Among the 84 PLCs ranked, 54 of them are repeat winners from the previous year, while the rest are new faces to the Top 100. Noticeably, 12 of these new PLCs were previously outside the Top 100, but have clinched a place in the Top 100 this time round.

The 2007 SI 100 ranking exercise saw the 84 PLCs recording S$132 billion in overseas revenue for the financial year between 1 January 2006 to 31 December 2006. This is a 60.3% increase over the combined turnover of the 2006 ranked PLCs and is the highest ever recorded since the ranking exercise was initiated three years back. In addition, 59 of these PLCs registered positive growth in their overseas turnover.

This year’s SI 100 Top 10 positions saw the dominance of PLCs, with the exception of the 10th position being taken by Pacific International Lines (Private) Limited. Neptune Orient Lines Limited continued to take the lead with a record high of S$11.366 billion in overseas revenue. This is follow closely by Jardine Cycle and Carriage Limited.

The hike in Neptune Orient Lines Limited’s overseas revenue is attributable to the Asia market, which was the largest revenue contributor to the Group’s logistic business in 2006. During the financial year 2006, Neptune Orient Lines Limited set up a 120,000 TEU capacity inland container depot and a 7,000 sq m container freight station at Dadri near New Delhi. The Group also scored a first in obtaining a license to operate in Taiwan’s Kaohsiung Free Trade Zone, thus becoming the first international logistic provider to operate in that Zone.

Jardine Cycle and Carriage Limited also made an impressive leap from the 15th position to the 2nd position in this year’s SI 100 ranking. This is largely due to the contribution from the Indonesia market which soared to S$9.612 billion accounting for 97.2% of its total overseas revenue, following the consolidation of Astra into the Jardine Cycle and Carriage Group in 2005.

The contributions from the different markets have also demonstrated a positive trend with South East Asia retaining its position as the largest source of revenue generating S$30.196 billion in turnover for this year’s SI 100 ranked PLCs, a 92.2% increase over the previous year. This is followed closely by China, the Americas and Europe markets.

Table 1.1: Total Overseas Turnover by Markets

China’s contribution to the total overseas revenue of the PLCs registered the highest growth, an impressive 264.0% increase over 2006. The surge in contribution from the China market is attributable to the significant revenue that new entrants like Wilmar International Limited (4th position) derive from this market. The Group emerged top amongst companies that derive their overseas revenue from the China market, generating 47% of its overseas revenues from the China market. 

This year’s PLCs in the Top 100 chalked up a total of S$19.212 billion in overseas revenue from the Europe market, an increase of 128.2% as compared to S$8.419 billion in the previous year. Companies have seized on the opportunities to increase their presence in Europe. Neptune Orient Lines Limited, for example, has expanded its operations to the fast growing markets such as Spain and Turkey.

Though Manufacturing and Wholesale sectors continue to be strongly represented in the Top 100, this year saw the exit of 6 PLCs from the Manufacturing and Wholesale sector. Despite the 16.1% drop in the number of manufacturing companies, companies engaging in the manufacturing of food and beverages are doing well, accounting for 9 of the 26 ranked companies from the manufacturing sector. Among these 9 companies, 8 reported positive growth in their overseas revenue.

QAF Limited, in particular, saw its overseas revenue from the China market more than doubled in 2006. The surge in sales was mainly due to the development of its own line of juices and fruit-based beverages for the growing consumer market in China.

Companies from the Services sector outshined the rest with a 66.7% increase in the number of companies ranked within the sector. CSE Global Limited climbed 9 rungs to the 75th position with a 72.3% surge in its overseas revenue. The Group is a leading systems integrator with an international presence spanning the Americas, Asia Pacific, Europe, Africa and the Middle East. Following the acquisition of Techno Trade SA, a Belgium-based company that develops and sells telemetry and telecontrol solutions for various industries, CSE Global Limited now operates a network of 32 offices in 20 countries, generating more than 95% of its revenue outside its home market.

SI 100 representation from the Holdings sector grew to 15, with 4 new players joining this year’s ranking. The Straits Trading Company Limited (ranked 42nd) and SP Corporation Limited (ranked 84th) made it to the Top 100 in this year’s ranking exercise. Both were ranked 178th and 144th respectively in the previous exercise.

The strengthening of the regional economy saw the improvement in The Straits Trading Company Limited performance for the financial year in review. The Group’s acquisition of an additional 30% stake in Malaysia Smelting Corporation (MSC) Berhad has also resulted in additional income for the Group.

Riding on the booming oil prices, revenues reported by oil rig companies like Keppel Corporation Limited are soaring high. The Group recorded a 320.5% rise in its overseas turnover during the year, with US drillers forming one-third of the number of rig orders clinched. In addition, Keppel Corporation also won four jack-up orders from the fast-growing India market. 

The SI 100 ranking is indeed a strong indicator that PLCs venturing beyond Singapore are fast gaining a foothold on the international stage. However, as competition becomes more intense, strategies adopted by these PLCs play an important role. While conventional markets may be familiar, companies should look ahead and explore new markets. As Sun Tzu said: Whoever is first in the field and awaits the coming of the enemy, will be fresh for the fight; whoever is second in the field and has to hasten to battle will arrive exhausted.

Nonetheless, we believe our leading companies will continue to venture and grow overseas, both in familiar markets as well as in new territories.

Article Contributed By DP Information Group
www.dpgroup.sg