FOR the first time, the combined sales of Singapore's top 1,000 companies soared past the $1 trillion mark last year.
That is a mind-boggling figure. Put another way it is $1,000 billion or $1 million million.
But the bottom line is much easier to grasp: The corporate sector had a very good year.
Sales surged 25.7 per cent to $1.16 trillion, while combined net profits were up 18.6 per cent to $72.3 billion, according to credit ratings firm DP Information Group.
In the 2005 ranking, sales for the top 1,000 companies rose by 19.1 per cent, and profits shot up 30.5 per cent.
Record high oil prices played a key role last year.
Snagging top honours in terms of sales were oil and energy-related firms such as Shell Eastern Trading, which took top spot, followed by ExxonMobil Asia Pacific, BP Singapore, Vitol Asia, and SK Energy Asia.
However, the best performing industry was hotels and food establishments. While the number of firms in the industry has remained relatively stable, their combined profits have nearly doubled.
For instance, Raffles Holdings reported a whopping 1,084 per cent jump in net profits to $678.7 million, a figure boosted by the sale of its hotel business to United States fund Colony Capital.
DP Info managing director Chen Yew Nah said: 'Cracking the $1 trillion mark is an amazing achievement for Singapore's corporate sector.'
Ms Chen said that when the Singapore rankings started about 20 years ago, the combined profits of the top 10 firms just broke $1 billion dollars.
'That is nothing compared to today, where our Singapore Airlines (SIA) annual profit exceeds $1.3 billion, while the combined profit of the 10 most profitable companies is $23.1 billion.'
The ranking of Singapore's top 1,000 companies (S1000) and 500 small and medium-sized enterprises (SME500) is co-produced by Ernst & Young Singapore.
It is based on the annualised audited results of more than 7,000 companies incorporated in Singapore, with financial years ending between June 1, 2005 and May 31 last year.
One new entrant to this year's SME500 list was a maker of gilded Italian furniture, Da Vinci Collection, which debuted in the 10th spot.
The firm, whose net profit grew by more than 300 per cent to $16.9 million, has set its sights on the S1000 list for next year, said managing director, Mr Raymond Phua.
'We try to focus on branding, and this aspect is important since we're in the lifestyle business,' said Mr Phua, 36. He told The Straits Times that he plans to list the firm in two years.
Of the S1000 firms, SIA topped the honour roll for turnover in the communications, transport and storage industry, while SingTel took the top spot in terms of net profit.
In the finance category, Toshiba Capital (Asia) had the highest turnover while United Overseas Bank (UOB) was the most profitable.
'We have been around for over 70 years and will continue to stay for the long haul. That's the kind of certainty customers need as reliable long-term bankers,' said UOB's deputy chairman and president, Mr Wee Ee Cheong.
In the services arena, Motorola Trading Centre and Singapore Press Holdings came out on top for sales and profits respectively.
The corporate sector can better the $1 trillion mark again next year if both the Singapore and global economies keep surprising with their strength, said CIMB-GK research head Song Seng Wun.
'Sectors that will lead the way this year will be the construction and hotel sectors,' he predicted.
gabrielc@sph.com.sg
DA VINCI Collection, led by managing director Raymond Phua, debuted on the SME500 in 10th place. It is setting its sights on the S1000 list for next year.
United Overseas Bank is most profitable in the finance category on the S1000 list. Its deputy chairman and president, Mr Wee Ee Cheong, attributes the lender's success to its reliability and says the bank will stay for the 'long haul'.
S1000 AWARDS: MOST PROFITABLE FIRMS BY INDUSTRY
Communications/transport/storage
SingTel: $4.16b
Finance
UOB: $1.73b
Hotels/food establishments
Goodwood Park Hotel: $208.6m
Manufacturing
Glaxo Wellcome Manufacturing: $6.59b
Retail
DFS Venture Singapore: $148.71m
Services
Singapore Press Holdings: $488.39m
Wholesale
Exxonmobil Asia Pacific: $1.83b
Source: DP Information Group
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