Only 6% of Singaporean companies have funding needs

About one-third of companies in Morgan Stanley Research's list have a funding position to meet by either debt, equity or better-than-forecasted cash generation.

According to Morgan Stanley, in order to gauge the potential for new supply from both existing and potential first-time issuers, Morgan Stanley has screened Moran Stanley Research's coverage universe for corporates with a flat to negative funding position, i.e., a need to plug a funding position in the coming twelve months.

Singapore (6%) and Hong Kong (5%) are down on the list of companies having funding positions. Korean corporates (14%) have the highest funding needs.

China with 31% is on the top of the list, followed by Australia with 24%.

Although Taiwan is fourth on the list with 10%, Taiwan corporates typically favour using bank loans or local currency markets so USD issuance may be limited.

In terms of sectors, the funding needs are more evenly distributed, although we'd note that Real Estate tops the list driven by the highest capex-to-revenue ratio of all sectors (close to 50%), indicative of an aggressive expansionary phase. Transportations and Utilities also run elevated capex plans (capex/revenue around 40% for F2011) and are high on the list.