<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
GENERAL INFORMATION
- --------------------------------------------------------------------------------
THE FUND
The Singapore Fund, Inc. (the "Fund") is a non-diversified, closed-end
management investment company. Its primary investment objective is capital
appreciation, which it seeks through investment primarily in Singapore equity
securities, and to a lesser degree, investment in equity securities issued by
companies in ASEAN Group countries and Cambodia. The ASEAN Group currently is
composed of Brunei, Indonesia, Laos, Malaysia, Myanmar (formerly Burma), the
Philippines, Singapore, Thailand and Vietnam. The Fund's Investment Manager is
DBS Asset Management (United States) Pte. Ltd. (the "Manager"), an indirectly
wholly owned subsidiary of The Development Bank of Singapore, Ltd. Daiwa SB
Investments (Singapore) Ltd. (formerly, Daiwa International Capital Management
(Singapore) Ltd.) provides the Manager with advice regarding investments.
SHAREHOLDER INFORMATION
The Fund's shares are listed on the New York Stock Exchange ("NYSE") and the
Osaka Securities Exchange ("OSE"). The Fund understands that its shares may
trade periodically on certain exchanges other than the NYSE or the OSE, but the
Fund has not listed its shares on those other exchanges and does not encourage
trading on those exchanges. The Fund's NYSE trading symbol is "SGF". Weekly
comparative net asset value (NAV) and market price information about the Fund is
published each Monday in THE WALL STREET JOURNAL, each Sunday in THE NEW YORK
TIMES, and each Saturday in BARRON'S, and also in many other newspapers. The
Fund's weekly NAV is also available by calling (800) 933-3440 or (201) 915-3020.
INQUIRIES
It is the policy of the Fund to respond to inquiries about its portfolio
holdings and performance. Such inquiries should be directed to the Fund's
Manager in Singapore at (011-65) 536-9490, or to the Fund at (800) 426-5523 or
(781) 575-2000. Inquiries concerning your share account should be directed to
the Fund at the latter number noted above. All written inquiries should be
directed to the Fund, c/o Daiwa Securities Trust Company, One Evertrust Plaza,
9th Floor, Jersey City, New Jersey 07302.
RESTRICTION ON BENEFICIAL OWNERSHIP BY SINGAPORE RESIDENTS
The Fund expects to continue to qualify for a Singapore income tax exemption
granted to non-Singapore resident investors with respect to certain types of
income derived from Singapore sources. In order for the Fund to be treated as a
non-Singapore resident, and therefore qualify for this exemption, not more than
5% of the Fund's issued share capital may be beneficially owned, directly or
indirectly, by Singapore residents. For this reason, the Fund's Board of
Directors has restricted, and in the future may prohibit, the transfer of the
Fund's shares to residents of Singapore.
DIVIDEND REINVESTMENT AND CASH PURCHASE PLAN
A Dividend Reinvestment and Cash Purchase Plan (the "Plan") is available to
provide Shareholders with automatic reinvestment of dividends and capital gain
distributions in additional Fund shares. The Plan also allows you to make
optional semi-annual cash investments in the Fund's shares through the State
Street Bank and Trust Company (the "Plan Agent"). A brochure fully describing
the Plan's terms and conditions is available from the Plan Agent by calling
(800) 426-5523 or (781) 575-2000, or by writing The Singapore Fund, Inc., c/o
State Street Bank and Trust Company, P.O. Box 8200, Boston, MA 02266-8200.
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
June 1, 1999
DEAR SHAREHOLDERS,
We are pleased to present the semi-annual report of The Singapore Fund, Inc.
(the "Fund") for the period ended April 30, 1999.
STOCK MARKET REVIEW
For the six months ended April 30, 1999, Singapore's DBS50 Index ("DBS 50")
rose by 49.2% in U.S. Dollar terms. The Thai, Philippines and Indonesian markets
rose by 37.3%, 47.2% and 54.8%, in U.S. Dollar terms, respectively.
The global interest rate environment, led by the U.S. Federal Reserve's
easing of its monetary stance, turned favorable for the Asian stock markets in
October 1998. The U.S. Federal Reserve cut interest rates in between meetings in
October, signalling that it would be willing to do what was necessary to avert a
sharp slowdown in global growth. With a decline in global interest rates,
coupled with strong current account surpluses, Asia was able to embark on both
monetary easing and fiscal reflation to pull itself out of its economic
doldrums. Asian markets took the cue and produced one of the sharpest rallies in
recent history.
Despite being punctuated by the Brazilian currency devaluation and a
possible Chinese Renminbi devaluation in January 1999, the rally was well
sustained due to the bottoming of the crisis economies and expectations of a
quick return to economic growth in Asia. Industrial production, consumer demand
and tourist arrivals showed improved growth momentum in most of the Asian
countries by the first quarter of 1999. Renewed interest in Japan and
expectations of a bottoming in that economy also improved sentiment about the
growth prospects of Asia. The continued easy liquidity conditions, with interest
rates reaching all-time lows in most Asian countries, helped fuel the stock
markets. In the meantime, mergers, acquisitions and re-capitalization of
companies took place in many Asian countries, adding positive and speculative
fervor to the stock markets.
In Singapore, the economy bounced back quickly in the first quarter of 1999
to register 1.2% growth after two consecutive quarters of contraction. The
recovery of the economy was evident from the strong growth in industrial
production and brisk sales of property and motor vehicles recorded in the first
quarter of 1999. Industrial production on average grew 6.5% in the first
quarter. At the same time, residential property prices rose 4.4%. The quick
recovery in the economy and the price pick-up in the property market helped fuel
the stock market rally. At the same time, investor interest has been kept high
with major companies involved in restructuring, acquisitions, mergers and
share-buy-backs, all with the intention of improving shareholders' value.
FUND PERFORMANCE
As of April 30, 1999, the Fund's net asset value ("NAV") per share was USD
9.51. This represents a total investment return of 36.3% for the six months,
based upon the USD 7.09 NAV per share at the end of the previous fiscal year.
This assumes reinvestment of the dividend of 10.5 cents per share that was paid
by the Fund during the period. During the period, the DBS50 went up by 49.2%.
Hence, the Fund lagged the index by 12.9%. The Straits Times and MSCI Singapore
Free indices returned 50.6% and 49.8%, respectively, in the same period.
The Fund's management had adopted a defensive investment stance arising from
a fundamental valuation view of the market in the last six months. This
investment strategy could not keep up with a runaway stock
2
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
market where sector rotation was aggressively played, and trading was highly
dominated by short-term players. As a whole, stock market activities were driven
by high liquidity arising from relaxed domestic monetary conditions. As a
result, the Fund was not always fully invested as the Manager saw declining
fundamental value in stocks as they were pushed up to current levels.
In addition, the Fund's management held and still holds the view that, after
the severe and dramatic shock to the economic system and financial markets, real
and sustainable reforms must take place to prevent past excesses and mistakes in
order for Asia to continue on a sustainable long term growth path. The excessive
speed and extent of the current stock market recovery is not conducive to that
outcome.
On the average, the Fund had cash of around 13% during the six-month period
and, hence, asset allocation cost the Fund performance of about 4.4% against the
DBS50. The other key factor in the Fund's lagging against its benchmark was the
strong performance of the local tranche of Singapore stocks not in the
investment universe of the Fund. These stocks, including the banking stocks and
Singapore Airlines, accounted for about 10.2% of under-performance of the Fund
versus the DBS50. Stock selection however added about 7.6% to the portfolio
during the period under review. Hence, in the aggregate, the Fund
under-performed the DBS50 by 7.0% for the six months ended April 30, 1999.
ECONOMIC PERFORMANCE
After contracting for two consecutive quarters, the Singapore economy grew
by a modest 1.2% in the first quarter of 1999, largely on the back of a strong
performance in the manufacturing sector. That sector grew by a strong 6.5%,
boosted by robust expansion in the electronics and chemicals industries. The
financial and business sector contracted 0.6% due to poor lending sentiment to
non-bank customers and moderation in demand for professional services. The
construction sector suffered a sharp contraction of 9.0% as a result of a
slowdown in both private and public projects, while the commerce sector suffered
a moderate contraction of 2.1% due to a continued weak retail segment. The
transport and communications sector grew 5.7% as a result of improved production
activity and increase in tourist flows. Growth momentum for the economy showed a
strong pickup of 6.8% on a quarter-on-quarter basis.
Total demand declined by 4.9%, compared to a 10% decline in the previous
quarter. External demand fell moderately by 3.7% while domestic demand declined
7.4%, reflecting a continued decline in private consumption and investment. The
unemployment rate eased to 3.9% from the 4.4% rate at the end of 1998, partly
from the pick-up in economic activities and a drop in retrenchment in the first
three months of 1999. Productivity rose by 3.2% in the first quarter of 1999,
largely from the increase in economic activity and a reduction in labor costs.
The cost-cutting measures implemented by the Singaporean government succeeded in
easing cost pressures, with unit labor costs falling 10%. Consumer prices
continued to decline, falling by 0.6% in the first quarter.
Manufacturing investment commitments totaled $1.7 billion in the first
quarter. Foreign commitments accounted for 88% of the total, led by Europe (a
53% share), the US (a 31% share) and Japan (a 16% share). Total trade fell by
9.4% in value terms, an improvement from the 15% contraction in the previous
quarter. The decline in the key non-oil domestic exports moderated from -6.7% in
the final quarter of 1998 to -3.2% in the first quarter of 1999.
3
<PAGE>
THE SINGAPORE FUND, INC.
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The Singapore Dollar weakened slightly against the US Dollar, Malaysian
Ringgit, Philippine Peso and Thai Baht, and strengthened against the Indonesian
Rupiah in the first quarter of 1999. Domestic interest rates in Singapore were
stable with the three-month inter-bank rate at 1.7%. The average prime lending
rate held steady at 5.5%.
The ASEAN economies started to bottom out in the first quarter of 1999.
Exports, industrial production, domestic consumption and tourist arrivals have
shown moderating declines and even positive numbers. This is partly attributable
to the easy monetary policies and expansionary fiscal policies adopted by these
countries with the blessings of the International Monetary Fund and other
multi-lateral agencies. Large accumulated foreign reserves arising from the
domestic economic crunch in 1998 and a benign global interest rate environment
have allowed for such policies to be carried out without affecting their
currencies. The exception is Indonesia where economic indicators are still weak
and local and foreign observers alike are largely focused on the forthcoming
parliamentary elections.
MARKET OUTLOOK
The overall optimistic sentiment masks the latent risks in the global
economy. The recent strength in industrial production and exports to the
regional economies are heavily reliant on the continued strength of the
developed economies, in particular, the United States. Despite its current
dynamism, potential stress points still exist in the U.S. economy. The
sustainability of high rates of economic growth in the face of a tight labor
market and rising trade deficit remains a challenge. In the EU, growth is
expected to moderate this year, as stock-building unwinds and investment growth
slows in response to more cautious business sentiment. The convalescence of the
Japanese economy also remains fraught with challenges. In the region, even as
countries take on the painful tasks of restructuring and reforms,
socio-political stresses could potentially jeopardize recovery in their
economies. Hence, the external outlook, while improved, remains fragile.
The rallies in the stock markets have factored in better-than-expected
economic recoveries, low interest rates and probably a little more. The
economies and company earnings have to continue to deliver on these expectations
for the stock markets to sustain the rallies. Benign global interest rates, led
by the U.S., have been a key factor in this liquidity run. Now, the U.S. Federal
Reserve is likely to move to a tightening stance. Although governments will be
cautious not to nip nascent economic recoveries, there is the prospect of
domestic liquidity shrinking to more normal levels. Also, the positive current
account surpluses in Asia may come under some pressure by increasing imports as
economies recover.
Asian countries need to continue their reforms and restructuring to sustain
the strength of their economies and stock markets. Specifically, companies need
to pursue growth by keeping costs at bay or trimming them and relying less on
revenue growth. In the aggregate, for the economy, this strategy translates into
more durable growth as inflation is kept in check. This has contributed to the
success of both the U.S. economy and stock market and would be the model for the
coming revival of the Asian companies climbing out of the regional crisis.
PORTFOLIO STRATEGY
The Fund's management has adopted a cautious position, given that markets
have run ahead of fundamentals somewhat, in the short term. The portfolio will
remain at about 90% invested in the next few months. This will allow for
flexibility by having available cash to buy desired stocks in weak markets.
"Asia Inc." is going through a process of rationalization and consolidation. The
recent sharp improvement in financial markets is
4
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
detrimental to this process, and the Fund's management believes that responsible
governments would be monitoring the situation closely. There is a genuine need
for financial markets in Asia to stabilize somewhat in order for economies to
resume their sustained path to long term recovery.
The Fund's management will prefer exposure to companies with strong
competitive advantages and solid earnings profiles. Some of these companies have
lagged the broader market recently as investors sought those counters which,
although possessing weak balance sheets, they are geared to the economic
recovery. These preferred companies would also behave defensively should markets
get any nasty shock from events in Asia and the U.S. Although in the early
stages, Asian companies are becoming more aware of the need to account for and
improve shareholders' value. The Fund's management will also want companies
engaged in genuine restructuring and cost cutting exercises which would make for
great recovery cases in the coming upturn. Additionally, governments in Asia,
and especially Singapore, are increasingly demanding better performance from
state-owned enterprises. Banking industry reforms, for example, would result in
the selling of non-core assets and, apart from improving banks' performance,
these non-core assets would themselves make for great business recovery
prospects.
The Fund's management believes that Asia is indeed in a recovery phase over
the next three to five years. In this environment, apart from the Fund's
continuing focus for value in the big stocks, the Fund expects to participate in
some mid-cap stocks with potential on great success in their respective niches.
While these companies may not produce immediate rewards, they should give the
patient investor ample returns over this investment horizon.
In the core Singaporean portfolio, the Fund's emphasis will remain in banks,
electronics manufacturing and restructuring conglomerates. The Fund will seek to
maintain some exposure outside of Singapore in the ASEAN region. The Asian story
remains intact and the long-term investor will reap tremendous rewards after
this trying period of economic rationalization and consolidation is over.
THE YEAR 2000 ISSUE
The Fund continues to review the current status of its exposure to the Year
2000 computer issue. The Fund does not own or directly use any computers in
conducting its business. Instead it relies on various service providers to
conduct its business and its service providers may use or depend on computers to
provide services to the Fund. Like other investment companies and financial and
business organizations, the Fund could be adversely affected if the computer
systems used by the Fund's service providers do not properly address this
problem prior to January 1, 2000.
The Fund's Board of Directors has adopted a Year 2000 plan which involves:
(1) collecting information regarding the Year 2000 preparations of its service
providers through a questionnaire prepared and distributed by the Fund's
management, (2) assessing the information provided by the service providers, and
(3) if necessary, adopting measures to replace service providers who fail to
indicate that they will become Year 2000 compliant on a timely basis. The Fund
had been advised by each of its service providers that it has adopted a Year
2000 plan, completed an internal assessment of its computer systems, and begun
implementation of procedures to bring its mission-critical systems into Year
2000 compliance. The Fund has been informed that substantially all of its
service providers will be compliant by the end of September 1999. Based on this
information, management of the Fund does not anticipate that the transition to
the 21st Century will have any material impact on the
5
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
Fund's operations; however, management of the Fund will continue to monitor the
situation. In addition, however, no assurance can be given that the Fund's
service providers have anticipated every step necessary to avoid any adverse
effect on the Fund attributable to the Year 2000 problem.
PORTFOLIO MANAGEMENT
Mr. Tan Seng Hock was appointed as the Fund's portfolio manager in May 1996,
and is responsible for the day-to-day management of the Fund's portfolio. Mr.
Tan joined DBS Asset Management Ltd., of which the Fund's Manager, DBS Asset
Management (United States) Pte. Ltd. is a wholly-owned subsidiary, in November
1995 as an Investment Manager. From 1987 to 1994, Mr. Tan was head of
Investments at ANZ Investments Ltd. and Fund Manager--International and Strategy
at Norwich Union Investment Management in New Zealand.
The Fund's management would like to thank you for your participation in The
Singapore Fund, Inc., and would be pleased to hear from you.
<TABLE>
<S> <C>
Sincerely,
[SIGNATURE] [SIGNATURE]
MASAYASU OHI RONNIE TEO HENG HOCK
CHAIRMAN OF THE BOARD PRESIDENT
</TABLE>
6
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
- -------------------------------------------
COMMON STOCKS AND WARRANTS--90.54%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
SINGAPORE--82.62%
BANKS--17.15%
3,000,000 Keppel Tatlee Bank Ltd.++.......... $ 5,714,286
500,000 Oversea-Chinese Banking Corporation
Ltd. (Foreign)*................... 4,673,721
150,000 Overseas Union Bank Ltd.
(Foreign)*+....................... 767,196
500,000 United Overseas Bank Ltd.
(Foreign)*........................ 3,850,676
------------
15,005,879
------------
COMMUNICATION-MEDIA--4.20%
250,000 Singapore Press Holdings Ltd.
(Foreign)*........................ 3,674,309
------------
DIVERSIFIED--3.29%
500,000 Jardine Matheson Holdings, Ltd..... 2,062,500
331,000 Jardine Strategic Holdings, Ltd.... 817,570
------------
2,880,070
------------
ELECTRICAL PRODUCTS & COMPUTERS--5.92%
575,000 Datacraft Asia Ltd.+............... 1,805,500
600,000 Elec & Eltek International Company
Ltd............................... 2,280,000
200,000 Venture Manufacturing (Singapore)
Ltd............................... 1,093,475
------------
5,178,975
------------
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
FOOD, BEVERAGE, TOBACCO--6.89%
500,000 Cerebos Pacific Ltd................ $ 1,211,052
500,000 Fraser & Neave Ltd................. 2,204,586
500,000 Rothmans Industries Ltd............ 2,616,108
------------
6,031,746
------------
INDUSTRIAL--7.34%
6,000,000 Singapore Technologies Engineering
Ltd.++............................ 6,419,753
------------
PROPERTY DEVELOPMENT--3.50%
2,000,000 Hongkong Land Holdings, Ltd........ 3,060,000
------------
PUBLISHING--1.16%
3,350,000 Popular Holdings Ltd............... 1,014,256
------------
REAL ESTATE--0.17%
250,000 Allgreen Properties Co., Ltd....... 151,382
------------
RETAIL TRADE--2.21%
3,660,000 Courts (Singapore) Ltd............. 1,936,508
------------
SHIPYARDS--6.74%
600,000 Jurong Shipyard
Ltd.++............................ 2,486,773
1,200,000 Keppel Corporation Ltd.++.......... 3,414,462
------------
5,901,235
------------
TELECOMMUNICATIONS--17.02%
1,000,000 Keppel Telecommunication &
Transportation Ltd.++............. 1,052,322
</TABLE>
7
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED)
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
TELECOMMUNICATIONS (CONCLUDED)
7,500,000 Singapore Telecommunications
Ltd.++............................ $ 13,844,797
------------
14,897,119
------------
TRANSPORTATION--AIR--4.19%
400,000 Singapore Airlines Ltd.
(Foreign)*++...................... 3,668,430
------------
TRANSPORTATION--MARINE--2.84%
2,000,000 Sembcorp Industries Ltd.++......... 2,480,894
------------
Total Singapore Common Stocks.................. 72,300,556
------------
THAILAND--4.62%
BANKS--0.02%
20,000 The Siam Commercial Bank Public
Co., Ltd. (Foreign)*+............. 20,559
20,000 The Siam Commercial Bank Public
Co., Ltd. Warrants(1)+............ 448
------------
21,007
------------
ELECTRICAL PRODUCTS & COMPUTERS--1.04%
78,750 Delta Electronics (Thailand) Public
Co., Ltd. (Foreign)*.............. 366,131
</TABLE>
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
148,000 Shin Corporations Public Company
Ltd. (Foreign)*+.................. $ 544,907
------------
911,038
------------
ENERGY--0.36%
140,000 Electricity Generating Public Co.,
Ltd. (Foreign)*................... 312,282
------------
INFRASTRUCTURE COMPANIES--1.76%
500,000 Bangkok Expressway Public Co.,
Ltd.(Foreign)*+................... 426,633
470,800 Italian-Thai Development Public
Co., Ltd. (Foreign)*+............. 1,113,421
------------
1,540,054
------------
PULP & PAPER--0.65%
750,000 Advance Agro Public Company Ltd.
(Foreign)*+....................... 564,364
------------
</TABLE>
8
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONCLUDED)
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
COMMON STOCKS AND WARRANTS (CONCLUDED)
- -------------------------------------------
<TABLE>
<CAPTION>
SHARES VALUE
- ---------- ------------
<C> <S> <C>
REAL ESTATE--0.79%
650,000 Land and House Public Co., Ltd.
(Foreign)*+....................... $ 694,370
------------
Total Thailand Common Stocks and Warrants......
4,043,115
------------
PHILIPPINES--3.30%
BANKS--1.80%
250,000 Far East Bank & Trust Co., Ltd..... 421,274
50,000 Metropolitan Bank & Trust Co.,
Ltd............................... 500,263
100,000 Philippine Commercial International
Bank Ltd.......................... 658,241
------------
1,579,778
------------
DIVERSIFIED--1.24%
3,000,000 Ayala Corp. (Philippines) Ltd...... 1,086,098
------------
REAL ESTATE--0.26%
1,000,000 SM Prime Holding Inc., Ltd......... 226,435
------------
Total Philippines Common Stocks................ 2,892,311
------------
Total Common Stocks and Warrants
(Cost--$68,178,186).......................... 79,235,982
------------
</TABLE>
- -------------------------------------------
TIME DEPOSITS--4.99%
- -------------------------------------------
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
(000) VALUE
- ---------- ------------
<C> <S> <C>
SINGAPORE DOLLAR--2.77%
4,126 Citibank, Singapore, 0.50% due
5/03/99........................... $ 2,425,347
------------
U.S. DOLLAR--2.22%
202 Bank of New York, 2.70% due
5/03/99........................... 201,612
1,736 Citibank, Singapore, 0.50% due
5/03/99........................... 1,736,179
------------
Total U.S. Dollar Time Deposits................ 1,937,791
------------
Total Time Deposits (Cost--$4,369,180).........
4,363,138
------------
Total Investments--95.53%
(Cost--$72,547,365).......................... 83,599,120
Other assets less liabilities--4.47%........... 3,911,037
------------
NET ASSETS (Applicable to 9,200,840 shares of
capital stock outstanding; equivalent to
$9.51 per share)--100.00%.................... $ 87,510,157
------------
------------
</TABLE>
- ------------------------
* Foreign shares of the above issues are those held by non-residents.
Ownership of such shares is generally limited and subject to a premium to
local shares (those held by residents).
+ Non-income producing securities.
++ Deemed to be an affiliated issuer.
(1) Each warrant entitles holder to buy one preferred share of Common Stock
for Thai Baht 29.45.
See accompanying notes to financial statements.
9
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
TEN LARGEST COMMON STOCK POSITIONS HELD
APRIL 30, 1999 (UNAUDITED)
- -------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
ISSUE NET ASSETS
- ----------------------------------- ----------
<S> <C>
Singapore Telecommunications
Ltd................................ 15.82%
Singapore Technologies Engineering
Ltd.............................. 7.34
Keppel Tatlee Bank Ltd............. 6.53
Oversea-Chinese Banking Corporation
Ltd. (Foreign)................... 5.34
United Overseas Bank Ltd.
(Foreign).......................... 4.40
Singapore Press Holdings Ltd.
(Foreign).......................... 4.20
Singapore Airlines Ltd.
(Foreign).......................... 4.19
Keppel Corporation Ltd............. 3.90
Hongkong Land Holdings, Ltd........ 3.50
Rothmans Industries Ltd............ 2.99
</TABLE>
TEN LARGEST COMMON STOCK CLASSIFICATIONS HELD
APRIL 30, 1999 (UNAUDITED)
- -------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY NET ASSETS
- ----------------------------------- ----------
<S> <C>
Banks.............................. 18.97%
Telecommunications................. 17.02
Industrial......................... 7.34
Electrical Products & Computers.... 6.96
Food, Beverage, Tobacco............ 6.89
Shipyards.......................... 6.74
Diversified........................ 4.53
Communication--Media............... 4.20
Transportation--Air................ 4.19
Property Development............... 3.50
</TABLE>
10
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS
Investment in securities, at value:
Unaffiliated securities
(cost--$39,981,532)..................... $ 44,517,403
Affiliated securities
(cost--$32,565,833)..................... 39,081,717 $ 83,599,120
------------
Cash denominated in foreign currency
(cost--$1,340,044)........................ 1,313,816
Receivable for securities sold............. 7,800,865
Interest and dividends receivable.......... 253,357
Prepaid expenses........................... 41,235
-------------
Total assets............................. 93,008,393
-------------
LIABILITIES
Payable for securities purchased........... 5,213,335
Payable to investment manager.............. 49,327
Payable to investment adviser.............. 24,913
Payable to administrator................... 13,204
Accrued expenses and other liabilities..... 197,457
-------------
Total liabilities........................ 5,498,236
-------------
NET ASSETS
Capital stock, $0.01 par value per share;
total 100,000,000 shares authorized;
9,200,840 shares issued and outstanding... 92,008
Paid-in capital in excess of par value..... 107,841,927
Accumulated net investment loss............ (239,347)
Accumulated net realized loss on
investments............................... (31,204,693)
Net unrealized appreciation on investments
and other assets and liabilities
denominated in foreign currency........... 11,020,262
-------------
Net assets applicable to shares
outstanding............................. $ 87,510,157
-------------
-------------
NET ASSET VALUE PER SHARE............ $ 9.51
-------------
-------------
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends:
Unaffiliated securities (net of
withholding taxes of--$20,146).......... $ 224,992
Affiliated securities (net of withholding
taxes of--$63,804)...................... 181,595 $ 406,587
-----------
Interest................................... 86,868
------------
Total investment income.................. 493,455
------------
EXPENSES:
Investment management fee.................. 265,836
Investment advisory fee.................... 133,628
Administration fee......................... 75,704
Custodian fees and expenses................ 59,949
Reports and notices to shareholders........ 37,985
Osaka Securities Exchange fees and
expenses.................................. 35,630
Audit and tax services..................... 31,340
Legal fees and expenses.................... 29,865
Directors' fees and expenses............... 15,967
Transfer agency fee and expenses........... 13,308
Insurance expense.......................... 13,200
Other...................................... 20,390
------------
Total expenses........................... 732,802
------------
NET INVESTMENT LOSS.......................... (239,347)
------------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM
INVESTMENT ACTIVITIES AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gains (losses) on investments:
Unaffiliated securities.................. 1,625,043
Affiliated securities.................... (474,480) 1,150,563
-----------
Net realized foreign currency transaction
losses.................................... (476,361)
Net change in unrealized appreciation
(depreciation) on investments in equity
securities................................ 22,822,645
Net change in unrealized appreciation
(depreciation) on translation of short-
term investments, cash and other assets
and liabilities denominated in foreign
currency.................................. (28,684)
------------
Net realized and unrealized gains from
investment activities and foreign currency
transactions................................ 23,468,163
------------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................. $ 23,228,816
------------
------------
</TABLE>
See accompanying notes to financial statements.
12
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS FOR THE YEAR
ENDED ENDED
APRIL 30, 1999 OCTOBER 31,
(UNAUDITED) 1998
-------------- -------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS:
Net investment income (loss)............... $ (239,347) $ 855,187
Net realized gain (loss) on:
Investments.............................. 1,150,563 (23,079,819)
Foreign currency transactions............ (476,361) 98,485
Net change in unrealized appreciation
(depreciation) on:
Investments in equity securities......... 22,822,645 13,647,260
Translation of short-term investments and
other assets and liabilities denominated
in foreign currency..................... (28,684) 237,484
-------------- -------------
Net increase (decrease) in net assets
resulting from operations................. 23,228,816 (8,241,403)
-------------- -------------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS
FROM:
Net investment income...................... (965,499) --
-------------- -------------
FROM CAPITAL STOCK TRANSACTIONS:
Sale of capital stock resulting from:
Reinvestment of dividends................ 36,837 --
-------------- -------------
Net increase (decrease) in net assets...... 22,300,154 (8,241,403)
NET ASSETS:
Beginning of period........................ 65,210,003 73,451,406
-------------- -------------
End of period (including accumulated net
investment income (loss) of $(239,347) and
$953,672, respectively)................... $ 87,510,157 $ 65,210,003
-------------- -------------
-------------- -------------
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES
The Singapore Fund, Inc. (the "Fund") was incorporated in Maryland on May
31, 1990 and commenced operations on July 31, 1990. It is registered with the
Securities and Exchange Commission as a closed-end, non-diversified management
investment company.
The following significant accounting policies are in conformity with
generally accepted accounting principles for investment companies. Such policies
are consistently followed by the Fund in the preparation of its financial
statements. The preparation of financial statements in accordance with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the amounts and disclosures in the financial statements.
Actual reporting results could differ from those estimates.
VALUATION OF INVESTMENTS--Securities which are listed on foreign stock
exchanges and for which market quotations are readily available are valued at
the last sale price on the exchange on which the securities are traded, as of
the close of business on the day the securities are being valued or, lacking any
sales on such day, at the closing price quoted for such securities. However, if
bid and asked quotations are available, such securities are valued at the mean
between the last current bid and asked prices, rather than at such quoted
closing price. Securities that are traded over-the-counter, if bid and asked
price quotations are available, are valued at the mean between the current bid
and asked prices, or, if such quotations are not available, are valued as
determined in good faith by the Board of Directors (the "Board") of the Fund. In
instances where quotations are not readily available or where the price as
determined by the above procedures is deemed not to represent fair market value,
fair value will be determined in such manner as the Board may prescribe.
Short-term investments having a maturity of 60 days or less are valued at
amortized cost, except where the Board determines that such valuation does not
represent the fair value of the investment. All other securities and assets are
valued at fair value as determined in good faith by, or under the direction of,
the Board.
FOREIGN CURRENCY TRANSLATION--The books and records of the Fund are
maintained in U.S. dollars as follows: (1) the foreign currency market value of
investment securities and other assets and liabilities stated in foreign
currencies are translated at the exchange rates prevailing at the end of the
period; and (2) purchases, sales, income and expenses are translated at the rate
of exchange prevailing on the respective dates of such transactions. The
resulting exchange gains and losses are included in the Statement of Operations.
The Fund does not generally isolate the effect of fluctuations in foreign
exchange rates from the effect of fluctations in the market price of securities.
TAX STATUS--The Fund intends to continue to distribute substantially all of
its taxable income and to comply with the minimum distribution and other
requirements of the Internal Revenue Code applicable to regulated investment
companies. Accordingly, no provision for federal income or excise taxes is
required. During the six months ended April 30, 1999, the Fund was subject to
withholding tax, ranging from 26% to 30%, on certain income from its
investments.
The Fund continues to meet the conditions required to qualify for the
exemption from Singapore income tax, available to non-Singapore residents who
are beneficiaries of funds managed by approved fund managers, in respect of
certain types of income. Accordingly, no provision for Singapore income tax is
required.
14
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
INVESTMENT TRANSACTIONS AND INVESTMENT INCOME--Investment transactions are
recorded on the trade date (the date upon which the order to buy or sell is
executed). Realized and unrealized gains and losses from security and foreign
currency transactions are calculated on the identified cost basis. Dividend
income and corporate actions are recorded generally on the ex-date, except for
certain dividends and corporate actions involving foreign securities which may
be recorded after the ex-date, but recorded as soon as the Fund acquires
information regarding such dividends or corporate actions. Interest income is
recorded on an accrual basis.
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS--The Fund records dividends and
distributions payable to its shareholders on the ex-dividend date. The amount of
dividends and distributions from net investment income and net realized capital
gains are determined in accordance with federal income tax regulations, which
may differ from generally accepted accounting principles. These book basis/tax
basis ("book/tax") differences are either considered temporary or permanent in
nature. To the extent these differences are permanent in nature, such amounts
are reclassified within the capital accounts based on their federal tax-basis
treatment; temporary differences do not require reclassifications. Dividends and
distributions which exceed net investment income and net realized capital gains
for financial reporting purposes but not for tax purposes are reported as
dividends in excess of net investment income or distributions in excess of net
realized capital gains. To the extent they exceed net investment income and net
realized capital gains for tax purposes, they are reported as distributions of
paid-in capital.
FORWARD FOREIGN CURRENCY CONTRACTS--The Fund may enter into forward foreign
currency exchange contracts in connection with planned purchases or sales of
securities or to hedge the U.S. dollar value of its assets denominated in a
particular currency, subject to a maximum limitation of 20% of the value of its
total assets committed to the consummation of such forward foreign currency
contracts. In addition, the Fund will not take positions in foreign forward
currency contracts where the settlement commitment exceeds the value of its
assets denominated in the currency of the contract. If the Fund enters into
forward foreign currency contracts, its custodian or subcustodian will maintain
cash or readily marketable securities in a segregated account of the Fund in an
amount equal to the value of the Fund's total assets committed to the
consummation of such contracts. Risks may arise upon entering into these
contracts from the potential inability of counterparties to meet the terms of
their contracts and from unanticipated movements in the value of a foreign
currency relative to the U.S. dollar.
INVESTMENT MANAGER AND INVESTMENT ADVISOR
The Fund has entered into a Investment Management Agreement (the "Management
Agreement") with DBS Asset Management (United States) Pte. Ltd. (the "Manager").
Pursuant to the Management Agreement, the Manager makes investment management
decisions relating to the Fund's assets. For such services, the Fund pays the
Manager a monthly fee at an annual rate of 0.80% of the first $50 million of the
Fund's average weekly net assets and 0.66% of the Fund's average weekly net
assets in excess of $50 million. In addition, as permitted by the Management
Agreement, the Fund reimburses the Manager for its out-of-pocket expenses
related to the
15
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
Fund. During the six months ended April 30, 1999, no such expenses were paid to
the Manager. During the six months ended April 30, 1999, there were no brokerage
commissions paid by the Fund to affiliates of the Manager, in connection with
portfolio transactions.
The Fund has entered into an Investment Advisory Agreement dated, April 1,
1999 (the "Advisory Agreement"), with Daiwa SB Investments (Singapore) Limited
(formerly, Daiwa International Capital Management (Singapore) Ltd. (the
"Adviser"), which provides general and specific investment advice to the Manager
with respect to the Fund's assets. The Fund pays the Adviser a monthly fee at an
annual rate of 0.40% of the first $50 million of the Fund's average weekly net
assets and 0.34% of the Fund's average weekly net assets in excess of $50
million. In addition, as permitted by the Advisory Agreement, the Fund
reimburses the Adviser for its out-of-pocket expenses related to the Fund.
During the year six months ended April 30, 1999, no such expenses were paid to
the Adviser. During the year six months ended April 30, 1999, brokerage
commissions of $280,383 were paid by the Fund to Daiwa Securities (Singapore),
an affiliate of the Adviser, in connection with portfolio transactions. The
Investment Advisory Agreement became effective on April 1, 1999 when a change of
control with respect to the ultimate parent company of the Investment Adviser
occurred. While the Fund will accrue fees owed under that Agreements from April
1, 1999 until the Agreement is approved by the Fund's stockholders, the fees for
that period will not be paid to the Investment Adviser unless the Agreement and
payment of the fees is approved by the Fund's stockholders. A stockholders'
meeting for this purpose is scheduled for September 16, 1999.
ADMINISTRATOR AND CUSTODIAN AND OTHER RELATED PARTIES
Daiwa Securities Trust Company ("DSTC"), an affiliate of the Adviser,
provides certain administrative services to the Fund. For such services, the
Fund pays DSTC a monthly fee at an annual rate of 0.20% of the Fund's average
weekly net assets, with a minimum annual fee of $150,000. In addition, as
permitted by the Administration Agreement, the Fund reimburses the Administrator
for its out-of-pocket expenses related to the Fund. However, for the year six
months ended April 30, 1999, there were no out-of-pocket expenses incurred by
the Administrator.
DSTC also acts as custodian for the Fund's assets and appoints subcustodians
for the Fund's assets held outside of the United States. DSTC has appointed The
Development Bank of Singapore, Ltd. ("DBS Bank"), an affiliate of the Manager,
to act as the subcustodian for all of the cash and securities of the Fund held
in Singapore. As compensation for its services as custodian, DSTC receives a
monthly fee and reimbursement of out-of-pocket expenses related to the Fund.
Such expenses include the fees and out-of-pocket expenses of each of the
subcustodians. During the six months ended April 30, 1999, DSTC earned $8,011
and DBS Bank earned $51,319 from the Fund for their respective custodial
services.
At April 30, 1999, the Fund owed to DSTC $13,204 and $31,392 for
administration and custodian fees, respectively. The latter amount includes fees
and expenses payable to DBS Bank totalling $30,410.
16
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
During the six months ended April 30, 1999, the Fund paid or accrued $27,150
for legal services, in connection with the Fund's on-going operations, to a law
firm of which an Assistant Secretary of the Fund is a partner.
INVESTMENTS IN SECURITIES AND FEDERAL INCOME TAX MATTERS
For federal income tax purposes, the cost of securities owned at April 30,
1999 was $68,229,365, excluding $4,369,180 of short term interest-bearing
investments. At April 30, 1999, the net unrealized appreciation on investments,
excluding short-term securities, of $11,108,975 was composed of gross
appreciation of $12,725,725 for those investments having an excess of value over
cost, and gross depreciation of $1,616,750 for those investments having an
excess of cost over value. For the six months ended April 30, 1999, the total
aggregate cost of purchases and net proceeds from sales of portfolio securities,
excluding the short-term securities, were $87,585,941 and $69,456,179,
respectively.
At October 31, 1998, the Fund had a capital loss carryover of $31,048,663,
of which $8,799,076 expires in the year 2005 and $22,249,587 expires in the year
2006.
CONCENTRATION OF RISK
Investments in countries in which the Fund may invest may involve certain
considerations and risks not typically associated with U.S. investments as a
result of, among others, the possibility of future political and economic
developments and the level of governmental supervision and regulation of the
securities markets in which the Fund invests.
CAPITAL STOCK
There are 100,000,000 shares of $0.01 par value common stock authorized.
During the six months ended April 30, 1999, 5,553 shares were issued as a result
of the reinvestment of dividends paid to those shareholders electing to reinvest
dividends.
Of the 9,200,840 shares outstanding at April 30, 1999, Daiwa Securities
America Inc., an affiliate of the Adviser and DSTC, owned 14,460.
17
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding during each period is
presented below:
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS
ENDED
APRIL 30, FOR THE YEARS ENDED OCTOBER 31,
1999 -------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
------------ ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $ 7.09 $ 7.99 $ 12.59 $ 13.42 $ 18.49 $ 17.23
------------ ------- ------- ------- ------- -------
Net investment income (loss)............ (0.03) 0.09 (0.04) (0.07) (0.07) (0.01)
Net realized and unrealized gains
(losses) on investments and foreign
currency transactions.................. 2.56 (0.99) (4.18) 0.21 (1.43) 2.66
------------ ------- ------- ------- ------- -------
Net increase (decrease) in net asset
value resulting from operations........ 2.53 (0.90) (4.22) 0.14 (1.50) 2.65
------------ ------- ------- ------- ------- -------
Less: dividends and distributions to
shareholders
Net realized gains from investments
and foreign currency transactions.... (0.11) -- (0.38) (0.97) (2.89) (1.03)
------------ ------- ------- ------- ------- -------
Dilutive effect of rights offering...... -- -- -- -- (0.64) (0.30)
------------ ------- ------- ------- ------- -------
Offering costs charged to paid-in
capital in excess of par value......... -- -- -- -- (0.04) (0.06)
------------ ------- ------- ------- ------- -------
Net asset value, end of period.......... $ 9.51 $ 7.09 $ 7.99 $ 12.59 $ 13.42 $ 18.49
------------ ------- ------- ------- ------- -------
------------ ------- ------- ------- ------- -------
Per share market value, end of period... $ 8.875 $ 6.375 $ 8.750 $ 12.125 $ 13.500 $ 18.000
------------ ------- ------- ------- ------- -------
------------ ------- ------- ------- ------- -------
Total investment return:
Based on market price at beginning and
end of period, assuming reinvestment
of dividends*........................ 41.44 % (27.14)% (25.51)% (3.54)% (6.89)% (0.19)%
Based on net asset value at beginning
and end of period, assuming
reinvestment of dividends*........... 36.28 % (11.26)% (34.49)% 0.76% (10.06)% 18.39%
Ratios and supplemental data:
Net assets, end of period (in
millions)............................ $ 87.5 $ 65.2 $ 73.5 $115.6 $122.9 $126.1
Ratios to average net assets of:
Expenses............................ 1.88 %** 2.23% 1.87% 1.85% 2.01% 1.90%
Net investment income (loss)........ (0.61)%** 1.38% (0.29)% (0.48)% (0.49)% (0.08)%
Portfolio turnover.................... 111.25 % 208.56% 78.74% 62.78% 62.85% 82.12%
</TABLE>
- --------------------------
* For the years ended October 31, 1995 and 1994, the total investment
return includes the benefit of shares resulting from the exercise of
the rights.
** Annualized
18
<PAGE>
- ----------------------------------------
BOARD OF DIRECTORS
Masayasu Ohi, CHAIRMAN
David G. Harmer
Ronnie Teo Heng Hock
Alfred C. Morley
Oren G. Shaffer
- --------------------------------------------
OFFICERS
Ronnie Teo Heng Hock
PRESIDENT
Daniel F. Barry
VICE PRESIDENT & SECRETARY
Sean J. Peters
TREASURER
John A. Koopman
ASSISTANT TREASURER
Laurence E. Cranch
ASSISTANT SECRETARY
Judy Runrun Tu
ASSISTANT SECRETARY
- --------------------------------------------
ADDRESS OF THE FUND
c/o Daiwa Securities Trust Company
One Evertrust Plaza, 9th Floor
Jersey City, New Jersey 07302
- --------------------------------------------
INVESTMENT MANAGER
DBS Asset Management (United States) Pte. Ltd.
INVESTMENT ADVISER
Daiwa SB Investments (Singapore) Ltd.
(formerly, Daiwa International
Capital Management (Singapore) Ltd.
ADMINISTRATOR AND CUSTODIAN
Daiwa Securities Trust Company
TRANSFER AGENT AND REGISTRAR
State Street Bank and Trust Company
LEGAL COUNSEL
Rogers & Wells LLP
INDEPENDENT ACCOUNTANTS
PricewaterhouseCoopers LLP
- --------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940 that from time to time the Fund may purchase shares of its
common stock in the open market at prevailing market prices.
This report is sent to shareholders of the Fund for their information. It is not
a prospectus, circular or representation intended for use in the purchase or
sale of shares of the Fund or of any securities mentioned in the report.
The financial information included herin is taken from the records of the Fund
without examination by independent accountants who do not express an opinion
thereon.
THE
SINGAPORE
FUND, INC.
[LOGO]
Semi-Annual Report
April 30, 1999
