80th Anniversary Commemorative Book - Singapore Manufacturing ...

Melaminein 20 moreproductsHOME PAGE B1SINKWorld stocks savagedby recession woesand earnings fearsBY ALVIN FOOMICA ( P ) 115/12/2007 SATURDAY, OCTOBER 2 5 2 0 08 AN S PH PUBLICATION ESTABLISHED 1845 $ 1 . 0 0 * *MARKETSMARKETS CORRESPONDENTBY PEH SHING HUEICHINA CORRESPONDENTBEIJING: Prime Minister Lee Hsien Loongyesterday called for a measured responseto the ongoingglobalfinancialcrisis, cautioningagainst an over-reactionthatmight cause more alarm and uncertainty.The financialauthoritiesshouldkeepin close contact, he added on the openingday of the Asia-EuropeMeeting (Asem)in Beijing – a summit of 45 members, butseeminglywithonlyoneissueontheirminds.A statementissuedaftertheleaders’meeting expressed their concern over thespreading malaise. But they struck an upbeatnote by saying that with decisive andtimely measures, they have “full confidence”that the crisis can be overcome.Yet, there was a feeling that Asem wasbut a preview to the real big pow-wow inWashingtonnextmonth. That is whenthe world’s top 20 economies gather for aCALL 6388-3838 TO SUBSCRIBE ORGO TO www.sphsubscription.com.sgSingapore (STI)FALL YESTERDAY8.33%FALL THIS WEEK14.81%GLOBAL stocks were savaged yesterday,sendingmanyboursescrashingtomul-ti-year lows as investorswerespookedby fears that a harsh global recessionwould pummel company profits.It was one of the worst days on globalmarkets since collapse of US investmentbank LehmanBrotherslastmonthset off widespread panic on fears of a financialmarket meltdown.Yesterday, already punch-drunk equitymarkets suffered more bloodletting asintensifyingworriesoverthedreadedR-word spread like wildfire worldwide.Worse-than-expected British data releasedyesterday meant that Britain isheaded towards its first recessionsince1991, while new data showed that SouthKorea’s economy grew at its weakestpace in four years.Increasingly, investorshavenowhereto seek refuge amid the growing prospectof a widespread recession, analysts say.Oneoftheworst-hitboursesonapan-ic-fuelleddaywasSouthKorea’sKospiin-dex, which dived 10.6 per cent to its lowestclosinglevelsince2005 – ending itsworst week in two decades.Japan’s Nikkei-225indexwasnotfarbehind, collapsing9.6percenttoitslow-est finish in more than five years.But the biggest loser was India, whosestock index plummeted 11 per cent in itsbiggest drop 16 years.HongKong’sHangSengIndexandSin-gapore’sStraitsTimesIndex (STI) bothdived 8.3 per cent. Australian stocks slida relatively modest 2.6 per cent.Wall Street’s 2 per cent gain overnightwas largely ignored in the region, asPM Lee cautionsagainst over-reactionNEP on theway out?summit called by United States PresidentGeorge W. Bush to discuss the crisis.The Asem leaders, who do not includeMr Bush, seem to acknowledge as much,noting in their joint statementthattheysupport the Washington summit.But leaders here wasted no time in firingthe topic to the top of the agenda,with Chinese President Hu Jintao settingthe scene from the get-go in his speechduring the opening ceremony, devotingsignificant chunks to the crisis.He assured the world that China is doingall it can to help counter the financialmeltdown.But as Asian stock marketscontinuedto plummet yesterday and the worldlooks to China for help, Mr Hu remindedall that his country is not immune to thecrisis.“The global financial crisis has clearlyincreasedtheuncertaintiesandunstablefactorsintheChineseeconomy’sdevelop-ment,” he said, addingthatChina’secon-omy is also facing uncertainties.“China’s sound economic growth is initselfamajorcontributiontoglobalfinan-cial stability and economic growth.”The crisis has led to calls for a commonAsian fund.CONTINUEDON PAGE A12We have to change,says NajibWORLD PAGE C6Japan (Nikkei)FALL YESTERDAY9.6%FALL THIS WEEK12.02%Hong Kong (Hang Seng)FALL YESTERDAY8.3%FALL THIS WEEK13.3%Asian and European investors headed forthe exit from the opening bell.It did not help that United States stockfutures were sharply in the red duringAsian trading hours before they hit theirmaximumdownwardlimit, signallingadisastrous opening last night.The bloodlettingcontinuedinEuropeafter Asian markets closed, with theFrankfurtindexslidingasmuchas10.1per cent and London stocks sinking morethan 8 per cent. Widespreadpanic-sell-ing in Russia caused the market regulatorto call a prematureclosetothemarketthere for the week.On Wall Street last night, the DowJones Industrial Index opened 3.7 percent lower, and had plunged more than 5per cent during the first trading hour.“Financialmarketshavecrashedandare out of control,” Mr Yuji Ogino, executivedirectoratMeijiDresdnerAssetManagement, told Bloomberg News.“This crash is different from anythingI’ve experiencedandit’shardtofindways to ride out the situation.”South KoreaFALL YESTERDAY10.57%FALL THIS WEEK20.49%The then-SMF President Renny Yeorecalled: “The first task on our agendawas to leverage our relationships withthe Government so as to solicit moredirect help for our members.”In the short three-month span, fromOctober to December 2008, the SMFconducted several dialogue sessionswith key Government agencies. Italso organised over 20 seminarsto update members on the latestinitiatives and financial assistanceschemes made available by thevarious Government offices tohelp companies tied over thedownturn. Manufacturers alsoturned to the Enterprise Development Centre (EDC@SMF) for assistance and to help obtain loans from the Government andfinancial institutions.In addition, trade missions were organised to help members find new marketsand opportunities. To help companies defray some of their marketing costs,the SMF organised seminars to alert members to available schemes.“These initiatives and programmes were just some of the highlights thattestified to our proactive commitment as an advisory body to our members,”said Mr Yeo.ShanghaiFALL YESTERDAY1.92%FOR BREAKING NEWS GO TO www.straitstimes.com REACH AND INTERACT ON www.stomp.com.sg SMS MMS 75557 1800-777-5557 WATCH OUR VIDEOS ON www.razor.tvThenextFandi?Sex and theIndian callcentre girlsWORLD PAGE C14FALL THIS WEEK4.71%In Singapore, the STI plunged145.39points to 1,600.28 – its lowest closesince September 2003 and itsfourth-worst one-day crash. It wasmauled by a sharp selldown in banks andproperty counters.“The markets are still in panic mode,”said a local dealer. “Just when you think anew floor has been reached, another lowemerges.”The stock market mayhem and worriesabout emerging market instabilityhurtthe corporate earnings outlook but liftedgovernment bonds and the Japanese yen.The US dollar tumbled to a 13-yearlow against the yen in Asian trade.The yen was driven up as major investorswho borrowed in yen to buy in higher-yieldingcurrenciesunwoundthoseinvestments.The euro fell 10 per centagainst the yen, while the pound hit arecord low against the euro.Investor confidence in Japan was badlybruised when electronics giant Sony’sshares sank more than 14 per cent after itslashed its earnings forecast.GREENSPAN:I WASWRONGFormer Fed chieftells lawmakers:My view of the freemarket was flawedPRIME PAGESA10-11 ANDREVIEW PAGE A22From ChildAid toworld stageKhairulNizam isonly 17. Buthe is alreadytipped forstardom Talented youngsters go onSPORTSto bigger thingsPAGES C37-38LIFE! PAGES E6-7DESIGN: BONG FORTIN PHOTOS: AFP, ALBERT SIM AND BERNARD & CHRISTINA ONG“The goal was to assist our manufacturers to ride through this crisis, while atthe same time, equipping them with capabilities to seize opportunities whenthe economy recovered.”India (Sensex)FALL YESTERDAY10.96%FALL THIS WEEK12.77%In South Korea, SamsungElectronicsshares crashed 13.8 per cent to their lowestlevel in four years after a slump inprofits.Back in Singapore, investorsdumpedbank and property plays en masse, as theSTI closed down 14.8 per cent for theweek.Property counters were hit after quarterlydata showed private home pricesslumped for the first time since 2004.Banking stocks were batteredduetofears over possible credit losses fromfunding the Marina Bay integrated resort,as operatorLasVegasSandsmaybefinan-cially distressed.Analysts warn that the worst may notbe over.A Daiwa report said that Asian marketsexcludingJapancouldslideanother25 per cent from current levels, but it saidsome stocks are now at bargain prices.alfoo@sph.com.sgMore reports: Prime Pages A8-A21,Money Pages C24-C27Private homeprices andrents downBY JOYCE TEOPROPERTY CORRESPONDENTPRIVATEhomepricesinSingaporefellfaster than expectedinthethirdquarteras the global financial turmoil weighedheavilyonalreadyweakenedmarketsenti-ment.The price slide is expected to continueinto next year, property consultants said.But the HDB resale flat market continuedto buck the trend, with prices rising4.2 per cent in the third quarter followinga 4.5 per cent rise in the second quarter.They have now surpassed the peakseen in the fourthquarterof1996. But analystsexpect this growth trend to slow asbuyers turn cautious.Urban Redevelopment Authority(URA) data yesterday put the privatehomepricedipat2.4percentfortheperi-od endedSept30, the first contractionaf-ter 17 straight quarters of growth.This compares with an initial estimateof a 1.8 per cent drop releasedbyURAear-lier this month. In the previousquarter,private home prices rose 0.2 per cent.The outlookisgrim. Since the end ofthe third quarter, global markets havetumbledfurtherandSingaporeofficiallyentered a technical recession. Buyers expectinga full-blown recession are set toCONTINUEDON PAGE A4“We are always getting feedback from all our members,” added Dr MohChong Tau, SMF Deputy President. “The moment we saw the early signsof a downturn, we talked to the Government. Recessions always affectmanufacturers first, and we had feelers on the ground.”By the end of 2009, the Singapore economy managed a successfulturnaround. “This was only possible with the collective efforts from theGovernment, unions, companies and associations such as the SMF,” saidMr Yeo. “These endeavours strengthened our economic resilience.”Initiating Change 1997 – 2012 75