able to create common corridors, thus fostering an officelike environment. While the environment is conducive for work and sharing of ideas, it means tenants will have to get used to staying in an office environment. However, the live/work development’s winning points are its almost zero restrictions on the type of businesses carried out, number of employees in each unit and lease period, says Fidelis Kong, vice-president (property marketing) at Straits Development Private Ltd, which is marketing the China Square Central development.

Scc_47n48_S4.p65

TRA CEN ARE SQU

If a tenant wants to rent space for a short period lest his business doesn’t work out, he may do so for a lease term of as short as six months, says Kong (“We are flexible.”). The typical office lease term is three years while a typical residential lease term is one to two years. Another developer, Far East Organisation, is building Soho units in its mixed-use development called Central situated along the Singapore River and above an MRT station. Unlike the China Square live/work units, the 235 Soho units at Central are housed in buildings and are only for sale. Two tower blocks will house the Soho units, which will range from 54 sq m to 111.5 sq m, though the bulk will be 54 sq m. The units will have home finishes. Far East Organisation says the good response to their serviced offices at Central Square encouraged it to build Soho units. They see small offices as being very popular with accountants, lawyers and consultants as well as start-ups in the IT and creative fields and aim to provide the same group of businesses with a viable alternative. They say the Soho concept caters to a new way of working and ties in with the government’s effort to promote the entrepreneurial spirit among Singaporeans. Indeed, the government is continuing with its THO scheme. According to the EDB, the government’s intent of relaxing the rules for business operations from home is to send out a strong signal that it is willing to change longstanding rules and regulations to make it easier E for businesses to start up.

Located at Buona Vista, the S$15 billion One North will have three clusters: Life Xchange for organisations in the biomedical science field; Xchange Square for financial and business services and Central Xchange for the infocomm technology and media industries. All these will be developed over 15 to 20 years.

CHI

FROM PAGE 47

Different kind of community living

China Square Central offers flexible leases for its live/work units

Where can you work, live and play? Where? Any residential property One North at Buona Vista

Who’s behind it? Government Government

Who will qualify? Technopreneurs R&D and technopreneurial activities

URA’s 5 designated areas China Square Central shophouses Central development along the Singapore River

Government Straits Trading Company Far East Organisation

Any industry Any industry

3/21/02, 6:09 AM

Any industry

When can you start? Now Work lofts for infocomm and media industries ready by end-2004. Entire One North to be completed in 15 to 20 years. Now To be launched this month To be launched in the third quarter of this year

50 • THEEDGE SINGAPORE

| MARCH 25, 2002

HARIS HASSAN/THE EDGE MALAYSIA

CITY & COUNTRY

Healthier economy may push hotel rates up Survival of subsector in Malaysia depends on marketing and promotions | From SREEREMA BANOO in Kuala Lumpur |

he Klang Valley hotel subsector in Malaysia, which is recovering from last year’s Sept 11 attacks in the US, expects to sees better times ahead. With hotel room supply not expected to grow this year and the improving economy, the shortterm outlook appears optimistic. As the industry recovers from the shock of the terrorist attacks that floored global travel, property consultants see Malaysia as still one of the cheapest and safest business and leisure destinations. Since the regional economic and financial crisis in 1997, average room rates of hotels in the Kuala Lumpur city (KLC) area have been slashed by about half, says Shangri-La Hotel Kuala Lumpur general manager Michael Cottan. He attributes the drastic drop in the rates to the devaluation of the ringgit and its subsequent peg of RM3.80 to the US dollar. The last quarter of last year again witnessed average room rates dipping. The DTZ Research (the research arm of DTZ Debenham Tie Leung) report for the quarter noted an 8.0 per cent cut in average room rates for business class hotels in the KLC area. But an improving economic climate as well as a higher number of business and leisure travellers of late can only mean a rise in room rates is on the cards. Cottan does not discount the possibility of hoteliers raising room rates by 10 per cent by year-end. Shangri-La Hotel Kuala Lumpur, now undergoing a RM100 million refurbishment and renovation exercise (see next page), expects its occupancy rate to reach 70 per cent by year-end. (The first phase of the renovation — covering the food and beverage outlets and public areas — is scheduled for completion in June while the second phase — the refurbishment of the rooms — is expected to start in July and be completed by year-end.) “Hotels will have to raise average rates to

ensure a certain level of profitability,” Cottan tells City & Country. Although supply in the hotel subsector is expected to rise in the medium term, he remains confident that the market will be able to absorb “one hotel a year” reasonably well. “Next year should be a good year... as for 2004, we need to hunker down and not panic,” he says of the expected increase in supply by end-2003 and 2004. At the end of the third quarter last year, the country’s total stock of hotel rooms stood at 127,991 rooms from 1,883 hotels. The national average occupancy rate of five-star hotels dropped to 54.6 per cent in the third quarter from 63.2 per cent in the second quarter. JONES LANG LASALLE HOTELS' HISS

Hotel market cycle 1 Early downturn 2 Late downturn 3 Trough 4 Early upturn 5 Late upturn 6 Peak

Singapore Tokyo

5 Shanghai

Jakarta, Kuala Lumpur, Melbourne, Phuket

2 Bali, Hong Kong, Mumbai, New Delhi, Sydney Manila

Beijing, Brisbane, 4 Ho Chi Minh, Seoul Bangkok

3 Auckland, Gold Coast

Malaysia’s National Property Information Centre (Napic) stock report for the hotel subsector shows that 24,438 of the hotel rooms are located in Kuala Lumpur and 10,258 rooms in Selangor. The report also shows that in the third quarter 21,121 rooms from 61 hotels were under construction in the country. In Kuala Lumpur, 14 hotels (offering more than 300 rooms each) were being built in the same quarter. In total, these 14 hotels offer 6,276 rooms.

Less upbeat Although no hotel projects in Kuala Lumpur

began in the third quarter of last year and no building plan approvals were given, industry consultants offer a bearish outlook for the next few years. Jones Lang LaSalle Hotels for one is less upbeat about the market outlook for next year, giving the Kuala Lumpur hotel market a negative medium-term outlook. Based on the results of the hotel investment services group’s Shangri-La Hotel Kuala Lumpur, now undergoing a RM100 million Hotel Investment Sentiment refurbishment and renovation exercise, expects to notch a Survey (HISS) released two 70 per cent occupancy rate by year-end months ago, Kuala Lumpur will be impacted by new supply additions in counter the lack of long-haul travellers from the next two years. the US and Europe. This is besides holding While DTZ Debenham Tie Leung executive international events such as the World Cup director Brian Koh does not expect any new Hockey competition, the Petronas Malaysia F1 supply this year, some 2,000 rooms are ex- Grand Prix and cultural activities. Both of these are expected to sustain the pected to be added to the supply of Klang Valley hotel rooms by end-2003. DTZ Research hotel market in the short to medium term has noted that there are seven hotel projects in until the global economy recovers, the reKLC and other areas in the Klang Valley (which ports adds. Meanwhile, the report also shows that the is the growth hub in Kuala Lumpur and Selangor) now under construction. Among Klang Valley’s hotel occupancy in the fourth these are Berjaya Times Square, Westin Execu- quarter was the lowest recorded since the first quarter of 2000. Overall hotel occupancy retive Suites and Palm Garden IOI. Koh adds that a further 1,000 rooms will corded in the fourth quarter last year was 57.6 enter the market in 2004 with the completion per cent compared with 68.2 per cent notched of Hilton International and Le Meridien at in the third quarter, observes DTZ Research, Kuala Lumpur Sentral, posing further compe- attributing this drastic decline to the Sept 11 incident. tition. “This [the attacks] has further exacerbated the slowing global economy. As a result of Increasing tourist arrivals A rise in tourist arrivals is crucial for the health the fear of more terrorist attacks in the west, of the hotel subsector. Towards this end, DTZ hotel operators and travel agents alike have Research’s report points out that much hinges reported many cancellations mainly from Euon the marketing and promotional efforts of rope and the US,” it adds. Further analysis of the KLC occupancy both the government and the local tourism trends shows that room demand declined in sector. The report notes that the government is the two months immediately after Sept 11. For courting short- and medium-haul travellers September and October, the overall monthly from China, the Middle East and Australia to CONTINUES NEXT PAGE

Asia’s five-star hotel values likely to rebound this year Potential hotel investors are likely to adopt a “wait and see” attitude during the first half of 2002 but buyers and lenders should return to the market by the second half of the year, according to a March report from HVS International, a leading global hospitality consulting organisation. The regional outlook for this year is “not entirely negative” considering three factors — an anticipated global economic recovery in the second half of the year; that the war against terrorism stabilises, and that many Asian economies are being boosted with stimulus packages, says the yearly report, which looks into the hotel values of five-star hotels in capital cities and resort destinations across Asia. HVS International and DTZ Debenham Tie Leung recently entered into a strategic alliance to

Scc_50n51_S4.p65

provide hotel consulting and agency services. The alliance is operated out of Singapore. “Most hotel markets have proved to be more flexible than expected and cash flows have slowly started to recover. Investors’ risk perception of the region is also likely to improve in line with the markets’ ability to improve over last year’s performance levels. Subsequently, hotel values are also likely to rebound,” says the report. Hotel values in Singapore should bounce back towards the end of the year, in line with the recovery of the global and Singapore economies, it says. Until then, a fall is expected as cash flows remain under pressure. Corporate rates for this year have been renegotiated below 2001 levels and hotels here are expected to accommodate a higher share of lower paying demand in order to

maintain their occupancy levels, according to the report. 2001 values down by 5.0 per cent On average, hotel values across Asia fell about 5.0 per cent last year, compared with a 7.0 per cent rise in 2000 and a 4.0 per cent rise in 1999, according to HVS International. The fall was due to the Sept 11 attacks in the US and the subsequent softening of economies around the world. Five-star hotels throughout Asia experienced a decline in corporate demand last year, with those markets that rely largely on the US and European demand harder hit than those that rely on regional demand, says the report. Hotel cash flows were further affected by the fall in demand for other hotel services, which moved in tandem with room demand, it adds.

Hotel value per room 1998-2001 (US$) 1998

1999

2000

CHANGE

Bangkok

150,000

154,000

2001

CHANGE

167,000

% CHANGE

173,000

Beijing

166,000

140,000

-19

147,000

151,000

Shanghai

202,000

177,000

-14

196.000

201,000

Kuala Lumpur Phuket

74,000

75,000

92,000

90,000

-2

176,000

202,000

220,000

214,000

-3

Bali1

135,000

141,000

161,000

156,000

-3

Average

215,000

223,000

240,000

229,000

-5

Tokyo

633,000

683,000

697,000

665,000

-5

Seoul

259,000

310,000

326,000

308,000

-6

Jakarta

70,000

79,000

74,000

-7

Hong Kong1

383,000

398,000

477,000

441,000

-8

Taipei

173,000

182,000

184,000

170,000

-8

Singapore1

244,000

256,000

281,000

256,000

-10

Manila

127,000

116,000

-9

97,000

-20

84,000

-15

Note: 1Different sample in 2001

3/21/02, 11:05 AM

THEEDGE SINGAPORE | MARCH 25, 2002 • 51

CITY & COUNTRY

Shangri-La KL set to become ‘top hotel’ after makeover

SHANGRI-LA HOTEL KUALA LUMPUR

HARIS HASSAN/THE EDGE MALAYSIA

he current RM100 million facelift for Shangri-La Hotel Kuala Lumpur, the grand dame of hotels in the city, is poised to propel the hotel into becoming what its management considers “the top hotel”. Carried out in two phases, the renovation and refurbishment exercise will be ready by year-end, says general manager Michael Cottan. Cottan is understandably excited about the makeover exercise that involves both the refurbishment of the guestrooms and also some of its food and beverage (F&B) outlets. The first phase of the renovation exercise, which began last September, involves the makeover of the lobby lounge, the Horizon Club guestrooms and F&B outlets. When this phase is completed in June, the second phase involving the refurbishment of the 600 guestrooms in the 17-year-old hotel will start. This exercise is to be completed by year’s end. This investment move is not surprising given the challenging time ahead for the hotel property subsector. Besides the increasing demands of business and leisure travellers, new supply (in the five-star category) is looming on the horizon. Property consultants estimate that by the end of next year, the Klang Valley will see another 2,000 rooms, of which more than 800 will be in the Kuala Lumpur city area alone. Then, by early 2004, the city area can also expect to welcome Le Meridien and Hilton International (at Kuala Lumpur Sentral) which, together, will expand the room stock by another 1,000. Cottan is unperturbed by the prospects of rising supply, citing the comparative advantages of ShangriLa Hotel Kuala Lumpur. As “the top hotel” in the city next year, it will

Cottan believes that Shangri-La KL will be able to outstrip other hotels in terms of service

The Japanese restaurant, to be renamed Zipangu, incorporates a mix of eastern and western elements, and is fashioned after a modern Tokyo-style brasserie

attract not only international tourists and business travellers but also patrons to its F&B outlets. In fact, he is optimistic that the hotel will be able to notch a 70 per cent occupancy rate by year-end. (Occupancy is now around 80 per cent but owing to the renovation, some of the guestrooms are being used for office space.) Hit by the aftermath of the Sept 11 attacks in the US, it appears the travel and hotel industries are now set to ride the wave of improving economic conditions. In the case of Shangri-La Hotel Kuala Lumpur, after recording only 40 per cent occupancy in the December 2001 to January 2002 period, occupancy is picking up, notching 60 per cent last month. Still, competition is stiff and the investment in its facelift aside, The hotel has several strategies to tackle this.

ment exercise (they were renovated in 1999), they are equipped to meet the needs of various target markets, whether for the meetings, incentives, conventions and exhibitions (MICE) market and even corporates, stresses Cottan. This aside, the hotel is a name to be reckoned with in this region. “We are an Asian company... we are strong in Asia,” says Cottan, pointing to the strong and synergistic links with sister hotels in the region. As area manager for Peninsular Malaysia, Cottan also oversees the operations of three other Shangri-La properties in Penang, namely, Shangri-La Hotel, Rasa Sayang Resort and Golden Sands Resort.

Future plans

Confronting the challenges Cottan, appointed general manager in January, does not shrug off the threat posed by new entrants into the market. This, however, fails to water down his confidence that Shangri-La Kuala Lumpur will be able to “outstrip” everyone in terms of service. “We have a name that is built on service and this gives us an edge over other products [hotels] in town,” he tells City & Country, adding that continuous staff training is a priority at the hotel. The staff strength has not been reduced just because of the renovation works. Rather, there are plans to increase the manpower by 100 to 900 once the renovation is completed. Cottan’s confidence is boosted further by his expected response to the hotel’s newly renovated restau-

rants which will all carry new concepts. Take its Japanese restaurant, Nadaman. To be reopened next month as Zipangu, the outlet has been designed to incorporate a mix of both eastern and western elements. Fashioned after a modern Tokyo-style brasserie, Zipangu will also feature a unique floor-to-ceiling walk-in wine and sake glass cellar, a wine and cigar area as well as private dining rooms. “It will offer traditional Japanese food [but] served creatively,” he continues. So sure is Cottan of the pull of the restaurants that he sees half the hotel’s turnover coming from the F&B outlets. Traditionally, 60 per cent of turnover is derived from guestrooms. The hotel’s meeting facilities will be another selling point. Though these do not feature in the refurbish-

Besides the three hotels in the north, the group has three hotels in Sabah and Sarawak. Cottan does not discount the possibility of adding more properties to the group’s stable. “There are possibilities to expand, if the right thing comes along.” The group is now exploring opportunities to extend its four-star brand — Traders Hotel — to existing hotel projects in Kuala Lumpur. “Maybe if a management contract came up... or resort possibilities. We plan to grow and develop in Malaysia,” he adds. Shangri-La Hotel Kuala Lumpur is expected to rake in a turnover of RM120 million this year, 24 per cent higher than last year. Next year, revenue is expected to grow by 15 per cent, Cottan discloses. Meanwhile, collectively, the Shangri-La Hotels in the country are expected to record total turnover of RM500 million, up 20 per cent from last year. Next year, turnover is expected to grow by 20 per cent. — By Sreerema Banoo E

DTZ RESEARCH

Scc_50n51_S4.p65

7000 5000

International

Business

4Q01

3Q01

2Q01

1Q01

4Q00

3Q00

2Q00

1Q00

4Q99

3Q99

2Q99

1Q99

4Q98

3Q98

2Q98

1Q98

4Q97

3000

Budget

DTZ RESEARCH

Average occupancy rates of hotel rooms in the Klang Valley Percentage (%) 70 60 50 40

4Q01

3Q01

Business

2Q01

4Q00

3Q00

2Q00

1Q00

4Q99

3Q99

2Q99

1Q99

4Q98

3Q98

2Q98

1Q98

3/21/02, 11:05 AM

1Q01

Budget

International

4Q97

Sreerema Banoo is a senior writer on property at The Edge Malaysia

9000

3Q97

Besides Kuala Lumpur, respondents to the Jones Lang LaSalle Hotel Investment Sentiment Survey gave Tokyo a negative mediumterm outlook. “Tokyo is still constrained by domestic economic issues,” says the survey results released in January. (The survey targets 1,800 of the world’s largest investors and/or owners of hotel or resort properties. The survey turned in a response rate of 12 per cent across all regions.) The short-term outlook for Bali has also been negatively impacted, due to the collapse of Ansett Airlines and political tension in Indonesia. The situation was the worst in the politically affected markets of Jakarta and Manila. Meanwhile, a more positive outlook is given for the Chinese markets of Shanghai and Beijing and the resort market of Phuket in Thailand. “China has withstood the economic downturn of the region and continues to attract much of the investor interest. This is likely to accelerate in the lead-up to the 2008

Rooms 13000

2Q97

Regional outlook

Klang Valley hotel room supply

3Q97

occupancies were 58.6 and 56.4 per cent, respectively. December’s occupancy moved slightly higher to 61.6 per cent. “This was the result of increased tourist arrivals from the Asian region. With many cancellations to the West, there was a significant increase in leisure travellers from Japan, Singapore, Thailand and Indonesia,” notes DTZ Research.

Olympic Games in Beijing,” according to the survey made available to The Edge Malaysia. Shangri-La’s Cottan agrees. The group currently has 17 hotels in China and is looking to expand this to 50 by 2010. “We may develop a second brand for some of the smaller cities,” says Cottan who was general manager of Pudong Shangri-La in Shanghai and area manager of south China prior to his assignment to KL three months ago. Phuket, on the other hand, has had strong occupancy and room rate growth over recent years, attracting a lot of intra-regional demand, according to the survey. The destination is seen as safer than other Asian resort markets that are experiencing political tension. Seoul in South Korea is benefitting from a tight supply environment and a stable economy with a high degree of foreign interest in the country’s economic restructuring. Based on the hotel market cycle from Jones Lang LaSalle Hotels, the Asia-Pacific markets are spread between early downturn and early upturn. In keeping with their positive shortterm trading expectations, Shanghai, Beijing, Brisbane and Seoul are positioned on the early upturn phase of the market cycle. The majority of Asian markets, however, are expected to see further deterioration and as such, are positioned before the trough of E the cycle.

1Q97

FROM PREVIOUS PAGE

52 • THEEDGE SINGAPORE

| MARCH 25, 2002

CITY & COUNTRY

BARRON’S

Policy dispute over terror coverage BLOOMBERG

| BY JOHN B LEVY |

nvestment bankers are expected to bring US$8 billion to US$12 billion (about RM30.4 billion to RM45.6 billion) in commercial-mortgage-backed securities (CMBS) to market this month, according to the Barron’s/John B Levy & Co National Mortgage Survey of participants in the market for CMBS and individual loans on commercial real estate. Despite the recession, delinquencies in commercial mortgages continue to run surprisingly low, though, according to Salomon Smith Barney’s Darrell Wheeler, they have edged up to 1.55 per cent in late February from 1.50 per cent at the end of January and 1.37 per cent at year’s end. Multifamily loans, long thought to be the safest in the business, don’t enjoy the lowest delinquencies; that honour belongs to the presumably riskier office sector, at 0.53 per cent. While multifamily delinquencies, at 0.79 per cent, have been stable, the sector is clearly suffering from overbuilding, especially in top-of-the-line Class A apartments. Says Freddie Mac’s Adrian Corbiere: “I don’t know of any major multifamily market that isn’t experiencing some rent concessions at present.” Delinquencies in the troubled hotel sector have risen to 6.07 per cent from 4.86 per cent at year’s end. Clearly, rising delinquencies are weighing heavily on lenders’ minds and they are lowering the maximum loan-to-value ratios. An insurance company that once might have offered a loan at up to 75 per cent of an office building’s value has now, on select proper-

Shoppers at the Mall of America. The Mall has become the subject of a lawsuit over its owner’s failure to purchase an insurance policy covering terrorism.

ties, reduced leverage to the 65 to 70 per cent range. As a result, borrowers seeking leverage in the 50 to 65 per cent range may well be faced with a variety of lenders offering 10-year fixed rates as low as 6.6 per cent, or the rate on Treasuries plus 1.75 per cent. The single largest issue facing the commercial mortgage industry these days is the lack of terrorism insurance. The Government Accounting Office, an investigative arm of Congress, last week released a report stating that terrorism insurance is “disappearing, particu-

larly for large businesses and those perceived to be at risk”. And a new report from Moody’s sets out a framework for analysing the impact of terrorism insurance, suggesting that mortgage securities backed by a broad diversity of properties and buildings that don’t fall into the “trophy” category will probably be mildly affected, if at all. Large single-property securitisations would require either extensive terrorism insurance or sharply increased subordination levels, which would greatly increase the cost of mortgage financings. Exist-

ing single-asset securitisations on large trophy properties could face significant rating downgrades if adequate terrorism insurance isn’t provided. Before Sept 11, standard, all-risk insurance policies on buildings included coverage for terrorism. Now some insurers are again beginning to offer coverage, but they’re defining terrorism more narrowly. For example, some new policies include coverage of plane crashes but exclude damage from chemical and biological agents, such as anthrax. Whether terrorism insurance is needed at all and, if so, how much, is a question that will ultimately be decided by the courts. Last week, the nation’s largest shopping centre, the 2.8-million-sq-ft Mall of America, outside Minneapolis, became the subject of a suit. The owner, Simon Property Group, a Big Board-listed real-estate investment trust, provided a new insurance policy on the property that excluded coverage for terrorist acts. The loan servicer, GMAC Commercial Mortgage, determined that a policy covering terrorism up to US$100 million was available at a cost of US$750,000, which it intended to buy for the property and charge to Simon. Simon obtained a temporary order blocking GMAC from paying the premium on the terrorism policy and from taking action against Simon for failure to purchase the policy. Although this is the first visible high-level case, there are sure to be others. The policy on Rockefeller Center, for example, expires next month. — ©2002, E Dow Jones & Co Inc John B Levy is a commercial mortgage banker in Richmond, Virginia, the US.

Is Tejon ready to ride? | BY ERIC J SAVITZ |

ixty miles north of downtown Los Angeles sits the 270,000acre (108,000ha) Tejon Ranch, the largest privately owned contiguous tract in California. It’s a spectacular property, with stark deserts, towering mountains and rolling open spaces. The ranch stretches from the northern fringes of Los Angeles County into rural Kern County, where cattle grazing, oil drilling and agribusiness dominate the economy. For decades, in fact, farming, feedlots, and oil and mineral extraction were the primary activities on the Tejon. Historically, Tejon Ranch has produced exceedingly modest revenues and profits. Nonetheless, the potential of all that acreage, which includes 16 contiguous miles along both sides of Interstate 5, the main north/south route out of Los Angeles, has long intrigued hardcore value investors. The thinking is simple: As the Los Angeles sprawl creeps northward, residential development of the Ranch becomes more viable. The issue, of course, has always been timing. When Barron’s last looked in on Tejon four and a half years ago, its shares, which had gone nowhere for nearly a decade, seemed

Scc_52_S4.p65

ready to pay off (“High Noon”, Aug 25, 1997). The Times-Mirror Co, which had controlled the property for 85 years, had sold its stake to value investors Martin Whitman, of the Third Avenue Funds group, and Carl Marks Management; real-estate developer Robert Stine had been hired to jump-start development. Since then, however, the stock has moved up a mere four points, closing Friday at 27.35. If the story was compelling then, however, it’s more compelling now. Over the past few years, Tejon has completed the first stage of the 350acre Tejon Industrial Complex on the northern edge of the ranch near the intersection of I-5 and California Highway 99, which connects Los Angeles and San Joaquin Valley towns like Bakersfield, Modesto and Stockton. The industrial park’s first major tenant is retailer Ikea, which opened a 900,000 sq ft distribution centre at the site, the first phase of a planned 1.8 million sq ft facility. Tejon itself built a 650,000-sq ft building at the complex. Stine says the company has a tentative agreement to lease half of that space, with ongoing talks to lease the rest. Indeed, the chief executive offier (CEO) contends the complex is already looking like a huge success:

BLOOMBERG

he figures the project has essentially converted grazing land worth US$300 to US$400 an acre (about RM2,850 to RM3,800 per hectare) into land worth US$100,000 an acre. And the project has a long way to go. Tejon plans a major expansion on the other side of I-5, right opposite the existing facility. By the end of this year, Stine says, the company will have the required permits to build another 1,100 acres, “which will give us a good supply of industrial land for the next five to 10 years”, Stine says. Meanwhile, the company is inching ahead on a proposed 12,000-acre “master-planned community” at the southern end of the ranch, on the northern edge of Los Angeles County. Stine expects the venture to file detailed development plans for the project with LA County later this year. While it’s a long commute from downtown LA, Stine points out that the site is only 20 minutes from Valencia, a growing area best known for the Magic Mountain theme park. And construction is ongoing on a 750MW generating plant being developed by Calpine at a site on the ranch just a few miles from the industrial park. So how much is the ranch really

Tejon CEO Stine at the entrance to the ranch, which he and investors hope to convert from grazing land to valuable industrial land over the next five to 10 years

worth? That’s not easy to calculate. With a market capitalisation of about US$375 million, Wall Street is valuing the stock at a little under US$1,400 an acre. As Stine notes, graze land is worth well less than that. And he observes that half of the total acreage has a slope greater than 25 per cent — which makes development unlikely. But commercial and residential development will make some of the remaining property hugely valuable. Michael Winer, a Tejon director and portfolio manger for several Third Avenue funds, says he’s pleased with the progress Tejon has made shifting its focus from agriculture to real-estate development.

3/21/02, 8:36 AM

“It’s not an earnings story today,” he says. “It’s a value creation story. Tejon has a very clean balance sheet, and there’s tremendous value in the assets. It’s a matter of unlocking the value of the property.” Third Avenue, he notes, also has big bets on St Joe, Catellus Development, Consolidated-Tomoka and Alico, all of which have significant undeveloped acreage. All of those companies are also ahead of Tejon Ranch in developing their land holdings — and all have been more rewarding stocks in recent years. Expect Tejon shares to start playing catch-up. — ©2002, Dow Jones & Co E Inc

HIGHLIGHT

Internet Time It’s the multimedia content, stupid! PG54

T E C H N O L O G Y • I N N OVAT I O N • M A N AG E M E N T

HARIS HASSAN/THE EDGE MALAYSIA

THEEDGE SINGAPORE | THE WEEK OF MARCH 25 — MARCH 31, 2002

Electric dreams Will interactive TV really fly this time? | BY ASSIF SHAMEEN |

How much longer before the dumb TV evolves into interactive TV?

Ste_53n56_S4.p65

ast year, thousands of Singaporeans wandered into SingTel’s stand at the crowded CommunicAsia Expo to check out its interactive TV booth. This demonstration came as a prelude to the trials the telco would conduct in 300 homes, mainly in and around Ang Mo Kio. The trials not only offered TV-based e-mail, but also video-on-demand, interactive games and home shopping. Is it time to say goodbye to your dumb TV? Interactive TV as an idea was born long before the advent of the Internet. It’s been said that in the old days it was almost Wizard of Oz-type stuff with TV on one side and huge computers hidden in the back. No wonder it failed. New technology, though, is giving it another chance. The convergence of telecommunications, media and computers is making interactive TV a more viable proposition. The longstanding industry joke is that interactive TV is a great solution looking for a problem. Telcos and Internet service providers (ISPs) have spent billions on interactive TV trials and are still searching for nirvana. AOL lost over US$500 million on its “Florida Project” — an interactive video-on-demand trial that was shut down over five years ago. Others are trying their hands at it again to see if they can make a slightly different service work. In Britain, OpenTV, which was initially bankrolled by HSBC Bank and is now owned by Murdoch’s NewsCorp, built up a large base of loyal home banking customers but is still raking up losses. Consumers need to order more books or Chicken Tikka Masala rather than just check their bank account balance if OpenTV is to succeed. Hong Kong’s HKT lost several hundred millions on its interactive TV unit in the 1990s before it was acquired by brash Internet entrepreneur Richard Li’s PCCW, whose Network of the World (NOW) broad-

3/21/02, 7:47 AM

band Internet content service has been a bigger failure. PCCW has trimmed NOW down to almost nothing. A few things need to be resolved before interactive TV takes off. The set-top box, which is based on TV technology, needs to adhere to a number of interactive capabilities. What inputs will the interactive box have? Broadband is now readily available in several Asian markets, but it still needs to be sorted out whether the box will have fibre-optic cable going in or digital subscriber line. Developers still have to decide whether interactive TV will be always on or whether it will be dial-up-based, meaning it will connect only when you switch it on. There are other questions: What will the interactive TV remote control look like? Will it be like the regular TV remote that we are all used to, or will it look like a keyboard? These are just some of the many issues that have to be resolved as interactive TV moves beyond trial stages. Still, there is renewed interest in interactive TV. What has changed is that bandwidth prices have collapsed and broadband access has dramatically increased in certain countries. Nearly 90 per cent of South Koreans with Internet access have it. Moreover, the success of Internet gaming in South Korea and other markets in Asia has convinced people that a viable business model might just be evolving. With equipment prices collapsing amid a global tech wreck, start-up costs for such ventures are now fairly low. Moreover, software and people are inexpensive too. A year ago, you would have had to pay through your nose to get good staff. A reasonable pricing strategy and great content to attract customers are two issues interactive TV has to be able to offer in order to build a critical mass. Pay TV in Singapore and Hong Kong — both of which are small, compact but fairly prosperous markets — did not start to make money until a critical mass was CONTINUES ON PAGE 56

54 • THEEDGE SINGAPORE

| MARCH 25, 2002

techNovate

INTERNET TIME

It’s the multimedia content, stupid!

y colleague Assif Shameen wrote in the first issue of The Edge Singapore about how broadband needs to be cheap in order for it to be widespread, while fellow columnist Cecilia Chow two weeks ago wrote about how delighted she was at getting broadband installed in her home. I myself have written in The Edge Malaysia two articles in the past year about broadband — the first one advocating government-subsidised broadband, and the second about the joy of actually experiencing broadband for the first time in Singapore. One reason we’ve all written so passionately about broadband is that each of us uses the Internet extensively. Broadband becomes essential when you regularly download reams of research reports and open up 10 web pages at a time. For writers, broadband is absolutely crucial for work. But for many others, it’s not that important. Why? Because there are simply not that many uses for it. There are three main reasons people use the Internet: communications, information and entertainment. The first two can be done with normal dial-up access. You don’t need broadband to retrieve e-mail or to read articles online. But for the third item, streaming and downloading music and videos, for example, you most definitely need broadband.

Back when Napster was still functioning, a lot of people were seriously tempted to fork out | BY OON extra money just to be YEOH | able to download MP3 files faster. I was in Malaysia during the height of the Napster mania. Because my access to the Net was through dial-up, one song took 20 to 30 minutes to download. Sometimes I left the Internet on all night just to get a dozen songs or so. Needless to say, my wife wasn’t too thrilled when she saw the phone bill. If broadband had been available back then, I would’ve gladly signed up, even if it wasn’t so cheap. (It’d still be cheaper than my average phone bill in Malaysia, which normally ran into hundreds of ringgit per month). It’s often been said that the whole broadband versus multimedia content situation is a chicken and egg thing. Which comes first? To me, the answer is obvious: multimedia content. Had Napster survived, I’m certain the broadband penetration rate in both Singapore and Malaysia would be much higher. In the US, people are now talking about sending digitised versions of music videos, TV shows, and movies over the Internet, Napster-

style. I’ve already tried it. A month back, when I was in KL for the weekend, my daughter overheard me playing Weird Al Yankovic’s Eat It — a very funny parody of Michael Jackson’s Beat It — on my MP3 player. She asked me to find the video for that song because she wanted to see what Weird Al looks like. I went to all the VCD shops in KL but couldn’t find it. The video clip is too old, dating from the early 1980s when I was still a pimply teenager in high school. So, when I got back to Singapore (where I have access to broadband), I used Morpheus — a Napster-like service that can be used to find both audio and video files — to search for the Eat It clip. I found it and downloaded the video within minutes. I then saved the file onto a Zip disk, and the following weekend played it for my daughter on her iMac. Needless to say, she was delighted. With services like Morpheus around, broadband would surely boom. But alas, Morpheus — like Napster before it — is also being sued by the entertainment industry. The issue of whether it’s right to download copyrighted songs and videos is a topic for another article, but consumers worldwide have already

made it clear what they want. Legitimate online music download services like Pressplay and MusicNet have way too many restrictions attached and their play lists are also too limited, which is why they are bound to fail. Even if Morpheus survives, I might one day never be able to find another Weird Al video online. A coalition called the Copy Protection Technology Working Group (CPTWG) is on the verge of unveiling a system that will stop digital video from being transmitted on most networks. The CPTWG consists of entertainment, consumer electronics and technology heavyweights like Intel, Warner Bros, Sony, Panasonic, Viacom, IBM and Microsoft. Actual implementation of this technology, however, could take up to two years, and should not affect existing PCs. Still, it’s significant. If the group succeeds, you can be sure broadband will be dead in the water. Unless, of course, broadband becomes so cheap — as Assif advocated in his column — that it’s actually more expensive to use dial-up, you just won’t see people adopting high speed Internet access en masse. What for, if you can’t downE load music and videos? Oon Yeoh is an associate editor at The Edge Singapore

NEW ECONOMIST

Net solace for those affected by failed corporations E nron Corp, the energy-trading giant, filed for bankruptcy late last year, while Global Crossing, the broadband company, declared bankruptcy earlier this year. Enron holds the dubious honour of being the largest bankruptcy in US history, while Global Crossing comes in fourth — although it holds the record as the biggest bankruptcy in the telecommunications industry. Enron has laid off some 6,000 workers. Its stock plunged at 25 US cents per share on Dec 3, 2001; it was US$80 at one time. Global Crossing, meanwhile, has let go about 3,000 employees. Its share price closed at 30 US cents a share on Jan 28; it once traded in the lofty

US$60 range. On Jan 29, it started trading on the OTC Bulletin Board and closed at 14 US cents per share on March 14, 2002. Both companies are under investigation by the Securities and Exchange Commission, the FBI, and, not to mention, the US Congress. What would you do if you were an ex-employee of either company, and you’d just lost not only your job but also the bulk of your retirement savings because you had invested in the company’s stock? For that matter, what if you were an investor who’d bet heavily on either company? Create a website, of course! That’s precisely what 21-year-old Jose Lazo has done with EnronX.org.

Enronx.org provides a platform for former Enron employees to network

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A database analyst, Lazo was laid off last December. He decided to help not only himself but others as well, by creating a site for his former colleagues to find jobs. In a very short time, the site has evolved into a rich resource centre where ex-workers can find out about companies that are hiring, various legal issues (including Class Action lawsuits), the latest news on Enron, as well as links to other websites for ex-employees of the company. In a totally different vein is GlobalDoubleCrossing.com — which actually looks quite similar to the real Global Crossing website. This satirical website was created by Steve Stinnett, a web developer by profession who lost some money investing in Global Crossing’s stock. He had invested US$40,000 over the last two years, representing 30 per cent of his stock portfolio — which includes other tech companies such as Lucent, AOL, Cisco, Priceline.com, Juniper Networks, Staples, PayPal.com and an assortment of mutual funds. He’s investing for his retirement. In an e-mail exchange, Stinnett tells me that his main objective is to publish information about Global Crossing executives “who lied to their employees, lied to their stockholders, and lied to the general public while they sold their own shares knowing very well that their precious company was hurtling in a downward spiral that no one could stop”.

| BY CECILIA CHOW |

Since the website went live Feb 9 this year, it’s had 45,000 unique visitors, and an average of 2,000 visitors a day. Many current and former employees, investors and others have written to Stinnett, mainly praising his efforts. He says there’ve been only a handful of complaints about the language, which is probably a tad too colourful for those of delicate constitution. There are several links to news about the status of the bankruptcy proceedings and pending lawsuits, and also a link to exGX.com, a website for former employees of the company. At the suggestion of some of the visitors, Stinnett plans to add some new features in the coming weeks. These include a job board, a message board and much more information about the many different lawsuits that are still piling up at Global Crossing’s doorsteps. “I realise that my investment in GX [Global Crossing] pales in comparison to others who had invested heavily in it,” he says. “I lost thousands but other people lost hundreds of thousands of dollars. I’ve learnt that laughter does help to ease

3/21/02, 6:15 AM

the pain somewhat… my daily entertainment from reading e-mails sent to me is a good source of healing,” he adds. Web sites such as EnronX.org and GlobalDoubleCrossing.com serve as avenues for ex-employees to learn about their entitlements, to seek new jobs, and perhaps more importantly, to have their voices heard. Investors who got burnt might also find some solace in the biting humour of sites like the one Stinnett has created. Even someone like me — who’s neither an ex-employee nor an investor of any of these companies — can appreciate such sites. They’re a great way to learn about what could potentially happen to you if your company were to go bankrupt one day, and you find yourself on the street with no job and no savings. You’ll also learn more about your rights as an employee and a minority shareholder. Whether the executives responsible for the failure of these two corporations will eventually be charged in court or just get a slap on the wrist is still unknown at this point. But for their ex-employees and investors, there is now a platform where their voices can be heard — E the Net. An old economist by training, Cecilia Chow is a New Economist at heart. She’s a columnist with The Edge Singapore by night, and a financial PR consultant by day. None of the companies mentioned are her clients.

56 • THEEDGE SINGAPORE

| MARCH 25, 2002

techNovate

Flagship under scrutiny PICTURES BY THE EDGE MALAYSIA

| From RISEN JAYASEELAN & KARAMJIT SINGH in Kuala Lumpur |

ndustry scepticism about the success of the initial seven Multimedia Super Corridor (MSC) flagships in Malaysia has put the progress of the eighth and lastest flagship under increasing scrutiny. The Technopreneurship Flagship was conceived in the middle of last year and officially launched in September. Its avowed mission: to give a bigger boost to efforts to create more technopreneurs who will, in turn, spawn more home-grown information and communications technology companies. The lack of successful home-grown players was the flagship’s raison d’etre. A key strategy is to create incubators in every state, even in universities. As Tan Sri Othman Yeop, executive chairman of the Multimedia Development Corporation (MDC), concedes, “There is often a misconception that the MSC is a project within the confines of the Klang Valley.” It is envisioned that these incubators will act as support structures for technopreneurs and become idea hubs around which other companies will cluster. That’s despite the failure of most of the existing incubators — 15 in all — to live up to expectations. The hope is that this flagship’s incubators will avoid the failings of their counterparts that were set up earlier, especially those that behaved like landlords. This, however, has not deterred the MDC from its ambitious plans to set up new “mini” incubators. Technopreneur Flagship chief Sarina Karim tells netv@lue2.0 that the incubators will be staffed by full-time employees who will be able to help the incubators at various levels. Incubatees will also have access “every once in a while” to a group of successful entrepreneurs — Sarina calls them “virtual mentors” — through a newly established Technopreneur portal.

Not reaching targeted audience Besides the incubators, the flagship will have other support activities. Among them is the “Icons of Industry” series of talks, the first of which was held recently. The programme is aimed at getting successful people in the industry to inspire budding entrepreneurs. Curiously though, the first event had an elitist feel about it, which defeats its aim of “encouraging technopreneurs”. For a start, you needed an invite to attend. And of those invited, 35 were from the MDC and the oth-

Othman reckons the new flagship will dispel the misconception that the MSC is a project only for the Klang Valley

ers (65) mainly from companies MDC had invested in through its venture arm. It thus gave the impression that the talk failed to reach the flagship’s targeted audience — aspiring entrepreneurs trying to find their footing. Many entrepreneurs feel the recently formed National Technopreneur Advisory Committee (NTAC), which is tasked with guiding and counselling the progress of this flagship, is missing the mark. It is also supposed to enhance the effectiveness of the flagship’s action plans based on each committee member’s expertise, experience and networks. But while the NTAC list contains some high profile and successful personalities, there is a dearth of the quintessential technopreneur who built his company from scratch and knows what it is like to put everything on the line. The names on the present list comprise government officials, academicians and heads of IT vendor companies. Industry insiders feel the same. “It’s hard to see if something good can come out of it as they [NTAC members] are not from within the industry,” says Nazrin Hassan, a local technopreneur. But looking at the NTAC from the policy level, he notes, the choice of members is suitable as they are influential in the government. They would be in a position to help steer the enactment and implementation of government policy to enhance the local IT industry. Dr Kamal Jit Singh, director of BTexact Asian Research Centre, has his doubts. “Very few of the members are entrepreneurs who have ventured out and learnt the lessons hands on.” He reckons that The Indus Entrepreneurs (TiE) model should be emulated. “We need

to follow them in the sense of getting experienced people who have started companies and have either succeeded or failed as both types of people are necessary to learn from.” To be sure, one of the things that the NTAC agreed on during its first quarterly meeting was to follow in the footsteps of the TiE internship and incubation programmes that have proven so successful in India. The Edge Malaysia asked Othman the kind of benchmarking that MDC would set for the NTAC members. For example, will they be held accountable if, after three years on the committee, there is still a dearth of entrepreneurs and flourishing companies despite their advice and input?

Sarina denies MDC lacks a sense of urgency

Othman had this to say: “We won’t put that kind of pressure on them. There is no such thing as appraising them at the end of their term to see whether we should continue with their services. Their contribution is a voluntary response to this national effort. So long as they are able to provide the guidance, advice, and network and support to budding entrepreneurs, then that would be good enough.” Observers, on the other hand, feel that the MDC needs to have a greater sense of urgency. Sarina, who previously headed MDC’s venture capital arm, vigorously denies this. “Of course we do [have this sense of urgency]. Otherwise, we wouldn’t launch the flagship.”

Mentoring Perhaps the most useful Technopreneur Flagship initiative will be its planned “mentoring” programme. Says Nazrin, “Clearly the mentoring programme will be more important. If we want to be world-class, we need to learn from those who have built companies successfully before, be it in Malaysia or abroad,” he says. “We’ve had committees comprising bureaucrats

before but hardly any that have comprised entrepreneurs willing to share their experiences.” The MDC says it has received support from experienced entrepreneurs for the mentoring programme. It has invited four potential mentors, and obtained the green light from three to date. Their role? “For the benefit of nascent entrepreneurs, these mentors will bring along their tested experience in various areas, be it on IPO listing or growing a company through different phases,” explains Sarina. The three are Jeff Pinkham, entrepreneur in residence, MSC Venture Corp Sdn Bhd; Khairil Anuar Abdullah of Malaysia Exchange of Securities Dealing & Automated Quotation Bhd; and Eg Kah Yee, chairman and chief executive officer, Palette Multimedia Sdn Bhd. MDC says it will continue to grow the pool of mentors for the online mentoring programme “as and when the demand for this programme grows”. It also stressed that this is not a static or one-time effort, but an on-going process. Conceptually, the Technopreneur Flagship seems well thought out. But that’s only a small part of the battle to spur home-grown IT startups. First is the issue of transparency. The perception of many observers is that there is still a lack of accountability and transparency in the way some of the other flagships have been rolled out. Second, this flagship must strive to reach out to the technopreneur-in-the-street. Woe befall it should it, in its early stage, get stuck with a stigma. Third is the issue of urgency, or rather the perception that there is a lack of it in the rolling out of the Technopreneur Flaship. Case in point: Technopreneurs Association of Malaysia or TeAM, a private initiative that began about the same time as the Technopreneur Flagship, has already begun its mentoring programme, offering assistance from some of the industry’s best-known entrepreneurs. And that’s without MDC’s vast resources. The industry is hoping that this flagship will be executed as dynamically as possible. The pressure is on — there are only six months to go before the next International Advisory Panel meeting during which flagship progress comes under a microscope. Will its progress be measured by how many incubators are up in the country or by the number of entrepreneurs in them who are E busy creating solutions and ideas? Karamjit Singh is editor of netv@lue2.0 and Risen Jayaseelan, a senior writer with the IT section at The Edge Malaysia

‘An idea whose time has come’ FROM PAGE 53

achieved. That took nearly five years. What’s the critical mass for interactive TV? Some of the analysts say 400,000 in Singapore or 600,000 in Hong Kong. It could take years to get to those numbers. Why then are telcos like SingTel and PCCW wasting their time with interactive TV? Bertrand Bidaud, an analyst at Gartner Group, says telcos are desperately looking for revenue streams for tomorrow. “Voice revenues have been declining for years, data was going to be the panacea but now bandwidth prices are collapsing and so that too is not a very

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attractive business.” Telcos, he says, are still trying to see how they can make money from ISPs and portals. In other words, says Bidaud, old line telcos around the world are looking for something, anything, that will be a new source of revenue and compensate for the loss of their traditional streams. What telcos have is money, something start-ups don’t. They can throw hundreds of millions of dollars at interactive TV and still walk away just knowing they tried. One Hong Kongbased telecom analyst says, “Telcos know how to build and run networks but they don’t know how to create

content, package it or sell it.” If they did, telcos would have long become successful media players. “Around the world, telcos’ track record in the content business is at best, patchy, at worst, a disaster.” But Bidaud says telcos must be applauded for at least trying. “They are the only ones who see their own future as cloudy but have a lot of cash to spare now and are willing to experiment.” Perhaps what will bring interactive TV to fruition is the development of a set of broadband-capable products that people want in their homes. Movies alone may not suffice. Everybody is out there looking

for killer application, but industry analysts say what is needed is the finetuning of the differences between cable TV and interactive TV. The ideal, they say, is when a viewer with just one set can watch TV shows, play games, stream movies on demand, order chicken rice or do any other transaction using just one piece of equipment. The key is to package it all in a way so that they can leverage the cost. If they just keep looking for just one killer app in interactive TV they may never find it, analysts say. Why will Interactive TV fly now when it has failed before? Larry

3/21/02, 7:47 AM

Gingold, digital content management chief at consultancy Cap Gemini in Sydney says the interactive TV trials in the US in the early 1990s failed because “we couldn’t digitise to a level we now can and add that to broadband speed and low bandwidth costs, the equation has changed”. Suddenly, interactive TV looks like an idea whose time has come. SingTel may have whet the appetite of a few hundred people who took part in Ang Mo Kio trials last year, but in reality, interactive TV is still a concept that is being finetuned though it no longer seems like a soE lution looking for a problem.

THEEDGE SINGAPORE | MARCH 25, 2002 • 57

techNovate

DIGERATI

Get a job… online

or the past couple of years, I’ve thumbed through the newspapers whenever I’ve had to look for a job. Normally I had to read countless ads before finding anything promising. Then, I discovered e-recruitment. These days, I can click on job listings and send out online résumés at all hours instead of feverishly turning the pages of the Recruitments section over a cup of morning coffee, and trying to send out applications before the rest of the unemployed world beats me to it. Admittedly, I was a little slow on the uptake. E-recruitment has been around since the early 1990s, when US high-tech companies used industry news groups as notice boards for job openings. But things only really took off in 1994 with the creation of the Monster Board, the precursor to Monster.com. Today, e-recruitment is a multibillion dollar industry fuelled by over 5,000 sites worldwide. Its sheer potential hasn’t gone unnoticed by enterprising Asians either. There are several well-established Asia-Pacific recruitment sites, each boasting blue-chip employers and impressive membership figures.

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Indeed, a recent survey by technology research house, NetValue, found that traffic to e-recruitment sites in Singapore is increasing, presumably because of the current downturn and the realisation that online recruitment is a faster, cheaper and more efficient means of securing employment. So how do you get on the e-recruitment bandwagon? Good places to start are Singapore’s top three most popular online job banks according to NetValue: JobsDB.com, AsiaOneCareers and JobStreet.com. Browsing these sites’ job listings usually has me glued to my seat for hours. Most job sites will offer standard features such as application status tracking, job alerts, external links to featured employers’ sites and career advice. It’s a site’s usability that distinguishes the good ones from the rest. The popularity of JobsDB.com, AsiaOneCareers and JobStreet.com reflect this. All offer a well-organised job-hunting experience in addition to standard tools to make your search easier. I find that AsiaOneCareers’ listing method is the most convenient, with jobs sorted into Fresh Graduate, Temp and Latest categories, so

| BY JEAN ANGUS |

you can go straight to the relevant listings although you won’t be able to apply for a position unless you’re registered as a member. Membership does make things much easier because you can’t beat the convenience of storing your applications online instead of keeping them on your computer. At AsiaOneCareers, for instance, you can save up to 10 different cover letters in your account. Simply create a few stock letters and select the relevant one when applying. To increase your chances of being noticed, and hired, you can also activate your resume for search by employers at JobStreet.com or JobsDB.com — about as close as you can get to being headhunted online. If you’re new to this whole business of publishing your personal

data online, reading the site’s privacy policy should clear any doubts that you may have about confidentiality. AsiaOneCareers, JobsDB. com and JobStreet.com each have detailed privacy statements outlining how your data is handled. For all three sites, the standard practice is to release personal information to employers only if you consent. Such security measures have obviously inspired trust and confidence in jobseekers — JobStreet .com alone had over 1.5 million registered jobseekers last November, and aims to register 25 million jobseekers by 2010. Now that you’re all fired up about e-recruitment, here are some pointers to help you make the most of your online job hunt. Read the description and requirements listed in the ad carefully before applying. The extensive filtering processes incorporated into online job banks mean that your application might not reach the advertiser if you don’t meet the stipulated requirements. If there is a link provided to the advertiser’s corporate website, visit it and learn more about the company. Compose your online résumé and cover letter as concisely as

3/21/02, 6:17 AM

possible. Check everything before you hit “submit” to make sure that you’ve not made spelling errors or mistyped information. If you’re stuck, check the career advice section for tips. JobStreet.com’s Career Centre, for example, has several articles on how to nail that perfect job as well as career profiles, a Q&A section and other very useful resources related to employment in general. Keep these tips in mind and you’re well on your way to success in your online job search. Does e-recruitment herald the demise of print recruitment? Not for now. While the speed, convenience and efficiency of e-recruitment are hard to match, human resource departments’ sluggishness in embracing new hiring methods and longtime trust in the innate tangibility of print mean that print classifieds are here to stay. But one thing’s for sure, the money I’ve saved on stamps, paper and envelopes will go a long way towards my dream holiday after I get the perfect job — E online. Jean Angus is a columnist for The Edge Singapore who relishes living the digital lifestyle

58 • THEEDGE SINGAPORE

| MARCH 25, 2002

techNovate

OUT OF THE BOX

Treating knowledge as an asset | BY OON YEOH |

nowledge management, or KM, as industry players like to call it, is not an easy concept to grasp. A lot of people think it simply means trying to capture information that current employees have in order to pass it on to future employees. That’s a very naive view of what knowledge management is all about, says Patrick Lambe, a consultant who has just started his own company called Straits Knowledge. “You can’t just download things from people’s brains and expect others to learn from them.” He describes it this way: “KM is moving knowledge around more effectively within a company to create value.” That probably still sounds like gibberish to most, but in a nutshell, KM is the art and science of organising and managing a company’s storehouse of knowledge to increase efficiency and lower costs. Sounds exactly like the kind of thing a

consultant would say you need. But, there are serious gains to be made from investing in KM. After all, if it’s a knowledge economy we are operating in these days, it only makes sense to treat knowledge as a key asset. Although the phrase “knowledge management” regularly invites blank stares from among many CEOs, there is a small but growing market for Lambe’s services. “Singapore has been thinking about KM for only about three years now,” he says. He admits, however, that knowledge management is still a hard sell. After all, “KM” is hardly the first thing that comes to mind when a senior executive thinks about ways to improve customer relations, performance, innovation and, indeed, the bottom line. Lambe maintains that it is a critical success factor for companies once they reach a certain size, though not many realise it yet. “You seldom think about managing your breathing until you have some respiratory problems,” he says. What he does is go into a company and identify “issues, priorities and directions” it

should take in order to better manage its knowledge assets. The solution involves many facets including, but not limited to, systems for storage, retrieval, transfer and exploitation of knowledge. Although Lambe does not oversee the technological aspects of the solution, such as systems integration, he will recommend specific software if required. Oftentimes, though, companies will ask that he fit his solutions to the system that’s been chosen or already in place. As a small operation run from Lambe’s apartment, Straits Knowledge has minimal resources for marketing purposes. Work usually comes through word of mouth and referrals. He also gets publicity through articles that appear in The Business Times Singapore, as well as his own website: www. greenchameleon.com. Although it is still early days for this niche industry, there is a growing interest in KM. The Nanyang Technological University will be introducing its first ever Master’s in KM E programme this July.

Entrepreneur profile Q&A Name

Patrick Lambe

Position

Founder/Principal consultant

Company Name Address

Website

Straits Knowledge 365 Holland Rd, #14-05, Allsworth Park, S278639 9754 2165 6462 0546 plambe@straitsknowledge .com www.straitsknowledge.com

Job history Company Position Period (years)

Knowledge Platform Chief learning officer 1

OON YEOH/THE EDGE SINGAPORE

Tel Fax E-mail

The information manager

Company Position

“

Ste_58_S4.p65

Company Position Period (years)

Advanced Training Techniques Manager 4

Education University Degree

| BY MATTHEW MOGUL |

Waste not, want not.” This well-known proverb, which can be traced back to late 18th-century England, has been dusted off and bundled into a sleek New Economy look by none other than a UK native here in the Lion City. But for Patrick Lambe — part-time teacher, lecturer, consultant, scholar, author and now entrepreneur — the maxim is more than a business mantra. It’s a way of life. Displaying the soft-spoken patience of a man who once worked as a librarian and planned on becoming a Catholic priest, the 41-year-old and his Straits Knowledge partner Edgar Tan, 29, know they face an uphill battle convincing corporations that their twoperson consultancy can help them identify, hold onto and transform information into profit. Still, Lambe downplays the newness of what he does, saying the only difference between knowledge management today and yesteryear is the speed by which data enters, and may possibly slip from, a company’s virtual grasp. “Businesses have always done this because it’s all about competition. It’s an arms race.” Tough talk from a man who studied philosophy and religion at Oxford University and was once destined for the clergy. Nowadays, though, Lambe delivers sermons about the bottom line.

Period (years)

British Council Manager, business development 3

University of London MA in Information Studies and Librarianship Year graduated 1985

University Degree

University of Oxford BA in Philosophy and Theology Year graduated 1981

Lambe, who was once destined for the clergy, now preaches about the bottom line

Arriving in Singapore more than a decade ago on a lark, Lambe liked what he saw and stayed. Like many expatriates, he paid the bills by teaching English. He quickly segued that into training the language school on its classroom techniques, and later into teaching corporations how to develop the skills to manage time and information. His work put him in touch with a dotcom consultancy called Knowledge Platform, where Lambe decided to team up with about 25 others, including Tan, and took the New Age title “chief learning officer”. At his home office in the largely expat enclave of Holland Village, Lambe looks over an impressive web of bookshelves clinging to the wall. The former librarian once again explains how life experiences can be re-fitted for new tasks: “Libraries are

a physical database and in a proper running one you should be able to find what you’re looking for in five minutes.” He manages online databases with the same efficiency in mind. Lambe’s latest read, Biography of a Germ, may chronicle the history of Lyme disease, but it also holds hidden parallels between the behaviour of the virus and how businesses operate. “[Both] look for vectors to penetrate a system, and work to understand the system, configure, look for openings and how not to be destroyed by its defences.” On the subject of books, Lambe’s first, Surviving in the New Economy — mainly a compilation of his bi-weekly columns in Singapore’s Business Times — is set for release in May. A second is also in the works, proviE sionally titled: Ignorance Management.

3/21/02, 6:18 AM

Describe what your company does in three sentences Find out what makes organisations in Singapore tick, and then design tools and interventions to help them learn and innovate better. Favourite websites 1. www.elearningpost.com 2. www.ft.com 3. www.dilbert.com If you weren’t doing what you’re doing now, what would you be doing? Sipping Long Island Iced Tea in Tahiti! Who’s your hero? Sim Wong Hoo of Creative Technology Last book read Biography of a Germ by Arno Karlen

THEEDGE SINGAPORE | MARCH 25, 2002 • 59

INSIDE ASIA

Tajudin fights to keep TRI HARIS HASSAN/THE EDGE MALAYSIA

| From JACQUELINE HO in Kuala Lumpur |

his may well be another banner week for Technology Resources Industries Bhd. Its majority owner Tan Sri Tajudin Ramli has made an application to bar Pengurusan Danaharta Nasional Bhd from selling his pledged shares in the telco. The hearing is due on Monday. Monday is also the last day that TRI shares and its rights allotment can be sold. Tajudin’s surprising application last Wednesday could mean several things. It is believed that Danaharta currently holds up to 20 per cent, or 150.9 million shares, in TRI belonging to Tajudin through loans taken by him in the mid-1990s. However, the national asset management company has the right to sell the shares only if Tajudin fails to pay or service the interest payments based on an agreement both parties must have worked out much earlier. It is not clear at this point if Tajudin has failed to meet the necessary payments. Still, the fact that Tajudin has filed an application for an injunction against Danaharta can be read in a couple of ways. Danaharta has acknowledged that it has received notice to stop the agency from selling Tajudin’s pledged shares. Usually, when the agency acquires a bad debt from the commercial banks, it will work out a scheme with the borrower, which involves servicing the interest and part of the principal loan.

In the event that the borrower fails to meet his obligation to Danaharta, the agency will serve a default notice on him. However, until the notice is served, it is believed Danaharta cannot foreclose on the pledged assets. At this juncture, sources say, Tajudin has received no such notice. The assumption then is that Tajudin is seeking to pre-empt the agency from issuing a notice, which will enable it to sell the shares. “If there is no default, then there shouldn’t be a grouse that Danaharta may force-sell the assets. Unless, he is expecting them to do so and is simply beating them to it,” says an industry source. The market has widely conjectured that it will have a ready buyer in Telekom Malaysia Bhd. In fact, the incumbent telco had already made overtures to Danaharta in late January. Also, the latest that TRI’s shares can be sold together with the rights allotment is 5pm on Monday, March 25, while the last day and time for the transfer of the rights allotment is March 28 at 12.30pm. Another reading could be that Tajudin is buying time for himself to raise the cash to take up his portion of the rights shares. He needs RM183.7 million. Payment for the rights subscription is due on April 5. This, he may not be able to do if Danaharta calls in the loan. It is believed that Tajudin is one of the largest individual debtors in Malaysia, with personal debts of over RM1 billion. Market observers say it may not be easy for Tajudin to raise funds to take up the rights. Another fly in the ointment to

The market has widely conjectured that Danaharta will have a ready buyer for TRI shares in Telekom Malaysia Bhd

Tajudin applying for an injunction against Danaharta is that he may not be able to do it at all, given the enormous legislative powers vested on the agency. The gist of Sections 71 and 72 of the Danaharta Act reads: “Part X preserves acts done in good faith and prohibits injunctions being issued against Danaharta, the Oversight Committee, Special Administrators or Independent Advisors. The provision is required, given Danaharta’s function and mission which is to maximise recovery values.” The implications of this are even more far-reaching. If Tajudin, TRI’s current largest shareholder with a 24.28 per cent stake (according to TRI’s 2000 annual report), is unable to take up his

portion of the rights issue, it could trigger a pullout by the underwriters. Typically, in an underwriting agreement, underwriters have the right to pull out of their obligation if the major shareholders fail to take up their portion of the rights. An example of underwriters pulling out of an underwriting agreement was when HLG Securities did so when the majority shareholder of Sinmah Resources Bhd failed to fulfil its obligation to take up its portion. If TRI’s underwriters do so, the outcome could be the potential collapse of TRI’s ongoing recapitalisation plan. However, Datuk Lim Kheng Yew, TRI’s executive director, tells The Edge that there is little likelihood of the underwriters pulling out. “The subscription price is low and it is highly possible that there will be excess subscription,” he says. The rights shares are to be issued at RM1 apiece. Lim says the bulk of the rights, including that of the other major shareholder Deutsche Telekom, has been underwritten. The rights issue is underwritten by 15 underwriters, comprising mainly local banks and stockbrokers. As part of its recapitalisation and restructuring plan announced last June, Malaysia’s second largest celco proposed a restricted issue and a rights issue. The proceeds would be used to pay the holders of TRI’s EuroConvertible Bonds (ECB). The ECB holders had agreed to a haircut on early redemption of the restructured ECBs. If the company pays up by April 22, it will only have to fork out RM1.8 billion. If payment

is made by the last due date, May 29, TRI would have to pay at least RM2.1 billion. And if TRI fails to meet that payment, the ECB holders would be entitled to put the collateral for the bonds — 49 per cent of the operating subsidiary, Celcom Malaysia Bhd — on the block. In the first leg of the fundraising, the restricted issue of 473.8 million shares raised RM877 million and were listed in late February following a much-publicised tussle with the authorities when the listing was deferred. The authorities had alleged that TRI had failed to comply with certain listing requirements to pricesetting in implementing its restricted issue. TRI on its part said that it needed a high level of certainty in order to secure the required funds from a cautious market. TRI has noted that its recap plan is one of the largest private corporate initiatives since the 1997/98 financial crisis. Eventually, an amicable solution was arrived at and the restricted shares were listed on Feb 28. As for the impending rights issue, a market observer notes that TRI minority shareholders won’t be very happy should the rights not go ahead. They are looking at a dilution of their investment after the implementation of the restricted issue. But some analysts reckon that investors should not be too worried yet. Until that is, if Telekom doesn’t buy TRI. TRI closed last Friday at RM2.17. Jacqueline Ho is a senior writer with the Capital Markets & Companies E Desk at The Edge Malaysia

Oriental plans to float plastics division | From SIOW CHEN MING in Kuala Lumpur |

riental Holdings Bhd has always been associated with its bread-and-butter business of motor assembly and distribution. But investors and the public are about to find out more about its other interests, especially its plastic injection moulding operations, the group’s second biggest revenue contributor. Oriental is looking towards floating its plastic moulding business in Hong Kong some time next year, sources say. A “value-unlocking” exercise won’t exactly be a surprise. In July 2000, Oriental had announced to the Kuala Lumpur Stock Exchange (KLSE) that it had appointed financial consultants to look into “restructuring the group with the view of listing some of its operating units on the local stock exchange or overseas, as well as to revalue its land bank”. Says a motor analyst: “Perhaps, due to unfavourable market conditions then, the group put the plans on hold. But now, it would seem ripe to revive the idea.” “With the regional economy looking more stable and China’s ascension into the World Trade Organisation (WTO), Oriental is eyeing a floatation in Hong Kong, perhaps early next year. This will allow it to tap bigger op-

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portunities in mainland China,” says a source close to Oriental. He says the family of group founder, the late Tan Sri Loh Boon Siew, is doing what other Chinese business empires, such as Tan Chong and Genting, have done: expanding their regional interests using listed vehicles overseas to fuel growth. Another Malaysian-owned plastic injection moulding company, VS Industry Bhd, had also taken the route earlier. It floated its China operating unit in Hong Kong last month, joining the queue of companies worldwide hoping to hop onto the China-WTO bandwagon. Oriental’s plastic injection moulding operations in Malaysia is mainly held through 60 per cent-owned Teck See Plastics Sdn Bhd, based in Bangi, Selangor. Apart from producing plastic parts for Oriental’s car assembly operations and that of parent Boon Siew Sdn Bhd, which assembles Honda motorcycles, Teck See also supplies parts to Proton and UMW Toyota. Other customers include electrical appliance makers Sony, Canon and Samsung. Wholly owned subsidiary Jutajati Sdn Bhd controls the group’s overseas plastic ventures. Jutajati has a 70 per cent stake in Oriental Kyowa Plastic Industries Co Ltd in Shanghai, and 87.6 per cent in PT Oriental Kyowa Plastic Industries in Indonesia.

At this juncture, it is not clear if the group’s intended floatation exercise will involve just its China operations or include the Malaysian, Indonesian and Thai operations as well. “They are looking at various alternatives, but it is unlikely that Oriental will float its plastic injection business on the local exchange. It seems more logical to fuel expansion in the rapidly growing China market via a Hong Kong listing,” says the source. Recent manoeuvres by Oriental reflect its intention to expand its plastic injection business in the region and reduce its heavy reliance on the motor sector. It is also timely in view of the implementation of the Asean Free Trade Area which takes effect next year as well as as China’s entry into the WTO. Oriental’s recent moves include setting up a wholly owned subsidiary in Thailand called Oriental Thai Industries Co Ltd (OTI) via Jutajati last August. The group’s first foray into Thailand will be a RM15.2 million investment in OTI, which is involved in plastic injection moulding, mould manufacturing and assembly services. Oriental also set up a subsidiary — Oriental Boon Siew (Mauritius) Pte Ltd — in Mauritius in September last year. The company is 50.5 per cent owned by Oriental with the re-

3/22/02, 1:34 PM

maining stake held by Boon Siew Sdn Bhd. On March 12, Oriental Boon Siew acquired an 80.18 per cent stake in Hymold (Su Zhou) Co Ltd — a plastic injection moulder in China — for RM2.44 million. The deal will see it assume Hymold’s debts of RM14.44 million. While the group does not reveal specific financial details on its plastic business, which is lumped with its motor and manufacturingrelated businesses, it is learnt that Teck See raked in over RM300 million in annual revenue for the past few years, This was revealed when the company was among those which won the Enterprise 50 award in 2000, organised by the Small and Medium Industries Development Corp and Accenture Consulting. That is about one-tenth of the group’s turnover of RM2.5 billion in FY2001. An industry profit margin of about 11 per cent (similar to that of rival VS Industry) will give Teck See a pre-tax profit of slightly more than RM30 million. Oriental’s overseas units, mainly involved in plastics and plantation, accounted for about RM32.2 million or 14 per cent of the group’s pre-tax profit of RM223.9 million, according to E Oriental’s annual report for 2000. Siow Chen Ming is a senior writer with the Capital Markets & Companies Desk at The Edge Malaysia

60 • THEEDGE SINGAPORE

| MARCH 25, 2002

INSIDE ASIA

Clever scheme but uncertainties remain

| From ANNA TAING in Kuala Lumpur |

t is a cleverly crafted but complex restructuring scheme that will achieve three key objectives. The proposed scheme will enable the Utama Banking Group (UBG) to gain control of the country’s third largest financial group with minimum cash outlay and at the same time, facilitate the exit of Tan Sri Rashid Hussain with enough cash to retire his personal debts… and maybe a little more. “Perhaps I would have some [money] left to take you [journalists] out for a meal,” Rashid joked at last Wednesday’s news conference. The scheme will also address RHB’s debts, bringing the gearing down to 2.1 times from 9.4 times. It will also improve cash flow at RHB, enabling it to swing back into the black. Franklin Tan, head of research at OCBC Investment Research, says: “Under the circumstances, we believe RHB has crafted a complex but innovative restructuring deal that addresses the group’s gearing position and merger with Bank Utama.” Once the restructuring scheme is given the necessary approvals, Rashid will leave the RHB Group with close to RM1 billion (S$1 approx RM2.10) — RM732 million from the sale of his 26.1 per cent stake (121 million shares) in RHB and an estimated RM260 million (part cash) from his disposal of holdings in RHB Sakura Merchant Bank via Panduan Cekal Sdn Bhd, some analysts say. UBG, on the other hand, will sell its commercial bank to RHB Bank for RM1.6 billion which is two times NTA (net tangible assets), which some analysts say is a tad expensive. Still, the purchase price isn’t cast in stone; it could still be revised after a due diligence exercise. And what of the minorities? RHB’s executive director and regional head of corporate finance, Chartchai Pusavat, at a media briefing, stressed that it was a “winwin-win situation”. “The interest of RHB’s minority shareholders will be protected and enhanced,” he said. How? Minority shareholders in RHB will benefit as RHB ICULS A, which have a conversion price of RM1, will be issued to UBG on the condition that it undertakes a restricted offer for sale of the same to existing shareholders of RHB on a one-for-one basis. For RHB Capital’s minorities, the proposed partial voluntary offer (VO) by RHB for RHB Capital shares is seen as positive, considering the pre-suspension price of RM2.65. The VO, according to OCBC Securities, has an implied value of around RM3.34 (one RHB share valued at RM2.26 and one RHB ICULS B with a conversion price of RM2.10). Meanwhile, shareholders in RHB Sakura Merchant Bank will be paid RM2 cash and RM2 RHB Capital bonds in exchange for one RHB Sakura share. RHB Sakura shares closed last Friday at RM3.34. Generally, say analysts, the long-awaited deal is positive for RHB because once completed, its balance sheet will emerge healthier. Apart from lower gearing, the company will return to profitability, with an earnings per share of 5.1 sen compared with a loss per share of 42.7 sen. At a glance, RHB’s significantly reduced gearing, upon completion of the exercise, seems to be largely due to expanded share

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RHB

A DEAL AT LAST: Rashid with Sulaiman Abdul Rahman Taib, deputy chairman of Cahya Mata Sarawak Bhd, controlling shareholder of Utama Banking Group

capital. Sources close to the deal say that while the proposed scheme will resolve some RM1 billion in debts, the plan is to restructure its US$200 million bonds (due June) by adjusting its exchange ratio. This also explains why RHB needs to accumulate more RHB Capital shares. For RHB Capital, its NTA will be reduced to RM1.19 a share from RM1.75 a share, due mostly to goodwill as it will be buying Bank Utama at 2.0 times NTA and privatising RHB Sakura at 1.94 times NTA. For UBG, though, most analysts say the deal is positive only so far as it gets control of the RHB group. “After taking into consideration the goodwill, UBG’s balance sheet may take the hit,” observes an analyst with a local stockbroking house. Also, uncertainties remain. A question asked is: What happens if the partial VO for RHB Capital shares isn’t taken up? Market observers estimate that RHB must own at least 65 per cent stake in RHB Capital if UBG is not to cross the mandatory general offer (MGO) trigger point of 33 per cent. Nonetheless, the general view seems to be that this may be a moot point as there will be acceptance, given that the VO is seen to be quite attractive. Of course, there is also a possibility that acceptance may exceed the targeted level. In such an event, the offer will be pro-rated, an RHB official explains. A major concern for many though, is the future of the banking group. A banking analyst says the departure of Rashid will not be viewed positively, given the role he had played in building up the group’s brand name. Rashid, in an interview with The Edge, says he has been deeply involved in the transformation of the bank and that he wants to carry that through. “I want to ensure a smooth transition to maintain transparency and stability of the company,” says Rashid to a question on what he will do after exiting the group. “A lot will depend on what UBG will do next, who will helm the merged bank after Yvonne Chia’s departure, and whether UBG has the management track record to steer the group in a landscape that is growing more competitive by the day,” the analyst says. Still, industry observers believe that once the deal is completed, UBG may likely want to change the corporate structure of the group. “At the moment, there are too many layers. The logical thing to do is to remove one of them,” says a market observer. “But these plans, if any, will not happen any time soon because the current deal will take another six months to be completed.” The ball, so to E speak, is in UBG’s court. Anna Taing is editor of the Capital Markets & Companies Desk at The Edge Malaysia

Merger scheme at a glance The proposed merger and restructuring scheme comprises two segments.

Segment 1 involves four steps: Step 1: RHB Bank to make acquisitions, which are: • Bank Utama for RM1.6 billion at two times NTA (as at Dec 31, 2000). RHB will pay the purchase price on behalf of RHB Bank via RM700 million cash; issuance of RM463.5 million new RHB ICULS A with a conversion price of RM1 a share and issuance of RM436.5 million new RHB ICULS B with a conversion price of RM2.01 per share. In return, RHB Bank will repay the amount to RHB via the proposed issuance of RM1.6 billion Tier 2 sub-debt. UBG will undertake a restricted offer for sale of ICULS A to all existing shareholders of RHB on a one-for-one basis. • RHB Leasing and RHB Capital Properties. The acquisitions of RHB Leasing will be made via RHB Delta Finance. Step 2: Proposed privatisation of RHB Sakura Merchant Bank and the aquisition of RHB Capital’s securities and securities-related business by RHB Sakura. • RHB Capital will privatise RHB Sakura by acquiring the remaining 49 per cent to be satisfied by RM2 cash and RM2 RHB Capital bonds for every one RHB Sakura share. • Following the privatisation, RHB Sakura will acquire all the securities and securities-related business of RHB Capital. These include the 37 per cent stake in Straits Asset Holdings, Rashid Hussain Asset Management, a 49 per cent stake in RHB Unit Trust Management and, Rashid Hussain Securities, which will be merged with Straits Securities.

3/22/02, 12:44 PM

Step 3: Proposed partial voluntary offer (VO) of RHB Capital by RHB. • RHB to acquire an additional 19.6 per cent and 54.5 per cent of RHB Capital shares and warrants, respectively, so that RHB ends up with a 75 per cent stake in RHB Capital. The VO will be satisfied via a combination of new RHB shares and ICULS. It is tentatively proposed that every RHB Capital share held will be exchanged for one new RHB share with RM1 ICULS B, and seven RHB shares for every 20 RHB Capital warrants. The partial VO is necessary to restructure RHB’s outstanding US$200 million bonds and to improve cash flow streams to RHB. Step 4: Reduction of borrowings by RM1 billion • Reduction will be via the utilisation of RM1 billion of RHB Bank Tier 2 sub-debt (see Step1), of which RM800 million will be used to swap for and retire the existing RM800 million RHB ringgit bonds. The remaining RM200 million will be used to retire a portion of its short-term debts.

Segment 2: Tan Sri Rashid Hussain and Malaysian Resources Corp Bhd (MRCB) to sell stakes •

•

UBG to acquire 121 million RHB shares at RM6 a share from Rashid and parties identified by Rashid, for a total cash consideration of RM726 million. UBG will also acquire eight million RHB warrants-C at 75 sen per warrant for RM6 million. UBG will also acquire MRCB’s entire stake in RHB, comprising 105.13 million shares at RM4.80 a share for RM504.6 million. After the acquisitions and taking into consideration the enlarged share capital of RHB, UBG will end up with a 26.4 per cent stake E in RHB.

THEEDGE SINGAPORE | MARCH 25, 2002 • 61

INSIDE ASIA

Rashid calls it a day T an Sri Rashid Hussain has his roots in Singapore, made his name building the giant RHB banking group in Malaysia and last week inked an agreement to sell it all. Popular opinion has it that he was a victim of politics – the fallout of the political infighting that started with the fall of Datuk Seri Anwar Ibrahim four years ago and a strained relationship with former Finance Minister Tun Daim Zainuddin. And there was also the 1997/98 financial crunch that dented his own personal finances that the sale of the bank will take care of. A son-in-law of sugar and property tycoon Robert Kuok, Rashid spoke to The Edge Malaysia’s Anna Taing after briefing teary-eyed employees about his exit from the business he built over the past 20 years, initially as a small stockbrokerage, into the country’s third largest financial group. Following are excerpts:

consumer banking... I can feel it in my bones today that I can do it.

Would things have been difficult if you had stayed on? The tide was against me and it was more and more difficult to do things.

But you could have negotiated to take control of the investment (merchant) bank. It was my philosophy in 1992 to build up a fully integrated financial group. Having carefully built it up, I think I should not be selfish in my exit policy that I should start disintegrating that model. I would like to see RHB prosper and progress and move to greater heights and that vision requires the integration process to go on. That means it isn’t right for me to take bits and pieces of what I want.

Are you a victim of politics? When we were deliberately left out of the first round of domestic anchor bank consolidation programme, rumours started flying that I was politically out of favour. However, when the anchor status was restored to us by the kind courtesy of the Prime Minister, I was, and still am, very grateful. Despite getting the anchor status, at the practical level, we were still facing the impact of the Asian crisis and despite all our efforts, we, at that time met with many frustrations in trying to implement our group restructuring plans. It is heartening to note that we no longer face the same frustrations, and haven’t for some time. Your biggest regret? I would have loved to wait two more years to see the results of integration and

How do you feel about leaving? Sad. I had the best of times building up the brand name, but you’ve got to be realistic. Do you see yourself going back to financial services? Essentially, I am a financial man [but] I don’t have an answer to that question right now. Have you achieved what you set out to do? One can never be satisfied. Overall, as I look back, it has been better than expected.

There have been disappointments at how slow some processes are, frustrated no doubt by various distractions that were in the way. What I wanted to do was to meet the professional challenges and [I was] willing to put in the hard work and money to develop a greater vision into reality. I have never taken a short-term view of life. I was prepared always to invest in the future. You talked about distractions. What were they? I think the circumstances from 1997 onwards. I was not totally free to tackle the problems head-on as a professional on purely commercial terms. With the onset of the crisis, when companies were affected by the ravages of the crisis, we were professionals; we didn’t just sit there, we knew what we had to do to put things right but lots of our plans were thwarted. (He declined to go on record as to whom and why.) If you could turn the clock back, what would you have done differently? Like everything in life, you must learn your lessons. On hindsight, it is easy to say I would have done things differently but overall, you have to accept things as they are and move on. How did the RHB group and yourself incur such a high level of debt? It was the Asian financial crisis in 1997, which broke out three months after we acquired Kwong Yik Bank. It was bad timing. I had borrowings and with the ringgit-US dollar exchange rate collapsing, it added to the problems. You made your mark in stockbroking and merchant banking. But your move into properties, it was something new for you. CONTINUES NEXT PAGE

PICTURES BY HARIS HASSAN/THE EDGE

The Edge: You spent 20 years building up the RHB group. Why have you thrown in the towel? Rashid: I have come to the conclusion that as consolidation becomes inevitable, and we have done enough consolidation already, further consolidation will be difficult for me as an individual to cope with. As an individual shareholder, I am not strong enough to sustain the growth that is necessary; therefore I have decided it is right to institutionalise the shareholding to bring strength and stability to the group and the timing is right because the group is now strong and diversified enough. I still have an unfinished job. A lot of good work in terms of transforming the bank has been done. Unfortunately, we will only see the good work in two years. Philosophically, I know that the work will never end. It is right for me to exit now. And, of

course, I do have personal commitments to meet and I am honour-bound to meet them.

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3/22/02, 1:23 PM

62 • THEEDGE SINGAPORE

| MARCH 25, 2002

INSIDE ASIA

They want it cheap and I want it fair — Rashid in response to a query from the press on why the negotiations for the merger took so long. university life may be the opposite of that... at the end of the day, it was luck.

FROM PREVIOUS PAGE

Was it a mistake? On hindsight, we should have focused on doing what we were best at — financial services. Acquiring the commercial bank, expanding the bank was not at all a mistake although it was misplaced in terms of timing. The acquisition of Kwong Yik might have been done at top-market prices three months before the market collapsed. But in terms of strategy, who’s to fault us that it was the right thing to embark upon, in order for us to consolidate our interest in the bank and for us to finally have a footprint in consumer banking? On the other hand, yes, property development was not to be counted as within our expertise. A more disciplined and focused approach and better risk management could have saved us. The Vision City property project… did you go into it because there were others undertaking mega projects to please the powersthat-be? I am not known to be a crowd follower but Vision City was an interesting idea floated to us to develop that part of town that was left abandoned. It was in the prime area of town, in Jalan Sultan Ismail [in Kuala Lumpur], and also had an important symbolic attachment to it. It effectively was next to Kampung Baru, and there was a general desire among some people to see Kampung Baru developed to fit into the image of KL as a modern city. Attempts to develop Kampung Baru were difficult, and RHB’s stepping into the shoes and taking up the challenge was partly motivated by the fact that hopefully, if this development was successful, it could have been the true catalyst to get Kampung Baru moving. And that was a noble thought. But the reality of it was, we were not good at it. The timing was bad and when everything went wrong, there was nobody to help us. Today, it is an albatross for the group. Well, it was an albatross but we took our commitment seriously despite the fact that we were losing money. We completed three buildings, sold only one at a profit and another one at a loss. We are struggling to sell the third. We completed 60 per cent of the retail centre, and find it difficult to complete it unless we pour in new money to get it completed. In today’s circumstances, we are obviously reluctant to do so but we must find an alternative solution to this problem. It would be nice to complete the project. The project itself was a beautiful concept aesthetically — it was attractive and could help enhance Jalan Sultan Ismail. The original vision was to treat Jalan Sultan Ismail as an Orchard Road in KL.

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When you started out, who or what were your stepping stones to help you achieve what you have so far? I think there was a lot of determination on my part, no shortage of strong will to work hard. Intelligence helped, and the rest — it was an exciting challenge in itself. Along the way, did you have to make sacrifices? Oh, there were a number of sacrifices. I did not have a godfather to help me along the way. But you have been successful. What about your association with Tan Sri Wan Azmi Wan Hamzah (one of his early partners) and others? I think to put it the other way around, I was working as a merchant banker for years. I was slowly building up my networking, experience and accumulating knowledge of all things Malaysian. That is almost a required skill for anyone who wants to be a merchant banker. I built up relationships on solid foundations, backed by professionalism and you could well describe that as being, well, connected with a person... when in actual fact, what you have done is, you have had a professional interaction with that person. So, that’s how the foundation of the group was built, not on privileges. Unless you are well connected with the industry, meaning that you have a relationship that you have developed, you will not be able to develop your business relationship. What about sacrifices? For a large part of my life, I was married to my work. Was it worth it? I don’t think you have a choice. I don’t regret my business life. Of course, I wish I could have spent more time with my family. What were the milestones? We have set several benchmarks — in investment banking, stockbroking, commercial banking. We took a 17th ranked bank into the third largest bank, and improved customer base from 230,000 to three million.

In stockbroking, the signature must surely be the leadership in institutional business, brought about by a strong research team throughout the period that this group has existed. My aim was to develop a research team second to none as far as Malaysia was concerned. Over the years, we have won awards on a consistent basis. Beyond research, too, we have won awards. We were not frightened to innovate, and we moved on to corporate finance work. In the early 1980s, Corporate Malaysia was exploding with rapid expansion. We were in the forefront, initiating and cementing deals; it helped Corporate Malaysia leapfrog into expansion. How do you want people to see you? I don’t want to particularly be remembered as a stockbroker. I have gone beyond that. I have built up this universal banking group. I would like to be seen as a universal banker. What have you learnt from 1997? A lot. The whole Asian environment had learnt and had to re-learn, and we learnt what risk management was all about. Nineteenninety-seven certainly changed credit culture, changed risk management units within groups. How did you become a banker? It was an accident. All my life I wanted to be an academic and I was more interested in university life and teaching in the university. I switched from philosophy and got myself an articleship in a stockbroking firm (Strauss & Turnbull) in London and thereafter, I couldn’t imagine doing anything else. I had good teachers, a good working environment that was thriving, bubbling. It was very exciting. What is it about the financial world that made you fall in love with it? I think it is so dynamic, it’s changing, you are on your feet all the time, and I think there are various aspects of human psychology that were fascinating. I suppose it is the background [too]. My father was a small businessman who worked very hard. Perhaps you go through a time of childhood where you become rebellious and you don’t want that lifestyle and think that

3/22/02, 1:23 PM

The highlights of your career? I went through a full circle; trained as a stockbroker and then merchant banking. The two combinations made me realise that the world demarcations in stockbroking and investment banking were fast breaking down, long before the authorities realised it. It was fascinating beyond imagination to take the combined stockbroking and investment banking to a new level. After working for seven years, I came out on my own, very strategically built up the institutional business, added on asset management and developed our own corporate finance team. We didn’t have a bank then. And when the opportunity came to actually acquire a bank, I knew that the next logical step was to build up a universal bank that included the combination of merchant banking and investment banking. That was the evolution that we took until finally, when we consolidated our grip on the banking industry, we did a series of acquisitions that made us almost a leader in banking consolidation. It opened up yet another facet of the industry where we saw what great potential consumer banking had. From a financial integration point of view, it was also better for risk management. Is stockbroking a sunset industry now? It’s the evolution process, the stockbroking world was dynamic but it couldn’t last. That financial world is fast breaking down the demarcation lines, new skills are setting in; stockbroking on its own was almost an anachronism. But, we saw this in 1992. We started planning the concept of an integrated financial and investment group. All our acquisition strategies were directed towards that; it taught us how to manage a different set of people and the sort of skills that are needed to develop expertise that is not available in traditional stockbroking or merchant banking work. How do you think the future landscape will take shape? It will be determined by competition. As you deregulate, changes will be brought about by forces of competition. There is potential — in consumer banking, we still do not have the products. In services, we are still not sophisticated enough. In intermediation, we still are very new. So, there is still a lot of potential there. What’s next for you? Frankly, I haven’t given it serious thought because my sole focus for the next six months will be to complete what I set out to do, which is to turn the company around. And I also intend to ensure a smooth transition process is in place and a professional handover is done. Are you leaving Malaysia? This country has been kind to me. I may be a global person in my thinking but this is E home.

I D E A S • I S S U E S • D E B AT E THEEDGE SINGAPORE | THE WEEK OF MARCH 25 — MARCH 31, 2002

The currency quandary

wo views about today’s prevailing exchange rates exist: The US dollar is overvalued and the yen needs a deep depreciation. The implication of the two is an explosion upwards for the euro. But can Europe deal with such a shock, and what would happen to the US if that happened? Now that America’s recovery is underway — and it arises from a slump not a recession — the current account deficit will widen even further and in no time, discussions about the unsustainable high-flying dollar will become fashionable again. Yet, the very fact of a US upswing that is bigger, comes sooner, and is better than anywhere else — Europe remains plagued by growth cramps and Japan’s economic policy kabuki is going nowhere — will support and even strengthen the dollar. All those who predicted the collapse of America’s “house of cards” economy (who thought that Enron’s collapse was finally the sign in the sky that they were right) must now be exhausted. No dollar collapse looms. Financial stability, strong productivity, flexibility and dynamism make the US one of the choice places for capital and this influx of capital finances America’s large current account deficits. It will continue doing so until, at the end of

the rainbow, Japan or Europe compare favourably with the US investment climate. Don’t hold your breath for that day; don’t wait for the US$1.20 per euro that is touted as the “equilibrium” rate. But the dollar is not the only issue atop currency market debates. There is another strongly held belief: that Japan cannot recover without a steep decline in the yen. For those who hold this view, the yen would have to decline to ¥160 or even ¥200 per US dollar. Without monetary policy, fiscal policy or supply side reforms, how else can Japan return to growth except by a depreciation-driven export boom? Because Japan’s export sector is so small, barely 10 per cent of gross domestic product (GDP), the depreciation would have to be enormous to stoke the entire economy. Suppose we put the two propositions together: the yen depreciates 30 per cent against the dollar while the dollar in turn depreciates 30 per cent against the euro. These numbers are large but such falls are in everyday discussion. The implication, of course, is a huge appreciation of the euro against everybody else. Japan might get some growth, probably not even a full percentage point of GDP. For the US, the story is mostly neutral: a gain in com-

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Recasting global growth

n the back of recent upward revisions to our near-term growth estimates of the US, Europe, and even Japan, we have raised our estimate for world gross domestic product (GDP) growth this year to 2.4 per cent. That represents an upward revision of 0.4 percentage point in the past month alone, and a total adjustment of 0.6 percentage point from the 1.8 per cent global growth estimate we were carrying at the start of this year. Is another era of global healing at hand? The short answer is, no. While it may seem that way for a while, in my opinion, the climate early this year is far more fragile than it was three years ago when a post-crisis global economy staged a seemingly miraculous revival. It is important to put these forecast revisions into context. On the one hand, I would be the first to concede that these are large upward revisions relative to the anaemic baseline growth estimates we were carrying at the start of this year. After all, if we end up moving to the upper bound of the range noted above, a 3.0 per cent global growth outcome for this year would be fully 67 per cent faster than we had thought was possible at the start of the year. While that would obviously represent a huge shift in our thinking, it does not, however, depict a world economy that has gone from bust to boom. Indeed, by global business cycle standards of the past, a 3.0 per cent rebound in

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to domestic inventory adjustments and to exports feeding the US restocking. By contrast, a self-reinforcing upturn in domestic final demand still seems to be notably absent in most segments of the global economy. Here’s where the tale could take its most world GDP growth would have to be depicted as decidedly subpar when judged against the intriguing twist. This global recovery has not 5.0 per cent norms of past global recoveries. The drawn its sustenance from a broadly based, selfgood news is that our revised prognosis would reinforcing upturn in domestic demand. At mean that the world would not be mired in a work, instead, has largely been a narrow rebound in US domestic demand rare two-year synchronous recesin the aftermath of last fall’s tersion. The bad news is that our de12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 rorist attacks — a post-shock uppiction of global recovery remains 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 turn that has sparked inventorydecidedly U-shaped over the 200212345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 and export-related adjustments 03 interval. 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 Our economics team remains 12345678901234567890123456789012123456789012345678 elsewhere in the world. That, of 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 course, means that any setback sceptical that a more powerful cy12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 on the final demand front might clical dynamic is now at work. 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 well deal a harsh blow to a still Most of the 12345678901234567890123456789012123456789012345678 adjustments we have 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 fragile global economy. A potenmade to date to our world growth 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 tial double dip in the US is espeestimates reflect what we call 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 cially worrisome in that regard. “base effects” — simply “marking 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 to market” 12345678901234567890123456789012123456789012345678 our forecasts relative | BY STEPHEN ROACH | Should that outcome come to 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 pass — a wildly out-of-consento the vigour of incoming statis12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 sus bet these days — the rest of tics. The US is the most salient 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 example in that regard. At the start of this year, the US-led global economy would quickly find 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 our 1Q2002 12345678901234567890123456789012123456789012345678 GDP growth estimate stood at +0.1 itself in a very precarious place. But with the 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 per cent; today, our estimate is in the 4.5 to consensus now lined up on the other side of 12345678901234567890123456789012123456789012345678 5.0 per cent12345678901234567890123456789012123456789012345678 range for the same quarter! While the boat, these are the risks that need to be 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 12345678901234567890123456789012123456789012345678 we have raised our near-term estimates else- taken seriously. Should the US double-dip, as where around the world, we have done little I suspect, a U-shaped recovery in a still USto modify our forecasts for the second half of centric global economy would be quickly this year and for all of next year. The reason: aborted. In a US-centric world, the US’ douWhile the world now seems to be rebounding ble dip would quickly become the world’s smartly from the aftershocks of Sept 11, the double dip. All in all, the global economy is now strugnewfound vigour seems to be confined largely

3/22/02, 9:11 AM

growth, but nor will there be an outright growth crisis either. Europe will keep talking about the American house of cards, but with a sense of yearning that its dynamism is a trick an ageing Europe can’t master. Suppose all this is wrong, suppose suddenly the US cannot attract enough capital. No one shows up at Treasury auctions to buy US bonds, and fewer foreigners buy US stocks or companies and real estate. What would happen? Of course, the dollar would fall in no time, and substantially so — enough to shrink the deficits or bring in capital to take advantage of a now undervalued dollar. But there is very little pain in that — inflation won’t rise, stocks won’t fall, manufacturers would cheer. Because the US has low inflation and is financially stable, the exchange rate is not the risk factor it was in the 1970s. That situation was well characterised by a line from John Connolly, the then Treasury Secretary for President Richard Nixon: “The dollar is our money and their problem!” The more things change, the more they remain the E same. — Project Syndicate Rudi Dornbusch is Ford Professor of Economics at MIT and a former chief economic adviser to both the World Bank and IMF

gling to break the vicious circle of a synchronous worldwide recession. A post-Sept 11 rebound in the US has provided the first spark of cyclical revival. And it has led to “base effects” early in the year that have prompted upward adjustments to most of our forecasts around the world. The key question for the outlook is whether there is now sustained follow-through from this first spark — whether the production and income implications of an inventory-related rebound trigger the “multiplier effects” that result in a more classic cyclical revival in domestic final demand. In a US-centric global economy, I believe that the answer to that question once again hinges largely on the wherewithal of the American consumer. As the forecasting community now spins to the upside, there is the presumption that US consumers will do the trick once again. As a dissenting double-dipper, I continue to have my doubts. I am hard-pressed to believe that the over-extended American consumer will come anywhere close to matching the outcome of a few years ago. But even if I’m wrong, a far more subdued pace of US demand growth is probably in the offing, one that falls far short of the unbridled burst that occurred at the end of the Roaring 1990s. In other words, don’t get carried away with the recent revisions to our global growth forecast. A replay of the glorious global healing of 1999 E and early 2000 is highly unlikely. Stephen Roach is chief economist at Morgan Stanley Dean Witter, based in New York

THEEDGE THE WEEK OF MARCH 25 ,2002

HIGHLIGHTS

2 SELECTIVE VIEWING The pick of the Singapore International Film Festival

3 LISTINGS The weekâ&#x20AC;&#x2122;s guide to dining and entertainment

4 COVER STORY The heartiest brunch for Easter

6 P7 PULP FACTION

CLASS ACT Comics gain First Class travellers newfound respect on Qantas

Easter feast

Give thanks with food and fun!

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GOT RICHARD LIM? Meet the man behind the new book, Got Singapore

2 • THEEDGE SINGAPORE • OPTIONS

| MARCH 25, 2002

BEAUTY

SELECTiVE ViEWING

The Singapore International Film Festival returns. Sangeetha Madhavan gives her picks of the 390-odd films.

EDITOR Ho Kay Tat (hktat@bizedge.com) SENIOR WRITER/ COORDINATOR Serene Goh (serene.goh@bizedge.com)

CONTRIBUTORS Ronald Rajan, Sangeetha Madhavan, Sharon Loh

igital cinema and animation take the spotlight at the 15th Singapore International Film Festival (SIFF), which opens next month — a nod to the extent to which digital film has revolutionised the industry. As Evans Chan, director of The Map of Sex and Love, Hong Kong’s first digital feature, dramatically puts it: “[DV film-making] saved my filmmaking career… because I couldn’t raise sufficient funds to make a decent 35mm film.” With a push from the Infocomm Development Authority of Singapore (IDA), there will be screenings of about 80 digital shorts as well as the first-ever Asian Digital Film Awards, incorporating public polling via the 8arts.com website. Following the resurgence of animation the world over, the animation section includes over 100 titles from masters such as Osamu Tezuka, whose Kimba the White Lion is said to have inspired Disney’s cartoon The Lion King, surrealist Jan Svankmajer, The Quay Brothers and Lotte Reiniger. With more than 390 films from 40 countries, SIFF 2002 boasts the most extensive set of offerings in the festival’s history. Iranian director Mohsen Mokhmalbaf’s Kandahar, a haunting tale of the plight of women in Afghanistan, opens the festival; and no, the Sept 11 fallout has nothing to do with its selection.

COPY-EDITING Dorothy Teoh, Ooi Inn Leong, Elaine Lim, Pushpam Sinnakaundan, Koay Sook Kuan, Jane Ragavan, Sharon Toh SENIOR PHOTOJOURNALIST Chu Juck Seng (jschu@bizedge.com) DESIGN + PAGE LAYOUT Sharon Khoh, Raymond Khor, Lee Wan Yee, Ong Siew Yen, Rozi Ibrahim, Ivy Lo TRAFFIC Doris Ng PRE-PRESS Thomas Chin, Hong Kin Siang, Yong Onn, Zamri Razali ADVERTISING + MARKETING MANAGER Sunita Kaur (sunita.kaur@bizedge.com) CIRCULATIONSUBSCRIPTIONS SENIOR MANAGER Suresh Kumar (suresh@bizedge.com) PUBLISHER The Edge Publishing Pte Ltd 150, Cecil Street #13-00 Singapore 069543 Tel: (65) 6232 8622 Fax: (65) 6232 8620

Kandahar

“The movie was made and screened long before the attacks,” says festival director Philip Cheah. Its appearance, does, however, continue the close relationship the festival has had with Mokhmalbaf. The director’s Gabbeh opened the 1997 festival and a retrospective of his works was screened in 2000. Makhmalbaf has even served on the Silver Screen Awards jury. Kandahar shares opening day credits with Sandi Tan’s Gourmet Baby, a short film featuring Lim Kay Tong as a sexually repressed man whose favourite dining companion is his niece. Malaysian-born, Taiwan-based Tsai Ming Liang’s tale of longing and loneliness What Time Is It There? brings down the curtains. Another much-touted Singaporean entry is Talkingcock.com by Colin Goh, who runs the website of the same name, whose world premiere is also a char-

ity premiere for Action for AIDS. The festival also hosts the first international retrospective of Thai director Ratana Pestonji’s films, whose movies of the 1950s and 1960s have found a resonance in the vivid colour of this century’s campy Thai-Western Tears of the Black Tiger. That doesn’t mean that the staple of world cinema is forgotten. Under the theme of “The World is Watching — Films on Globalisation”, this year’s international programme seems the festival’s most promising yet. So prepare to spend a lot of time in the dark — the delights seem endless this year.

Omega Speedmaster ‘Broad Arrow’ Omega’s Speedmaster has the distinction of being the only watch to have been worn on the moon. On your wrist, it promises to be equally luminous, teamed with leather and an ivory dial. Available at all authorised Omega retailers.

Vacheron Constantin Royal Eagle Trim, compact and looking like the inspiration for a Salvadore Dali painting, the Royal Eagle seems an objet d’art in itself. One for collectors. Available at authorised retailers Cortina Watch, Sincere Fine Watches, Roy Eastern Watch, Deluxe Eastern Watch and Watches of Switzerland.

Tissot T-Touch Essentially a touch-screen timepiece, this multi-functional watch (it even comes with a user manual) also happens to look as good as it works. No doubt an immediate conversation piece, it comes in stainless steel bracelet (S$1,100) and rubber strap (S$1,050) and is available at all authorised Tissot retailers.

Bulgari Home Designs For the discerning cook, Bulgari offers its table and homeware collection, created in association with Rosenthal. Among the standouts are its Dolci Decò tea and coffee service and its Gourmet line, all inspired by the watercolours of Davide Pizzigoni. Available at Bulgari stores.

The 15th Singapore International Film Festival is from April 11 to 27. Tickets from Ticketcharge are S$8.74 for all screenings except the opening and closing ones (S$21.10). Hotline: 6296 2929 or book online at www.filmfest.org.sg

BuyRight

PRINTER KHL Printing Co Pte Ltd 57 Loyang Drive Singapore 508968 Tel: (65) 6543 2222 Fax: (65) 6545 3333 We welcome your comments and criticism. Send your letters to The Edge, Raffles City Post Office PO Box 218 Singapore 911708 Tel: (65) 6232 8622 Fax: (65) 6232 8620 e-mail: feedbackspore@bizedge.com Pseudonyms are allowed but please state your full name, address and contact number for us to verify.

Baume & Mercier Catwalk Swarovski This radically chic limited edition timepiece boasts a delicate black satin strap that’s liberally sprinkled with Swarovski crystals. Available at all authorised Baume & Mercier dealers.

Hermès ‘Selle’ line Clean living takes on new meaning with the Hermès Selle line, an all-glass affair that includes carafe, beaker, base and bowl. Available from the Hermès boutique at Liat Towers.

COVER PIC BY Chu Juck Seng/The Edge Singapore

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THEEDGE SINGAPORE • OPTIONS | MARCH 25, 2002 • 3

BEAUTY

YourWeekOut CONCERT

DANCE

SSO

Shakuntala Of The Mahabharata

March 28 and 30, 8.15pm, Victoria Concert Hall The Singapore Symphony Orchestra celebrates the season of Lent. Dilber, a famous coloratura soprano from Central Asia, will join the SSO in two arias from J S Bach’s St Matthew Passion and the joyous motet Exsultate, jubilate by Mozart. There’s also Wagner’s Good Friday Music from Parsifal and Schumann’s “Spring” Symphony No 1. Maestro Lan Shui conducts. Tickets: S$11-S$37 from Sistic (6348 5555).

March 28-30, University Cultural Centre Hall, National University of Singapore, 10 Kent Ridge Crescent

FILM

If you’ve always lamented not being able to understand classical Indian dance, this performance, complete with a live orchestra and

chorus, is in English. Choreographed by the prestigious Cultural Medallion recipient, Santha Bhaskar, this version is derived from the ancient Sanskrit theatre and follows the life of the wise Shakuntala. Tickets: S$19-S$31 from Sistic (6348 5555).

NIGHTLIFE Ola Alfresco Bar #01-15 Chijmes, 30 Victoria Street Say “hola!” to Ola, for people seeking that breezy romantic sangria-sipping experience along the Mediterranean coast. This latest addition to the refurbished convent’s F&B family is ideal for those who prefer to sit under the sweltering night sky to enjoy beer in frosted mugs and Latin sounds from band Barrio

The Count of Monte Cristo Opens March 28 Never mind that Alexandre Dumas’ classic tale has been told countless times, or that Hollywood bungled his two other classics, Musketeer and The Man In The Iron Mask, this latest attempt has at least gone down well with most critics. Edmond Dantes (Jim Caviezel), whose best friend Fernand Mondego (Guy Pearce) betrays him by stealing his lover and setting him up. While condemned to a life sentence in a dingy cell, he chances upon an old priest, who helps him escape and leads him to a hidden treasure. Fabulously wealthy now, he carefully executes his elaborate revenge plot.

THEATRE Stop Kiss March 28-31 (extended season), Toy Factory 17A, Smith Street A lesbian play in Singapore featuring two women kissing? Believe it: it’s possible. This staging of the acclaimed play by American playwright Diana Son, has Mark Richmond in the director’s chair and features some of Singapore’s current brightest young thespians, Adelina Ong, Esther Yap, Beatrice Chia, Chua En-lai and Brendon Fernandez. Two women meet each other in a city and become friends. But when they share a tender kiss at a park, a homophobic stranger takes offence and acts on it. What was supposed to be the beginning of a new love relationship quickly spirals into a nasty introduction to societal prejudices, violence and moral superiority. Tickets: S$20 and S$18 (students), e-mail: lividroom@hotmail.com, fax: 6258 4015 and mobile: 9875 2598

SIFF 2002 SCREEN PICKS No Man’s Land The Bosnian/Serb conflict coloured by dark humour and satire in the trenches. The Orphan of Anyang A story about a prostitute, her benefactor, her pimp and their baby. Hotel Mike Figgis’ experimental flick about a film crew trying to shoot a Dogme-styled adapation. The Navigators Ken Loach’s powerful portrayal of railway track workers at the time of privatisation of British Rail. Startup.com Two friends and the rise and fall of their dotcom. Apocalypse Now Redux Yes, “the horror” returns in the director’s cut of Francis Ford Coppola’s 1979 classic.

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Latino, which plays Tuesday through Sunday. Open daily 5pm-3am

DINING Saint Pierre #01-03 Central Mall, 7 Magazine Road (6438 0887) The new modern French restaurant gets set for spring with Chef Emmanuel Stroobant’s creations of a vegetarian starter of steamed asparagus tips with morel mushrooms in teriyaki-perfumed mousseline sauce (S$20), a main course of grilled scallop and tigerprawn papillote (S$36), and dessert of caramelised banana bavarois drizzled with rum and caramel syrup (S$15). Or, try the degustation menu (S$85).

4 • THEEDGE SINGAPORE • OPTIONS

| MARCH 25, 2002

COVER STORY

COVERSTORY

The

great Easter brunch Sharon Loh shows you how to celebrate Easter with the heartiest meal

THE RECIPES

(All serve 10 to 12)

Baked Ham with Orange and Nutmeg Glaze

PICTURES BY CHU JUCK SENG/THE EDGE SINGAPORE

ou don’t need religious conviction or even the promise of spring for a reason to celebrate Easter. After all, none of us are strangers to the miracle of birth and regeneration. This traditional spring festival is really a time to give thanks that we have our lives and families. So share a bountiful meal with your loved ones, and make sure they bring their children.

THE DO: Easter brunch for 12 THE SETTING: Celebrate the rite of spring with a riot of colours. Have fresh flowers around the house. For a centrepiece, fill a wicker basket with an abundance of Easter grass, chocolate bunnies and coloured eggs. Easter grass, chocolates and colouring kits are available at supermarkets. White eggs, which you will need if you want to colour your own eggs, are available at Jasons Supermarket (S$3 for 10). Naturally, the Easter egg hunt is a must, and strictly for children, aged two to 80. Hide the eggs, give your guests a pail and set them loose. Chocolate eggs, of all sizes and varieties, are good for indoor hunts. For outdoor forages, fill hollow toy eggs with little candies and treats. If there is a variation in age among the children, let the little ones go first and put the eggs where they can see them easily. THE EATS • • • • • •

Baked Ham with Orange and Nutmeg Glaze Devilish Eggs Club’s Spinach Salad with Citrus Dressing New England Sweet Potatoes and Apples Plum Crisp with Chantilly Cream Triple Crown Mint Julep

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1 (2.5kg to 3.5kg) cooked bone-in ham 1 cup water 1 cup 100% orange juice 2 /3 cup marmalade 1 tbsp whole nutmeg 1 /2 tbsp ground nutmeg 1 /3 cup ground mustard

trim some fat away from the ham. Score ham diagonally. Cut in one direction across the ham, then same in opposite direction; it will look like diamond shapes. In a bowl combine marmalade, ground nutmeg and mustard, and mix well. Brush marmalade mix over ham, place the remainder into the roasting pan. Carefully place the whole nutmeg between the diamond grooves. Return ham to oven for 1 to 11/2 hours, basting frequently with the juices from the pan. Let ham rest for 15 minutes before slicing. Garnish with fresh pineapple rings.

Method Heat oven to 163ºC. Place ham in disposable roasting pan. Pour water into pan, bake for about one hour. Remove from oven and add orange juice to roasting pan. If need be,

Devilish Eggs 1 dozen eggs 1 tbsp minced onion 1 tbsp minced celery or dash of celery salt 1 /4 cup mayonnaise 1 /2 tsp ground white pepper 1 /2 tsp Dijon mustard Tabasco, optional for a little spice Salt to taste

Method Place eggs in boiling water, boil for 12 to 15 minutes until hard. Refresh eggs in cold icy water. Peel eggs, cut in half length-wise and save yolks in separate bowl. Put aside the whites. Add the rest of ingredients to egg yolk, mix well together.

Club’s Spinach Salad with Citrus Dressing 800g washed round leaf English spinach 4 oranges 4 grapefruits 500g cherry tomatoes 2 spanish onions (red onion), thinly sliced Citrus dressing 1 lemon 6 oranges 4 grapefruits 1 /4 cup extra virgin olive oil 1 tsp citrus zest 2 tsp ground white sugar 1 tsp crushed whole white pepper Salt to taste

3/21/02, 4:46 AM

Place yolk and mix into egg white halves. Garnish with chervil and paprika.

Zest the skin of lemons, oranges and grapefruits for later use. Squeeze all three citrus fruits for juice using a strainer. Remove seeds. Whisk extra virgin olive oil slowly into juice. Add sugar, salt and pepper into the dressing and gently whisk. Method Place washed English spinach in bowl. Remove skin from grapefruit and orange, cut into segments and add to bowl. Cut cherry tomatoes in half. Slice onion and add them into the bowl. Gently mix together. Pour citrus dressing over salad before serving.

THEEDGE SINGAPORE • OPTIONS | MARCH 25, 2002 • 5

FEAST

New England Sweet Potatoes and Apples 2 tbsp butter 4 sweet potatoes (41/2 lbs), peeled and sliced 1/4-inch thick 4 large Granny Smith apples (3lbs), peeled, halved, cored and sliced 1 /4-inch thick 1 cup pure maple syrup 11/4 cups apple juice 1 stick (2oz) butter 1 /2 tsp salt Method Preheat the oven to 175ºC. Grease two very large, shallow baking dishes using 2 tbsp of butter. Alternating the sweet potato and apple slices, arrange the slices in the baking dishes in a single layer of concentric circles.

In a medium saucepan, combine syrup, remaining butter and salt. Simmer over moderate heat for 5 mins. Pour half of mixture over the slices in each of the baking dishes and cover the dishes securely with foil. Bake in the centre of the oven for 40 minutes, or until the apples release their liquid. Remove the dishes from the oven, uncover and baste the apples and sweet potatoes with pan juices. Increase the oven temperature to 232ºC and place the dishes in the upper third of the oven. Continue baking for about 35 minutes longer, basting a few more times, until the sweet potatoes are tender and nicely glazed. Serve hot.

Countdown to Sunday feast You have less than a week until the guests descend on you. Here’s how to manage your prep time. Tuesday Try to have all your RSVPs so that you know how many people to plan for. Wednesday Buy what you need for the centrepiece. Have a plan of the table settings. Check that you have all the crockery and cutlery you will need.

Plum Crisp and Chantilly Cream 2 cups all-purpose flour 2 cups rolled oats 1 tsp ground cinnamon 1 /2 tsp ground nutmeg 11/2 cups packed brown sugar 11/2 cups butter 2 quarts plums, cored and sliced Chantilly Cream 1 cup whipped cream } 1 /4 cup icing sugar } Mix together 1 /4 cup vanilla essence }

Thursday Buy all the ingredients except the ham, which would take up a lot of room in the refrigerator.

Method Preheat oven to 104°C. In a large bowl, combine the flour, oatmeal, cinnamon, nutmeg and brown sugar. Cut butter into mixture until crumbly. Take half of the mixture and pat it into the bottom of a 9x13 inch baking dish. Cover crumb mixture with plum slices, then sprinkle plum slices with remaining crumb mixture. Bake for 45 to 50 minutes or until plums are tender. Garnish with cream on top, sliced plums and mint leaf.

Friday Buy the ham. Wash spinach leaves, segment the fruits and make the citrus vinaigrette. Keep everything separate and wrapped well. Boil eggs, leave shell on and allow to cool. Return all items to refrigerator. Saturday Morning Get ready the ingredients for the potato dish. Cut pineapple garnish for ham, ready for use the next day.

Afternoon Make your hors d’oeuvres. Prepare the Plum Crisp (except for cooking), make the Chantilly cream, and be sure to cover it well with wrap.

Triple Crown Mint Julep

Sunday 8am–10.30am Prepare and cook the ham. While ham is cooking, mix together salad. Add vinaigrette just before serving.

Top glass up with crushed ice. Pour in Bourbon and sugar syrup over ice. Garnish with mint leaves.

360ml Jim Beam Bourbon 360ml sugar water (syrup) 10g crushed mint leaves A few stalks of mint leaves for garnishing Method Crush the mint leaves and put into glass (use what they call a high ball glass).

10.30am–11.30am Cook potato dish.

(This cocktail is better known in the world of professional bar tending as a built-in cocktail.)

11.30am–12.15pm Bake the Plum Crisp. Your guests will be greeted by tantalising aromas coming from the kitchen.

LOCATION AND RECIPES COURTESY OF THE AMERICAN CLUB

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6 • THEEDGE SINGAPORE • OPTIONS

| MARCH 25, 2002

FEATURE

ART EXTRACTED FROM MARVEL AND DC PUBLICATIONS

BY RONALD RAJAN

Pulp Faction R

Singapore’s fad-driven retail industry is fickle but rest assured, comics have not gone the way of Pokemon. The faddish comics trade has come into its own.

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emember those comic books you hid under your bed? Well, they could be worth a fortune. Once the musty preserve of second-hand bookstores, comics have become a major art dealing business, with auctions of some volumes fetching thousands of dollars in a single day for their lucky owners. Today, the twin titans in the comics industry are still Marvel and DC comics — makers of fine superheroes — who have come a long way from just supplying to nerdy no-lifers. Take the first issue of Superman, printed in 1939, which now fetches between US$13,000 (S$23,850) and US$130,000 apiece. Meanwhile, other exploits of costumed heroes like The Punisher, Daredevil, Batman and GI Joe have gone from being dismissed by parents as “a waste of money” to a commanding trade. Just think: Depending on the condition of the volume, an entire retirement fund could be sitting in your dusty storeroom.

Art dealings The publication of Frank Miller’s Dark Knight Returns in 1986 was a pivotal point for the comics trade. A futuristic Batman tale, it was a critically lauded work that launched DC’s new Prestige Format range, printed on high-grade paper. Fans were hooked. It opened a platform for a generation of writers and artists like Alan Moore and Howard Chaykin to reinvent the genre, swapping old-style costume heroes with darker tales of Machiavellian intrigue, attention to social concerns, and daring storylines. As comics began to mature along

THEEDGE SINGAPORE • OPTIONS | MARCH 25, 2002 • 7

BOOKS BY RONALD RAJAN

Eye for Art

Here’s what to look for: Age: Comics are classified chronologically according to their four great ages — Gold (1938-56), Silver (1957-70), Modern (1971-92), Independent (1992 to present). Simply put, the older the book, the better, as these are more likely to feature early masters like Stan Lee, Jack Kirby, Bob Kane or Neal Adams. Creators: Frank Miller, Alan Moore and Neil Gaiman are usually money-spinners, as are newer writers Brian Michael Bendis, J M Straczynzski, along with artists Andy Kubert and Frank Quitely.

Significance: Issues where subsequently important characters are introduced have often seen their prices skyrocket. It explains why Incredible Hulk #181, which introduces the famous Wolverine, goes for nearly S$3,000. Scarcity: Some comics have an extremely limited print run. Even not quite popular titles like Birds Of Prey #8 (chronicling the adventures of Batman associates like Oracle and Black Canary) can be worth about S$90, while the other issues in the series go for an average S$8. Condition: Mint-condition comics are often sold in multiples of their listed values, while those in “Poor” condition will (unless they are ancient) sell at a fraction of their official value. Those certified by independent bodies like the Comics Guarantee Corporation (CGC) also up the ante if they are pristine.

Traders market with their audience, they gained newfound respect as an art form, while older issues became treasures. By the 1990s, the hype had reached Singapore, with many comic shops springing up and even international comic conventions coming to town. The success of Tim Burton’s 1989 Batman movie and the daring work of writer Neil Gaiman in his Sandman series sent proceeds through the roof. “For a while it was Batman this, and Batman that,” muses June Quek, who has been running Comics World in Park Lane for more than 15 years. “In those days anything with a bat-logo, from bubble-gum to T-shirts would sell out in a flash!” Comics companies cashed in, and investment-driven speculators flooded the market. People were buying multiple copies of #1s sealing them up, never to be read, to allow for their prices to soar to rip-off levels. By this time, however, public interest had deflated. Subsequent Batman movies didn’t rake in higher box-office takings, while puerile adaptations (for example, Teenage Mutant Ninja Turtles) alienated readers. As newer titles floundered, speculators got stuck with stacks of comics with the approximate value of styrofoam cups — the start of a slump when Quek recalls “nothing exciting happening after the ‘death’ of Superman in 1993”. Then about two years ago, a major revamp in the industry brought levels of art and writing to new heights. Successful movie spin-offs like 2000’s X-Men film generated fresh interest among collectors, and the much-hyped Spiderman movie due out in May looks set to sustain it. Comic-shop owners remarked that business has been improving slowly, despite the recession, with buyers among young adults, yuppies and even women fans of female characters like Death (in The Sandman), Elektra and Vampirella. With themes progressing from purely senseless violence to tackling social injustice, racism, AIDS, esoteric and metaphysical concerns and, yes, terrorism too, the business here has achieved a level of respectability. Roger Puar, 27, owner of Alaric’s Comics, notes: “The quality has come back into the books, and it’s helped confer a degree of respectability to the genre.”

The price is right New stability in the comics business is, of course, good news for those in it for the money. A few months ago, Detective Comics #27, featuring a brief six-page introduction to Batman, became the most expensive comic in history when it was auctioned off for an amazing US$278,189. In 1940, the year of its issue, the book cost 10 cents. But trading comics isn’t easy money. While an older audience is fighting over rarities from the 1960s and 1970s,

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Generation Next is busy sealing comics in plastic and stockpiling them in the hope they will provide liquid funds in a few decades. (An entire secondary market of storage aids like plastic mylars, special bags and boxes are available at various shops, as are display cases.) Of course, while such publications as the Overstreet Comic Book Price Guide give a general value to any such collection, there is still no guarantee that the book will automatically appreciate with time, and punters must hedge their bets. Ultimately, it all boils down to good ol’ demand and supply, as Puar explains: “Comic companies limit production according to initial orders from retailers. At best they’ll put out about 10 per cent more than the total order figure. That’s it.” Marvel, for instance, currently prints less than a million copies per issue of its hugely successful Uncanny XMen (at a cover price US$2.25) series each month. Indeed, Quek reports the prices rise only when she has to re-order them at a higher price. Our advice: Wait at least three months to catch the buzz on a particular book. Then pray that no one beats you to it.

Read to believe Most collectors, however, don’t mix business with pleasure. “What one gets out of a comic book depends on the individual,” says ComicsNaut owner Nick Chen, who was weaned on comics and set up his business nearly 10 years ago. “Comics were meant to be read. True comic fans often get frustrated by hype. To them, if the price of a comic goes up then it’s just a bonus!” Seeking to revive the spirit of reading (rather than trading) comics, he built a devoted clientele, and recaptured many older fans who tired of collecting in the wake of the price wars of the last decade. “Most readers who return are shocked by the maturity of the content these days,” he says, citing The X-Men, Spiderman, Batman and Wolverine as the perennial favourites. Most retailers say that diehard fans have stuck strictly to comics buying, as they consider monthly releases of plot twists and captivating panels exciting in themselves. Certainly, there are many like collector Elvin Han, 26, a student who has amassed over 6,000 comics over a 15-year span. “I get a great sense of pride when I look at my collection,” he beams, adding that he would never consider parting with his stash, which he considers an invaluable source of inspiration and even literary merit. “They’re nice to look at and unlike, say, fine art, comics are accessible to everyE one.”

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Comics Mart 10 Jalan Serene, #02-05/06, Serene Centre Open daily, 11am-8pm Tel: 6462 2751 What: In an innocuous corner in Serene Centre, one of the country’s oldest comic stores has evolved into an all-purpose gaming centre. Apart from comics and a variety of magazines, the store also deals in T-shirts, fantasy books, strategy board games and miniatures.

Comic’s Asylum 304 Orchard Road #02-17, Lucky Plaza and 437 Orchard Road #B1-14, Orchard MRT Opens daily, 11am-9pm Tel: 6734 3430, 6737 3770 What: Ridiculous prices taint an otherwise well-stocked catalogue that includes a fine selection of anime DVDs, manga, toys and collector’s editions. Comics World 35 Selegie Road #B1-22, Parklane Shopping Centre Opens Mon-Sat, 11am-8pm; Sun and public holidays, 11am-5pm Tel: 6339 6413, www.geocities.com/comicswo What: A stalwart in the local industry, Comics World moved from its original Paradiz Centre location to its present site in next-door Parklane. Its catalogue reaches far back, and prices are reasonable. G&B Comics Block 231, Bain Street, #03-47 Bras Basah Complex Opens Mon-Sat, 1pm-7.30pm; Sun 2pm-5.30pm. Closed Wed and public holidays Tel: 6837 2280, www.comic.com.sg or www.comicbook.com What: Has a decent range, with some rarities on display. Prices vary from being rather high to real steals. Lots of other memorabilia available. Comics ‘N’ Bookshop #01-51 Roxy Square, Mountbatten Road What: A curious place that’s been a well-kept secret among fans. It’s stacked floor-to-ceiling with incredible old and potentially valuable stuff that you’d never dream of finding elsewhere, at knock-down rates. Too bad the majority is in bad shape. ComicsNaut 865 Mountbatten Road, #B1-120, Katong Shopping Centre Opens daily, Noon-8.30pm Tel: 6447 2022 What: Caters for the discerning reader, prices are low and stay most faithful to international market rates. Unbelievably rare stuff can be found in no less than pristine condition, although shipments arrive later than average.

8 • THEEDGE SINGAPORE • OPTIONS

| MARCH 25, 2002

BOOKS BY SHARON LOH

Plane Reading

Got Richard Lim? Life!, Singapore, and variously personal takes about existence on a small dot

Quick texts for people who live life on the edge of their seats

Combat PICTURES BY CHU JUCK SENG/THE EDGE

— they’re the sum of his new book, Got Singapore. Who is the man behind the columns, and what is the method to his writing?

ichard Lim readily admits that his fortnightly columns in The Sunday Times have had one flattering, if unexpected, perk: Young women want to meet him. Seduced by his prose, they ask to be introduced, desiring perhaps to heal the scars of the failed love affairs he occasionally writes about. But it doesn’t take more than two or three meetings before the truth becomes undeniable, laughs Lim, 52, who has never married. “I don’t speak like I write!’’ Thankfully, it is the writing — fluid and passionate, but with little of the lovelorn here — that is evident in his new collection, Got Singapore, a selection of essays and columns published in The Straits Times (ST), mostly in the 1990s. It opens with a longish reflection written for National Day, about his personal journey in Singapore’s ride to developed status. A few themes recur in the columns that follow, like the search for self, the importance of literature, and issues of nationhood. Lim’s intention with the book is both personally and publicly ambitious. It was he who approached publisher Alex Chacko with the idea of a compilation. “I wanted to give myself the impetus to write more books,” says the editor of ST’s Life!, the daily newspaper’s arts and entertainment section. “There hasn’t really been a baby-boomer voice from Singapore, recording the transformation from Third World to First, except in memoirs and history books. But if it’s not recorded in literature, then the place is not real, as [V S] Naipaul says.” It has taken a long journey to find that voice. Lim grew up in a 2-storey shophouse in Havelock Road and then a three-room flat in Bukit Ho Swee, in a family that was no poorer or richer than most Singaporeans in the 1960s and 1970s. But, resentful of the numerous deprivations in his life, including the lack of funds for a university education, Lim escaped into the counter-cultural music, movies and literature of the West. He became quite the angry young man, “sore that I was not allowed to join the big party where so many young people seemed to be having a great time. Sex, drugs and rock ‘n’ roll”, he wrote in 1996. Today he lives alone, in a tranquil apartment lined from floor to ceiling with books. Like many of his peers, it was decades before he arrived at material well-being and some sort of self-acceptance; late enough for

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him to wear that affluence with some discomfort. By then, he had discovered other voices, notably those of Joseph Conrad and Naipaul, who had enunciated his predicament before he could even name it. After all, we are the sum of our past, and his has made the paradox that drew him in the first place to his literary hero, the Nobel laureate Naipaul, whom Lim describes as “the ultimate exile”, a man who belonged neither to the underprivileged world of his childhood in colonial Trinidad, nor the exalted England of his fantasies, which spurned him in real life. “As a post-colonial, I can relate to this humiliation, and his long slow journey towards selfawareness helped me in mine,” wrote Lim last year. For him, the disjunction goes right to the roots. Even as his writing has won him numerous story and feature awards from ST’s publisher, Singapore Press Holdings, he confesses that his grip on the language he has worked in for three decades is “tenuous” at best. An astonishing confession, considering that Lim is considered one of the newspaper’s finest writers, and the closest it has to a newsroom philosopher, according to ST’s editor, Leslie Fong. Fong has known Lim since the early 1970s. “He was at the time a very tormented soul, unappreciated and under-rewarded,” he says. Against the advice of senior editors, Fong appointed Lim editor of Section Two when the post became vacant in 1989. The following year, Lim relaunched it as Life! “I think his columns and essays give ST soul,” says Fong, in an e-mail. “They say to readers that the paper is not all about GDP numbers and standing up for Singapore. And they encourage them to take a step or two back from the hurly burly of working and living in Singapore, and reflect on what distinguishes life from mere existence.” The media’s job, says Lim, is simply to ask all the relevant questions in order to provide a context for readers. There are those who say that his brand of reflective journalism is too soft or self-indulgent, and others who disagree strongly with his more conservative and chauvinistic opinions. But if journalism’s job is to provoke thought, then his columns — written “to amuse and entertain”, he says — are ample fodder for both readers and writers. His is the individual experience writ large. A piece on Naipaul, written in 1984, is

By Stephen Coonts S$17.46 This second volume of the best-selling anthology features a collection of 10 short novels that reveal how war will be fought in the 21st century. This collection includes an introduction and original work by Coonts and contributions by best-selling military fiction writers Dean Ing and Barrett Tillman.

Islam: A Short History By Karen Armstrong S$20.55 One of the world’s foremost historians and thinkers on religious affairs writes on the history and destiny of the world’s fastest-growing but most misunderstood religion — Islam. An informative yet simple read indeed.

In The Bedroom

Lim in his office at The Straits Times, in Toa Payoh

masterly, and proof of how a journalist who can select the relevant information from a diverse range of sources and reorganise it together in an exhilarating whole can be the best bridge between the specialist and the layman. As Lynn Pan, academic and author of Sons of the Yellow Emperor and Old Shanghai, wrote in her foreword to the book: “I commend this book to all those who believe, as I do, that a serious note can be struck in casual journalism and struck most tellingly when the touch is light.” For Lim, journalism and the years spent in observing, reading, and analysing will be the bridge to the novel that he now hopes to write. Being single has given him all the time in the world to read. While in the early years, this was a lonely situation for him, he now says of a life spent in books: “I am very grateE ful. It has been a blessing.”

Lim’s top five writers 1. Anatole Broyard, book reviewer and author, editor of the New York Times Book Review when he died in 1990 2. Alexander Chancellor, former editor of the Spectator and founding editor of the Independent Magazine, followed by a stint at the New Yorker and now freelance journalist 3. Nigel Andrews, movie reviewer for The Financial Times 4. Tom Wolfe, journalist, author and originator of such pithy phrases as “radical chic”, “the right stuff” and the “me decade” 5. George Orwell, essayist, journalist, famed author of Animal Farm and 1984

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By Andre Dubus S$20.50 Andre Dubus shows readers how ordinary men and women come to terms with injury and loneliness, the lack of love and the terror of actually getting it, in tales that are both poignant and mysterious. One of the stories, Killings, has been made into a highly acclaimed film nominated for the upcoming Oscars.

The Safe Shopper’s Bible: A Consumer’s Guide To Nontoxic Household Products, Cosmetics, And Food By David Steinman & Samuel S Epstein S$24.64 Ever wondered if your shampoo was hazardous? Does mascara cause a loss of eyelashes? Find out in this very unique and useful book, as the authors list thousands of household products, personal care products, foods and beverages by brand names, rating them for both short-term and long-term health hazards. Charts provide recommendations for the safest foods, toiletries, and everyday things.

The China Dream: The Elusive Quest For The Greatest Untapped Market On Earth By Joe Studwell S$36.05 Well-researched and endlessly engaging, The China Dream is a provocative, in-depth look at the economic situation that looms for China in the wake of the foreign-investment gold rush of the 1990s. Now that she is a member of the World Trade Organisation, how much more will investors do to cash in on “The Greatest Untapped Market On Earth”? Listing compiled by Books Kinokuniya (Ngee Ann City)