REVISED DECEMBER 15, 2014
REVISED DECEMBER 15, 2014
JULIE HENNESSY AND EVAN MEAGHERKEL682
Hohner Musikinstrumente GmbH & Co. KG:
Break-Even Analysis
Helmut Schmidt recently had been promoted to product manager for Hohner Musikinstrumente GmbH & Co. KG, the worlds foremost manufacturer of harmonicas, accordions, melodicas, and ukuleles. He was sitting at his desk in Trossingen, Germany, reviewing his first assignment, which had just come from the companys senior executive team. Schmidt, a marketing major who had barely survived Finance I, had just two days to calculate the break-even point for the companys flagship product, the Marine Band harmonica.
A Brief History of the Harmonica
Most historians track the harmonicas roots to ancient China, where either Empress Nyu-kwa or Emperor Huang Tridepending on the sourceinvented the sheng in about 3000 B.C. This predecessor to the harmonica used a similar free-reed design, in which reeds were affixed to one end of a small, handheld base (the wind chamber); by blowing into the mouthpiece, the player produced a tone when the reeds vibrated. Over the next few thousand years, such free-reed instruments became popular throughout Asia, ultimately making their way to Europe, where organ makers such as John Buschmann and his son Christian Friedrich Buschmann began producing smaller and smaller versions in the early nineteenth century.
In the 1850s, Joseph Richter, an American immigrant from the Czechoslovakian region of Bohemia, invented the modern diatonic harmonica by adding a second set of reeds on the other side of a cedar comb, which were activated by breathing in rather than by blowing out (see Exhibit 1). Today, this so-called Richter tuning remains the most common tuning for harmonicas all over the world. The design for the Richter-tuned harmonica, which combines layers of reeds, a comb, and top and bottom cover plates, prompted harmonica players to nickname it the tin sandwich.
The Richter tuning originally was designed to play Eastern European folk music, but the diatonic harmonica changed forever when its popularity grew among American country musicians in the 1920s and 30s. Harmonica players such as Jaybird Coleman pioneered the technique of playing the harmonica in a key a musical fifth above the key the instrument was intended to be playedfor example, playing in the key of G on a harmonica tuned to the key of
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2012 by the Kellogg School of Management at Northwestern University. This case was developed with support from the December
2009 graduates of the Executive MBA Program (EMP-76). This case was prepared by Evan Meagher 09 under the supervision of Professor Julie Hennessy. Cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. To order copies or request permission to reproduce materials, call 800-545-7685 (or 617-783-7600 outside the United States or Canada) or email custserv@hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any meanselectronic, mechanical, photocopying, recording, or otherwisewithout the permission of Kellogg Case Publishing.
C. This intentional corruption of the Richter tuning allowed players to produce a variety of expressive bent notes now known as the blues scale.
The instruments low price made it extremely popular, especially among African American players, who called it the Mississippi Saxophone. As they migrated in large numbers from the American South to northern urban areas such as Chicago in the 1940s and 50s, the harmonica found its way into blues and jazz music. This new style of playing combined with the cheap tweed amplifiers and crystal element microphones popular at the time led to the now-familiar compressed, squawking tone associated with blues harmonica, or blues harp.
Hohner Musikinstrumente GmbH & Co. KG
In 1857 the 24-year-old son of a German family of weavers purchased one of the early handcrafted harmonicas and decided to go into business manufacturing his own brand. During his first year of business, Matthias Hohner, his wife, and one employee manufactured 650 harmonicas in their kitchen. Demand spiked after Hohner sent some to cousins who had emigrated to the United States, and soon after, Hohner Musikinstrumente GmbH & Co. KG built the largest harmonica fabrication facility in the world. The Hohner Marine Band harmonica, named after the band led by John Philip Sousa, was introduced in 1896 and went on to become the most popular harmonica in the world.
After he died in 1893, Matthias Hohners sons began expanding the product line to include accordions, later adding recorders and melodicas (essentially, recorder-type woodwind instruments with a keyboard layout like a piano just below the mouthpiece). In the 1980s, Hohner expanded further, offering a line of guitars and partnering to distribute Sabian cymbals and Sonor drums.
This product-line expansion was matched by a steady global expansion, with subsidiaries in the United States, United Kingdom, China, Japan, and Brazil. Hohner began to struggle, however, after the rise of rock music in the 1960s depressed global harmonica demand just as Asian competitors started offering lower-cost harmonicas. The company implemented drastic layoffs in 1986 amidst two decades of losses that forced the Hohner family to sell a controlling interest to Kunz-Holding GmbH & Co., a wood-products manufacturer, while retaining just 8% ownership. Kunz later sold Hohner to a Virgin Islandsbased subsidiary of K.H.S. Musical Instrument Co. Ltd. of Taiwan. New management from K.H.S. helped the company enact an aggressive restructuring and turnaround plan at the turn of the twenty-first century, resulting in Hohners first profitable year in more than two decades.
The Harmonica Market
Since 2000, Hohners share of the global harmonica market had been fairly steady at approximately 75%, despite the growth of upstart competitors such as Lee Oskar, the brand launched by the harmonica player for the band War, which had about 10% market share. Other competitors tended to focus on specific regions, such as Suzuki in Asia or Hering in Brazil. Hohner did not sell directly to end users or even to retailers but instead sold exclusively through distributors, which then supplied both online and brick-and-mortar musical instrument retailers.
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2KELLOGG SCHOOL OF MANAGEMENT
While we do not sell directly to retailers, we have started to think about what we can do to increase their sales. Weve recently started partnerships with large retailers like Guitar Center, said one Hohner representative. Typically, the way you would buy a harmonica was to ask for it [at a store] because it was either in a drawer behind the desk or in a case under glass. What weve foundwhat the research suggestsis that you can drive sales by having the harmonicas out in a case with blister cards explaining what kind of harmonica it is, why its better or worse than the other ones, and so on. Thats the silent salesman.
Hohner had identified two basic buyer profiles, which were distinguished by the players seriousness about the instrument. The vast majority (about 95%) of buyers were casual players who made an impulse purchase of a less expensive harmonica (under 10). Such players typically owned only one harmonica.
On the other hand, more serious players tended to buy more expensive (at least 20) harmonicas in higher volumes. Many serious players owned as many as forty or fifty harmonicas in different keys, with alternate tunings and by different brands. Such customers also tended to perform their own instrument repairs and retuning, which extended the lifetime of the harmonica. Though they represented a small minority of the customer base, one Hohner representative suggested these buyers accounted for as much as 30% of harmonica sales in Germany.
Hohners biggest challenge had always been converting the first type of buyer to the second type. Theres a low barrier to entry on the first harmonica; you can play it if you can breathe, and its not very expensive, observed a Hohner representative. The hard part is getting [customers] to buy a second one, [which wont happen unless] they realize they need different keys to play along with Bob Dylan songs on the radio, or because they realize they need a better one if they want to bend notes and play blues.
The representative continued, Popular music definitely helps; there was a slight increase in sales every time Bob Dylan started playing harmonica, or [in] the blues revival of the early 1980s with the Fabulous Thunderbirds and George Thorogood. My dream right now is that Taylor
Swift comes out with a song playing harmonica. Or if I can get Nick Jonas to play harmonica on just one hit song, you can imagine that it would be very good for us.
Costs and Demand
The Hohner Marine Band harmonica retailed for 30 in Germany (see Exhibit 2). German retailers generally insisted on a 33% margin, and distributors took a 12% margin, based on the selling price of each. Hohner and its direct competitors sold a total of 800,000 units annually, with Hohners share at 75%.
Hohner faced variable manufacturing costs of 2.70 per Marine Band, with fixed manufacturing costs of 900,000 and an annual advertising budget of 500,000. The Marine Band managers salary and expenses totaled 35,000. Marine Band salespeople working for Hohner were paid solely by a 10% commission on Hohners sales. Shipping costs, breakage, and insurance were 0.60 per unit.
KELLOGG SCHOOL OF MANAGEMENT3
Assignment
Assume you are the manufacturer and answer the following questions using the information in the case. Calculate answers to at least three decimal places except for unit calculations, which should be rounded up to the next full unit.
What is the unit contribution for Hohner?
What is Hohners break-even point?
What market share does Hohner need to break even?
What is Hohners profit?
Industry demand is expected to increase to 900,000 units next year. Schmidt is considering raising his advertising budget to 1 million.
If the advertising budget is raised, how many units must Hohner sell to break even?
How many units must Hohner sell to achieve the same profit (in terms of dollar amount) next year as it earned this year?
What must Hohners market share be next year for its profit (in terms of dollar amount) to be the same as this year?
After some reflection, Schmidt decided not to increase Hohners advertising budget. With industry demand expected to increase to 900,000 units next year, Schmidt thought he would give retailers an incentive to promote the Marine Band by raising their margins from 33% to 40%. The margin increase would be accomplished by lowering the manufacturers price of the product to retailers. Distributor margins would remain at 12%.
If retailer margins are raised to 40% next year, how many Marine Bands must Hohner sell to break even?
How many units must Hohner sell to achieve the same profit (in terms of dollar amount) next year as it earned this year?
What must Hohners market share be for its profit (in terms of dollar amount) to remain at this years level?
4KELLOGG SCHOOL OF MANAGEMENT
Exhibit 1: Schematic of the Diatonic Harmonica
1314354127989
Source: KJ Music, Genuine Hohner Harmonica Replacement Parts, http://www.kurtjacob.com.au/HarmParts.html (accessed August 16, 2012).
1230630242771Exhibit 2: The Hohner Marine Band
Source: Hohner Inc., Marine Band Brand, http://www.hohnerusa.com/index.php?5 (accessed August 16, 2012).
KELLOGG SCHOOL OF MANAGEMENT5
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W17474
BUY OR RENT: LIVING IN SINGAPORE
89535014541500
Ruth S. K. Tan, Zsuzsa R. Huszr, and Weina Zhang wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality.
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Copyright 2017, National University of Singapore and Richard Ivey School of Business FoundationVersion: 2020-02-24
The Wong familycomprising Mr. Wong, aged 40, Mrs. Wong, aged 38, and their three young children relocated to Singapore in 2010 when Mr. Wong received a job offer from a leading investment banking giant. For the next six years, they rented a three-bedroom condominium for US$4,000 in Singapore dollars1 per month, which included parking and condominium fees but not the maintenance cost, which was borne by the owner.
While renting made life easy, the Wong family began weighing the pros and cons of purchasing a larger unit, in the same building, that became available in June 2016. In the past three years, the real estate market had softened somewhat and the cost of the unit had declined from $1.6 million to $1.5 million. The idea of home ownership as a form of pension investment appealed to the couple. The monthly rents could be used for mortgage payments instead.
HOME OWNERSHIP AS A FORM OF INVESTMENT
Some years back, the Wongs had made the decision to settle down in Singapore. They were ecstatic to receive Singaporean citizenship in January 2016. They understood that Singapore had a pay-as-you-go pension system that placed the responsibility of retirement planning on the individual instead of the state. All citizens were required to put a percentage of their monthly income into their own account in the Central Provident Fund (CPF),2 which was managed by the Singapore government.
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1 All currency amounts are in SG$ unless otherwise specified; SG$1 = US$0.75 on March 31, 2016.
2 The Central Provident Fund (CPF) was a comprehensive social security system that enables working Singapore citizens and permanent residents to set aside funds for retirement. It also addressed health care, home ownership, family protection, and asset enhancement. Both employees and employers made monthly CPF contributions. These contributions went into three accounts: Ordinary Account , Special Account, and Medisave Account, where the contributions from the Ordinary Account could be withdrawn before retirement for housing, insurance, investment, and education purposes for the contributor or for his or her children; CPF Overview, Central Provident Fund Board, accessed August 29, 2016, www.cpf.gov.sg/Members/AboutUs/about-us-info/cpf-overview.
On reaching the retirement age of 55, all Singaporeans could choose to receive a lump sum from the CPF after setting aside a minimum sum. The minimum sum would be kept untouched until age 65, at which time monthly payouts would be made to the retiree until he or she passed away (see Exhibit 1).
The savings in the CPF alone might not be sufficient for a citizen to maintain the same standard of living after retirement. For stay-at-home spouses, the problem was very real. Since Mrs. Wong was a housewife, Mr. Wong would need to have additional savings to provide for himself as well as his wife.
The Singapore government strongly encouraged home ownership as a form of savings. After retirement, if the need arose, the retiree could unlock savings by moving to a smaller unit or consider a reverse mortgage. First-timer buyers (only citizens with monthly income below $12,000 qualified as first-time buyers) of public housing could obtain subsidies from the government. First-time buyers of private property, such as condominiums, would not qualify for subsidies.
Singapore citizens who purchased properties could pay part of the down payment using their CPF funds. Specifically, for a $1.5 million property, the Wongs had to put down a minimum of $75,000 in cash and withdraw $225,000 from the Ordinary Account of their CPF accounts. They could borrow up to 80 per cent loan-to-value or $1,200,000, assuming they qualified for the loan.
SINGAPORE PROPERTY MARKET
Between 2009 and 2013, property prices rallied 70 per cent. Exhibit 2 shows that the residential price index reached a level of 170 in the third quarter (Q3) of 2013 while it was at a level of 100 in Q1/2009. During the same period, the average nominal wages increased by only 30 per cent.3
Since 2013, the Singapore property market had softened on the back of sluggish economic growth, various newly adopted property cooling measures4 (see Exhibit 3), and a large supply of newly built private residential units. According to Augustine Tan, president of the Real Estate Developers Association of Singapore, there were 57,597 new private residential units and 12,077 executive condominiums available as of May 2016. These numbers were significant in view of the prevailing weak demand.5 Exhibit 4 shows that the supply of new units in the pipeline had dropped from Q1 to Q2 in 2016.
Property home prices had dropped for 11 straight quarters at the end of June 2016.6 Prices were 9.4 per cent below the peak of Q3 in 2013.
At the central bank annual briefing on July 25, 2016, Ravi Menon, the managing director of the central bankthe Monetary Authority of Singapore (MAS)said that MAS was quite happy with the way the property sector was evolving.
3 The Business Times, Property Cooling Measures: Why Cautionary Stance Still Needed, July 26, 2016, accessed August 4, 2016, https://global-factiva-com.libproxy1.nus.edu.sg/ha/default.aspx.
4 Singapore Property Market Cooling Measures, Singapore Real Estate Exchange, accessed August 4, 2016, www.srx.com.sg/cooling-measures.
5 Geraldine Goh, Weak Sentiment Still Weighing Down Singapore Property Market, Says Redas Chief Augustine Tan,
Straits Times, July 12, 2016, accessed August 4, 2016, https://global-factiva-com.libproxy1.nus.edu.sg/hp/printsavews.aspx.6 Lynette Khoo, Property Cooling Measures: Why Cautionary Stance Still Needed, Business Times, July 26, 2016, accessed August 4, 2016, www.businesstimes.com.sg/companies-markets/property-cooling-measures-why-cautionary-stance-still-needed.
Its a gradual softening of prices, unwinding some of the sharp run-up that you saw earlier. The household debt situation has improved and the debt servicing ratio for new loans is very good. Banks non-performing loans for property are very low. So we dont have concerns for the property market as such. I think things are playing out in a good manner.7
Menon said it was too early to lift the cooling measures, as we want to make sure the gains we have made painstakingly over the last one to two years are entrenched, that we are on a sustainable path for the property market, and that the household balance sheets become stronger still to withstand (interest rate and income) shocks.8
FINANCIAL CONSIDERATIONS
While the Wongs really liked their rental unit and its surroundings, their children preferred to have their own rooms. The larger unit, with four bedrooms, would be just right for them.
If the Wongs made the purchase, they would need to pay a maintenance fee of $250 monthly to the condominium management committee, property tax of $100 per month to government authorities, and the cost of repairs and general maintenance within the unit of $100 per month.
The initial cash payments included a down payment of 20 per cent of the purchase price, 3 per cent stamp duty, 1 per cent agent fee, $4,000 in legal transfer fees, and $4,000 in other closing fees.
The Wongs planned to take a 30-year tenure loan with monthly instalment payments. The bank officer informed them that the current mortgage rate was a 3 per cent annual percentage rate. While the market conditions for borrowing had been favourable in recent years with the low interest rate environment, the Wongs worried that the interest rate might increase in the near term, making borrowing more expensive.
In Singapore, loans from commercial mortgages were generally in the form of hybrid adjustable-rate mortgages; the interest rate would be fixed for the first three years and adjusted thereafter based on the local one-month or three-month Singapore Interbank Offered Rates. Since 2015, the one-month and three-month Singapore Interbank Offered Rates had been increasing. In June 2016, they stood at 0.76 and 1.00 per cent respectively, more than double the average levels from 2009 to 2014 at 0.35 and 0.47 per cent respectively (see Exhibit 5).
POSSIBLE SCENARIOS
The Wongs had been advised that if they were buying to stay, it did not matter when they entered the market. This sounded rather counterintuitive to them. How could it not matter if they had to put out more money? It would definitely affect the size of their gains/losses if they were to sell the property in, say, 10 years time. They decided to conduct an analysis of the net gain or loss on the purchase based on several scenarios:
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7 Rennie Whang, Too Early to Lift Property Cooling Measures: MAS, Straights Times, July 26, 2016, accessed August 4, 2016, https://global-factiva-com.libproxy1.nus.edu.sg/ha/default.aspx.
8 Ibid.
In scenario 1, the selling price of the condominium unit remained unchanged at $1.5 million at the end of 10 years.
In scenario 2, the selling price was up 10 per cent.
In scenario 3, both the rent and the selling price increased by 0.15 per cent per month for the next 10 years.
In scenario 4, the annual mortgage rate would be increased by 0.5 per cent from the first year onward and would be constant for the next 10 years.
For their analysis, they assumed that when they eventually sold the condominium unit they would need to pay the principal still outstanding on the loan and a 1.00 per cent agent fee on the selling price.
OTHER CONSIDERATIONS
The property purchase would be a huge investment for the Wongs. Mrs. Wong felt uneasy. Mr Wong, however, was worried that the property market might rebound soon and they might miss this golden opportunity.
Apart from their quantitative computations, they had to consider certain qualitative factors. For example, property transactions played a key role in the life of many families in Singapore as primary school districts were closely tied to residential addresses. Thus, properties sited close to popular schools would invariably command a premium.
EXHIBIT 1: TYPES OF CPF ACCOUNTS AND RETIREMENT SUM
Ordinary Account (to be used for
home purchase and insurance) Special Account and Medisave Account
(for investment and health care) Retirement
Account (in SG$)
Interest rate at June 2016 2.50% 4.00% 4.00%
At age 55 Transfer to Retirement Account Automatically opened
Retirement sum Basic retirement sum for age 55 in 2016 80,500
Full retirement sum for age 55 in 2016 161,000
Enhanced retirement sum for age 55 in 2016 241,500
Basic retirement sum for age 55 in 2020 90,500
Full retirement sum for age 55 in 2020 181,000
Enhanced retirement sum for age 55 in 2020 271,500
Source:CentralProvidentBoardFund,accessedApril11,2017, www.cpf.gov.sg/Members/Schemes/schemes/retirement/retirement-sum-scheme.
EXHIBIT 2: HOUSING PRICE INDEX IN SINGAPORE
1062355160655Panel A: Singapore Residential Price Index (1Q/2009 = 100)
180
170
160
150
140
130
120
Core Central Region (CCR)
Outside of Central Region (OCR)
00Panel A: Singapore Residential Price Index (1Q/2009 = 100)
180
170
160
150
140
130
120
Core Central Region (CCR)
Outside of Central Region (OCR)
10814052854960Panel B: Singapore Residential Rental Index (1Q/2009 = 100)
125
120
115
110
105
100
Core Central Region (CCR)
Outside of Central Region (OCR)
00Panel B: Singapore Residential Rental Index (1Q/2009 = 100)
125
120
115
110
105
100
Core Central Region (CCR)
Outside of Central Region (OCR)
Note: Q = quarter
Source: Price Index: Urban Redevelopment Authority, accessed December 15, 2016, www.ura.gov.sg/uol/-
/media/User%20Defined/URA%20Online/media-room/2016/jul/pr16-49a2.pdf?la=en; Rent Index: Urban Redevelopment Authority, accessed December 15, 2016, www.ura.gov.sg/uol/-/media/User%20Defined/URA%20Online/media- room/2016/jul/pr16-49a4.pdf?la=en.
EXHIBIT 3: PROPERTY COOLING MEASURES
Additional Buyer Stamp Duty (ABSD)
Citizenship ABSD Rate on Primary Home ABSD Rate on Secondary Home ABSD Rate on Tertiary and Subsequent Homes
Singapore citizens N/A 0% revised to 7% 3% revised to 10%
Permanent residents 0% revised to 5% 3% revised to 10% 3% revised to 10%
Foreigners and non-individuals 10% revised to 15% 10% revised to 15% 10% revised to 15%
Additional Seller Stamp Duty (SSD)
Residential Property Sold in Year 1 Sold in Year 2 Sold in Year 3 Sold in Year 4
SSD rate since February 2010 Same as basic buyer stamp duty N/A N/A N/A
SSD rate since August 2010 Same as basic buyer stamp duty 2/3 of basic buyer stamp duty 1/3 of basic buyer stamp duty N/A
SSD rate since January 2011 16% 12% 8% 4%
Restrictions on Loan-to-Value (LTV) Ratios
February 2010 For all loans, the LTV values are revised down from 90% to 80%, to reduce speculative buys in the market.
August 2010 For the first loan, the LTV remains at 80% and for the second loan is revised down to 70%.
January 2011 For the second loan, the LTV is further reduced to 60%. An additional new restriction is introduced for non-individuals, requiring
maximum 50% LTV.
October 2012 For the first loan, the LTV is revised down to 80% and for second
loan is revised down to 60%. For non-individuals, it is revised down to 40%.
January 2013 For the first loan, the LTV is revised down to 80%, for the second loan down to 50%, and for third loan down to 40%. For non- individuals, it is revised down to 20%.
Note: N/A = not available
Source: Singapore Property Market Cooling Measures, Singapore Real Estate Exchange, accessed December 15, 2016, www.srx.com.sg/cooling-measures.
EXHIBIT 4: AVAILABLE UNITS, VACANT UNITS, AND FUTURE SUPPLY OF PRIVATE RESIDENTIAL UNITS
Q1/2016 Q2/2016 Change
Completed units Available (# of units) 330,303 338,728 2.60%
Occupied (# of units) 305,384 308,418 1.00%
Vacant (# of units) 24,919 30,310 21.60%
Vacancy rate (per cent) 7.50 8.90 Supply in the pipeline Under construction (# of units) 46,815 41,102 12.2%
Planned development (# of units) 6,697 6,148 8.2%
Note: Q = quarter
Source:UrbanRedevelopmentAuthority,accessedDecember15,2016,www.ura.gov.sg/uol/-/media/User%20Defined/URA%20Online/media-room/2016/jul/pr16-49e1.pdf?la=en.
995680464820Singapore Interest Rates from January 2006 to June 2016
4
3.5
3
2.5
2
1.5
1
0.5
0
1-month SIBOR
3-month SIBOR
1-year T-bill
00Singapore Interest Rates from January 2006 to June 2016
4
3.5
3
2.5
2
1.5
1
0.5
0
1-month SIBOR
3-month SIBOR
1-year T-bill
EXHIBIT 5: HISTORIAL TREND OF SHORT-TERM INTEREST RATES AND ONE-YEAR GOVERNMENT BOND YIELD
1295400-920750Jan06
00Jan06
1505585-921385Jun06
Nov06
00Jun06
Nov06
1925320-920750Apr07
Sep07
00Apr07
Sep07
2345055-920750Feb08
Jul08 Dec08 May09 Oct09 Mar10 Aug10 Jan11
Jun11
00Feb08
Jul08 Dec08 May09 Oct09 Mar10 Aug10 Jan11
Jun11
4235450-921385Nov11
Apr12
00Nov11
Apr12
4655185-920750Sep12
Feb13 Jul13 Dec13 May14 Oct14 Mar15 Aug15 Jan16
Jun1600Sep12
Feb13 Jul13 Dec13 May14 Oct14 Mar15 Aug15 Jan16
Jun16Note: SIBOR = Singapore Interbank Offered Rates; T-bill = Treasury bill
Source: One-year T-bill rate: Singapore government statistics, accessed December 15, 2016, www.sgs.gov.sg/Statistics.aspx; one-month and three-month SIBOR rates (until December 2013): Domestic Interest Rates, Monetary Authority of Singapore, accessed December 15, 2016, www.mas.gov.sg/Statistics/Other-Statistics.aspx; the recent SIBOR rates from January 2014 onward is from MoneySmart, accessed February 9, 2017, www.moneysmart.sg/home-loan/sibor-trend.
