MILLIONAIRES BURNT BY PAPER LOSSES
By Elysa Chen
20th October, 2008
IF you are sitting on tens of thousands in paper losses in the stock market, take comfort.
You are not alone.
Indeed, many of Singapore's tycoons have suffered the same fate and are seeing their vast fortunes shrink by the day.
Besides making it to the Forbes rich list, these super rich Singaporeans have made another list - the list of the biggest losers on the stock market.
Forbes Magazine estimated that 10 tycoons have chalked up $5 billion in 'losses' since the start of the year.
The biggest losers seem to be Mr Kwek Leng Beng and family, who are about $2 billion poorer, no thanks to declining share value.
The Kwek family has a 35.3 per cent stake in property firm City Developments through Hong Leong Holdings, Hong Leong Investment Holdings and Hong Realty.
According to Forbes Magazine, other property tycoons such as Mr Chua Thian Poh of the Ho Bee Group saw his net worth fall by 40 per cent.
The other big loser in terms of percentage is Osim International's Mr Ron Sim, who saw his share value plunge 81.6 per cent from $96.1 million early this year to $17.6 million, the Business Times reported.
Osim's share price is now 11 cents compared to 60 cents earlier this year.
This was a huge fall for the self-made millionaire who ranked No 15 on Singapore's 40Richest with a net worth of $255 million.
Lower sales
Forbes Magazine reported that lower sales saw Mr Sim's net income falling from $26 million to $3million last year. He failed to make the cut for the 40 Richest People in Singapore this year.
On average, the tycoons lost around $500million.
Based on the paper value of their holdings in some of the biggest blue chip companies in Singapore, an article in The Business Times last week estimated that these tycoons have seen their fortunes shrink by half, due to the paper losses they have suffered in the stock market.
The figures were based on the paper value of their holdings and does not include possible loss of value in other assets.
Senior economist and head of research at CIMB Song Seng Wun said that while these millionaires do not need to 'sell their Ferraris', their situation 'should not come as a surprise'.
Mr Song also expects property developers, especially those who have been developing high-end property (Simon Cheong of SC Global) to be hardest hit.
'So far, the bloodbath has been mainly in the stock market. But it will not be contained there, and the man in the street will start to feel the effects of it soon,' he said.
By Elysa Chen
20th October, 2008
IF you are sitting on tens of thousands in paper losses in the stock market, take comfort.
You are not alone.
Indeed, many of Singapore's tycoons have suffered the same fate and are seeing their vast fortunes shrink by the day.
Besides making it to the Forbes rich list, these super rich Singaporeans have made another list - the list of the biggest losers on the stock market.
Forbes Magazine estimated that 10 tycoons have chalked up $5 billion in 'losses' since the start of the year.
The biggest losers seem to be Mr Kwek Leng Beng and family, who are about $2 billion poorer, no thanks to declining share value.
The Kwek family has a 35.3 per cent stake in property firm City Developments through Hong Leong Holdings, Hong Leong Investment Holdings and Hong Realty.
According to Forbes Magazine, other property tycoons such as Mr Chua Thian Poh of the Ho Bee Group saw his net worth fall by 40 per cent.
The other big loser in terms of percentage is Osim International's Mr Ron Sim, who saw his share value plunge 81.6 per cent from $96.1 million early this year to $17.6 million, the Business Times reported.
Osim's share price is now 11 cents compared to 60 cents earlier this year.
This was a huge fall for the self-made millionaire who ranked No 15 on Singapore's 40Richest with a net worth of $255 million.
Lower sales
Forbes Magazine reported that lower sales saw Mr Sim's net income falling from $26 million to $3million last year. He failed to make the cut for the 40 Richest People in Singapore this year.
On average, the tycoons lost around $500million.
Based on the paper value of their holdings in some of the biggest blue chip companies in Singapore, an article in The Business Times last week estimated that these tycoons have seen their fortunes shrink by half, due to the paper losses they have suffered in the stock market.
The figures were based on the paper value of their holdings and does not include possible loss of value in other assets.
Senior economist and head of research at CIMB Song Seng Wun said that while these millionaires do not need to 'sell their Ferraris', their situation 'should not come as a surprise'.
Mr Song also expects property developers, especially those who have been developing high-end property (Simon Cheong of SC Global) to be hardest hit.
'So far, the bloodbath has been mainly in the stock market. But it will not be contained there, and the man in the street will start to feel the effects of it soon,' he said.
