MIRA INFORM REPORT

Report Date :

28^th June 2006

IDENTIFICATION DETAILS

Name :	ALSTER INTERNATIONAL TRADING COMPANY PTE LTD

Registered Office :	^{167 And 169c Telok Ayer Street} ^{068618, Singapore}

Country :	^Singapore

Financials (as on) :	31/12/2005

Date of Incorporation :	^21/04/1989

Com. Reg. No.:	^198901576N

Legal Form :	^{Pte Ltd}

Line of Business :	Wholesalers and agents for textile products

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Subject Company

ALSTER INTERNATIONAL TRADING COMPANY PTE LTD

Line Of Business

WHOLESALERS AND AGENTS FOR TEXTILE PRODUCTS

Parent Company

MILES FASHION GMBH

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2005

COMPANY

Sales : S$14,107,369

Networth : S$5,490,808

Paid-Up Capital : S$5,000,000

Net result : S$2,413,038

Net Margin(%) : 17.10

Return on Equity(%) : 43.95

Leverage Ratio : 0.89

Rating

Credit Requested : -

Credit Rating : Singapore $ 5000001 to Singapore $10000000

Credit Opinion : -

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

^{Subject Company :
ALSTER
INTERNATIONAL TRADING COMPANY PTE LTD}

^{Former Name :
-}

^{Business Address:
167
AND 169C TELOK AYER STREET}

^{Town:
SINGAPORE}

^{Postcode:
068618}

^{County:
-}

^{Country:
Singapore}

^{Telephone:
6323
7355}

^{Fax:
6323
5133}

^{ROC Number:
198901576N}

^{Reg. Town:
-}

SUMMARY

^{Legal Form:
Pte
Ltd}

^{Date Inc.:
21/04/1989}

^{Previous Legal Form: -}

^{Summary year :
31/12/2005}

^{All amounts in
this report are in : SGD}

^{Sales:
14,107,369}

^{Networth :
5,490,808}

^{Capital:
5,000,000}

^{Paid-Up Capital:
5,000,000}

^{Employees: 222}

^{Net result :
2,413,038}

^{Share value:
-}

^{AUDITOR: K
C LAU & CO}

REFERENCES

^{Credinet Number:
702000096904}

¹⁹⁷⁵⁵

^{Report Date:
28/06/2006}

^{Update Date: 28/06/2006}

^{Credit Requested:
-}

^{Credit
Opinion: -}

^{Litigation:
No}

^{Company status :
TRADING}

^{Started :
21/04/1989}

PRINCIPAL(S)

^{HUBERT ROGER RENE S2686002D
Managing Director}

DIRECTOR(S)

^{JOACHIM HAFEMANN Director}

^{Appointed on : 31/12/2001}

^{Street :
KAMPMOORSTRABE
79A D-2545 QUIC}

^Town:

^Postcode:

^{Country:
Germany}

^{HUBERT ROGER RENE S2686002D
Director}

^{Appointed on : 01/01/1994}

^{Street :
43
JALAN SINAR BINTANG}

^{CHANGI HEIGHTS}

^{Town:
SINGAPORE}

^{Postcode:
509260}

^{Country:
Singapore}

^{HUBERT ROGER RENE S2686002D
Managing Director}

^{Appointed on : 01/01/1994}

^{Street :
43
JALAN SINAR BINTANG}

^{CHANGI HEIGHTS}

^{Town:
SINGAPORE}

^{Postcode:
509260}

^{Country:
Singapore}

^{CHEN FUI MING S7579621H Company Secretary}

^{Appointed on : 01/04/2006}

^{Street :
289
CHOA CHU KANG AVENUE 3}

^#12-258

^{Town:
SINGAPORE}

^{Postcode:
680289}

^{Country:
Singapore}

FORMER DIRECTOR(S)

^{CHUNG FUK WAN S2223223A}

ACTIVITY(IES)

^{CLOTHING - WHSLE And MFRS}^Code:4650

^{TEXTILE MERCHANTS}^Code:21450

^{BASED ON ACRA'S RECORD AS AT 22/06/2006}

^{1. WHOLESALE OF WEARING APPAREL FOR ADULTS}

^{2. WHOLESALE OF TEXTILES}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{DEUTSCHE BANK AKTIENGESELLSCHAFT}

SHAREHOLDERS(S)

^{MILES FASHION GMBH}^{5,000,000 Company}

^{Street :
HARCKESHEYDE
91-93 D-22844}

^NORDERSTEDT

^{Town:
GERMANY}

^Postcode:

^{Country:
Germany}

HOLDING COMPANY

^{MILES FASHION GMBH}^{% : 100}

SUBSIDIARY(IES)

^{COLOURFUL EXPRESS TRADING PTE. LTD.}

^Singapore

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality:
AVERAGE}

^{Liquidity :
SUFFICIANT}

^{Payments :
REGULAR}

^{Trend :
LEVEL}

^{Financial Situation: AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

^{All amounts in this report are in : SGD}

^{Audit Qualification UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 14/06/2006}

^{Balance Sheet Date: 31/12/2005
31/12/2004 31/12/2003}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY
COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 585,931
826,562 833,011}

^{Investments 4,399,641 4,394,137
4,394,533}

^{Total Fixed Assets}^{: 4,985,572 5,220,699
5,227,544}

^{Receivables: 2,743,537
1,448,391 2,673,215}

^{Cash,Banks, Securitis: 1,343,929
2,021,951 1,480,659}

^{Other current assets: 1,304,503
1,303,290 1,746,896}

^{Total Current Assets: 5,391,969
4,773,632 5,900,770}

^{TOTAL ASSETS: 10,377,541 9,994,331
11,128,314}

^{--- LIABILITIES}

^{Equity capital: 5,000,000
5,000,000 5,000,000}

^{Profit & lost
Account: 490,808 657,770
360,457}

^{TOTAL EQUITY: 5,490,808 5,657,770
5,360,457}

^{Long Term Loans: 1,913,285
2,249,183 2,593,786}

^{L/T deffered taxes: 31,611 35,254 35,777}

^{Total L/T Liabilities: 1,944,896
2,284,437 2,629,563}

^{Trade Creditors: 495,029}

^{Prepay. & Def. charges: 923,869 816,787}

^{Due to Bank: 335,898 337,659
305,608}

^{Provisions: 254,081 505,317
616,806}

^{Other Short term Liab.: 932,960
392,361 2,215,880}

^{Total short term Liab.: 2,941,837 2,052,124 3,138,294}

^{TOTAL LIABILITIES: 4,886,733
4,336,561 5,767,857}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 14,107,369 11,743,642
10,960,585}

^{Result of ordinary operations3,133,946 4,466,895 2,978,860}

^{NET RESULT BEFORE TAX: 3,008,703
4,302,465 2,797,076}

^{Tax : 595,665 504,794
618,356}

^{Net income/loss year: 2,413,038 3,797,671 2,178,720}

^{Interest Paid: 125,243 164,430
147,358}

^{Depreciation: 525,289 520,728
413,911}

^{Dividends: 2,580,000 3,500,358 -}

^{Directors Emoluments: 316,338
193,582 261,738}

^{Wages and Salaries: 6,172,275
5,359,583 -}

^{Financial Income: 42,344
156,579 248}

RATIOS

^{31/12/2005 31/12/2004
31/12/2003}

^{Turnover per employee: 63546.71
52899.29 49372.00}

^{Net result / Turnover(%): 0.17
0.32 0.20}

^{Fin. Charges / Turnover(%):0.01 0.01 0.01}

^{Net Margin(%): 17.10
32.34 19.88}

^{Return on Equity(%): 43.95
67.12 40.64}

^{Return on Assets(%): 23.25
38.00 19.58}

^{Dividends Coverage: 0.94
1.08 1.08}

^{Net Working capital: 2450132.00
2721508.00 2762476.00}

^{Cash Ratio: 0.46 0.99 0.47}

^{Quick Ratio: 1.39 1.69 1.32}

^{Current ratio: 1.83
2.33 1.88}

^{Receivables Turnover: 70.01
44.40 87.80}

^{Leverage Ratio: 0.89 0.77 1.08}

Net Margin : (100*Net income loss year)/Net sales

Return on Equity : (100*Net income loss year)/Total equity

Return on Assets : (100*Net income loss year)/Total fixed assets

Dividends Coverage : Net income loss year/Dividends

Net Working capital : Total current assets - Total short term liabilities

Cash Ratio : Cash Bank securities/Total short term liabilities

Quick Ratio : (Cash Bank securities+Receivables)/Total Short term liabilities

Current ratio : Total current assets/Total short term liabilities

Receivables Turnover : (Receivable*360)/Net sales

Leverage Ratio : Total liabilities/(Total equity-Intangible assets)

FINANCIAL COMMENTS

THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:

NET WORTH:

THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH DECLINED BY 2.95% FROM S$5,657,770 IN FY 2004 TO S$5,490,808 IN FY 2005. THIS WAS DUE TO LOWER ACCUMULATED PROFIT OF S$490,808 (2004: S $657,770); A DECLINE OF 25.38% FROM THE PRIOR FINANCIAL YEAR.

LEVERAGE:

IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY OTHER CREDITORS WHICH MADE UP 31.71% (2004: 19.12%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$932,960 (2004: S$392,361). THE BREAKDOWN IS AS FOLLOWS:

-HOLDING COMPANY - 2005: S$932,960 (2004: S$392,361)

AMOUNT DUE TO BANKS OF S$335,898 (2004: S$337,659) CONSISTED OF:

-TERM LOAN - 2005: S$335,898 (2004: S$337,659)

IN ALL, LEVERAGE RATIO ROSE FROM 0.77 TIMES TO 0.89 TIMES AS A RESULT OF A GREATER RISE IN TOTAL LIABILITIES THAN TOTAL EQUITY.

LIQUIDITY:

IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL TO 1.83 TIMES, DOWN FROM 2.33 TIMES AND QUICK RATIO DECLINED TO 1.39 TIMES FROM 1.69 TIMES IN FY 2004.

SIMILARLY, NET WORKING CAPITAL DECLINED BY 9.97% FROM S$2,721,508 IN FY 2004 TO S$2,450,132.

PROFITABILITY:

REVENUE POSTED AN INCREASE OF 20.13% FROM S$11,743,642 IN FY 2004 TO S $14,107,369 BUT NET PROFIT DROPPED BY 36.46% TO S$2,413,038 (2004: S $3,797,671). HENCE, NET MARGIN FELL TO 17.10% (2004: 32.34%).

DEBT SERVICING:

DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN ADDITION, ITS INTEREST COVERAGE WAS HEALTHY CONSIDERING THAT ITS INTEREST EXPENSES WERE LOW AT S$125,243 IN FY 2005 (2004: S$164,430).

NOTES TO THE FINANCIAL STATEMENTS:

TERM LOAN

THE MORTGAGE LOAN OF S$3,500,000 IS SECURED ON THE PROPERTY OWNED BY THE SUBSIDIARY AT 167 & 169 TELOK AYER STREET AND IS REPAYABLE IN 120 INSTALMENTS COMMENCING DECEMBER 2001. THE INTEREST IS CHARGEABLE AT 2.75% TO 5.00% PER ANNUM WITH MONTHLY RATES PREVAILING FROM TIME TO TIME.

BACKGROUND/OPERATION

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 21/04/1989 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "ALSTER INTERNATIONAL TRADING COMPANY PTE LTD".

AS AT 22/06/2006, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 5,000,000 SHARES OF A VALUE OF S$5,000,000.

PRINCIPAL ACTIVITIES:

SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:

1. WHOLESALE OF WEARING APPAREL FOR ADULTS

2. WHOLESALE OF TEXTILES

DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF WHOLESALERS AND AGENTS FOR TEXTILE PRODUCTS.

FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:

SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES:

* SINGAPOREAN-GERMAN CHAMBER OF INDUSTRY & COMMERCE

FROM THE TELE-INTERVIEW CONDUCTED ON 28/06/2006, THE FOLLOWING WAS

GATHERED:

SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:

* TRADING OF TEXTILES

IMPORT COUNTRIES:

* INDIA

* CHINA

* CAMBODIA

EXPORT COUNTRIES:

* CHINA

* CAMBODIA

THE SUBJECT SELLS LOCALLY.

NO OTHER TRADE INFORMATION IS AVAILABLE ON 28/06/2006.

THE COMPANY IS A SUBSIDIARY OF MILES FASHION GMBH, A COMPANY INCORPORATED IN GERMANY WHICH IN TURN IS OWNED BY SIEMSSEN & CO. GMBH, THE ULTIMATE HOLDING COMPANY, IS INCORPORATED IN GERMANY.

NUMBER OF EMPLOYEES (31 DECEMBER):

* COMPANY - 2005: 222 (2004: 205; 2003 : 165 (2002 : 132)

* GROUP - 2005: - (2004: -)

REGISTERED AND BUSINESS ADDRESS :

167 AND 169C

TELOK AYER STREET

SINGAPORE 068618

- DATE OF CHANGE OF ADDRESS : 15/08/1994

WEBSITE:

EMAIL:

^{alster_sg@alster.com.sg}

MANAGEMENT

THE DIRECTORS AT THE TIME OF THE REPORT ARE:

1) JOACHIM HAFEMANN, A GERMAN

- BASED IN GERMANY.

2) HUBERT ROGER RENE, A SWISS

- BASED IN SINGAPORE.

Singapore’s Country Rating 2006

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION APPEARS TO BE VERY STABLE.

ECONOMIC GROWTH IS BECOMING MORE MODERATE AS INVESTMENT HAS BEEN FLAT DUE TO INCREASING OIL PRICES AND LESS BUOYANT DEMAND FOR ELECTRONIC PRODUCTS.

ECONOMIC PERFORMANCE HAS REMAINED STRONG, UNDERPINNED BY PHARMACEUTICALS AND SERVICES. EXPORTS HAS BENEFITED FROM THE STEADINESS OF DEMAND FROM ITS MAIN TRADING PARTNERS, MALAYSIA, THE UNITED STATES, CHINA AND HONG KONG. OTHER THAN ITS BALANCED PUBLIC SECTOR ACCOUNTS, LIMITED FOREIGN DEBT AND COMFORTABLE FOREIGN CURRENCY RESERVES HAVE CONTRIBUTED TO SINGAPORE’S STRONG FINANCIAL CONDITION.

AS THE ELECTRONICS SECTOR FACES COMPETITION FROM THE ASIAN ECONOMIES, SINGAPORE HAS BEEN PURSUING DIVERSIFICATION STRATEGY THAT HAS BEEN CONSOLIDATING ITS POSITION. PHARMACEUTICALS ALREADY REPRESENT 10% OF EXPORTS IN COMPARATIVE TO ITS INSIGNIFICANT CONTRIBUTION IN YEAR 1995. ELECTRONICS SECTOR SECTOR’S SHARE HAS DECLINED FROM 80% TO 60% DURING THE SAME PERIOD. THERE IS HIGH RELIANCE ON DEVELOPMENT OF PETROCHEMICAL PRODUCTS, HIGH VALUE-ADDED SERVICES AND BIOTECHNOLOGIES.

ASSETS

ONE OF THE MOST OPEN ECONOMIES IN THE WORLD WITH EXPORTS PLAYING A MAJOR ROLE IN ITS PERFORMANCE.

ONE OF ASIA’S MOST ADVANCED COUNTRIES IN QUALITY COMPETITIVENESS TERMS.

WORKFORCE’S EDUCATION AND SKILL LEVEL IS VERY HIGH.

A MAJOR EXPORT OF CAPITAL IN ASIA, PARTICULARLY THE STATE-OWNED HOLDING COMPANY, TEMASEK.

THE BUSINESS ENVIRONMENT HAS BEEN VERY FAVOURABLE.

GREAT POLITICAL STABILITY.

WEAKNESSES

ECONOMY REMAINED OVERSPECIALISED IN THE ELECTRONICS SECTOR.

MUST ACCELERATE DIVERSIFICATION IN SERVICES TO MAINTAIN ITS LEAD OVER OTHER ASIAN ECONOMIES

REFORMS ARE STILL NEEDED TO FOSTER INNOVATION AND EDUCATION-SYSTEM MODERNIZATION.

AGING POPULATION COULD ULTIMATELY AFFECT ECONOMIC PERFORMANCE.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

WITH THE BOOST FROM THE STRONG GROWTH PERFORMANCE OF NON-OIL RE-EXPORTS AND RETAIL SALES, THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY A HEALTHY 8.0% IN 3Q2005,

EASING SLIGHTLY FROM THE 8.7% GROWTH REGISTERED IN 2Q2005.

WHOLESALE TRADE

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE INDEX ROSE BY 20.5% OVER THE SAME PERIOD A YEAR AGO. EXCLUDING PETROLEUM, THE INDEX ROSE BY 8.9%.

THE RISE WAS ATTRIBUTED TO SHIP CHANDLERS & BUNKERING AND WHOLESALE TRADE OF PETROLEUM & PETROLEUM PRODUCTS WITH 40% INCREASE. THE HIGHER SALES WERE MAINLY DUE TO OIL PRICE INCREASES.

DOMESTIC SALES OF CHEMICALS & CHEMICAL PRODUCTS ROSE BY 18.1%, CONTRIBUTED MAINLY BY THE WHOLESALING OF PETROCHEMICAL PRODUCTS. SALES OF TELECOMMUNICATIONS & COMPUTERS, INDUSTRIAL & CONSTRUCTION MACHINERY, TIMBER, PAINTS AND CONSTRUCTION MATERIALS ALSO POSTED RISES IN 3Q2005.

CONVERSELY, DOMESTIC SALES OF HOUSEHOLD EQUIPMENT & FURNITURE FELL BY 11.6% IN 3Q2005, COMPARED TO A YEAR AGO.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE SLIGHTLY BY 1.9% IN 3Q2005 OVER 3Q2004. EXCLUDING PETROLEUM, IT WAS 3.6% HIGHER THAN A YEAR AGO.

ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX POSTED A RISE OF 10.7% IN 3Q2005.

EXCLUDING PETROLEUM, THE INDEX ROSE MODERATELY BY 4.1%.

THERE WERE VARIOUS SECTORS WHICH CONTRIBUTED TO THE OVERALL IMPROVEMENT, INCLUDING SHIP CHANDLERS & BUNKERING, WHOLESALING OF PETROLEUM & PETROLEUM PRODUCTS, TELECOMMUNICATIONS & COMPUTERS AND CHEMICALS & CHEMICAL PRODUCTS.

IN CONTRAST, FOOD, BEVERAGES & TOBACCO AND GENERAL WHOLESALE TRADE FELL SIGNIFICANTLY BY 17.7% AND 15.1% RESPECTIVELY.

FOREIGN WHOLESALE TRADE INDEX

AS COMPARED TO 3Q2004, THE OVERALL FOREIGN WHOLESALE TRADE FOR 3Q2005 ROSE BY 22%. EXCLUDING PETROLUEM, THE INDEX ROSE BY 10.2%.

SIMILAR TO THE DOMESTIC SALES, OVERSEAS SALES OF SHIP CHANDLERS & BUNKERING AND WHOLESALERS OF PETROLEUM & PETROLEUM PRODUCTS ROSE SUBSTANTIALLY BY 50.3% AND 38.6% OVER 3Q2004, MAINLY DUE TO THE HIGHER OIL PRICES.

WHOLESALING OF ELECTRONIC COMPONENTS, INDUSTRIAL & CONSTRUCTION MACHINERY AND TELECOMMUNICATIONS & COMPUTERS ALSO REPORTED STRONG GROWTH IN OVERSEAS SALES.

FOLLOWING EIGHT SUCCESSIVE QUARTERS OF DOUBLE-DIGIT GROWTHS, SALES OF CHEMICALS & CHEMICAL PRODUCTS INCREASED SLIGHTLY BY 2.5% IN 3Q2005.

IN CONTRAST, FOREIGN SALES OF HOUSEHOLD EQUIPMENT & FURNITURE FELL FURTHER IN 3Q2005 BY 13.7%. IT WAS LED BY THE WHOLESALING OF TV AND SOUND REPRODUCING EQUIPMENT.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 7.6% IN 3Q2005 OVER 3Q2004. EXCLUDING PETROLEUM, IT WAS UP BY 10.8%.

IN COMPARISON TO 2Q2005, THE OVERALL INDEX FOR 3Q2005 REGISTERED A RISE OF 9.9%.

EXCLUDING PETROLEUM, THE GROWTH WAS LOWER AT 5.7%.

STRONG GROWTH WERE REPORTED IN WHOLESALE SECTORS OF ELECTRONIC COMPONENTS, SHIP CHANDLERS & BUNKERING AND PETROLEUM & PETROLEUM PRODUCTS.

RETAIL TRADE

RETAIL SALES CHALKED UP AN IMPRESSIVE 9.9% GROWTH IN 3Q2005, ALBEIT A MODERATION FROM THE SECOND QUARTER’S GROWTH RATE OF 12%. THE SALES OF MOTOR VEHICLES EASED FROM 2Q2005 RISE OF 15%, BUT STILL GREW BY 12% IN THE LAST QUARTER. EXCLUDING MOTOR VEHICLES, RETAIL SALES GREW BY 7.9% IN THIRD QUARTER, BETTER THAN THE 7.5% RECORDED IN THE SECOND QUARTER.

ON A YEAR-ON-YEAR BASIS, MOST RETAIL SEGMENTS REGISTERED BETTER SALES.

THE SEGMENTS WERE TELECOMMUNICATIONS AND COMPUTERS (23%), WEARING APPAREL AND FOOTWEAR (12%), FURNITURE AND HOUSEHOLD EQUIPMENT (11%), DEPARTMENT STORES (11%), FOOD AND BEVERAGES (9.2%), MEDICAL GOODS AND TOILETRIES (7.4%), RECREATIONAL GOODS (6.4%), OPTICAL GOODS AND BOOKS (5.9%), PROVISION AND SUNDRY SHOPS (5.8%), WATCHES AND JEWELLERY (5.3%), PETROL SERVICE STATIONS (1.1%) AND SUPERMARKETS (0.4%).

NOVEMBER RETAIL SALES RISE 2.4%

SINGAPORE’S RETAIL SALES ROSE IN NOVEMBER AT THE SLOWEST PACE IN NINE MONTHS AS TOURISM GROWTH EASED, CAR SALES FELL AND CONSUMERS CUT SPENDING AFTER STOCKING UP FOR RELIGIOUS FESTIVALS.

RETAIL SALES INDEX ROSE 2.4% IN NOVEMBER 2005 FROM NOVEMBER 2004 AFTER A PREVIOUS GAIN OF 10.2%. THAT WAS LOWER THAN THE MOST PESSIMISTIC ESTIMATE IN A BLOOMBERG SURVEY OF 13 ECONOMISTS, WHERE THE MEDIAN FORECAST WAS AN 11% RISE. EXCLUDING VEHICLES, RETAIL SALES GREW BY 5.2% FROM THE SAME MONTH A YEAR EARLIER.

ON A SEASONALLY ADJUSTED BASIS, NOVEMBER RETAIL SALES FELL 8.7% FROM THE PREVIOUS MONTH. EXCLUDING CARS, THE INDEX FELL BY 6.3%.

DEPARTMENT STORE SALES ROSE 4.8% LAST NOVEMBER AS COMPARED TO NOVEMBER 2004 AFTER A 16% GAIN IN THE PREVIOUS MONTH, THE FIGURES SHOWED. NOVEMBER VEHICLE SALES, WHICH MAKE UP MORE THAN A QUARTER OF THE INDEX, DECLINED SLIGHTLY BY 0.5% FROM NOVEMBER 2004 FOLLOWING A 8.9% RISE IN THE PREVIOUS MONTH. SALES OF FURNITURE AND HOUSEHOLD EQUIPMENT ROSE BY 0.4% IN NOVEMBER 2005 FROM NOVEMBER 2004, LESS THAN THE 17% RISE IN OCTOBER.

AHEAD

AN OVERALL NET BALANCE OF 22% OF FIRMS IN THE SERVICES SECTOR IS OPTIMISTIC ABOUT THE BUSINESS OUTLOOK FOR THE NEXT 3 MOTNHS ENDING MARCH 2006. THE MAGNITUDE IS SLIGHTLY LOWER COMPARED TO THAT REGISTERED IN THE PERIOD OF JULY-DECEMBER 2005 (26%), AND ALSO LOWER THAN THE 30% NET BALANCE RECORDED FOR OCTOBER 2004 – MARCH 2005.

AN OVERALL NET BALANCE OF 8% OF WHOLESALERS PREDICTS POSITIVE BUSINESS CONDITIONS FOR THE COMING MONTHS. THOSE DEALING IN ELECTRONIC COMPONENTS, TELECOMMUNICATIONS EQUIPMENT AND COSMETICS & TOILETRIES ARE AMONG THOSE WHO ARE OPTIMISTIC ABOUT THE BUSINESS OUTLOOK AHEAD.

RETAILERS ALSO EXPRESS UPBEAT BUSINESS SENTIMENTS FOR THE COMING MONTHS, WITH A POSITIVE NET BALANCE OF 38%, ESPECIALLY DEPARTMENT STORES AND RETAILERS OF

WEARING APPAREL AND FURNITURE & FURNISHINGS FORESEE BETTER BUSINESS OUTLOOK FROM THE YEAR-END FESTIVE SEASON.

HOTELIERS PROJECT A POSITIVE OUTLOOK FOR THE MONTHS AHEAD, WITH A POSITIVE NET BALANCE OF 64%, IN ANTICIPATION OF AN INCREASE IN TOURIST ARRIVALS AND OCCUPANCY RATE. SIMILARLY, IN CATERING TRADE, RESTAURANTS AND FOOD CATERERS FORESEE FAVOURABLE BUSINESS CONDITIONS IN THE COMING MONTHS.

EXTRACTED FROM : MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

BLOOMBERG

RATING EXPLANATIONS

RATING		STATUS	PROPOSED CREDIT LINE
>86	Aaa	Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums	Unlimited
71-85	Aa	Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums	Large
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average/normal.	Small
11-25	Ca	Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity	Limited with full security
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

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