Pub Date: Jul 23, 2005 Pub: ST Page: S32 Author: GABRIELC Headline: More Singapore firms snap up awards for growth, credit standing By: Gabriel Chen Page Heading: Money Caption: PIPING HOT SUCCESS : SembCorp Gas has topped the FG50 awards, after boosting turnover up at a three-year compound annual growth rate of 773 per cent. Subject: Singapore Companies
THE latest annual ranking of Singapore's Fastest Growing 50 (FG50) companies features an increased number of home-grown firms: 34, up from last year's 32. As recently as 2002, the figure was just 24. The list, compiled by business and credit information firm DP Information Group (DP Info), also includes a growing number of firms that get the thumbs up for credit management. The count is now at 25, up from 22 last year. 'This means they have achieved dramatic sales growth without taking undue risks or being overly dependent on borrowing,' DP Info said. This year's list was dominated by companies from the strategically important wholesale sector, which provided 26 of the 50 winners. Last year, there were just 19 companies from this sector. Older companies also proved that age is no barrier to growth, with 23 of the FG50 companies having been in operation for 10 years of more. Indeed, 10 companies have been in operation for more than 20 years; yet, they continue to expand their revenue by more than 10 per cent each year. Another significant development highlighted by this year's list is that the credit standing of FG50 companies is on the rise, with half achieving an 'investment grade' credit rating. Three companies - SembCorp Gas, Raduga and Giti Tyre - snared the prestigious DP1 rating, the highest one awarded. SembCorp Gas also topped the list as the fastest-growing company, with its turnover achieving a dizzying compound annual growth rate of 773 per cent over the past three years. Last month, to help raise the credit standing of companies in Singapore, especially small and medium-sized ones, the Singapore Chinese Chamber of Commerce and Industry (SCCCI) and DP Info launched a credit rating system based on Moody's KMV model. It is on a smaller scale but much cheaper to use. The DP Credit Rating system gives a company a score of one to eight, with one signifying the best and four signifying 'investment grade'. Ms Chen Yew Nah, the managing director of DP Info, said successful management teams know how to manage the risks involved in growing a business quickly. 'It is heartening to see these outstanding companies are focusing more on their credit standard and credit quality, while still increasing their turnover and maintaining profitability,' Ms Chen said. She added that the strong credit rating of local firms would help boost Singapore's role 'as a trading partner and a place to do business in'.