SINGAPORE AIRLINES ANNUAL REPORT 1986 - 1987

CHAIRMAN'S STATEMENT

Financial performance for the year was satisfactory. Group profit after tax rose to $451.2 Million, an increase of 58.3 % from the preceding year. The return on shareholders' funds was 18.3 %, which comfortably exceeds our target of 15 %.

We see no reason why we should maintain that profit level in the current year, or even surpass it.

( ... ) This year, 1987, we celebrate our 40th year in aviation with appropriate ceremonies. It would seem churlish not to reward shareholders with an enhanced dividend. Accordingly, an additional 2½ % is offered this year, to bring the rate up to 12½ %. 2½ cents on each share may not seem much, compared to the 10 cents at a time by which the share price bounces up and down on the irrepressible Singapore stock market. Nonetheless, it is a gesture to those faithful shareholders who intend to retain their holdings long - term.

It remains for me to thanks all our hardworking staff for their characteristic devotion to their duties. They invariably deliver the goods as promised.

J Y PILLAY