MIRA INFORM REPORT

Report Date :

29.03.2007

IDENTIFICATION DETAILS

Name :	AGILENT TECHNOLOGIES SINGAPORE (SALES) PTE LTD
Registered Office :	1 Yishun Avenue 7, #01-00, Singapore – 038989
Country :	Singapore
Financials (as on) :	31.10.2005
Date of Incorporation :	^13/08/1999
Com. Reg. No.:	^199904761K
Legal Form :	^Pte Ltd
Line of Business :	Distributing Semiconductor Products And Electronic Equipment

RATING & COMMENTS

MIRA’s Rating :

Aaa

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

AGILENT TECHNOLOGIES SINGAPORE (SALES) PTE LTD

Line Of Business 

DISTRIBUTING SEMICONDUCTOR PRODUCTS AND ELECTRONIC EQUIPMENT

Parent Company

AGILENT TECHNOLOGIES EUROPE B.V.

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2005

COMPANY

Sales : USD2,028,279,000

Networth : USD80,117,000

Paid-Up Capital : USD824,000

Net result : USD18,504,000

Net Margin(%) : 0.91

Return on Equity(%) : 23.10

Leverage Ratio : 6.15

Rating

Credit Rating : Sing $ 50000001 & Above

COMPANY IDENTIFICATION

^{Subject Company : AGILENT TECHNOLOGIES SINGAPORE (SALES) PTE LTD}

^{Former Name : -}

^{Business Address : 1 YISHUN AVENUE 7}

^#01-00

^{Town : SINGAPORE}

^{Postcode : 038989}

^{County : -}

^{Country : Singapore}

^{Telephone : 6377 1688}

^{Fax : 6270 8372}

^{ROC Number : 199904761K}

^{Reg. Town : -}

SUMMARY

^{All amounts in this report are in : USD unless otherwise stated}

^{Legal Form : Pte Ltd}

^{Date Inc. : 13/08/1999}

^{Previous Legal Form : -}

^{Summary year : 31/10/2005}

^{Sales : 2,028,279,000}

^{Net worth : 80,117,000}

^{Capital : 2,000,000}

^{Paid-Up Capital : 824,000}

^{Employees : 609}

^{Net result : 18,504,000}

^{Share value : -}

^{Auditor : PRICEWATERHOUSECOOPERS}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 13/08/1999}

PRINCIPAL(S)

^{YANG ENG HUAT S1745013A Director}

DIRECTOR(S)

^{YANG ENG HUAT S1745013A Director}

^{Appointed on: 09/02/2004}

^{Street: 119 MARSILING RISE}

^#06-132

^{Town: SINGAPORE}

^{Postcode: 730119}

^{Country: Singapore}

^{GOOI SOON CHAI A10672339 Director}

^{Appointed on: 05/10/2005}

^{Street: 2 HALAMAN CANTONMENT}

^{Town: PENANG}

^{Postcode: 10350}

^{Country: Malaysia}

^{ROBIN JAY YOUNG BC223550 Director}

^{Appointed on: 15/11/2000}

^{Street: 501F, 20-2 DIAMOND VILLA}

^{PRINCESS TOWER, TANJUNG BUNGAH}

^{Town: PENANG}

^{Postcode: 11200}

^{Country: Malaysia}

^{CATHERINE DOROTHY HANAM S1521083D Company Secretary}

^{Appointed on: 27/03/2000}

^{Street: 9 TEMASEK BOULEVARD}

^#09-03

^{SUNTEC CITY TOWER 2}

^{Town: SINGAPORE}

^{Postcode: 038989}

^{Country: Singapore}

^{TAN LI HUANG MARY LYNNE S1654258Z Company Secretary}

^{Appointed on: 27/03/2000}

^{Street: 50 GOLDHILL AVENUE}

^#01-02

^{MOUNT ROSIE GARDEN}

^{Town: SINGAPORE}

^{Postcode: 309031}

^{Country: Singapore}

^{CHEUNG KAM MAN S2683386H Director}

^{Appointed on: 24/08/2005}

^{Street: 370C ALEXANDRA ROAD}

^#04-02

^{ANCHORAGE CONDOMINIUM}

^{Town: SINGAPORE}

^{Postcode: 159956}

^{Country: Singapore}

^{WEE ENG LOK DARRYL S6839349C Director}

^{Appointed on: 05/10/2005}

^{Street: 732 BEDOK RESERVOIR ROAD}

^#02-5126

^{WATERFRONT VIEW}

^{Town: SINGAPORE}

^{Postcode: 470732}

^{Country: Singapore}

ACTIVITY(IES)

^{SEMICONDUCTOR DEVICES Code:19130}

^{ELECTRONIC EQUIPMENT And SUPPLIES - WHSLE And MFRS Code:7640}

^{IMPORTERS And EXPORTERS Code:11760}

^{BASED ON ACRA'S RECORD AS AT 27/02/2007}

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

CHARGES

^{Date: 08/08/2003}

^{Comments: CHARGE NO: C200303857}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): OVERSEA-CHINESE BANKING CORPORATION LIMITED}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{OVERSEA-CHINESE BANKING CORPORATION LIMITED}

SHAREHOLDERS(S)

^{AGILENT TECHNOLOGIES EUROPE B.V. 1,500,000 Company}

^{Street: STARTBAAN 16,}

^{1187 XR AMSTELVEEN}

^{Town: -}

^{Postcode: -}

^{Country: Netherlands}

HOLDING COMPANY

^{AGILENT TECHNOLOGIES EUROPE B.V. UF25041Z %: 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)

No Litigation In Our Database

FINANCIAL ELEMENTS

^{All amounts in this report are in: USD unless otherwise stated}

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

^{Date Account Lodged: 28/07/2006}

^{Balance Sheet Date: 31/10/2005 31/10/2004 31/10/2003}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 4,541,000 4,340,000 4,315,000}

^{Total Fixed Assets: 4,541,000 4,340,000 4,315,000}

^{Inventories: 66,330,000 63,467,000 50,712,000}

^{Receivables: 268,527,000 292,602,000 279,310,000}

^{Cash,Banks,Securities: 10,913,000 23,325,000 15,279,000}

^{Other current assets: 222,165,000 203,106,000 45,207,000}

^{Total Current Assets: 567,935,000 582,500,000 390,508,000}

^{TOTAL ASSETS: 572,476,000 586,840,000 394,823,000}

^{--- LIABILITIES}

^{Equity capital: 824,000 824,000 824,000}

^{Profit & loss Account: 75,396,000 56,892,000 41,511,000}

^{Surplus equity: 3,897,000 3,897,000 3,897,000}

^{Total Equity: 80,117,000 61,613,000 46,232,000}

^{L/T deferred taxes: 608,000 643,000 272,000}

^{Total L/T Liabilities: 608,000 643,000 272,000}

^{Trade Creditors: 389,931,000 432,011,000 258,997,000}

^{Prepay. & Def. charges: 18,611,000 20,063,000 -}

^{Advanced payments: 2,719,000 4,800,000 13,106,000}

^{Due to Bank: - - 19,390,000}

^{Provisions: 3,211,000 2,419,000 4,264,000}

^{Other Short term Liab.: 77,279,000 65,291,000 52,562,000}

^{Total short term Liab.: 491,751,000 524,584,000 348,319,000}

^{TOTAL LIABILITIES: 492,359,000 525,227,000 348,591,000}

PROFIT & LOSS ACCOUNT

^{Net Sales 2,028,279,000 2,149,040,000 1,561,006,000}

^{Purchases, Sces & Other Goods: 1,759,339,000 1,942,424 -}

^{Gross Profit: 268,940,000 206,616,000 192,119,000}

^{Result of ordinary operations 18,768,000 19,219,000 39,042,000}

^{NET RESULT BEFORE TAX: 21,906,000 19,781,000 38,638,000}

^{Tax: 3,402,000 4,400,000 5,277,000}

^{Net income/loss year: 18,504,000 15,381,000 33,361,000}

^{Interest Paid: - 117,000 547,000}

^{Depreciation: 1,960,000 2,212,000 3,338,000}

^{Dividends: - - 27,000,000}

^{Directors Emoluments: 779,000 422,000 180,000}

^{Wages and Salaries: 35,215,000 34,134,000 35,085,000}

^{Financial Income: 162,000 31,000 54,000}

RATIOS

^{31/10/2005 31/10/2004 31/10/2003}

^{Turnover per employee: 3330507.39 3528801.31 2563228.24}

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

^{Stock / Turnover(%): 0.03 0.03 0.03}

^{Net Margin(%): 0.91 0.72 2.14}

^{Return on Equity(%): 23.10 24.96 72.16}

^{Return on Assets(%): 3.23 2.62 8.45}

^{Dividends Coverage: - - 1.24}

^{Net Working capital: 76184000.00 57916000.00 42189000.00}

^{Cash Ratio: 0.02 0.04 0.04}

^{Quick Ratio: 0.57 0.60 0.85}

^{Current ratio: 1.15 1.11 1.12}

^{Receivables Turnover: 47.66 49.02 64.41}

^{Leverage Ratio: 6.15 8.52 7.54}

^{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}

^{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 30.03% FROM USD61,613,000 IN 2004 TO USD80,117,000 IN 2005.}

^{THIS WAS DUE TO HIGHER RETAINED EARNINGS OF USD75,396,000 (2004: USD56,892,000); A RISE OF 32.52% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 79.29% (2004: 82.35%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO USD389,931,000 (2004: USD432,011,000).}

^{SUBJECT'S LONG TERM LIABILITIES, WHICH CONSISTS OF DEFERRED TAX LIABILITIES, FELL BY 5.44% TO USD608,000 (2004: USD643,000).}

^{IN ALL, LEVERAGE RATIO FELL FROM 8.52 TIMES TO 6.15 TIMES AS A RESULT OF A RISE IN TOTAL EQUITY AND A FALL IN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL BY 31.54% TO USD76,184,000 (2004: USD57,916,000).}

^{CURRENT RATIO ROSE TO 1.15 TIMES, UP FROM 1.11 TIMES BUT QUICK RATIO DECREASED TO 0.57 TIMES FROM 0.60 TIMES IN 2004.}

^{HOWEVER, CASH AND CASH EQUIVALENTS FELL BY 53.21% TO USD10,913,000 (2004: USD23,325,000).}

^{PROFITABILITY:}

^{REVENUE POSTED A DECREASE OF 5.62% FROM USD2,149,040,000 IN 2004 TO USD2,028,279,000 BUT NET PROFIT ROSE BY 20.30% TO USD18,504,000}

^{(2004: USD15,381,000).}

^{THIS COULD BE DUE TO HIGHER GROSS MARGIN OF 13.26% IN 2005 (2004: 9.61%).}

^{HENCE, NET MARGIN ROSE TO 0.91% (2004: 0.72%).}

^{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, SUBJECT DID NOT INCUR ANY INTEREST EXPENSE DURING THE FINANCIAL YEAR UNDER REVIEW.}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CAPITAL COMMITMENTS}

^{COMMITMENTS FOR THE ACQUISITION OF PLANT AND EQUIPMENT NOT PROVIDED FOR IN THE FINANCIAL STATEMENTS:}

^{EXPENDITURE CONTRACTED FOR - 2005: USD62,000 (2004: - )}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 13/08/1999 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "AGILENT TECHNOLOGIES SINGAPORE (SALES) PTE LTD".}

^{AS AT 27/02/2007, THE COMPANY HAS A ISSUED AND PAID-UP CAPITAL OF 1,500,000 SHARES OF A VALUE OF S$1,500,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES CONSIST OF DISTRIBUTING SEMICONDUCTOR PRODUCTS AND ELECTRONIC EQUIPMENT FOR MEASUREMENT AND CHEMICAL ANALYSIS PRODUCED BY AGILENT TECHNOLOGIES GROUP OF COMPANIES AS WELL AS OTHER SERVICES SUCH AS SYSTEM INTEGRATION, MAINTENANCE AND TRAINING.}

^{FROM THE RESEARCH DONE, SUBJECT PROVIDES REPAIR AND CALIBRATION OF TEST AND MEASUREMENT PRODUCTS, TRAINING AND EDUCATION, CONSULTING ON TEST AND MEASUREMENT PRODUCTS.}

^{PRODUCTS/SERVICES:}

^{*INSTRUMENTS & SYSTEMS}

^{-CAPILLARY ELECTROPHORESIS}

^{-DNA MICROARRAYS}

^{-GAS CHROMATOGRAPHY}

^-ICP-MS

^{-LAB-ON-A-CHIP PRODUCTS}

^{-LIQUID CHROMATOGRAPHY}

^{-MASS SPECTROMETRY}

^{-UV-VISIBLE SPECTROSCOPY}

^{*CONSUMABLES & PARTS}

^{-COLUMNS-GENERAL CHROMATOGRAPHY}

^{-INSTRUMENT PARTS & SUPPLIES}

^{-AGILENT REAGENT KITS, BUFFERS AND STANDARDS}

^{-SAMPLE PREPARATION}

^{*INFORMATICS & SOFTWARE}

^{-ANALYTICAL WORKSTATIONS}

^{-CHROMATOGRAPHIC DATA SYSTEMS}

^{-CONTENT MANAGEMENT}

^{-LAB INFORMATICS FRAMEWORK}

^{-LAB INFORMATICS MANAGEMENT}

^{-LIFE SCIENCES INFORMATICS}

^{SUBJECT IS A MEMEBR OF THE FOLLOWING ENTITY:}

^{*SINGAPORE INTERNATIONAL CHAMBER OF COMMERCE}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED ON 02/03/2007.}

^{THE COMPANY'S IMMEDIATE HOLDING CORPORATION IS AGILENT TECHNOLGY EUROPE B.V, INCORPORATED IN THE NETHERLANDS. THE ULTIMATE HOLDING COMPANY IS AGILENT TECHNOLGIES INC, INCORPORATED IN THE UNITED STATES OF AMERCIA.}

^{NUMBER OF EMPLOYEES (31 OCTOBER):}

^{*COMPANY - 2005: 609 (2004: 704; 2003: 745)}

^{REGISTERED ADDRESS:}

^{9 TEMASEK BOULEVARD}

^#09-03

^{SUNTEC CITY TOWER 2}

^{SINGAPORE 038989}

^{DATE OF CHANGE OF ADDRESS: 01/10/2000}

^{BUSINESS ADDRESS:}

^{1 YISHUN AVENUE 7}

^#01-00

^{SINGAPORE 768923}

^{- RENTED PREMISE}

^{- OWNED BY: AGILENT TECHNOLOGIES SINGAPORE PTE LTD}

^WEBSITE:

^{www.agilent.com/chem/sg}

^EMAIL:

^{jennifer-gm_ng@agilent.com}

MANAGEMENT

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

^{1) GOOI SOON CHAI, A MALAYSIAN}

^{- BASED IN MALAYSIA.}

^{2) ROBIN JAY YOUNG, A CANADIAN}

^{- BASED IN MALAYSIA.}

^{3) YANG ENG HUAT, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIP(S) IN:}

^{AGILENT TECHNOLOGIES SINGAPORE (HOLDINGS) PTE. LTD.}

^{4) CHEUNG KAM MAN, A SINGAPOREN PERMANENT RESIDENT}

^{- HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.}

^{5) WEE ENG LOK DARRYL, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIP(S) IN:}

^{AGILENT TECHNOLOGIES SINGAPORE PTE LTD}

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.

OVERVIEW OF SINGAPORE

^{PAST PERFORMANCE}

^{SINGAPORE'S ECONOMIC GROWTH MODERATED IN THE SECOND QUARTER TO 7.5% YEAR-ON-YEAR DUE TO A WEAKER MANUFACTURING SECTOR. PRELIMINARY ESTIMATES ISSUED SHOWN GROWTH IN REAL GROSS DOMESTIC PRODUCT SLOWED FROM A REVISED 10.7% IN THE FIRST QUARTER. ON A QUARTER-ON-QUARTER BASIS, SEASONALLY ADJUSTED ANNUALISED BASIS, GDP GREW 1.1% AFTER A 7% EXPANSION IN THE PREVIOUS QUARTER.}

^{THE MANUFACTURING SECTOR IS FORECASTED TO HAVE EXPANDED BY A MORE MODERATE 10.2% IN THE SECOND QUARTER, MAINLY ATTRIBUTED TO LOWER PRODUCTION FROM THE BIOMEDICAL MANUFACTURING CLUSTER. IT FELL BY ABOUT HALF FROM THE 20.2% IN THE FIRST QUARTER BUT HIGHER THAN THE 9.3% REGISTERED FOR THE WHOLE OF 2005. THE MANUFACTURING SECTOR ACCOUNTS FOR ABOUT A THIRD OF SINGAPORE'S ECONOMY WORTH S$194 BILLION.}

^{THE KEY ELECTRONICS SECTOR IN MANUFACTURING IS GROWING STRONGLY, AGAINST THE VOLATILE BIOMEDICAL SEGMENT. ELECTRONICS ARE SINGAPORE'S MAIN EXPORT AND THE INDUSTRY ROSE 8.6% YEAR-ON-YEAR IN MAY, BOOSTED BY A 38.9% GROWTH IN THE SEMICONDUCTOR SEGMENT.}

^{THE ACTUAL FIGURES SHOWN THAT THE CONSTRUCTION SECTOR GREW 0.2% IN THE SECOND QUARTER OVER 2Q2005. THIS IS IN CONTRAST WITH A 0.8% DECLINE IN THE TWO PRECEDING QUARTERS AND DECLINES IN THE SIX QUARTERS BEFORE THAT.}

^{THE SERVICES SECTOR ACTUALLY ROSE 7% FROM A YEAR EARLIER, SLOWER THAN THE 8.2% IN THE FIRST QUARTER BUT ABOVE THE 6% RECORDED IN 2Q2005. SERVICES INDUSTRIES, WHICH RANGE FROM HOSPITALITY TO TRANSPORT, MADE UP NEARLY TWO-THIRDS OF THE ECONOMY LAST YEAR. THOSE IN FINANCIAL SERVICES, PARTICULARLY BANKERS, FUND MANAGERS AND STOCKBROKERS, REPORTED STRONG GROWTH OF 9.5% FROM THE SAME PERIOD LAST YEAR AND UP FROM 8.7% IN THE PREVIOUS QUARTER. WHOLESALE AND RETAIL TRADE ROSE 10.1% IN THE SECOND QUARTER, AGAINST 15.1% IN THE PREVIOUS QUARTER, AS WHOLESALERS WERE AFFECTED BY A SLOWDOWN IN NON-OIL RE-EXPORTS.}

^{HOTELS AND RESTAURANTS GAINED 6.1% IN THE SECOND QUARTER SLOWER THAN 7.1% IN THE LAST QUARTER.}

^{ON THE EMPLOYMENT MARKET, MORE JOBS WERE CREATED IN THE SECOND QUARTER BUT UNEMPLOYMENT ROSE TO 2.9% AS MORE PEOPLE, ESPECIALLY TERTIARY GRADUATES, ENTERED THE JOB MARKET. SOME 36,500 MORE JOBS WERE CREATED IN THE SECOND QUARTER, REFLECTING THE CONTINUED GROWTH IN THE ECONOMY. IT BROUGHT THE TOTAL NUMBER OF JOBS CREATED IN THE FIRST HALF OF 2006 TO A RECORD 81,500, WHICH IS ABOUT TWO-THIRDS MORE THAN THE 49,500 REGISTERED IN THE SAME PERIOD LAST YEAR.}

^{THE SERVICE INDUSTRY CONTRIBUTED MOSTLY TO THE JOBS CREATION, ADDING 24,200 JOBS, WHILE MANUFACTURING AND CONSTRUCTION POSTED INCREASE OF 8,300 AND 4,000 JOBS RESPECTIVELY.}

^{RETRENCHED WORKERS TOTAL 3,100, LOWER THAN THE 3,500 IN THE FIRST QUARTER, BUT HIGHER THAN THE 2,100 IN 2Q2005.}

^AHEAD

^{THE OUTLOOK FOR THE ECONOMY REMAINS POSITIVE, AMID SIGNS OF A SLOWDOWN IN GLOBAL GROWTH. ON 8 AUGUST 2006, PRIME MINISTER LEE HISEN LOONG ANNOUNCED THAT THE SINGAPORE ECONOMY GREW 9.4% IN THE FIRST HALF OF 2005. AS A RESULT, BARRING AN OIL SHOCK, THE FULL YEAR OFFICIAL FORECAST IS BEING RAISED TO BETWEEN 6.5% AND 7.5% FOR 2006, UP FROM THE EARLIER 5 TO 7% RANGE.}

^{IN THE SECOND HALF, MODERATE GROWTH WILL BE REGISTERED IN LINE WITH THE COOLING GLOBAL ECONOMY. BUT SURPRISINGLY, THE COMPOSITE LEADING INDEX (CLI), AN INDICATOR THAT LEADS ECONOMIC ACTIVITY BY ABOUT ONE TO TWO QUARTERS AHEAD, ROSE 1.5% IN ITS FASTEST GROWTH IN OVER TWO YEARS. CLI COMPRISES NINE COMPONENTS SUCH AS MONEY SUPPLY, LIQUIDITY AND STOCK PRICES.}

^{THE GLOBAL ENERGY PRICES WILL CONTINUE TO FLUCTUATE WITH THE VIOLENCE IN THE MIDDLE EAST AND POTENTIAL SUPPLY PROBLEMS IN NIGERIA, IRAN AND IRAQ. OTHER RISK FACTORS INCLUDE AN AVIAN FLU OUTBREAK, A SLOWDOWN IN THE UNITED STATES ECONOMY, AND THE UNWINDING OF GLOBAL IMBALANCES SUCH AS THE US TRADE DEFICIT.}

^{HOTELS AND RESTAURANTS ARE BANKING ON SEPTEMBER'S INTERNATIONAL MONETARY FUND/WORLD BANK MEETING TO MAINTAIN THE GROWTH MOMENTUM.}

^{THE FINANCIAL SERVICES SECTOR IS HOPEFUL THAT WITH THE PICK-UP IN BUSINESS LOANS, BILLION-DOLLAR HEDGE FUNDS RELOCATING HERE FROM HONG KONG AND STRONG INSURANCE SALES, THE INDUSTRY WILL BE GROWING ROBUSTLY FOR THE REST OF THE YEAR.}

^{SLOWER 8.4% GROWTH IN NON-OIL EXPORTS LAST MONTH}

^{SINGAPORE'S NON-OIL DOMESTIC EXPORTS (NODX) GREW AT A SLOWER-THAN-EXPECTED 8.4% IN JULY 2006 OVER THE SAME MONTH A YEAR AGO, MAINLY DUE TO WEAKER SHIPMENTS OF ELECTRONICS, PHARMACEUTICALS AND PETROCHEMICALS.}

^{ELECTRONICS EXPORTS, WHICH ACCOUNTED FOR SLIGHTLY LESS THAN HALF OF OVERALL NODX IN 2005, GREW 5% IN JULY TO S$6.62 BILLION. IT WAS THE 12TH STRAIGHT MONTH OF EXPANSION BUT WEAKER THAN THE 9.1% GROWTH REGISTERED IN JUNE. IT WAS HURT BY A 23% FELL IN DISK DRIVE EXPORTS, WHICH WAS BEING VALUED AT S$843 MILLION IN JULY, AND A 21% DECLINE IN PERSONAL COMPUTER SHIPMENTS VALUED AT S$86 MILLION.}

^{NON-ELECTRONIC EXPORTS, WHICH CONSIST MAINLY OF PHARMACEUTICALS AND PETROCHEMICALS, ROSE 11.7% TO S$7.14 BILLION. PHARMACEUTICALS ROSE 7.1% TO S$1.27 BILLION IN JULY, SIGNIFICANTLY SLOWER THAN THE JUNE'S RISE OF 25% TO S$1.45 BILLION. PETROCHEMICAL EXPORTS ROSE 11.5% TO S$1.02 BILLION, IN COMPARISON WITH THE 32% GROWTH IN JUNE TO S$1.1 BILLION.}

^{SHIPMENTS TO SINGAPORE'S MAJOR MARKETS SUCH AS MALAYSIA, HONG KONG AND THE UNITED STATES GREW IN JULY BUT THESE WERE OFFSET BY DECLINES IN OTHER DESTINATIONS, INCLUDING JAPAN, CHINA AND EUROPEAN UNION.}

^{TOTAL TRADE IN JULY ROSE 15.9% TO ALMOST S$69 BILLION.}

^{REGIONAL ECONOMIST SONG SENG WUN OF CIMB-GK RESEARCH PREDICTED THAT THE TECHNOLOGY SECTOR COULD ENJOY A REBOUND IN THE COMING MONTHS AS DEMAND TYPICALLY PICK UP WITH THE CHRISTMAS SEASON. THE TECHNOLOGY EXPORTS WILL GROW BY THE LOW-TO-MID TEENS RANGE AS THE DISK DRIVE EXPORTS IMPROVE.}

^{EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE}

^{IE SINGAPORE}

^{THE STRAITS TIMES}

^TODAY

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
NR		In view of the lack of information, we have no basis upon which to recommend credit dealings	No Rating

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors and their relative weights (as indicated through %) are as follows:

Financial condition (40%) Ownership background (20%) Payment record (10%)

Credit history (10%) Market trend (10%) Operational size (10%)

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