The Singapore Fund, Inc. Announces Fourth Quarter Earnings

PHILADELPHIA, Dec.30, 2011 /PRNewswire/ --The Singapore Fund, Inc. (NYSE: SGF) (the "Fund"), a closed-end management investment company seeking long-term capital appreciation through investment primarily in Singapore equity securities, today announced its performance results for the three months ended October 31, 2011, the final quarter of its 2011 fiscal year.

For the quarter ended October 31, 2011, the Fund earned net investment income of approximately U.S. $1,071,000 (equivalent to income of U.S. $0.11 per share) resulting in net investment income for the year ended October 31, 2011 of approximately U.S. $1,559,000 (equivalent to income of U.S. $0.16 per share). In addition, net realized and unrealized losses from investment activities and foreign currency transactions during that same three-month period were approximately U.S. $24,979,000 (equivalent to a loss of U.S. $2.51 per share). As a result, the net realized and unrealized losses were approximately U.S. $17,486,000 (equivalent to a loss of U.S. $1.75 per share) for the year ended October 31, 2011.

In comparison, for the quarter ended October 31, 2010, the Fund earned net investment income of approximately U.S. $432,000 (equivalent to income of U.S. $0.04 per share) resulting in net investment income for the year ended October 31, 2010 of approximately U.S. $1,467,000 (equivalent to income of U.S. $0.15 per share). In addition, net realized and unrealized gains from investment activities and foreign currency transactions during that same three-month period were approximately U.S. $15,081,000 (equivalent to a gain of U.S. $1.59 per share). As a result, the net realized and unrealized gains increased to approximately U.S. $33,454,000 (equivalent to a gain of U.S. $3.52 per share) for the year ended October 31, 2010.

On October 31, 2011, total net assets of the Fund were approximately U.S. $137.5 million. The net asset value ("NAV") per share on that date was U.S. $13.79, based on 9,968,414 shares outstanding. Assuming the reinvestment of the U.S. $1.85 per share dividend paid on December 30, 2010, the Fund generated an investment return of -10.22% for the twelve months ended October 31, 2011, when measured against the NAV per share of U.S. $17.26 on October 31, 2010, based on 9,493,516 shares outstanding at that time. For the year ended October 31, 2011, the Fund's benchmark, the MSCI Singapore Free Index ("SIMSCI"), decreased by 5.23% in U.S. dollar terms.

In comparison, total net assets on October 31, 2010 were approximately U.S. $163.9 million, equivalent to a NAV of U.S. $17.26 per share, based on 9,493,516 shares outstanding.

As of October 31, 2011, the Fund had 99.49% of its net assets invested in Singapore equity securities. The balance of the Fund's net assets were in the form of time deposits and other cash equivalents denominated in Singapore Dollars ("SGD") (0.01%) and U.S. Dollars ("USD") (0.72%) and liabilities in excess of other assets (0.22%).

As of December 29, 2011, the Fund's NAV per share was U.S. $11.97, based on net assets of approximately U.S. $119.7 million. On the same date, the Fund's shares on the New York Stock Exchange closed at U.S. $11.09, representing a trading discount to NAV per share of 7.35%.

Singapore Market Review

Since taking over the Fund from DBS Asset Management (United States) Pte. Ltd. in August 2011, we have been realigning the portfolio to focus on companies with good cashflow and healthy balance sheets that are also well-positioned to benefit from the consumption growth in Asia. This meant divesting holdings that did not fit our investment philosophy, such as Golden Agri Resources, Noble Group, Olam International, Wilmar International, Genting International and Capitaland, to name a few.

It also entailed initiating positions in four key areas:

1. companies with attractive valuations such as Wheelock Properties and Venture Corporation;
2. defensive companies with healthy dividend yields such as ST Engineering and Singapore Press Holdings;
3. companies that complement the fund's core positions such as DBS Group and Hong Leong Finance; and
4. companies with exposure to consumption growth in the region such as Fraser and Neave, FJ Benjamin and Breadtalk.

Negative stock selection outweighed positive asset allocation. As bottom-up stock pickers, our sector allocations are driven by where we can find quality companies with attractive valuations. This approach may lead to significant deviations from the index.

For stock selection, the real estate sector accounted for the bulk of underperformance. While core holding City Developments rebounded in October, so did Capitaland, to which we do not have any exposure. Conversely, Wheelock Properties, Hong Kong Land and CDL Hospitality Trusts lagged the broader market. However, we remain comfortable holding these companies, as their share prices have been trading at a discount to their respective net asset values. The non-benchmark exposure to information technology also pared relative return. Venture Corporation's growth in the computer peripherals, retail solutions and test and measurement segments were overshadowed by a decline in revenue in the networking and printing divisions. In addition, our lack of exposure to Genting International and Wilmar International hurt the fund as both stocks rebounded during the month. That was, however, short-lived as both companies reported disappointing earnings results subsequently.

Outlook and Strategy

Looking ahead, the Singapore market is likely to continue taking its lead from the West, which is still facing major economic and political challenges that have yet to be resolved. However, we are convinced that Singapore's long-term outlook is undiminished, given the still-intact robust economic fundamentals. During the recent market upheaval, valuations have fallen to levels we have not seen for quite some time and it is at these levels that bargains can be found.

The ten largest industry classifications of the Fund's equity investments held at October 31, 2011 were:

	Industry	Percentage of Net Assets
1.	Banks ...................................................................................................	22.27
2.	Property Development ................................................................................	14.71
3.	Shipyards ................................................................................................	10.08
4.	Food, Beverage, Tobacco ..........................................................................	6.76
5.	Conglomerate ...........................................................................................	6.07
6.	Transportation - Air ..................................................................................	5.27
7.	Telecommunications .................................................................................	4.49
8.	Diversified Financial ..................................................................................	4.78
9.	Transport Services ............................................................................................	4.72
10.	Industrial ................................................................................................	3.63

Compositions are subject to change and provided for informational purposes only.

The ten largest individual common stock holdings at the same date were:

	Issue	Percentage of Net Assets
1.	United Overseas Bank Ltd. ........................................................................	9.75
2.	Oversea-Chinese Banking Corp. Ltd. .............................................................	9.06
3.	Keppel Corp. Ltd. ....................................................................................	6.69
4.	Fraser & Neave Ltd. .................................................................................	6.46
5.	Jardine Matheson Holdings Ltd. ...................................................................	6.07
6.	City Developments Ltd. ..............................................................................	5.65
7.	Singapore Telecommunications Ltd. .............................................................	4.79
8.	Hongkong Land Holdings Ltd. .....................................................................	3.88
9.	Singapore Technologies Engineering Ltd. .......................................................	3.63
10.	Singapore Airlines Ltd...............................................................................	3.55

Holdings are subject to change and are provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities shown.

QUARTERLY RESULTS OF OPERATIONS

For the Quarter Ended	Net Investment Income (Loss)		Net Realized and Unrealized Gains (Losses) on Investment and Foreign Currency Transactions		Net Increase (Decrease) in Net Assets Resulting From Operations
	Total (000's)	Per Share	Total (000's)	Per Share	Total (000's)	Per Share
January 31, 2011	$(231)	$(0.02)	$ 1,402	$0.14	$ 1,171	$ 0.12
April 30, 2011	443	0.04	6,068	0.62	6,511	0.66
July 31, 2011	276	0.03	23	0.00	300	0.03
October 31, 2011	1,071	0.11	(24,979)	(2.51)	(23,908)	(2.40)
For the Year Ended
October 31, 2011	$1,559	$ 0.16	$(17,486)	$(1.75)	$(15,926)	$(1.59)
January 31, 2010	$ 7	$ 0.00	$ 3,068	$0.32	$ 3,075	$0.32
April 30, 2010	562	0.06	14,298	1.51	14,860	1.57
July 31, 2010	466	0.05	1,007	0.10	1,473	0.15
October 31, 2010	432	0.04	15,081	1.59	15,513	1.63
For the Year Ended
October 31, 2010	$1,467	$ 0.15	$33,454	$3.52	$34,921	$3.67

PER SHARE SELECTED QUARTERLY FINANCIAL DATA

For the Quarter Ended		Net Asset Value			Market Price*					Share Volume*
		High	Low		High	Low				(000)
January 31, 2011 April 30, 2011 July 31, 2011 October 31, 2011 January 31, 2010 April 30, 2010 July 31, 2010 October 31, 2010		$18.41 16.13 16.23 16.32 $14.95 15.68 15.63 17.61	$15.08 14.27 14.94 11.76 $13.73 13.54 13.46 15.24		$17.88 15.20 15.15 15.21 $13.66 14.01 14.27 16.82		$13.80 13.38 13.75 10.85 $12.15 11.75 11.82 13.44		1,003 568 444 556 526 402 499 801

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*As reported on the New York Stock Exchange.

Benchmark Index

The press release issued by the Fund on March 31, 2011 incorrectly stated that, effective May 1, 2011, the Fund would change its primary benchmark index from the Straits Times Index to the "MSCI Singapore Total Capital Index." However, the Fund has determined that the appropriate primary benchmark index is the SIMSCI. The Fund's previous monthly reports for June and July 2011 on its website have been restated to compare the Fund's performance to the SIMSCI.

Important Information

This report was prepared based on information sources believed to be accurate and reliable. However, the figures are unaudited and neither the Fund, Daiwa Securities Trust Company (the Administrator), Aberdeen Asset Management Asia Limited (the Investment Manager), nor any other person guarantees their accuracy. Investors should seek their own professional advice and should consider the investment objectives, risks, charges and expenses before acting on this information.

All performance shown is historical, assumes reinvestment of all dividends and capital gain distributions and does not guarantee future results. Investment return and principal value fluctuate with changing market conditions so when sold, shares may be worth more or less than that of the original cost. Total return based on market price reflects changes in market value. Total return based on net asset value reflects changes in the fund's net asset value during each period. Current performance may be lower or higher than the performance data quoted. This commentary is for informational purposes only, and is not intended as an offer or recommendation with respect to the purchase or sale of any security, option, future or other derivatives in such securities. The Fund's adviser, one of its affiliated advisers, or its employees, may have a position in the securities listed in this report. Past performance does not guarantee future results.

Closed-end funds have a one-time initial public offering and then are subsequently traded on the secondary market through one of the stock exchanges. The investment return and principal value will fluctuate so that an investor's shares may be worth more or less than the original cost. Shares of closed-end funds may trade above (a premium) or below (a discount) the net asset value (NAV) of the fund's portfolio. There is no assurance that the Fund will achieve its investment objective. Past performance does not guarantee future results.

The information presented, was prepared and issued by the Fund based on publicly available information, internally developed data and other sources believed to be reliable. All reasonable care has been taken to ensure accuracy.

International investing entails special risk considerations, including currency fluctuations, lower liquidity, economic and political risks, and differences in accounting methods. There are also risks associated with investing in Singapore and ASEAN Group countries

If you wish to receive this information electronically, please contact [e-mail]

www.aberdeensgf.com

SOURCE The Singapore Fund, Inc.