MIRA INFORM REPORT

Report Date :

12^th May 2006

IDENTIFICATION DETAILS

Name :	METAL ONE ASIA PTE. LTD.
Registered Office :	^Mc Steel Trade Centre Pte Ltd ^250 North Bridge Road, #37-03/04 ^Raffles City Tower, Singapore ^179101, Singapore
Date of Incorporation :	^18/07/1996
Com. Reg. No.:	^199605239M
Legal Form :	^Pte Ltd
Line of Business :	Trading of steel products

RATING & COMMENTS

MIRA’s Rating :

Ba

RATING		STATUS	PROPOSED CREDIT LINE
41-55	Ba	Overall operation is considered normal. Capable to meet normal commitments.	Satisfactory

Status :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

METAL ONE ASIA PTE. LTD.

Line Of Business 

TRADING OF STEEL PRODUCTS

Parent Company

METAL ONE CORPORATION

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2004

COMPANY

Sales : US$190,589,855.00

Net worth : US$3,955,721.00

Paid-Up Capital : US$1,100,000.00

Net result : US$1,160,114.00

Net Margin(%) : 0.61

Return on Equity(%) : 29.33

Leverage Ratio : 19.36

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

^{Subject Company: METAL ONE ASIA PTE. LTD.}

^{Former Name: MC STEEL TRADE CENTRE PTE LTD}

^{Business Address: 250 NORTH BRIDGE ROAD}

^#37-03/04

^{RAFFLES CITY TOWER}

^{Town: SINGAPORE}

^{Postcode: 179101}

^{County: -}

^{Country: Singapore}

^{Telephone: 6331 5325/6339 7990}

^{Fax: 6331 7990}

^{ROC Number: 199605239M}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{MC STEEL TRADE CENTRE PTE LTD}

^{DATE OF CHANGE OF NAME: 07/01/2003}

SUMMARY

^{All amounts in this report are in : USD UNLESS OTHERWISE STATED}

^{Legal Form: Pte Ltd}

^{Date Inc.: 18/07/1996}

^{Previous Legal Form: -}

^{Summary year: 31/12/2004}

^{Sales: 190,589,855}

^{Net worth : 3,955,721}

^{Capital: 1,500,000}

^{Paid-Up Capital: 1,100,000}

^{Employees: 33}

^{Net result: 1,160,114}

^{Share value: 1}

^{Auditor: KPMG}

REFERENCES

^{Litigation: Yes}

^{Company status: TRADING}

^{Started: 18/07/1996}

PRINCIPAL(S)

^{SHIGERU SATO G5865917M Managing Director}

DIRECTOR(S)

^{CHANG SOW KUEN S1365694J Company Secretary}

^{Appointed on: 06/01/2003}

^{Street: 130 GEYLANG EAST AVENUE 1}

^#02-299

^{Town: SINGAPORE}

^{Postcode: 380130}

^{Country: Singapore}

^{SHIGERU SATO G5865917M Director}

^{Appointed on: 03/04/2006}

^{Street: 81B CLEMENCEAU AVENUE}

^#07-25

^{Town: SINGAPORE}

^{Postcode: 239919}

^{Country: Singapore}

^{SHIGERU SATO G5865917M Managing Director}

^{Appointed on: 03/04/2006}

^{Street: 81B CLEMENCEAU AVENUE}

^#07-25

^{Town: SINGAPORE}

^{Postcode: 239919}

^{Country: Singapore}

^{MASASHI KONNO TG0998134 Director}

^{Appointed on: 03/04/2006}

^{Street: 303, 3-19-40 TAKANAWA}

^MINATO-KU

^{Town: TOKYO}

^{Postcode: 108-0074}

^{Country: Japan}

^{RYOJI SHINOHE TG5925454 Director}

^{Appointed on: 16/05/2005}

^{Street: PRESIDENT PLACE, 975/2402, 24TH FL}

^{RPLOENCHIT ROAD, LUMPINI}

^PATHUMVAN

^{Town: BANGKOK}

^{Postcode: 10330}

^{Country: Thailand}

^{MASAHITO GOTO TG7254073 Director}

^{Appointed on: 01/10/2005}

^{Street: ROOM NO. 1112, GREEN SURROUND CITY}

^{4TH STREET, 1-1 TSUNASHIM}

^{KOHOKU-KU, YOKOHAMA CITY}

^{Town: KANAGAWA PREFECTURE}

^{Postcode: -}

^{Country: Japan}

^{HIROSHI AKAKI TZ0228443 Director}

^{Appointed on: 07/01/2000}

^{Street: 4-35-6 TAMAGAWA, SETAGAYA-KU}

^{Town: TOKYO}

^{Postcode: 158-0094}

^{Country: Japan}

FORMER DIRECTOR(S)

^{LEE SIEW JEE JENNIFER S1336064B}

^{TAN CHENG SIEW @ NUR FARAH TAN S6920790A}

^{YASUNORI MAWATARI F5626136L}

^{MORIJI KANADA TE1606951}

^{SUSUMU KOMORI TE4654178}

^{MASAHIKO FUKATSU TE4966740}

^{YO KANZAKI TZ0216918}

^{TETSURO NAGAI TF4966740}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{FABRICATED METAL PRODUCTS Code:9}

^{STEEL FABRICATORS Code:20370}

^{STEEL PRODUCTS Code:20410}

^{BASED ON ACRA'S RECORD AS AT 08/05/2006}

^{1) OTHER SUPPORT ACTIVITIES; METALS AND FABRICATED METALS}

^{2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE BANK OF TOKYO-MITSUBISHI, LTD.}

SHAREHOLDERS(S)

^{METAL ONE CORPORATION 1,100,000 Company}

^{Street: CELESTINE SHIBA MITSUI BUILDING}

^{3-23-1 SHIBA MINATO-KU}

^{Town: TOKYO}

^{Postcode: 105-0014}

^{Country: Japan}

FORMER SHAREHOLDER(S)

^{MITSUBISHI CORPORATION 800,000}

HOLDING COMPANY

^{METAL ONE CORPORATION UF32499W % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: SUFFICIENT}

^{Payments: REGULAR}

^{Trend: UPWARD}

^{Financial Situation:AVERAGE}

LITIGATION(S)

^{Type Of Case: Magistrate Court - W/S}

^{Case Number: MCS37637/2003}

Defendant METAL ONE ASIA PTE. LTD.

ROC # : 199605239M

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 30/06/2005}

^{Balance Sheet Date: 31/12/2004 31/12/2003 31/12/2002}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 201,595 265,788 364,307}

^{Investments 103,062 103,062 98,062}

^{Total Fixed Assets: 304,657 368,850 462,369}

^{Inventories: 1,033,288 2,378,838 690,215}

^{Receivables: 75,174,023 50,683,048 14,027,932}

^{Cash,Banks,Securities: 3,809,554 11,101,264 2,405,283}

^{Other current assets: 226,099 164,283 24,311,446}

^{Total Current Assets: 80,242,964 64,327,433 41,434,876}

^{TOTAL ASSETS: 80,547,621 64,696,283 41,897,245}

^{--- LIABILITIES}

^{Equity capital: 1,100,000 1,100,000 1,100,000}

^{Profit & loss Account: 2,855,721 1,695,607 1,496,636}

^{Total Equity: 3,955,721 2,795,607 2,596,636}

^{L/T deferred taxes: 23,404 - -}

^{Other long term Liab.: - 10,316 27,490}

^{Total L/T Liabilities: 23,404 10,316 27,490}

^{Trade Creditors: 38,150,735 29,585,525 3,474,018}

^{Short term liabilities: 10,729 17,688}

^{Due to Bank: 35,718,433 30,415,766 33,562,183}

^{Provisions: 331,000 52,491 219,875}

^{Other Short term Liab.: 2,249,672 1,724,988 2,017,043}

^{Prepay. & Def. charges: 107,927 93,902 -}

^{Total short term Liab.: 76,568,496 61,890,360 39,273,119}

^{TOTAL LIABILITIES: 76,591,900 61,900,676 39,300,609}

^{--- PROFIT & LOSS ACCOUNT}

^{Net Sales 190,589,855 139,765,354 99,529,260}

^{Gross Profit: 4,054,446 1,960,949 2,099,603}

^{Result of ordinary operations 1,558,343 84,382 -}

^{NET RESULT BEFORE TAX: 1,558,343 84,382 888,493}

^{Tax : 398,229 -114,589 212,135}

^{Net income/loss year: 1,160,114 198,971 676,358}

^{Interest Paid: 442,207 185,371 372,651}

^{Depreciation: 150,022 131,289 82,841}

^{Directors Emoluments: 70,087 88,485 12,109}

^{Wages and Salaries: 1,773,837 1,635,006 1,209,102}

^{Financial Income: 25,608 47,175 158,217}

RATIOS

^{31/12/2004 31/12/2003 31/12/2002}

^{Turnover per employee: 5,775,450.15 4,235,313.76 3016038.18}

^{Net result / Turnover(%): 0.01 0.00 0.01}

^{Stock / Turnover(%): 0.01 0.02 0.01}

^{Net Margin(%): 0.61 0.14 0.68}

^{Return on Equity(%): 29.33 7.12 26.05}

^{Return on Assets(%): 1.44 0.31 1.61}

^{Net Working capital: 3,674,468 2,437,073 2,161,757}

^{Cash Ratio: 0.05 0.18 0.06}

^{Quick Ratio: 1.03 1.00 0.42}

^{Current ratio: 1.05 1.04 1.06}

^{Receivables Turnover: 141.99 130.55 50.74}

^{Leverage Ratio: 19.36 22.14 15.14}

^{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}

^{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}

^{Inventory Turnover : (360*Inventories)/Net sales}

^{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 IMPROVED BY 41.50% FROM US$2,795,607 IN FY 2003 TO US$3,955,721 IN FY 2004. THIS WAS DUE TO A INCREASE IN ACCUMULATED PROFITS AMOUNT BY 68.42% FROM US$1,695,607 IN FY 2003 TO US$2,855,721 IN FY 2004.}

^LEVERAGE:

^{IN THE SHORT-TERM, 49.83% (2003: 47.80%) OF TOTAL SHORT-TERM LIABILITIES CAME FROM TRADE CREDITORS (2004: US$38,150,735, 2003: US$29,585,525).}

^{THE TRADE CREDITORS ACCOUNT EXPERIENCED A 28.95% INCREASE AND ITS BREAKDOWN WERE AS FOLLOWS:}

^{* TRADE PAYABLES}

^{(2004: US$30,551,899, 2003: US$21,860,900)}

^{* AMOUNT DUE TO IMMEDIATE HOLDING COMPANY -TRADE}

^{(2004: US$5,934,866, 2003: US$6,261,466)}

^{* AMOUNT DUE TO RELATED COMPANIES -TRADE}

^{(2004: US$1,663,970, 2003: US$1,463,159)}

^{TRADE PAYABLES AMOUNTED TO US$18,095,493 (2003: US$4,462,408) WHICH RELATED TO PAYABLES FOR PURCHASES MADE ON BEHALF OF THE IMMEDIATE HOLDING COMPANY.}

^{OTHER SHORT-TERM LIABILITIES WHICH AMOUNTED TO US$2,249,672 (2003: US$1,724,988) IN FY 2004 SHOWED AN INCREASE BY 30.42%.}

^{THE LATTER COMPRISED OF:}

^{* AMOUNT DUE TO IMMEDIATE HOLDING COMPANY - NON-TRADE}

^{(2004: US$1,809,286, 2003: US$1,532,788)}

^{* AMOUNT DUE TO RELATED COMPANIES - NON-TRADE}

^{(2004: US$33,461, 2003: US$26,044)}

^{* OTHER PAYABLES}

^{(2004: US$406,925, 2003: US$166,156)}

^{AMOUNT DUE TO BANKS IN FY 2004 AMOUNTED TO US$35,718,433 (2003: US$30,415,766). THE BREAKDOWN WAS AS FOLLOWS:}

^{* BANK OVERDRAFTS}

^{(2004: -, 2003: US$5,234,588)}

^{* BANK LOANS}

^{(2004: US$25,581,697, 2003: US$19,676,012)}

^{* TRUST RECEIPTS}

^{(2004: US$10,136,736, 2003: US$5,505,166)}

^{IN ALL, LEVERAGE RATIO FELL FROM 22.14 TIMES IN FY 2003 TO 19.36 TIMES IN FY 2004. HOWEVER, THE RATIO WAS STILL CONSIDERED HIGH.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY WAS SUFFICIENT AND HAD IMPROVED AS SEEN FROM THE 50.77% RISE IN NET WORKING CAPITAL (2004: US$3,674,468, 2003: US$2,437,073).}

^{LIKEWISE, CURRENT RATIO ROSE FROM 1.04 TIMES IN FY 2003 TO 1.05 TIMES IN FY 2004 AND QUICK RATIO IMPROVED TO 1.03 TIMES IN FY 2004 FROM 1.00 TIMES IN FY 2003.}

^{THERE WAS A SIGNIFICANT FALL IN CASH, BANKS AND SECURITIES BY 65.68% IN FY 2004 (2004: US$3,809,554, 2003: US$11,101,264).}

^{THE BREAKDOWN WAS AS FOLLOWS:}

^{* CASH AT BANK AND IN HAND}

^{(2004: US$3,744,852, 2003: US$4,443,442)}

^{* FIXED DEPOSITS}

^{(2004: US$64,702, 2003: US$6,657,822)}

^{PROFITABILITY:}

^{REVENUE ROSE BY 36.36% IN FY 2004 (2004: US$190,589,855, 2003: US$139,765,354) AND NET INCOME INCREASED BY 4.83 TIMES IN FY 2004 (2004: US$1,160,114, 2003: US$198,971).}

^{GROSS MARGIN ROSE TO 2.13% (2003: 1.40%) IN FY 2004 AND NET MARGIN ROSE TO 0.61% (2003: 0.14%) IN FY 2004.}

^{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, INTEREST COVERAGE RATIO IMPROVED TO 4.52 TIMES IN FY 2004 FROM 1.46 TIMES IN FY 2003.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{SUBSEQUENT EVENTS:}

^{SUBSEQUENT TO 31 DECEMBER 2004, THE COMPANY PROPOSED A NET FINAL DIVIDEND OF US$1,160,000 FOR PAYMENT TO METAL ONE CORPORATION IN RESPECT OF THE FINANCIAL YEAR ENDED 31 DECEMBER 2004. THE PROPOSED FINAL DIVIDEND IS SUBJECT TO APPROVAL BY THE SHAREHOLDERS AT THE NEXT ANNUAL GENERAL MEETING TO BE CONVENED AND HAS NOT BEEN INCLUDED AS A LIABILITY IN THE FINANCIAL STATEMENTS.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 18/07/1996 AS A LIMITED PRIVATE COMPANY AND WAS FORMERLY TRADING UNDER THE NAMESTYLE OF "MC STEEL TRADE CENTRE PTE LTD".}

^{ON 07/01/2003, IT CHANGED TO ITS PRESENT NAMESTYLE OF "METAL ONE ASIA PTE. LTD."}

^{AS AT 08/05/2006, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 1,100,000 SHARES OF A VALUE OF US$1,100,000.}

^{PRINCIPAL ACTIVITIES:}

^{SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY AUTHORITY (ACRA) AND BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1) OTHER SUPPORT ACTIVITIES; METALS AND FABRICATED METALS}

^{2) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

^{FROM THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY WAS THOSE RELATED TO TRADING OF STEEL PRODUCTS.}

^{FROM THE RESEARCH DONE, SUBJECT IS LISTED ON THE LOCAL DIRECTORIES UNDER THE CATEGORY OF "STEEL PRODUCTS" AND THE FOLLOWING INFORMATION WAS GATHERED:}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* IMPORT AND EXPORT OF METAL PRODUCTS}

^{* SUPPLIES ABOUT 150,000 TONNES A YEAR}

^{MARKET PRESENCE:}

^{* ASEAN REGION}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITY}

^{* SINGAPORE METAL AND MACHINERY ASSOCIATION}

^{SOME OF SUBJECT'S HOLDING COMPANY'S PRODUCTS/SERVICES:}

^{* STEEL PLATES}

^{* TUBES AND CONSTRUCTION MATERIALS}

^{* STEEL SHEET PRODUCTS/ AUTOMOTIVE STEEL SHEET PRODUCTS}

^{* STAINLESS STEEL}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 10/05/2006, THE FOLLOWING INFORMATION WAS OBTAINED:}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* WHOLESALE TRADING OF METAL/STEEL PRODUCTS}

^{IMPORT/EXPORT COUNTRIES:}

^{* EUROPE}

^{* UNITED STATES OF AMERICA}

^{NUMBER OF EMPLOYEES:}

^{* 27}

^{NO OTHER TRADE INFORMATION WAS REVEALED BY THE SUBJECT'S PERSONNEL.}

^{THE IMMEDIATE HOLDING COMPANY WERE METAL ONE CORPORATION AND MITSUBISHI CORPORATION, BOTH INCORPORATED IN JAPAN.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2004: 33 (2003: 33)}

^{REGISTERED ADDRESS:}

^{250 NORTH BRIDGE ROAD}

^#37-03

^{RAFFLES CITY TOWER}

^{SINGAPORE 179101}

^{DATE OF CHANGE OF ADDRESS: 18/08/2002}

^{BUSINESS ADDRESS:}

^{250 NORTH BRIDGE ROAD}

^#37-03/04

^{RAFFLES CITY TOWER}

^{SINGAPORE 179101}

^{-RENTED PREMISE}

^{-OWNED BY: TINCEL PROPERTIES (PRIVATE) LIMITED}

^{-ALSO YOUR PROVIDED ADDRESS}

^WEBSITE:

^{www.mtlo.co.jp (HOLDING COMPANY'S WEBSITE)}

^EMAIL:

^{s.yoshiko@mtlo.com.sg}

^{hiroshi.akaki@mtlo.com.sg}

MANAGEMENT

^{THE DIRECTORS AT THE TIME OF THIS REPORT ARE:}

^{1) SHIGERU SATO, A JAPANESE}

^{- BASED IN SINGAPORE}

^{2) MASASHI KONNO, A JAPANESE}

^{- BASED IN JAPAN}

^{3) RYOJI SHINOHE, A JAPANESE}

^{- BASED IN THAILAND}

^{4) MASAHITO GOTO, A JAPANESE}

^{- BASED IN JAPAN}

^{5) HIROSHI AKAKI, A JAPANESE}

^{- BASED IN JAPAN}

SINGAPORE 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%.

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%.

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%.

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%.

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.

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.

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

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions