<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. The ASEAN Group currently is composed of
Brunei, Cambodia, 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. 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 visiting www.daiwast.com or 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, 2000
DEAR SHAREHOLDERS,
We are pleased to present the semi-annual report of The Singapore
Fund, Inc. (the "Fund") for the period ended April 30, 2000.
1. STOCK MARKET REVIEW
For the six month period ended April 30, 2000, the Singapore market, as
measured by the DBS50 Index ("DBS50"), fell by 1.3% in U.S. Dollar terms. The
Malaysian market held up well in general as fund managers positioned themselves
during the early half of the period for the impending return to the MSCI indices
in May 2000. The Thai market, on the other hand, lost almost all the gains made
in the first quarter (+24%), retreating by 20% in the second quarter, largely
attributed to concerns on the pace of reforms and further rounds of bank
recapitalization needs. The small emerging markets of the Philippines and
Indonesia, despite being generally under-owned by foreign investors, were not
spared from the sell-off, particularly during the February to end of April
quarter (down 20% on average).
Markets in Asia chose to ignore U.S. rate hike concerns in the first
quarter, as investors invested in the technology, media and telecommunication
("TMT") sectors, against the backdrop of demanding valuation. However, this
liquidity driven rally dissipated as quickly as it came when the reality of a
U.S. rate hike and TMT overvaluation set-in during the latter half of the period
in review.
The most significant market movement this period was the correction in
NASDAQ, which triggered a major sell-off in developed Asian markets. "Dot-com"
euphoria in Asia halted along with rounds of correction in the NASDAQ (to date,
the NASDAQ has fallen 36% from its high of 5,048 recorded on March 10, 2000).
The markets least affected by the U.S. correction were unsurprisingly, the
generally under-owned emerging markets of Malaysia, Indonesia, Thailand and the
Philippines. Nonetheless, the latter three markets fell 20% in the second
quarter due to domestic problems: political concerns in the Philippines,
political and bank restructuring issues in Indonesia, and as yet, unresolved
recapitalization concerns of the Thai banks.
2. FUND PERFORMANCE
As of April 30, 2000, the Fund's net asset value ("NAV") per share was
$9.22. This represents a decline of 8.4% from the NAV per share of $10.07 at the
beginning of the six month period in review. No dividend was paid out in both
first and second quarters. During the period, the Fund under-performed the DBS50
by 7.1%. The Singapore market, as measured by the DBS50 Index, was down 1.3% in
U.S. Dollar terms. Much of the under-performance was recorded in the second half
of the six months period in review.
The Fund has taken on a more defensive posture as at the time of writing.
Near term concerns on the impact of rising interest rates on banks and
properties have resulted in the Fund under-weighting properties and banks. The
major sector allocation of the Fund as of April 30, 2000 is as shown in the
table below.
2
<PAGE>
THE SINGAPORE FUND, INC.
----------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
% OF NET
SECTOR ASSETS
Banks & Financials 22.63
Transportation 16.17
Technology-related 13.18
Media & Publishing 12.87
Telecommunication 8.46
Property 4.44
Others 5.85
CASH + EQUIV. 16.40
</TABLE>
(Total approx. weight in Technology, Media and Telecom: 34.51%)
Despite the recent correction in NASDAQ, which the Singapore market is
highly correlated to, the Fund's management remains positive on TMT stocks on a
longer-term view. Total TMT exposure as a percentage of net assets at end of
30 April approximated 35%. The Fund's management would like to point out that
the TMT exposure of the Fund are not at demanding valuations and the Fund has no
exposure to pure internet stocks with no earnings. The technology stocks held
are key beneficiaries of the still robust growth in the overall semiconductor
cycle. Overall, the Fund's management is comfortable with the selection of the
stocks despite weakness in recent times.
The Fund has reduced its exposure in Thailand to 4.08% of the portfolio as
of April 30, 2000 and had zero exposure in both Indonesia and the Philippines.
The Fund's management believes that political instability in the Philippines and
Indonesia and the slow pace of reforms in the latter has not provided a sound
investment environment yet.
The cash position in the Fund rose to a high of almost 16% recently. The
Fund's management is, in the near term maintaining higher than usual cash level.
However, the Fund's management will be looking to invest opportunistically when
the market volatility has receded.
3. ECONOMIC PERFORMANCE
The Singapore economy grew a better-than-expected 9.1% year-on-year ("yoy")
in 1Q2000 vs. 7.1% yoy in 4Q1999. This is the fastest pace of growth in 2 1/2
years. Key drivers of growth during the quarter were manufacturing (+12.9% yoy),
retail trade (+17.2% yoy) and the transport and communication (+9.7% yoy)
sectors. The details are as follows:
3
<PAGE>
THE SINGAPORE FUND, INC.
----------------------------------------------------------------------
<TABLE>
<CAPTION>
1Q00 4Q99
SECTORS (YOY%) (YOY%)
<S> <C> <C>
Manufacturing 12.9 16.1
Construction -11.2 -12.2
Retail Trade 17.2 14.7
Hotels/Restaurants 8.7 6.2
Financial Services 6.9 -6.2
Transport & Comm. 9.7 8.4
OVERALL GDP 9.1 7.1
</TABLE>
Going forward, the Fund's management expects the economy to remain modestly
buoyant. Growth in the second half of 2000 ("2H2000") is likely to take a
breather due to a higher base last year and expectations of a slow down in the
U.S. economy. Monetary tightening appears inevitable in 2H2000, as Singapore
rates tend to track US rates closely.
GDP growth in the other ASEAN economies peaked in 4Q1999. Economic growth
prospects remain favorable, despite expected deceleration in the second half. We
do not expect all regional interest rates to move in tandem with U.S. rates
rises. Malaysia, with capital controls still in place, is not likely to be
impacted significantly by a higher U.S. interest rate. Similarly, in Thailand,
domestic rates are expected to stay low with signs of deceleration in recent
consumption and production indicators and credit growth languishing below 2%.
The Philippines may experience a substantial rising of interest rates and
inflation. Indonesia is largely awash with political problems and the Fund's
management is still concerned with economic mismanagement and the slow pace of
reform.
4. MARKET OUTLOOK FOR SINGAPORE
Though the Fund's management believes the Singapore market has not yet fully
discounted another two rounds of interest rate hikes in the U.S. in 2H 2000
(market expectations of another 50-100 basis points rise by the end of 2000), at
current levels there is limited downside. The Singapore inter-bank rate is
expected to track the U.S. rate hike in a limited way given the excess liquidity
in the system. Appetite for risk has waned somewhat, particularly in the
electronics sector. Singapore electronics companies did not out-perform earnings
expectations as significantly as their Taiwanese counterparts. Contract
manufacturers' profit warnings, due to component shortages, will likely result
in downwards revision of their earnings estimates in the 2H 2000. The market is
currently in an under-bought situation with 30 day Relative-Strength-Index
("RSI") of 42.25 as at the time of writing. This compares with the peak of 71.7
on January 3, 2000. With the recent correction, the Singapore market currently
offers value, however investors are likely to stay cautious and the market may
trade in a narrow range for the near term.
4
<PAGE>
THE SINGAPORE FUND, INC.
----------------------------------------------------------------------
5. PORTFOLIO STRATEGY
The Fund's manager is taking a defensive strategy in the near term, holding
on to a higher than average cash level position. Concerns over the political and
financial reforms in some ASEAN countries, lead the Fund to avoid investing in
the Philippines and Indonesia. However, the Fund's management remains most
optimistic on the Singapore market.
The portfolio is currently well diversified with no strong bias towards any
particular sector. The Fund's management will look to opportunistically invest
in undervalued companies with quality earnings and management. A more stock
specific investment approach will be taken, driven by individual corporate
restructuring themes, as well as sustainable medium term growth potential. The
Fund's management believes the Singapore market has not priced in another 50 to
100 basis points U.S. rate hike from now to the end of 2000. As a result, the
Fund's management is still under-weighting financials and properties despite
attractive valuations. This situation will be monitored closely and the Fund's
management intends to increase bank exposure once the market fully comprehends
the magnitude of potential rates rises.
Notwithstanding the intermittent volatility in the NASDAQ, the Fund's
management remains positive on technology-related stocks for the longer term. We
are more cautious on contract manufacturers in light of component shortage
concerns and have positioned the portfolio to benefit from continued strength in
the semiconductor segment. The Fund's management favors the upstream foundries
as well as back-end testing companies. Beyond technology and financials, in our
selection of stocks, a strong management team with proven ability to deliver
leadership as well as sustainable profitability has being emphasized.
6. PORTFOLIO MANAGEMENT
Effective April 14, 2000, Mr. Seng Hock Tan resigned as the Fund's portfolio
manager. The newly appointed portfolio manager of the Fund is Ms. Stella Ng.
Ms. Stella Ng was appointed as the Fund's portfolio manager in May 2000, and
is responsible for the day-to-day management of the Fund's portfolio. Ms. Ng
joined DBS Asset Management Ltd., of which the Fund's Manager, DBS Asset
Management (United States) Pte. Ltd. is a wholly owned subsidiary, in May 2000
as an Investment Manager. From 1998 to 2000, Ms. Ng worked at Murray Johnstone,
a Scottish fund management house, with key responsibility in fund management for
Asian equities in general and the Asian technology sector in particular.
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.
Sincerely,
/s/ Masayasu Ohi
MASAYASU OHI
CHAIRMAN OF THE BOARD
5
<PAGE>
THE SINGAPORE FUND, INC.
----------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
-------------------------------------------
COMMON STOCKS--83.60%
--------------------------------------------------------------------------------
<TABLE>
SHARES VALUE
---------- ------------
<C> <S> <C>
SINGAPORE--78.97%
BANK & FINANCIAL SERVICES--20.28%
850,000 Oversea-Chinese Banking Corporation Ltd...... $ 5,836,953
1,413,600 Overseas Union Bank Ltd...................... 6,471,464
700,000 United Overseas Bank Ltd. (Foreign).......... 4,889,071
------------
17,197,488
------------
COMMUNICATIONS-MEDIA--10.40%
450,000 Singapore Press Holding Ltd.++............... 8,821,458
------------
CONGLOMERATE--1.14%
5,000,000 Brierly Investments Co., Ltd.*++............. 968,424
------------
ELECTRICAL PRODUCTS AND COMPUTERS--11.57%
151,000 Chartered Semi-Conductor Manufacturing
Co.*++...................................... 1,302,794
150,000 Datacraft Asia Ltd........................... 1,125,000
2,716,000 GES International Ltd........................ 3,347,576
400,000 ST Assembly Test Services*++................. 1,690,339
200,000 Venture Manufacturing Co., Ltd.*............. 2,347,693
------------
9,813,402
------------
FINANCE--2.35%
4,000,000 Vickers Capital Ltd.*........................ 1,995,539
------------
POWER & GENERATOR UTILITY--0.60%
548,000 Lindeteves Jacoberg Ltd...................... 508,182
------------
PROPERTY DEVELOPMENT--2.12%
1,500,000 Keppel Land Ltd.++........................... 1,795,985
------------
</TABLE>
<TABLE>
SHARES VALUE
---------- ------------
<C> <S> <C>
REAL ESTATE--2.32%
1,957,000 First Capital Corporation Ltd................ $ 1,964,121
------------
RETAIL--0.77%
2,000,000 Courts (Singapore) Ltd....................... 651,485
------------
SHIPYARDS--2.79%
5,600,000 Sembcorp Marine Ltd.*........................ 2,366,475
------------
TELECOMMUNICATIONS--8.46%
3,000,000 ICOMM Technology Ltd.*....................... 1,135,697
2,500,000 Singapore Telecommunications Ltd.++.......... 3,609,579
924,000 Total Access Communication Co., Ltd.*........ 2,430,120
------------
7,175,396
------------
TRANSPORTATION--3.49%
1,200,000 Delgro Corporation Ltd.*..................... 2,958,094
------------
TRANSPORTATION AIR--8.58%
700,000 Singapore Airlines Ltd.++.................... 7,271,980
------------
TRANSPORTATION MARINE--4.10%
1,500,000 CWT Distribution Ltd.++...................... 783,543
3,000,000 Neptune Orient Lines Ltd.*++................. 2,693,978
------------
3,477,521
------------
Total Singapore Common Stocks............................ 66,965,550
------------
</TABLE>
6
<PAGE>
THE SINGAPORE FUND, INC.
----------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONCLUDED)
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
COMMON STOCKS (CONCLUDED)
--------------------------------------------------------------------------------
<TABLE>
SHARES VALUE
---------- ------------
<C> <S> <C>
THAILAND--4.08%
COMMUNICATIONS-MEDIA--1.72%
1,820,000 United Broadcasting - Co., Ltd.
(Foreign)*+................................. $ 1,460,405
------------
ELECTRICAL PRODUCTS AND COMPUTERS--1.61%
625,000 Shin Satellite Public Co., Ltd.
(Foreign)*+................................. 501,513
148,000 Shin Corporation Ltd. (Foreign)*+............ 864,404
------------
1,365,917
------------
PUBLISHING--0.75%
856,703 Nation Multi Media Co., Ltd. (Foreign)*+..... 642,358
------------
Total Thailand Common Stocks............................. 3,468,680
------------
MALAYSIA--0.55%
CONGLOMERATE--0.55%
500,000 Malaysian Resources Corp. Berhad*............ 463,170
------------
Total Common Stocks (Cost--$74,298,967)..................
70,897,400
------------
</TABLE>
-------------------------------------------
TIME DEPOSITS--14.32%
-------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT
(000)
----------
<C> <S> <C>
U.S. DOLLAR--0.82%
136 Bank of New York, 3.80% due 5/01/00.......... 136,098
</TABLE>
<TABLE>
PRINCIPAL
AMOUNT
(000) VALUE
---------- ------------
<C> <S> <C>
556 Citibank, Singapore, 4.00% due 5/01/00....... $ 555,592
------------
Total U.S. Dollar Time Deposits.......................... 691,690
------------
SINGAPORE DOLLAR--13.50%
19,512 Citibank, Singapore, 0.50% due 5/01/00....... 11,452,217
------------
Total Time Deposits
(Cost--$12,188,513).................................... 12,143,907
------------
Total Investments--97.92%
(Cost--$86,487,480).................................... 83,041,307
Other assets less liabilities--2.08%..................... 1,762,751
------------
NET ASSETS (Applicable to 9,200,840 shares of capital
stock outstanding; equivalent to $9.22 per
share)--100%...........................................
$ 84,804,058
============
</TABLE>
* Non-income producing securities.
+ Foreign shares of the above issues are those held by non-Singaporean,
non-Thai or non-Malaysian residents. Ownership of such shares is generally
limited and subject to a premium to local shares (those held by residents
of Singapore, Thailand, and Malaysia as applicable).
++ Deemed to be an affiliated issuer.
See accompanying notes to financial statements.
7
<PAGE>
THE SINGAPORE FUND, INC.
----------------------------------------------------------------------
TEN LARGEST COMMON STOCK
CLASSIFICATIONS HELD
APRIL 30, 2000 (UNAUDITED)
-------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY NET ASSETS
-------- ----------
<S> <C>
Banks & Financial Services......... 20.28%
Electrical Products and
Computers.......................... 13.18
Communications-Media............... 12.12
Transportation--Air................ 8.58
Telecommunications................. 8.46
Transportation--Marine............. 4.10
Transportation..................... 3.49
Shipyards.......................... 2.79
Finance............................ 2.35
Real Estate........................ 2.32
</TABLE>
TEN LARGEST COMMON STOCK
POSTIONS HELD
APRIL 30, 2000 (UNAUDITED)
-------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
ISSUE NET ASSETS
----- ----------
<S> <C>
Singapore Press Holding Ltd........ 10.40%
Singapore Airlines Ltd............. 8.58
Overseas Union Bank Ltd............ 7.63
Oversea-Chinese Banking Corporation
Ltd.............................. 6.88
United Overseas Bank Ltd.
(Foreign).......................... 5.77
Singapore Telecommunications
Ltd................................ 4.26
GES International Ltd.............. 3.95
Delgro Corporation Ltd............. 3.49
Neptune Orient Lines Ltd........... 3.18
Total Access Communication Co.,
Ltd................................ 2.87
</TABLE>
8
<PAGE>
THE SINGAPORE FUND, INC.
----------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS
Investments in securities, at value:
Unaffiliated securities
(cost--$54,575,321)..................... $ 51,736,752
Affiliated securities
(cost--$31,912,159)..................... 31,304,555 $83,041,307
------------
Cash denominated in foreign currency
(cost--$3,598)............................ 3,578
Receivable for securities sold............. 4,374,723
Interest and dividends receivable.......... 43,829
Prepaid expenses........................... 15,001
-----------
Total assets............................. 87,478,438
-----------
LIABILITIES
Payable for securities purchased........... 2,381,542
Payable to investment manager.............. 51,427
Payable to investment adviser.............. 25,996
Payable to administrator................... 13,845
Accrued expenses and other liabilities..... 201,570
-----------
Total liabilities........................ 2,674,380
-----------
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..... 106,874,611
Accumulated net investment loss............ (325,287)
Accumulated net realized loss on
investments............................... (18,395,428)
Net unrealized appreciation on investments
and other assets and
liabilities denominated in foreign
currency.................................. (3,441,846)
-----------
Net assets applicable to shares
outstanding............................. $84,804,058
===========
NET ASSET VALUE PER SHARE............ $ 9.22
===========
</TABLE>
See accompanying notes to financial statements.
9
<PAGE>
THE SINGAPORE FUND, INC.
----------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED APRIL 30, 2000 (UNAUDITED)
--------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends:
Unaffiliated securities (net of
withholding taxes of--$19,984).......... $ 103,649
Affiliated securities (net of withholding
taxes of--$143,003)..................... 427,916 $ 531,565
-----------
Interest................................... 51,630
-----------
Total investment income.................. 583,195
-----------
EXPENSES:
Investment management fee.................. 352,217
Investment advisory fee.................... 172,640
Administration fee......................... 97,185
Custodian fees and expenses................ 82,218
Directors' fees and expenses............... 41,435
Reports and notices to shareholders........ 38,195
Legal fees and expenses.................... 33,988
Audit and tax services..................... 31,513
Osaka Securities Exchange fees and
expenses.................................. 22,750
Insurance expense.......................... 12,732
Transfer agency fee and expenses........... 9,520
Other...................................... 14,089
-----------
Total expenses........................... 908,482
-----------
NET INVESTMENT LOSS.......................... (325,287)
-----------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM
INVESTMENT ACTIVITIES AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gains (losses) on investments
Unaffiliated securities.................. (3,478,235)
Affiliated securities.................... 763,057 (2,715,178)
-----------
Net realized foreign currency transaction
losses.................................... (175,783)
Net change in unrealized appreciation
(depreciation) on investments in equity
securities................................ (4,577,425)
Net change in unrealized appreciation
(depreciation) on translation of
short term investments, cash and other
assets and liabilities denominated in
foreign currency.......................... (21,116)
-----------
Net realized and unrealized losses from
investment activities and foreign currency
transactions................................ (7,489,502)
-----------
NET DECREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................. $(7,814,789)
===========
</TABLE>
See accompanying notes to financial statements.
10
<PAGE>
THE SINGAPORE FUND, INC.
----------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE SIX
MONTHS FOR THE YEAR
ENDED ENDED
APRIL 30, 2000 OCTOBER 31,
(UNAUDITED) 1999
-------------- ------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment loss....................................... $ (325,287) $ (345,805)
Net realized gain (loss) on:
Investments............................................. (2,715,178) 16,374,428
Foreign currency transactions........................... (175,783) (621,513)
Net change in unrealized appreciation (depreciation) on:
Investments in equity securities........................ (4,577,425) 12,940,708
Translation of short term investments and other assets
and liabilities denominated in foreign currency........ (21,116) (10,312)
------------ -----------
Net increase (decrease) in net assets resulting from
operations............................................... (7,814,789) 28,337,506
------------ -----------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income..................................... -- (965,499)
------------ -----------
FROM CAPITAL STOCK TRANSACTIONS:
Reinvestment of dividends................................. -- 36,837
------------ -----------
Net increase (decrease) in net assets..................... (7,814,789) 27,408,844
NET ASSETS:
Beginning of period....................................... 92,618,847 65,210,003
------------ -----------
End of period............................................. $ 84,804,058 $ 92,618,847
============ ===========
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
THE SINGAPORE FUND, INC.
----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
--------------------------------------------------------------------------------
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 maturity dates 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 fluctuations 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, 2000, the Fund was subject to
withholding tax, ranging from 10% to 25.5%, 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.
12
<PAGE>
THE SINGAPORE FUND, INC.
----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (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 sub custodian 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 counter-parties 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 ADVISER
The Fund has entered into an 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
13
<PAGE>
THE SINGAPORE FUND, INC.
----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
--------------------------------------------------------------------------------
Fund. During the six months ended April 30, 2000, no such expenses were paid to
the Manager. During the six months ended April 30, 2000, 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
(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 six months ended April 30, 2000, no such expenses were paid to the
Adviser. During the six months ended April 30, 2000, brokerage commissions of
$51,244 were paid by the Fund to Daiwa Securities (Singapore), an affiliate of
the Adviser, in connection with portfolio transactions.
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. During the six months ended
April 30, 2000, 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, 2000, DSTC earned $10,991
and DBS Bank earned $71,227 from the Fund for their respective custodial
services.
At April 30, 2000, the Fund owed to DSTC $13,845 and $28,908 for
administration and custodian fees, respectively. The latter amount includes fees
and expenses payable to DBS Bank totaling $27,432.
During the six months ended April 30, 2000, the Fund paid or accrued $30,106
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,
2000 was $74,298,967, excluding $12,188,513 of short-term interest-bearing
investments. At April 30, 2000, the net unrealized depreciation on investments,
excluding short-term securities, of $3,401,567 was composed of gross
appreciation of $4,237,693
14
<PAGE>
THE SINGAPORE FUND, INC.
----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONCLUDED)
--------------------------------------------------------------------------------
for those investments having an excess of value over cost, and gross
depreciation of $7,639,260 for those investments having an excess of cost over
value. For the six months ended April 30, 2000, the total aggregate cost of
purchases and net proceeds from sales of portfolio securities, excluding the
short-term securities, were $55,964,320 and $65,660,595, respectively.
At October 31, 1999, the Fund had a remaining capital loss carryover of
$15,210,895, which 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. Of
the 9,200,840 shares outstanding at April 30, 2000. Daiwa Securities America
Inc., an affiliate of the Adviser and DSTC, owned 14,311.
15
<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 FOR THE YEARS ENDED OCTOBER 31,
APRIL 30, 2000 -------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
--------------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period........ $ 10.07 $ 7.09 $ 7.99 $ 12.59 $ 13.42 $ 18.49
------- ------- ------- ------- ------- -------
Net investment income (loss)................ (0.04) (0.04) 0.09 (0.04) (0.07) (0.07)
Net realized and unrealized gains (losses)
on investments and foreign
currency transactions...................... (0.81) 3.13 (0.99) (4.18) 0.21 (1.43)
------- ------- ------- ------- ------- -------
Net increase (decrease) in net asset value
resulting from operations.................. (0.85) 3.09 (0.90) (4.22) 0.14 (1.50)
------- ------- ------- ------- ------- -------
Less: dividends and distributions to
shareholders
Net realized gains from invesments and
foreign currency transactions............ -- (0.11) -- (0.38) (0.97) (2.89)
------- ------- ------- ------- ------- -------
Dilutive effect of rights offering.......... -- -- -- -- -- (0.64)
------- ------- ------- ------- ------- -------
Offering costs charged to paid-in capital in
excess of par value........................ -- -- -- -- -- (0.04)
------- ------- ------- ------- ------- -------
Net asset value, end of period.............. $ 9.22 $ 10.07 $ 7.09 $ 7.99 $ 12.59 $ 13.42
======= ======= ======= ======= ======= =======
Per share market value, end of period....... $ 7.250 $ 8.938 $ 6.375 $ 8.750 $ 12.125 $ 13.500
======= ======= ======= ======= ======= =======
Total investment return:
Based on market price at beginning and end
of period, assuming reinvestment
of dividends+............................ (18.89)% 42.44% (27.14)% (25.51)% (3.54)% (6.89)%
Based on net asset value at beginning and
end of period, assuming reinvestment
of dividends+............................ (8.44)% 44.30% (11.26)% (34.49)% 0.76% (10.06)%
Ratios and supplemental data:
Net assets, end of period
(in millions)............................ $ 84.8 $ 92.6 $ 65.2 $ 73.5 $115.6 $122.9
Ratios to average net assets of:
Expenses................................ 2.04 %* 1.97% 2.23% 1.87% 1.85% 2.01%
Net investment income (loss)............ (0.73)%* (0.42)% 1.38% (0.29)% (0.48)% (0.49)%
Portfolio turnover........................ 76.73 % 201.76% 208.56% 78.74% 62.78% 62.85%
</TABLE>
---------------------------------------------------------------------------
* Annualized.
+ For the year ended October 31, 1995, the total investment return
includes the benefit of shares resulting from the exercise of the
rights.
16
<PAGE>
THE SINGAPORE FUND, INC.
----------------------------------------------------------------------
RESULTS OF ANNUAL MEETING OF STOCKHOLDERS (UNAUDITED)
--------------------------------------------------------------------------------
On June 8, 2000, the Annual Meeting of Stockholders of The Singapore
Fund, Inc. (the "Fund") was held and the following matters were voted upon and
passed.
(1) Election of one Class I Director to the Board of Directors of the Fund, to
serve for a term expiring on the date on which the Annual Meeting of
Stockholders is held in the year 2001 and the election of three Class III
Directors to serve for a term expiring on the date on which the Annual Meeting
of Stockholders is held in the year 2003.
<TABLE>
<CAPTION>
NUMBER OF SHARES/VOTES
----------------------
PROXY AUTHORITY
CLASS I VOTED FOR WITHHELD
------- --------- ---------------
<S> <C> <C>
Robert F. Gurnee 7,461,130 208,400
<CAPTION>
CLASS III
---------
<S> <C> <C>
Austin C. Dowling 7,478,607 190,923
Martin J. Gruber 7,468,787 200,743
Masayasu Ohi 6,840,885 828,645
</TABLE>
In addition to the four Directors elected or re-elected at the Meeting,
David G. Harmer, Alfred C. Morley and Oren G. Shaffer were the other members of
the Board who continued to serve as Directors of the Fund.
(2) To ratify the selection of PricewaterhouseCoopers LLP as independent
accountants of the Fund for its fiscal year ending October 31, 2000.
<TABLE>
<CAPTION>
NUMBER OF SHARES/VOTES
----------------------
VOTED FOR VOTED AGAINST ABSTENTIONS
--------- ------------- -----------
<S> <C> <C>
7,593,090 42,352 34,088
</TABLE>
17
<PAGE>
----------------------------------------
BOARD OF DIRECTORS
Masayasu Ohi, CHAIRMAN
Austin C. Dowling
Martin J. Gruber
Robert F. Gurnee
David G. Harmer
Alfred C. Morley
Oren G. Shaffer
--------------------------------------------
OFFICERS
Judy Runrun Tu
SECRETARY
Laurence E. Cranch
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.
ADMINISTRATOR AND CUSTODIAN
Daiwa Securities Trust Company
TRANSFER AGENT AND REGISTRAR
State Street Bank and Trust Company
LEGAL COUNSEL
Clifford Chance Rogers & Wells
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 herein 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, 2000
