MIRA INFORM REPORT

Report Date :

18^th May 2006

IDENTIFICATION DETAILS

Name :	ACUMEN ENGINEERING PTE LTD

Registered Office :	^{4009 Ang Mo Kio Avenue 10} ^{#02-31, Singapore} ⁵⁶⁹⁷³⁸

Date of Incorporation :	^29/04/2000

Com. Reg. No.:	^200003753E

Legal Form :	^{Pte Ltd}

Line of Business :	Traders of plastic resins

RATING & COMMENTS

MIRA’s Rating :

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

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Subject Company

ACUMEN ENGINEERING PTE LTD

Line Of Business

THE TRADING OF PLASTIC RESINS

Parent Company

Financial Elements

FY 2005

COMPANY

Sales : S$30,504,829

Networth : S$2,373,885

Paid-Up Capital : S$585,000

Net result : S$760,457

Net Margin(%) : 2.49

Return on Equity(%) : 32.03

Leverage Ratio : 3.66

Rating

Credit Requested : -

Credit Rating : Singapore $ 1000001 Singapore $ 5000000

Credit Opinion : -

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

^{Subject
Company : ACUMEN ENGINEERING PTE LTD}

^{Former Name
: -}

^{Business
Address: 4009 ANG MO KIO AVENUE 10}

^#02-31

^{Town: SINGAPORE}

^{Postcode: 569738}

^{County: -}

^{Country: Singapore}

^{Telephone: 6848
4650}

^{Fax: 6848
4651}

^{ROC
Number: 200003753E}

^{Reg. Town:}

SUMMARY

^{Legal
Form: Pte Ltd}

^{Date
Inc.: 29/04/2000}

^{Previous
Legal Form: -}

^{Summary
year : 31/03/2005}

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

^{Sales: 30,504,829}

^{Networth
: 2,373,885}

^{Capital: 1,000,000}

^{Paid-Up
Capital: 585,000}

^{Employees: 13}

^{Net result
: 760,457}

^{Share
value: 1}

^{AUDITOR : DELOITTE
& TOUCHE}

REFERENCES

^{Credinet
Number: 702004793144}

^{Report
Date: 18/05/2006}

¹⁸²³³

^{Update
Date: 18/05/2006}

^{Credit
Requested: -}

^{Credit Opinion:
-}

^{Litigation: No}

^{Company
status : TRADING}

^{Started
: 29/04/2000}

PRINCIPAL(S)

^{TOH GIM HO
DERRICK S0180819B Director}

DIRECTOR(S)

^{TOH GIM HO
DERRICK S0180819B Director}

^{Appointed
on : 30/05/2000}

^{Street
: 89 PARK VILLAS RISE}

^{Town: SINGAPORE}

^{Postcode: 545333}

^{Country: Singapore}

^{CHANG KOK
YONG S7124767H Director}

^{Appointed
on : 30/05/2000}

^{Street
: 5 ROSEWOOD DRIVE}

^#13-10

^{Town: SINGAPORE}

^{Postcode: 737936}

^{Country: Singapore}

^{TAN CHING
CHEK S1397070Z Company Secretary}

^{Appointed
on : 26/12/2002}

^{Street
: 286 YISHUN AVENUE 6}

^#12-100

^{Town: SINGAPORE}

^{Postcode: 760286}

^{Country: Singapore}

^{LEONG HONG
KIAT AMOS S1558097F Director}

^{Appointed
on : 11/03/2005}

^{Street
: 86 OLD UPPER THOMSON ROAD}

^{Town: SINGAPORE}

^{Postcode: 574058}

^{Country: Singapore}

^{LO SWEE
OI
S1611477D Company Secretary}

^{Appointed
on : 28/09/2004}

^{Street
: 135 CASHEW ROAD}

^#10-129

^{Town: SINGAPORE}

^{Postcode: 670135}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{YAP WAH ANN
RICHARD S0143275C}

^{OH AH KOK
SANDY S1275504Z}

^{NG KAI
SIANG ALBERT S1607853J}

^{NG YEW
MENG S7419634I}

^{CHUANG
SHEUE LING S1235221B}

ACTIVITY(IES)

^{PLASTICS -
PRODUCTS (FINISHED) - WHSLE And MFRS}^Code:17010

^{IMPORTERS
And EXPORTERS}^Code:11760

^{BASED ON
ACRA'S RECORD AS AT 11/05/2006}

^{1.OTHER
SUPPORT ACTIVITIES NEC, TRADING OF PLASTIC RESINS}

^{2.MANUFACTURE
OF POLYMERS}

CHARGES

^{Date: 30/12/2004}

^{Comments
: CHARGE
NO : C200406729 (DISCHARGE)}

^{CHARGEE(S)
: THE DEVELOPMENT BANK OF
SINGAPORE LIMITED}

^{AMOUNT
SECURED : 0.00 AND ALL MONIES OWING}

^{Date: 30/12/2004}

^{Comments
: CHARGE
NO : C200406728 (DISCHARGE)}

^{CHARGEE(S)
: SUMITOMO MITSUI BANKING
CORPORATION SINGAPORE BRANCH}

^{AMOUNT
SECURED : 0.00 AND ALL MONIES OWING}

^{Date: 28/09/2000}

^{Comments
: CHARGE
NO : 200004583 (DISCHARGE)}

^{CHARGEE(S)
: THE DEVELOPMENT BANK OF
SINGAPORE LIMITED}

^{AMOUNT
SECURED : 0.00 AND ALL MONIES OWING}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{DBS BANK
LTD.}

^{SUMITOMO
MITSUI BANKING CORPORATION}

SHAREHOLDERS(S)

^{UNIVAC
PRECISION ENGINEERING PTE}^{250,000
Company}

^{Street
: 4012 ANG MO KIO AVENUE 10}

^#01-01

^TECHPLACE
I

^{Town: SINGAPORE}

^{Postcode: 569628}

^{Country: Singapore}

^{CHANG KOK
YONG}^{225,000 Private Person}

^{Street
: 5 ROSEWOOD DRIVE}

^#13-10

^{Town: SINGAPORE}

^{Postcode: 737936}

^{Country: Singapore}

^{MITSUI
& CO LTD}^{110,000 Company}

^{Street
: 16 RAFFLES QUAY}

^#29-00

^{HONG
LEONG BUILDING}

^{Town: SINGAPORE}

^{Postcode: 048581}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{CHANG WEI
SHIUN}¹

^{NG YEW MENG}^25,000

^{YEO KOK ANN}¹

^{LOH CHENG
PEOW}^75,000

^{WEE CHING
CHIAT}^50,000

SUBSIDIARY(IES)

^{ACUMEN
ENGINEERING (CHINA) PTE LTD}

^{ACUMEN
KINETICS SDN BHD}

PAYMENT HISTORY AND EXPERIENCES

^{Trade
Morality: AVERAGE}

^{Liquidity
: SUFFICIANT}

^{Payments
: REGULAR}

^{Trend
: UPWARD}

^{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: 28/12/2005}

^{Balance
Sheet Date: 31/03/2005 31/03/2004 31/03/2003}

^{Number
of weeks: 52 52 52}

^{Consolidation
Code: COMPANY COMPANY COMPANY}

^---
ASSETS

^{Tangible
Fixed Assets: 27,074 42,086 82,912}

^{Investments 121,564 121,564 121,564}

^{Total
Fixed Assets: 148,638 163,650 204,476}

^{Inventories: 3,345,754 1,937,070 790,893}

^{Receivables: 6,422,167 3,721,865
3,082,660}

^{Cash,Banks,
Securitis: 743,285 5,901 6,215}

^{Other
current assets: 412,860 395,343 95,729}

^{Total
Current Assets: 10,924,066 6,060,179 3,975,497}

^{TOTAL
ASSETS: 11,072,704 6,223,829 4,179,973}

^{---
LIABILITIES}

^{Equity
capital: 585,000 585,000 500,000}

^{Profit
& lost Account: 1,667,335 906,878 506,383}

^{Surplus
equity: 121,550 121,550}

^{TOTAL
EQUITY: 2,373,885 1,613,428 1,006,383}

^{L/T
deffered taxes:
11,000 11,000 11,000}

^{Other
long term Liab.: 2,567 4,494 6,419}

^{Total
L/T Liabilities: 13,567 15,494 17,419}

^{Trade
Creditors: 5,313,921 3,055,321 1,534,163}

^{Prepay.
& Def. charges:
123,689 67,353}

^{Short
term liabilities: 1,926 1,926 110,047}

^{Due
to Bank:
2,872,482
1,280,224           1,413,497}

^{Provisions: 253,420
100,000}

^{Other
Short term Liab.: 119,814 90,083 98,464}

^{Total
short term Liab.: 8,685,252 4,594,907 3,156,171}

^{TOTAL
LIABILITIES: 8,698,819 4,610,401 3,173,590}

^{---
PROFIT & LOSS ACCOUNT}

^{Net
Sales
30,504,829
18,257,171         13,230,676}

^{Gross
Profit: 2,321,646 1,526,571 1,049,732}

^{Result
of ordinary operations 1,013,472 542,409 217,813}

^{NET
RESULT BEFORE TAX:
940,457
492,883            178,396}

^{Tax
:
180,000
92,388             36,000}

^{Net
income/loss year:
760,457 400,495 142,396}

^{Interest
Paid: 73,015 49,526 39,417}

^{Depreciation: 35,678 49,278 39,941}

^{Directors
Emoluments: 131,814 149,981 141,542}

^{Purchases,
Sces & Other Goods: 28,183,183
16,730,600}

^{Wages
and Salaries: 437,078 301,431 345,465}

^{Financial
Income: 4,009 123 1,084}

RATIOS

^{31/03/2005
31/03/2004 31/03/2003}

^{Turnover
per employee: 2346525.31 1404397.77 1017744.31}

^{Net
result / Turnover(%): 0.02 0.02 0.01}

^{Stock
/ Turnover(%): 0.11 0.11
0.06}

^{Net
Margin(%): 2.49 2.19 1.08}

^{Return
on Equity(%): 32.03 24.82 14.15}

^{Return
on Assets(%): 6.87 6.43 3.41}

^{Net
Working capital: 2238814.00 1465272.00 819326.00}

^{Cash
Ratio: 0.09 0.00 0.00}

^{Quick
Ratio: 0.83 0.81 0.98}

^{Current
ratio: 1.26 1.32 1.26}

^{Receivables
Turnover: 75.79 73.39 83.88}

^{Leverage
Ratio: 3.66 2.86 3.15}

^{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 47.13% FROM
S$1,613,428 IN FY 2004 TO S$2,373,885 IN FY 2005. THIS WAS DUE TO HIGHER
ACCUMULATED PROFIT OF S$1,667,335 (2004: S $906,878); A RISE OF 83.85% FROM THE
PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE
SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP
61.12% (2004: 66.49%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO
S$5,313,921 (2004: S$3,055,321). THE BREAKDOWN IS AS FOLLOWS:}

^{-OUTSIDE
PARTIES - 2005: S$3,319,942 (2004: S$2,136,267)}

^{-CORPORATE
SHAREHOLDER - 2005: S$1,993,979 (2004: S$35,957,120)}

^{-SUBSIDIARIES
- 2005: - (2004: S$36,504)}

^{AMOUNT DUE
TO BANKS OF S$2,872,482 (2004: S$1,280,224) CONSISTED OF:}

^{-BANK
OVERDRAFTS (SECURED) - 2005: S$232,184 (2004: S$586,258)}

^{-BILLS
PAYABLE TO BANKS (SECURED) - 2005:
S$2,640,298}

^{(2004:
S$693,966)}

^{IN ALL,
LEVERAGE RATIO ROSE FROM 2.86 TIMES TO 3.66 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 1.26 TIMES, DOWN FROM 1.32 TIMES
AND QUICK RATIO IMPROVED TO 0.83 TIMES FROM 0.81 TIMES IN FY 2004.}

^{NET WORKING
CAPITAL IMPROVED BY 52.79% FROM S$1,465,272 IN}

^{FY 2004 TO
S$2,238,814.}

^{PROFITABILITY:}

^{REVENUE
POSTED AN INCREASE OF 67.08% FROM S$18,257,171 IN FY 2004 TO S $30,504,829 AND
NET PROFIT ROSE BY 89.88% TO S$760,457 (2004: S $400,495). HENCE, NET MARGIN
ROSE TO 2.49% (2004: 2.19%).}

^{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$73,015 IN FY 2005 (2004: S$49,526).}

^{NOTES TO
THE FINANCIAL STATEMENTS:}

^{BOTH THE BANK
OVERDRAFTS AND BILLS PAYABLE ARE SECURED BY}

^{A FIXED AND
FLOATING CHARGE ON THE COMPANY'S ASSETS AND PROPERTIES AND JOINT AND SEVERAL
PERSONAL GUARANTEES PROVIDED BY CERTAIN SHAREHOLDERS OF THE COMPANY. IT IS ALSO
PARTIALLY SECURED BY WAY OF A CORPORATE GUARANTEE FROM A CORPORATE SHAREHOLDER
UP TO ITS INTERESTS IN THE COMPANY.}

^{THE AVERAGE
EFFECTIVE BANK OVERDRAFT RATE WAS 6.25% (2004: 6.25%) PER ANNUM.}

^{THE BILLS
PAYABLE TO BANKS BEAR INTEREST RANGING FROM 2.9% TO 6.25% (2004: 2.66% TO
4.75%) PER ANNUM.}

^{CONTINGENT
LIABILITIES (SECURED)}

^{AS AT MARCH
31, 2005, BANKERS' GUARANTEE AMOUNTING TO APPROXIMATELY $213,158 (2004:
$222,000) WERE ISSUED TO SECURE A SUBSIDIARY'S BANKING FACILITIES. THE BANKERS'
GUARANTEE IS SECURED BY A FIXED AND FLOATING CHARGE ON THE COMPANY'S ASSETS AND
JOINT AND SEVERAL PERSONAL GUARANTEES PROVIDED BY CERTAIN DIRECTORS OF THE
COMPANY.}

BACKGROUND/OPERATION

^{THE COMPANY
WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON}

^{29/04/2000
AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS}

^{PRESENT
NAMESTYLE AS "ACUMEN ENGINEERING PTE LTD".}

^{AS AT
11/05/2006, THE COMPANY HAS ISSUED AND
PAID-UP CAPITAL OF}

^{585,000
SHARES OF A VALUE OF S$585,000.}

^{PRINCIPAL
ACTIVITIES:}

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

^{1.OTHER
SUPPORT ACTIVITIES NEC, TRADING OF PLASTIC RESINS}

^{2.MANUFACTURE
OF POLYMERS}

^{DURING THE
FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF
THE TRADING OF PLASTIC RESINS.}

^{NO OTHER
TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S
PERSONNEL ON 18/05/2006}

^{NUMBER OF
EMPLOYEES (31 MARCH):}

^{* COMPANY -
2005: 13 (2004 : 10; 2003 : 10)}

^{*
GROUP - 2005: 18 (2004: 15; 2003 : 15)}

^{REGISTERED
AND BUSINESS ADDRESS :}

^{4009 ANG MO
KIO AVENUE 10}

^#02-31

^{SINGAPORE
569738}

^{- DATE OF
CHANGE OF ADDRESS : 29/04/2000}

^WEBSITE:

^EMAIL:

MANAGEMENT

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

^{1) TOH GIM
HO DERRICK, A SINGAPOREAN}

^{- OTHER
DIRECTORSHIP(S) IN OUR DATABASE:}

^{UNIVAC
PRECISION ENGINEERING PTE LTD}

^{ACUMEN
KINETICS SDN BHD}

^{2) LEONG
HONG KIAT AMOS, A SINGAPOREAN}

^{- OTHER
DIRECTORSHIP(S) IN OUR DATABASE:}

^{UNIVAC
PRECISION ENGINEERING PTE LTD}

^{FISCHER
TECH LTD}

^{SEB
CORPORATION PTE. LTD.}

^{3) CHANG
KOK YONG, A SINGAPOREAN}

^{- OTHER
DIRECTORSHIP(S) IN OUR DATABASE:}

^{TECHFAST
PTE LTD}

^{ACUMEN KINETICS SDN BHD}

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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