<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. (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.
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GENERAL INFORMATION (CONCLUDED)
- --------------------------------------------------------------------------------
A brief summary of the material aspects of the Plan follows:
WHO CAN PARTICIPATE IN THE PLAN? If you wish to participate and your shares
are held in your name, no action is required on your part, as you are
AUTOMATICALLY ENROLLED by the Plan Agent. However, if your shares are held in
the name of a brokerage firm, bank or nominee, you should instruct your nominee
to participate in the Plan on your behalf. If your nominee is unable to
participate in the Plan for you, you should request that your shares be
registered in your name, so that you may participate directly in the Plan.
MAY I WITHDRAW FROM THE PLAN? If your shares are held in your name and you
wish to receive all dividends and capital gain distributions in cash rather than
in shares, you may withdraw from the Plan without penalty at any time by
contacting the Plan Agent. If your shares are held in nominee name, you should
be able to withdraw from the Plan without penalty at any time by sending written
notice to your nominee. If you withdraw, you will receive a share certificate
for all full shares or, if you wish, the Plan Agent will sell your shares and
send you the proceeds, after the deduction of brokerage commissions. The Plan
Agent will convert any fractional shares to cash at the then-current market
price and send to you a check for the proceeds.
HOW ARE THE DIVIDENDS AND DISTRIBUTIONS REINVESTED? If the market price of
the Fund's shares on the payment date should equal or exceed their net asset
value per share, the Fund will issue new shares to you at the higher of net
asset value or 95% of the then-current market price. If the market price is
lower than net asset value per share, the Fund will issue new shares to you at
the market price. If the dividends or distributions are declared and payable as
cash only, you will receive shares purchased for you by the Plan Agent on the
NYSE or otherwise on the open market to the extent available.
WHAT IS THE CASH PURCHASE FEATURE? The Plan also allows shareholders to make
optional cash investments in Fund shares semi-annually through the Plan Agent in
any amount from $100 to $3,000. The Plan Agent will purchase shares for you on
the NYSE or otherwise on the open market twice a year, on or about February 15th
and August 15th. Plan participants should send in voluntary cash payments to be
received by the Plan Agent approximately ten days before the applicable purchase
date. The Plan Agent will return any cash payments received more than thirty
days prior to the applicable date. You may withdraw a voluntary cash payment by
written notice, if the notice is received by the Plan Agent not less that two
business days before the purchase date.
IS THERE A COST TO PARTICIPATE? There are no Plan charges or brokerage
charges for shares issued directly by the Fund. However, each participant will
pay a pro rata portion of brokerage commissions for shares purchased on the NYSE
or on the open market by the Plan Agent. For purchases from voluntary cash
payments, participants must pay a nominal service fee of $0.75 for each
investment in addition to a pro rata portion of the brokerage commission.
WHAT ARE THE TAX IMPLICATIONS? The automatic reinvestment of dividends and
distributions does not relieve you of any income tax which may be payable (or
required to be withheld) on such dividends and distributions. In addition, the
Plan Agent will reinvest dividends for foreign participants and for any
participants subject to federal backup withholding after the deduction of the
amounts required to be withheld.
PLEASE NOTE THAT, IF YOU PARTICIPATE IN THE PLAN THROUGH A BROKERAGE
ACCOUNT, YOU MAY NOT BE ABLE TO CONTINUE AS A PARTICIPANT IF YOU TRANSFER THOSE
SHARES TO ANOTHER BROKER. CONTACT YOUR BROKER OR NOMINEE OR THE PLAN AGENT TO
ASCERTAIN WHAT IS THE BEST ARRANGEMENT FOR YOU TO PARTICIPATE IN THE PLAN.
2
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
December 6, 1999
DEAR SHAREHOLDERS,
We are pleased to present the Annual Report of The Singapore Fund, Inc. (the
"Fund") for the fiscal year ended October 31, 1999.
STOCK MARKET REVIEW
For the year ended October 31, 1999, the Singapore market, as measured by
the DBS50 Index (the "DBS50"), rose by 69.97% in USD terms. The Malaysian, Thai,
Philippine and Indonesian markets rose by 83.28%, 13.66%, 16.59% and 119.86%,
respectively.
The Asian currency crisis that started in Thailand in July 1997, snowballed
into an emerging markets crisis, and finally threatened the global financial
markets by September 1998, was finally reversed by aggressive policy responses
from the OECD governments. Interest rates were cut and financial aid packages
were assembled to shore up confidence in the emerging economies. Against this
background, the global banking system eventually stabilized. A remarkable
recovery in global financial markets then unfolded. In Asia, strong current
account surpluses, accumulated through the collapse in domestic demand during
the recession, helped to stabilize the currencies, while the now-benign global
interest rate environment allowed governments to pursue reflationary monetary
and fiscal policies. With abundant liquidity in the global markets, Asian stock
markets took off in anticipation of a sharp Asian economic recovery.
Other than a short consolidation in early 1999 following the Brazilian
currency devaluation and speculation on China's currency peg, Asian markets
continued their rallies right through the first half of 1999. Stronger-than-
expected economic recoveries, fueled by easy monetary and fiscal policies which
were now endorsed by the International Monetary Fund (IMF), triggered further
flows of funds back into Asia and helped propel the Asian markets higher. By the
second half of 1999, the surprisingly strong showing of the U.S. and Japanese
economies, coupled with a big jump in commodity prices and most notably oil
prices, raised inflationary concerns. This led to a hefty rise in long-term U.S.
interest rates and stopped the global markets' rallies in their tracks.
The Singapore stock market followed the Asian trend in general. Being less
affected by economic crisis, the Singapore economy produced a sharp recovery in
the first half of 1999. Furthermore, the cost-cutting measures introduced in
1998 were now taking effect and evidenced by the first half profits of Singapore
companies. The final key element in the strong stock market performance was the
increasing recognition of shareholders' value. Issues of efficient allocation
and use of capital--return on capital versus the cost of capital--and other
value-added measures had come into focus during the regional crisis. Led by the
government-linked companies, other Singapore companies took to addressing
shareholders' interests to ensure better performance in the future. Examples of
initiatives taken include the removal of dual listings, the introduction of
share buy-backs, disposal of non-core assets, and improved corporate
transparency with management stating objectives in financial terms.
The other ASEAN markets produced mixed performances. Malaysia successfully
engineered a recapitalization of the banking sector and a swift economic
recovery, despite doubts on its closed capital account policy. Furthermore, an
impending inclusion back into the Morgan Stanley Capital Indices (MSCI) added
buoyancy to its market. Indonesia has emerged from its economic and political
crisis with a new leadership that seems to inspire confidence in the local
population, and in foreign investors as well. This new confidence is well
reflected in the currency and stock market performances. On the other hand,
Thailand has lagged behind, largely due to
3
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
its inability to successfully recapitalize its banks and restructure its
companies. Investors have been disappointed with on-going rights issues that
show little signs of abating. The Philippines emerged from the crisis largely
unscathed, but stronger performance has been hampered by diminishing confidence
in the current political and economic administration to effectively bring the
economy to a higher level of productivity. Genuine corporate restructuring has
also been lacking, partly from the absence of government initiatives and partly
from a lack of any urgent need to restructure.
Toward the end of the year, the Singapore market has also benefited from
investors' worries about Y2K and their decisions to move funds from the emerging
markets, like Thailand and the Philippines, to the local bourse.
FUND PERFORMANCE
As of October 31, 1999, the Fund's net asset value ("NAV") per share was
10.07 USD. This represents an increase of 44.30% from the NAV per share 7.09 USD
at the end of the previous year, assuming, the reinvestment of a dividend of
0.105 USD paid in January 1999. The Fund under-performed by 24.77% against the
DBS50, which rose by 69.07% during the year.
During the year, the under-performance of the Fund against its DBS50
benchmark was mainly due to the local/foreign tranches issue. The local tranches
had outperformed the foreign tranches by an average of 75% absolute return in
the year. The best performing bank was DBS Bank, with its local and foreign
tranches returning 243% and 114%, respectively. In addition, the other banking
stocks purchased by the Fund to maintain the Fund's weightings in the banking
sector did not do as well. This included the Thai and Philippine banking stocks
purchased for the Fund in the year. Overall, the Fund's first moves into the
Thai and Philippine stock markets during the year did not contribute towards
portfolio performance. The local/foreign tranches cease to be an issue in the
new financial year.
Below is a table of the Fund's investment performance for the year and three
years ended October 31, 1999 and for the period since inception on July 31, 1990
through October 31, 1999.
<TABLE>
<CAPTION>
3 YEAR SINCE INCEPTION
-------------------- --------------------
TO OCTOBER 31, 1999 1 YEAR CUMM PER ANNUM CUMM PER ANNUM
<S> <C> <C> <C> <C> <C>
Singapore Fund................................ 44.30% (10.96)% (3.79)% 51.00% 4.56%
DBS50......................................... 69.97% 10.53% 3.39% 59.50% 5.18%
MSCI Singapore Free........................... 56.14% (18.81)% (6.71)% 59.34% 5.17%
</TABLE>
The Fund has invested about 15% of its total investment portfolio in the
markets of Thailand (11%) and Philippines (4%) during the year. Below is a table
of the Fund's investment performance statistics against the wider mandate of
investing in ASEAN markets, as measured for the same periods.
<TABLE>
<CAPTION>
3 YEAR SINCE INCEPTION
-------------------- --------------------
TO OCTOBER 31, 1999 1 YEAR CUMM PER ANNUM CUMM PER ANNUM
<S> <C> <C> <C> <C> <C>
Singapore Fund................................ 44.30% (10.96)% (3.79)% 51.00% 4.56%
Kuala Lumpur CI............................... 83.28% (57.72)% (24.95)% (16.45)% (1.98)%
Bangkok SET................................... 13.66% (71.29)% (34.03)% (76.59)% (14.90)%
Philippines CI................................ 16.59% (55.04)% (23.39)% 23.88% 2.41%
Jakarta CI.................................... 119.86% (64.33)% (29.08)% (73.98)% (13.89)%
</TABLE>
4
<PAGE>
THE SINGAPORE FUND, INC.
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ECONOMIC PERFORMANCE
The Singapore economy continued to grow at a robust pace in the third
quarter of 1999. Overall 1999 growth was a healthy 6.7%, unchanged from the
second quarter. On a quarter-on-quarter basis, growth declined slightly by 0.9%,
primarily due to the marked slowdown in the financial services sector, as stock
market activity eased after the blistering pace in the second quarter. All major
sectors except construction posted positive growth in the third quarter. Powered
by the manufacturing sector, the goods-producing industries expanded by 7.5%.
The services-producing industries grew by 5.3% on the back of the continued
regional recovery and improvement in domestic demand.
SINGAPORE GROSS DOMESTIC PRODUCT AT 1990 MARKET PRICES
<TABLE>
<CAPTION>
1998 1999
-----------------------------------------------------------------------------
3Q 4Q ANNUAL 1Q 2Q 3Q
-----------------------------------------------------------------------------
PERCENTAGE CHANGE YEAR-ON-YEAR
<S> <C> <C> <C> <C> <C> <C>
Total (2.1) (1.1) 0.3 0.6 6.7 6.7
Goods-Producing Industries (3.0) (3.3) 0.9 1.9 6.5 7.5
Manufacturing (4.2) (2.6) (0.4) 6.7 14.5 16.7
Construction (0.3) (5.7) 4.0 (9.1) (13.3) (15.6)
Services-Producing Industries (2.0) (0.4) (0.3) (0.6) 5.7 5.3
Wholesale & Retail Trade (6.1) (7.1) (4.1) (2.3) 6.6 9.3
Hotels & Restaurants (5.1) (1.4) (3.3) (1.0) 2.1 4.1
Transport & Communications 4.0 4.5 5.3 5.7 6.4 7.6
Financial Services (11.8) (3.2) (8.8) (8.6) 12.9 4.3
Business Services 3.4 3.6 4.9 0.6 (0.2) 1.2
</TABLE>
Source: Singapore Department of Statistics
Productivity growth remained positive at 6.9% in the third quarter of 1999
while business costs in the manufacturing sector fell by 12% and services cost
fell by 3.3%. The consumer price index showed a slight up-tick at 0.9%
year-on-year in the third quarter, in line with the economic recovery.
Manufacturing investment commitments amounted to S$2.6 billion in the third
quarter, for a cumulative S$6.4 billion for the three quarters of 1999.
Non-oil domestic exports, a key indicator of economic activity, rose 9%
year-on-year in the third quarter of 1999, while a healthy growth of 14% in
non-oil imports indicated sustainability in manufacturing output growth. With
the continued healthy outlook in the external sector, the official GDP forecast
for 1999 has been narrowed to 5% from a range of 4% to 5%. The preliminary GDP
forecast for 2000 is estimated at a range of 4.5% to 6.5%.
All the other ASEAN countries produced credible economic turnarounds in the
second quarter of 1999. The second half of 1999 has seen industrial production,
imports and exports, and domestic consumption all showing continued
improvements. Foreign reserves have been maintained at high levels while
interest rates and exchange rates have remained stable. These are all
ingredients for effective reflation of the economies. In the
5
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
longer term, however, these economies will need to improve productivity so as to
encourage foreign investments. This is key to the economy, as the debt burden of
the recapitalization efforts, with the exception of Singapore, will weigh on
future government fiscal balances.
STOCK MARKET OUTLOOK
The regional stock markets have performed well on the back of robust
economic recoveries. Asia is still in the early phase of an economic recovery.
Interest rates are expected to remain low, as inflation will remain benign,
while excess capacity absorbs the improving economic activity in Asia. Strong
current account surpluses in Asian countries will keep exchange rates stable and
minimize the risk of another currency crisis.
Growth through restructuring by individual companies has been a major factor
in sustaining the long-running strength of the U.S. economy and stock market. As
we move into the new millennium, this would be the model for the coming revival
of Asian companies climbing out of the regional crisis. There are already
visible signs that Asian companies are indeed restructuring non-core assets or
businesses are disposed of, payroll is reduced and, in some cases, management
has been replaced. The pace of restructuring may differ between the countries,
but the direction has been set clearly and companies will have to match the pace
or risk being left behind. Asian companies would also benefit from a drastic
fall in their operating costs as a result of much lower interest costs and
stable currencies that prevailed over the last twelve months. Eventually, as the
regional economies build on their recovery, Asian companies would compound the
benefits of improved operating margins with expanding revenues. Hence, Asian
companies will see earnings growth first from cost efficiency measures and then
from top line revenue growth.
The Singapore stock market has performed exceptionally well on the back of
strong economic and corporate earnings recovery. Despite the strong performance,
on the valuation front, the market is currently trading on a price-to earnings
ratio of 19 times on year 2000 earnings or an earnings yield of 5.3%. This
compares favorably with the expected earnings growth of 20% for year 2000 and a
cash yield of 2.6%. More importantly, management of major companies,
particularly government-linked companies, have adopted a pro-active approach in
focusing on adding shareholders' value and the efficient use of capital. Growth
through mergers and acquisitions, costs rationalization, disposal of non-core
assets, and focusing on core competencies are themes currently being played out
in the market. These corporate actions will likely result in leaner and stronger
companies, with the muscle to compete effectively on a global scale. With Asia
currently in the early phase of an economic recovery, Singapore, being the
regional hub, is likely to benefit further from this recovery.
PORTFOLIO STRATEGY
Going forward, the focus for economies in Asia will be to compete in a
global market where trade barriers are broken down and markets are integrated
much more readily through the use of technology, including the Internet. Asian
companies will need to compete not only on cheaper labor but also on higher
productivity and innovation. Internet and e-commerce are increasingly becoming a
fact of life and companies will do well to anticipate the challenges of
e-commerce. But above all, well-managed Asian companies with outstanding vision
and leadership will do extremely well in the new millennium. Only the truly
outstanding companies will thrive in the face of short-term tests and stresses
in the marketplace and their share prices will, in time, reflect their true
worth. The marketplace is increasingly exhibiting the phenomena of 'winner takes
all' and second-class companies will find it extremely hard to survive.
6
<PAGE>
THE SINGAPORE FUND, INC.
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Singapore is well on its way to becoming a knowledge-based economy in the
21st Century. Initiatives have begun to build an IT infrastructure to link the
whole island electronically and have an IT-based education system. The
recruitment of foreign talent and attraction of technology-intensive foreign
companies have begun in earnest. These initiatives have been made in the effort
to transform Singapore into a global hub of knowledge-driven industries,
targeting the electronics, chemicals, healthcare, logistics, communications,
financial and education sectors. The Fund will continue to focus on the sectors
of financial services, logistics and electronics.
In the lifecycle of nations, Singapore is about to break through to become
an economic power with stability, wealth and status associated with developed
nations like Switzerland. With a nation of diligent, honest and, most of all,
competitive people seeking to be a first-class global nation, this prognosis is
not an exaggeration. Barring unforeseen global circumstances, the Fund will ride
on this prospect and produce outstanding long-term returns to the shareholders.
The Fund's management is bullish on the prospect of Asia markets and, in
particular, the Singapore market.
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 previously reported that it had been advised by each of its service
providers that each 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 now has
received written confirmation from its service providers that each is currently
Year 2000 compliant. Based on the information, management of the Fund does not
anticipate that the transition to the 21st Century will have any material impact
on the 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.
7
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
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>
8
<PAGE>
THE SINGAPORE FUND, INC.
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PORTFOLIO OF INVESTMENTS
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
- -------------------------------------------
COMMON STOCKS--94.89%
- --------------------------------------------------------------------------------
<TABLE>
SHARES VALUE
- --------------------- -----------
<C> <S> <C>
SINGAPORE--79.76%
BANK & FINANCIAL SERVICES--14.75%
1,000,000 Keppel Tatlee Bank
Ltd.++.............. $ 2,015,597
472,500 Oversea-Chinese
Banking Corporation
Ltd. (Foreign)...... 3,543,041
913,600 Overseas Union Bank
Ltd................. 3,945,963
550,000 United Overseas Bank
Ltd. (Foreign)*+.... 4,157,169
-----------
13,661,770
-----------
COMMUNICATIONS-MEDIA--1.45%
50,000 Singapore Press
Holding Ltd.
(Foreign)*.......... 854,829
200,000 Total Access
Communication Public
Co., Ltd.*.......... 484,000
-----------
1,338,829
-----------
ELECTRICAL MACHINERY--0.16%
199,000 Advanced Systems
Automation Ltd...... 145,639
-----------
ELECTRICAL PRODUCTS & COMPUTERS--13.42%
1,000,000 Datacraft Asia
Ltd................. 4,600,000
9,000,000 GES International
Ltd................. 7,828,434
-----------
12,428,434
-----------
INDUSTRIAL--7.80%
5,000,000 Singapore Technical
Engineering
Ltd.++.............. 7,228,555
-----------
INFRASTRUCTURE COMPANIES--3.12%
2,000,000 Neptune Orient Lines
Ltd.*++............. 2,891,422
-----------
</TABLE>
<TABLE>
SHARES VALUE
- --------------------- -----------
<C> <S> <C>
REAL ESTATE--4.47%
250,000 Allgreen Properties
Co., Ltd.*.......... $ 211,458
1,505,000 First Capital
Corporation Ltd..... 1,787,582
3,533,000 Orchard Parade
Holding Ltd.*....... 2,140,570
-----------
4,139,610
-----------
RETAIL--2.24%
4,500,000 Courts (Singapore)
Ltd................. 2,078,584
-----------
RUBBER--0.28%
274,000 OMNI Industrial Co.,
Ltd................. 259,700
-----------
SHIPYARDS--5.12%
560,000 Jurong Shipyard
Ltd.++.............. 2,569,886
800,000 Keppel Corporation
Ltd.++.............. 2,169,166
-----------
4,739,052
-----------
TELECOMMUNICATIONS--13.30%
6,500,000 Singapore
Telecommunications
Ltd.++.............. 12,321,536
-----------
TRANSPORTATION--4.47%
1,200,000 Delgro Corporation
Ltd................. 4,139,172
-----------
TRANSPORTATION - AIR--7.98%
700,000 Singapore Airlines
Ltd.
(Foreign)+,++....... 7,390,522
-----------
TRANSPORTATION - MARINE--1.20%
1,500,000 CWT Distribution
Ltd.++.............. 1,115,777
-----------
Total Singapore Common Stocks................. 73,878,602
-----------
</TABLE>
9
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
COMMON STOCKS (CONCLUDED)
- --------------------------------------------------------------------------------
<TABLE>
SHARES VALUE
- --------------------- -----------
<C> <S> <C>
THAILAND--11.18%
BANK & FINANCIAL SERVICES--2.63%
3,000,000 Bank of Ayudahya
Company Ltd.*+...... $ 1,025,542
1,000,000 Thai Farmers Bank -
Co., Ltd.
(Foreign)*+......... 1,406,089
-----------
2,431,631
-----------
CHEMICALS--0.89%
2,000,000 Thai Petrochemical
Industries Ltd.
(Foreign)*+......... 825,592
-----------
ELECTRICAL PRODUCTS & COMPUTERS--1.81%
78,750 Delta Electronic Ltd.
(Thailand)
(Foreign)+.......... 637,964
625,000 Shin Satellite Public
Co., Ltd.
(Foreign)*+......... 435,372
148,000 Shin Corporation Ltd.
(Foreign)*+......... 607,121
-----------
1,680,457
-----------
FINANCE--1.63%
1,875,000 Siam Panich Leasing
Ltd.
(Foreign)*+**....... 1,511,707
-----------
INFRASTRUCTURE COMPANIES--1.28%
1,000,000 Italain Thai
Develpoment Ltd.
(Foreign)*+......... 1,180,341
-----------
REAL ESTATE--1.46%
1,500,000 Land and House Ltd.
(Foreign)*+......... 1,354,489
-----------
PUBLISHING--0.25%
856,703 Nation Multi Media
Co., Ltd.
(Foreign)*+......... 232,079
-----------
TELECOMMUNICATIONS--1.23%
1,820,000 United Broadcasting
Corporation Ltd.
(Foreign)*+......... 1,138,674
-----------
Total Thailand Common Stocks.................. 10,354,970
-----------
</TABLE>
<TABLE>
SHARES VALUE
- --------------------- -----------
<C> <S> <C>
PHILIPPINES--3.77%
BANK & FINANCIAL SERVICES--1.02%
55,000 Metropolitan Bank and
Trust Ltd........... $ 412,191
300,000 Equitable PCI Bank
Ltd................. 532,101
-----------
944,292
-----------
DIVERSIFIED--0.97%
3,600,000 Ayala Corporation
Ltd.
(Philippines)....... 899,326
-----------
ELECTRICAL PRODUCTS & COMPUTERS--0.52%
1,600,000 Ionics Circuit
Incorporated
Ltd.*............... 479,640
-----------
REAL ESTATE--0.19%
1,000,000 SM Prime Holding
Incorporated Ltd.... 177,367
-----------
ELECTRONICS--0.28%
2,000,000 Music Corporation
Ltd.*............... 259,805
-----------
TELECOMMUNICATIONS--0.79%
35,000 Philippine Long
Distance Telephone
Co., Ltd............ 730,077
-----------
Total Philippines Common Stocks............... 3,490,507
-----------
HONG KONG--0.18%
OTHERS--0.18%
750,000 Tan Chong
International
Ltd................. 162,200
-----------
Total Hong Kong Common Stocks................. 162,200
-----------
Total Common Stocks (Cost--$86,710,420).......
87,886,279
-----------
</TABLE>
10
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS (CONCLUDED)
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
- -------------------------------------------
TIME DEPOSITS--3.73%
- --------------------------------------------------------------------------------
<TABLE>
PRINCIPAL
AMOUNT
(000) VALUE
- --------------------- -----------
<C> <S> <C>
U.S. DOLLAR--2.18%
38 Bank of New York,
2.70% due
11/01/99............ $ 37,582
1,980 Citibank, Singapore,
4.00% due
11/01/99............ 1,979,768
-----------
Total U.S. Dollar Time Deposits............... 2,017,350
-----------
SINGAPORE DOLLAR--1.55%
2,391 Citibank, Singapore,
0.50% due
11/01/99............ 1,434,498
-----------
Total Time Deposits (Cost--$3,446,536)........
3,451,848
-----------
Total Investments--98.62%
(Cost--$90,156,956)......................... 91,338,127
Other assets less liabilities--1.38%.......... 1,280,720
-----------
NET ASSETS (Applicable to 9,200,840 shares of
capital stock outstanding; equivalent to
$10.07 per share)--100%..................... $92,618,847
===========
</TABLE>
<TABLE>
<C> <S>
* Non-income producing securities.
+ Foreign shares of the above issue are
those held by non-Singaporean or
non-Thai residents, as applicable.
Ownership of such shares is generally
limited and subject to a premium to
local shares (those held by residents
of Singapore or Thailand, as
applicable).
** This security has been valued in good
faith in such a manner as prescribed by
the Fund's Board of Directors. The
fair-valued security comprises 1.63% of
the net assets of the Fund.
++ Deemed to be an affiliated issuer.
</TABLE>
See accompanying notes to financial statements.
11
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
TEN LARGEST COMMON STOCK CLASSIFICATIONS HELD
OCTOBER 31, 1999
- -------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
INDUSTRY NET ASSETS
- -------- ----------
<S> <C>
Banks & Financial Services....... 18.40%
Electrical Products &
Computers........................ 15.75
Telecommunications............... 15.32
Transportation--Air.............. 7.98
Industrial....................... 7.80
Real Estate...................... 6.12
Shipyards........................ 5.12
Transportation................... 4.47
Infrastructure Companies......... 4.40
Retail........................... 2.24
</TABLE>
TEN LARGEST COMMON STOCK
POSITIONS HELD
OCTOBER 31, 1999
- -------------------------------------------
<TABLE>
<CAPTION>
PERCENT OF
ISSUE NET ASSETS
- ----- ----------
<S> <C>
Singapore Telecommunications
Ltd.............................. 13.30%
GES International Ltd............ 8.45
Singapore Airlines Ltd.
(Foreign)........................ 7.98
Singapore Technical Engineering
Ltd.............................. 7.80
Datacraft Asia Ltd............... 4.97
United Overseas Bank Ltd.
(Foreign)........................ 4.49
Delgro Corporation Ltd........... 4.47
Overseas Union Bank Ltd.......... 4.26
Oversea-Chinese Banking
Corporation Ltd. (Foreign)..... 3.83
Neptune Orient Lines Ltd......... 3.12
</TABLE>
12
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
ASSETS
Investment in securities, at value:
Unaffiliated securities
(cost--$58,789,544)..................... $53,635,666
Affiliated securities
(cost--$31,367,412)..................... 37,702,461 $ 91,338,127
-----------
Cash denominated in foreign currency
(cost--$1,135,133)........................ 1,110,513
Receivable for securities sold............. 438,330
Interest and dividends receivable.......... 26,001
Prepaid expenses........................... 19,664
------------
Total assets............................. 92,932,635
------------
LIABILITIES
Payable to investment manager.............. 57,684
Payable to investment adviser.............. 29,201
Payable to administrator................... 15,678
Accrued expenses and other liabilities..... 211,225
------------
Total liabilities........................ 313,788
------------
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 realized loss on
investments............................... (15,504,467)
Net unrealized appreciation on investments
and other assets and liabilities
denominated in foreign currency........... 1,156,695
------------
Net assets applicable to shares
outstanding............................. $ 92,618,847
============
NET ASSET VALUE PER SHARE............ $ 10.07
============
</TABLE>
See accompanying notes to financial statements.
13
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
STATEMENT OF OPERATIONS
FOR THE YEAR ENDED OCTOBER 31, 1999
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Dividends:
Unaffiliated securities (net of
withholding taxes of--$88,885).......... $ 572,861
Affiliated securities (net of withholding
taxes of--$199,251)..................... 571,250 $ 1,144,111
-----------
Interest................................... 145,203
-----------
Total investment income.................. 1,289,314
-----------
EXPENSES:
Investment management fee.................. 614,027
Investment advisory fee.................... 309,622
Administration fee......................... 170,286
Custodian fees and expenses................ 142,584
Reports and notices to shareholders........ 85,687
Legal fees and expenses.................... 71,045
Audit and tax services..................... 63,200
Osaka Securities Exchange fees and
expenses.................................. 58,630
Directors' fees and expenses............... 32,723
Insurance expense.......................... 26,619
Transfer agency fee and expenses........... 25,636
Other...................................... 35,060
-----------
Total expenses........................... 1,635,119
-----------
NET INVESTMENT LOSS.......................... (345,805)
-----------
REALIZED AND UNREALIZED GAINS (LOSSES) FROM
INVESTMENT ACTIVITIES AND FOREIGN CURRENCY
TRANSACTIONS:
Net realized gains on investments:
Unaffiliated securities.................. 10,558,507
Affiliated securities.................... 5,815,921 16,374,428
-----------
Net realized foreign currency transaction
losses.................................... (621,513)
Net change in unrealized appreciation
(depreciation) on investments in equity
securities................................ 12,940,708
Net change in unrealized appreciation
(depreciation) on translation of
short-term investments, cash and other
assets and liabilities denominated in
foreign currency.......................... (10,312)
-----------
Net realized and unrealized gains from
investment activities and foreign currency
transactions................................ 28,683,311
-----------
NET INCREASE IN NET ASSETS RESULTING FROM
OPERATIONS.................................. $28,337,506
===========
</TABLE>
See accompanying notes to financial statements.
14
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
STATEMENT OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEARS ENDED
OCTOBER 31,
--------------------------
1999 1998
------------ -----------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS FROM OPERATIONS:
Net investment income (loss).............................. $ (345,805) $ 855,187
Net realized gain (loss) on:
Investments............................................. 16,374,428 (23,079,819)
Foreign currency transactions........................... (621,513) 98,485
Net change in unrealized appreciation (depreciation) on:
Investments in equity securities........................ 12,940,708 13,647,260
Translation of short-term investments and other assets
and liabilities denominated in foreign currency........ (10,312) 237,484
------------ -----------
Net increase (decrease) in net assets resulting from
operations............................................... 28,337,506 (8,241,403)
------------ -----------
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..................... 27,408,844 (8,241,403)
NET ASSETS:
Beginning of year......................................... 65,210,003 73,451,406
------------ -----------
End of year............................................... $ 92,618,847 $65,210,003
============ ===========
</TABLE>
See accompanying notes to financial statements.
15
<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 year ended October 31, 1999, the Fund was subject to
withholding tax, ranging from 10% to 26%, 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.
16
<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 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
17
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
Fund. During the year ended October 31, 1999, no such expenses were paid to the
Manager. During the year ended October 31, 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 ended October 31, 1999, no such expenses were paid to the
Adviser. During the year ended October 31, 1999, brokerage commissions of
$583,389 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.
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 year ended
October 31, 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 year ended October 31, 1999, DSTC earned $19,351 and
DBS Bank earned $97,860 from the Fund for their respective custodial services.
At October 31, 1999, the Fund owed to DSTC $15,678 and $63,212 for
administration and custodian fees, respectively. The latter amount includes fees
and expenses payable to DBS Bank totalling $61,656.
During the year ended October 31, 1999, the Fund paid or accrued $65,570 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
October 31, 1999 was $87,003,992, excluding $3,446,536 of short term
interest-bearing investments. At October 31, 1999, the net unrealized
18
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (CONCLUDED)
- --------------------------------------------------------------------------------
appreciation on investments, excluding short-term securities, of $882,287 was
composed of gross appreciation of $10,194,847 for those investments having an
excess of value over cost, and gross depreciation of $9,312,560 for those
investments having an excess of cost over value. For the year ended October 31,
1999, the total aggregate cost of purchases and net proceeds from sales of
portfolio securities, excluding the short-term securities, were $170,421,098 and
$148,982,958, respectively.
During the year ended October 31, 1999, the Fund utilized $15,837,768 in
carryover capital loss from prior periods to offset net gains realized in the
fiscal year. At October 31, 1999, the Fund had a remaining capital loss
carryover of $15,210,895, which expires in the year 2006.
At October 31, 1999, the Fund made capital account reclassifications due to
permanent book/tax differences. The Fund reclassified $621,513 from accumulated
net realized loss on investments to accumulated net investment loss as result of
permanent book/tax differences, primarily relating to net realized foreign
currency losses. The Fund also reclassified $979,143 from accumulated net
investment loss to paid-in-capital in excess of par value, primarily relating to
a net operating loss for the year ended October 31, 1999.
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 year ended October 31, 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 October 31, 1999, Daiwa Securities
America Inc., an affiliate of the Adviser and DSTC, owned 14,460.
19
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
Selected data for a share of capital stock outstanding during each fiscal year
is presented below:
<TABLE>
<CAPTION>
FOR THE YEARS ENDED OCTOBER 31,
----------------------------------------------------------
1999 1998 1997 1996 1995
---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of year...................... $ 7.09 $ 7.99 $ 12.59 $ 13.42 $ 18.49
-------- ------- ------- ------- -------
Net investment income (loss)............................ (0.04) 0.09 (0.04) (0.07) (0.07)
Net realized and unrealized gains (losses) on
investments and foreign currency transactions.......... 3.13 (0.99) (4.18) 0.21 (1.43)
-------- ------- ------- ------- -------
Net increase (decrease) in net asset value resulting
from operations........................................ 3.09 (0.90) (4.22) 0.14 (1.50)
-------- ------- ------- ------- -------
Less: dividends and distributions to shareholders
Net realized gains from investments 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 year............................ $10.07 $ 7.09 $ 7.99 $ 12.59 $ 13.42
======== ======= ======= ======= =======
Per share market value, end of year..................... $ 8.938 $ 6.375 $ 8.750 $ 12.125 $ 13.500
======== ======= ======= ======= =======
Total investment return:
Based on market price at beginning and end of year,
assuming reinvestment of dividends*.................. 42.44 % (27.14)% (25.51)% (3.54)% (6.89)%
Based on net asset value at beginning and end of year,
assuming reinvestment of dividends*.................. 44.30 % (11.26)% (34.49)% 0.76 % (10.06)%
Ratios and supplemental data:
Net assets, end of year (in millions)................. $ 92.6 $ 65.2 $ 73.5 $115.6 $122.9
Ratios to average net assets of:
Expenses............................................ 1.97 % 2.23 % 1.87 % 1.85 % 2.01 %
Net investment income (loss)........................ (0.42) % 1.38 % (0.29)% (0.48)% (0.49)%
Portfolio turnover.................................... 201.76 % 208.56 % 78.74 % 62.78 % 62.85 %
</TABLE>
<TABLE>
<C> <S>
- -----------------------------------------------------------------
* For the year ended October 31, 1995, the total investment
return includes the benefit of shares resulting from the
exercise of the rights.
</TABLE>
20
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
REPORT OF INDEPENDENT ACCOUNTANTS
- --------------------------------------------------------------------------------
To the Shareholders and
Board of Directors of
The Singapore Fund, Inc.
In our opinion, the accompanying statement of assets and liabilities,
including the portfolio of investments, and the related statements of operations
and of changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of The Singapore Fund, Inc. (the
"Fund") at October 31, 1999, and the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the period
then ended, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at
October 31, 1999 by correspondence with the custodian, provide a reasonable
basis for the opinion expressed above.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York 10036
December 6, 1999
21
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
TAX INFORMATION
- --------------------------------------------------------------------------------
The Fund is required by Subchapter M of the Internal Revenue Code of 1986,
as amended, to advise you within 60 days of the Fund's fiscal year end
(October 31, 1999) as to the federal tax status of any distributions received by
you during such fiscal year. There were no dividend payments or foreign tax
credits with respect to the fiscal year 1999.
As previously reported, on December 3, 1998, the Board of Directors of the
Fund had declared a total distribution of $0.1050 per share which represented a
dividend from net investment income. This dividend was taxable with respect to
fiscal year 1998.
SHAREHOLDERS ARE STRONGLY ADVISED TO CONSULT THEIR OWN TAX ADVISERS WITH
RESPECT TO THE TAX CONSEQUENCES OF THEIR INVESTMENT IN THE FUND.
22
<PAGE>
THE SINGAPORE FUND, INC.
- ----------------------------------------------------------------------
RESULTS OF ANNUAL MEETING OF STOCKHOLDERS (UNAUDITED)
- --------------------------------------------------------------------------------
On September 16, 1999, 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 two Class II Directors 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 2002, and the election of one Class III
Director to serve for a term expiring on the date on which the Annual Meeting of
Stockholders is held in the year 2000.
<TABLE>
<CAPTION>
NUMBER OF SHARES/VOTES
----------------------
PROXY AUTHORITY
CLASS II VOTED FOR WITHHELD
-------- --------- ---------------
<S> <C> <C>
Alfred C. Morley 7,005,459 196,034
Ronnie Teo Heng Hock 6,997,944 203,549
<CAPTION>
CLASS III
---------
<S> <C> <C>
Masayasu Ohi 7,000,644 200,849
</TABLE>
In addition to the three Directors elected or re-elected at the Meeting,
David G. Harmer 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, 1999.
<TABLE>
<CAPTION>
NUMBER OF SHARES/VOTES
----------------------
PROXY AUTHORITY
VOTED FOR VOTED AGAINST WITHHELD
--------- ------------- ---------------
<S> <C> <C>
7,067,418 112,162 21,913
</TABLE>
(3) The approval of the new Investment Advisory Agreement between the Fund and
Daiwa SB Investments (Singapore) Ltd., including the payment of fees and
expenses from April 1, 1999 to the date the new Investment Advisory Agreement is
approved.
<TABLE>
<CAPTION>
NUMBER OF SHARES/VOTES
----------------------
PROXY AUTHORITY
VOTED FOR VOTED AGAINST WITHHELD
--------- ------------- ---------------
<S> <C> <C>
6,915,245 231,741 54,507
</TABLE>
23
<PAGE>
- ----------------------------------------
BOARD OF DIRECTORS
Masayasu Ohi, CHAIRMAN
David G. Harmer
Ronnie Teo Heng Hock
Alfred C. Morley
Oren G. Shaffer
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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
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ADDRESS OF THE FUND
c/o Daiwa Securities Trust Company
One Evertrust Plaza, 9th Floor
Jersey City, New Jersey 07302
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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
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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
SINGAPORE
FUND, INC.
[LOGO]
Annual Report
October 31, 1999
