MIRA INFORM REPORT

Report Date :

31.03.2007

IDENTIFICATION DETAILS

Name :	KIAN MIN EXPRESS TRANSPORT PTE LTD

Registered Office :	^{150 South Bridge Road, #01-21, Fook Hai Building, Singapore -058727}

Country :	Singapore

Financials (as on) :	31.12.2005

Date of Incorporation :	^12/01/1994

Com. Reg. No.:	^199400271G

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Air and Sea Chartered Cargo Agents, Air Courier and Clearing Agents

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 :	Satisfactory

Payment Behaviour :	Usually correct

Litigation :	Clear

Subject Company

KIAN MIN EXPRESS TRANSPORT PTE LTD

Line Of Business

AIR AND SEA CHARTERED CARGO AGENTS, AIR COURIER AND CLEARING AGENTS

Parent Company

Financial Elements

FY 2005

COMPANY

Sales : S$12,629,839

Networth : S$268,634

Paid-Up Capital : S$200,000

Net result : S$-120,595

Net Margin(%) : -0.95

Return on Equity(%) : -44.89

Leverage Ratio : 2.16

Rating

Credit Rating : Sing $ 100001 to Sing $ 300000

COMPANY IDENTIFICATION

^{Subject Company: KIAN MIN
EXPRESS TRANSPORT PTE LTD}

^{Former Name: -}

^{Business Address: 150 SOUTH BRIDGE ROAD}

^#01-21

^{FOOK
HAI BUILDING}

^{Town: SINGAPORE}

^{Postcode:
058727}

^{County: -}

^{Country: Singapore}

^{Telephone: 6533
5522}

^{Fax: 6534
3907}

^{ROC Number: 199400271G}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Exempt
Pte Ltd}

^{Date Inc.: 12/01/1994}

^{Previous Legal Form: -}

^{Summary year: 31/12/2005}

^{Sales: 12,629,839}

^{Net worth: 268,634}

^{Capital: 200,000}

^{Paid-Up Capital: 200,000}

^{Employees: Not
Available}

^{Net result: -120,595}

^{Share value: 1}

^{Auditor: K
Y CHIK & ASSOCIATES}

REFERENCES

^{Litigation: Yes}

^{Company status: TRADING}

^{Started: 12/01/1994}

PRINCIPAL(S)

^{LOH TAI MIN S0081588H Director}

DIRECTOR(S)

^{LOH TAI MIN S0081588H Director}

^{Appointed on: 12/01/1994}

^{Street:
192 OCEAN DRIVE}

^{Town: SINGAPORE}

^{Postcode: 098611}

^{Country: Singapore}

^{CHOO MEE KUEN S1541232A Director}

^{Appointed on: 12/01/1994}

^{Street: 192
OCEAN DRIVE}

^{Town:
SINGAPORE}

^{Postcode: 098611}

^{Country: Singapore}

^{CHOO MEE KUEN S1541232A Company Secretary}

^{Appointed on: 30/06/2003}

^{Street: 192 OCEAN DRIVE}

^{Town: SINGAPORE}

^{Postcode: 098611}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{TAN MUI HUA S0712286A}

ACTIVITY(IES)

^{FREIGHT FORWARDING Code:9640}

^{AIR CARGO SERVICE Code:380}

^{TRANSPORT AGENTS Code:22295}

^{BASED ON ACRA'S RECORD AS AT 27/03/2007}

^{1) SERVICES ALLIED TO TRANSPORT OF GOODS NEC}

^{2) FREIGHT FORWARDING, PACKING AND CRATING
SERVICES;}

CHARGES

^{Date:
15/03/2007}

^{Comments:
CHARGE NO:
C200702038}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE:
CITIBANK SINGAPORE LTD}

^{Date:
19/05/2005}

^{Comments:
CHARGE NO:
C200502883}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE:
CITIBANK SINGAPORE LTD}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{STANDARD CHARTERED BANK}

^{CITIBANK N.A.}

SHAREHOLDERS(S)

^{LOH TAI MIN 150,000 Private
Person}

^{Street: 192 OCEAN DRIVE}

^{Town: SINGAPORE}

^{Postcode: 098611}

^{Country: Singapore}

^{CHOO MEE KUEN 50,000 Private Person}

^{Street: 192 OCEAN DRIVE}

^{Town: SINGAPORE}

^{Postcode: 098611}

^{Country: Singapore}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

^{Liquidity: SUFFICIENT}

^{Payments: REGULAR}

^{Trend: DOWNWARD}

^{Financial Situation: AVERAGE}

LITIGATION(S)

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

^{Case Number: MCS37762/2002}

Defendant KIAN MIN EXPRESS TRANSPORT PTE LT ROC #: 199400271G

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 01/07/2006}

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

^{Number of weeks: 52 52 44}

^{Consolidation Code: COMPANY COMPANY
COMPANY}

^{--- ASSETS}

^{Tangible Fixed
Assets: 80,360 142,642 213,228}

^{Total Fixed Assets}^{: 80,360 142,642
213,228}

^{Receivables: 238,093 210,127
302,615}

^{Cash,Banks,Securities: 513,852 334,962
207,046}

^{Other current assets: 17,363 14,200 9,750}

^{Total Current Assets}^{: 769,308 559,289
519,411}

^{TOTAL
ASSETS: 849,668 701,931 732,639}

^{---
LIABILITIES}

^{Equity capital: 200,000 200,000 200,000}

^{Profit & loss
Account: 68,634 189,229 158,362}

^{Total Equity: 268,634 389,229 358,362}

^{L/T deferred taxes: 2,200 3,400 3,500}

^{Other long term
Liab.: 12,344 21,640 40,994}

^{Total L/T Liabilities}^{: 14,544 25,040 44,494}

^{Trade Creditors: 449,740 123,718 205,277}

^{Prepay.
& Def. charges: 100,000 130,000 -}

^{Short term
liabilities: 9,296 19,354 24,765}

^{Provisions: - 11,700 30,700}

^{Other Short term
Liab.: 7,454 2,890 69,041}

^{Total short term Liab}^{.: 566,490 287,662
329,783}

^{TOTAL LIABILITIES: 581,034 312,702
374,277}

PROFIT & LOSS ACCOUNT

^{Net Sales 12,629,839 2,292,820 2,357,698}

^{Result of ordinary
operations - 48,535 -47,804}

^{NET RESULT BEFORE
TAX: -121,851 42,279 -55,724}

^{Tax: -1,256 11,412 4,270}

^{Net income/loss year: -120,595 30,867
-59,994}

^{Interest Paid: 4,304 6,256 7,920}

^{Depreciation: 68,497 70,586 85,962}

^{Directors Emoluments: 229,330 272,380 143,930}

^{Wages and Salaries: 293,490 267,188 -}

RATIOS

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

^{Net result /
Turnover(%): -0.01 0.01 -0.03}

^{Net Margin(%): -0.95 1.35 -2.54}

^{Return on Equity(%): -44.89 7.93
-16.74}

^{Return on Assets(%): -14.19 4.40 -8.19}

^{Net Working capital: 202818.00 271627.00
189628.00}

^{Cash Ratio: 0.91 1.16 0.63}

^{Quick Ratio: 1.33 1.89 1.55}

^{Current ratio: 1.36 1.94 1.58}

^{Receivables Turnover: 6.79 32.99 46.21}

^{Leverage Ratio: 2.16 0.80 1.04}

^{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}

^{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 LIMITED TO FAIR} ^{IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE
EVEN THOUGH NET WORTH FELL} ^{BY 30.98% FROM S$389,229 IN 2004 TO S$268,634 IN 2005.}

^{THIS WAS DUE TO LOWER RETAINED PROFITS OF
S$68,634 (2004: S$189,229);} ^{A FALL OF 63.73% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY
FINANCED BY TRADE CREDITORS} ^{WHICH MADE UP 79.39% (2004: 43.01%) OF THE TOTAL CURRENT
LIABILITIES} ^{AND AMOUNTED TO S$449,740 (2004: S$123,718).}

^{SUBJECT INCURRED LONG TERM LIABILTIES, WHICH
FELL BY 41.92% TO} ^{S$14,544 IN 2005 (2004: S$25,040), AND CONSIST OF THE FOLLOWING:}

^{-FINANCE LEASES - 2005: S$12,344 (2004:
S$21,640)}

^{-DEFERRED TAXATION - 2005: S$2,200 (2004:
S$3,400)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 0.80 TIMES
TO 2.16 TIMES AS A} ^{RESULT OF A FALL IN TOTAL EQUITY AND A RISE IN TOTAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS
PASSABLE EVEN THOUGH} ^{NET WORKING CAPITAL FELL BY 25.33% TO S$202,818 IN 2005} ^{(2004:
S$271,627).}

^{CURRENT RATIO FELL TO 1.36 TIMES, DOWN FROM
1.94 TIMES AND} ^{QUICK RATIO
DECREASED TO 1.33 TIMES FROM 1.89 TIMES IN 2004.}

^{HOWEVER, CASH AND CASH EQUIVALENTS ROSE BY
53.41% TO S$513,852 IN} ^{2005 (2004: S$334,962).}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 4.51 TIMES FROM
S$2,292,820 IN 2004 TO} ^{S$12,629,839 BUT SUBJECT SUFFERED A NET LOSS OF S$120,595 IN 2005,} ^{AS COMPARED TO THE NET PROFIT OF S$30,867 IN 2004.}

^{THIS COULD BE DUE TO THE DEEMED FORWARDING
EXPENSES, WHICH AMOUNTED} ^{TO S$10,398,782 IN 2005 (2004: - ), AND THE INCREASE IN OTHER} ^{OPERATING EXPENSES BY 14.70% TO S$217,920 (2004: S$189,999).}

^{HENCE, NET MARGIN FELL INTO NEGATIVE REGION
OF 0.95%, AS COMPARED TO} ^{THE POSITIVE NET MARGIN OF 1.35% IN 2004.}

^REVENUE:

^{-DEEMED SALES - 2005: S$10,398,782 (2004: - )}

^{-SERVICE INCOME - 2005: S$2,231,057 (2004:
S$2,292,820)}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT BE EXPECTED IF
REVENUE AND EARNINGS} ^{CANNOT BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE NOT
FORTHCOMING.} ^{IN ADDITION, ITS INTEREST COVERAGE WAS INADEQUATE AS
SHOWN BY ITS} ^{NEGATIVE INTEREST COVERAGE RATIO OF 27.31 TIMES IN
2005, AS COMPARED} ^{TO ITS POSITIVE INTEREST COVERAGE RATIO OF 7.76
TIMES IN 2004.}

^{NOTES TO THE
FINANCIAL STATEMENTS:}

^{CONTINGENT
LIABILITIES}

^{AS AT BALANCE SHEET DATE, THE COMPANY HAS
BANKER'S GUARANTEE} ^{AMOUNTING TO S$80,000 (2004: S$80,000) IN FAVOUR OF THIRD PARTIES.}

^{LIMITED EXEMPT PRIVATE COMPANY:}

^{WHERE THE SHARES OF A PRIVATE COMPANY ARE NOT
OWNED BY ANY CORPORATE} ^{BODY AND THERE ARE NO MORE THAN 20 MEMBERS, THE PRIVATE COMPANY} ^{IS KNOWN AS AN EXEMPT PRIVATE COMPANY.}

^{AN EXEMPT PRIVATE COMPANY ENJOYS A GREATER
AMOUNT OF PRIVACY THAN A} ^{PRIVATE COMPANY. IT IS NOT REQUIRED TO FILE ACCOUNTS WITH THE} ^{REGISTRAR IF IT CAN PRODUCE A CERTIFICATE SIGNED BY ONE OF ITS} ^{DIRECTORS,
SECRETARY AND AUDITOR CONFIRMING THE FOLLOWING POINTS:}

^{1. THE COMPANY IS AN EXEMPT PRIVATE COMPANY.}

^{2. THE AUDITED ACCOUNTS HAVE BEEN TABLED
BEFORE THE SHAREHOLDERS} ^{AT THE ANNUAL}

^{GENERAL MEETING.}

^{3. THE COMPANY IS ABLE TO MEET ITS
LIABILITIES.}

^{THERE IS THEREFORE NO DISCLOSURE TO THE PUBLIC
OF THE ACCOUNTS} ^{OF THE
COMPANY ALTHOUGH THE ACCOUNTS STILL HAVE TO BE AUDITED} ^{EVERY YEAR
AND APPROVED AT AN ANNUAL GENERAL MEETING OF THE} ^COMPANY.

^{A PRIVATE COMPANY THAT IS WHOLLY OWNED BY THE
GOVERNMENT MAY} ^{BECOME AN
EXEMPT PRIVATE COMPANY IF THE MINISTER FOR FINANCE, IN THE} ^{NATIONAL
INTEREST, DECLARES IT TO BE SUCH BY A GAZETTE NOTIFICATION.}

^{EXEMPT FROM AUDIT}

^{AN EXEMPT PRIVATE COMPANY IS EXEMPT FROM
AUDIT REQUIREMENTS IF THE} ^{STARTING DATE OF ITS FINANCIAL YEAR IS BETWEEN 15 MAY 2003 AND 31
MAY} ^{2004 AND ITS TURNOVER FOR THAT FINANCIAL YEAR DOES NOT EXCEED
$2.5} ^{MILLION. FOR FINANCIAL YEARS STARTING 1 JUNE 2004, THE AMOUNT
OF THE} ^{TURNOVER HAS BEEN RAISED TO $5 MILLION. THESE COMPANIES ARE
STILL} ^{REQUIRED TO MAINTAIN PROPER ACCOUNTING.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC
OF SINGAPORE ON} ^{12/01/1994
AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER} ^{THE PRESENT
NAMESTYLE OF "KIAN MIN EXPRESS TRANSPORT PTE LTD".}

^{AS AT 27/03/2007, THE COMPANY HAS AN ISSUED AND
PAID-UP CAPITAL OF} ^{200,000 SHARES, OF A VALUE OF S$200,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) SERVICES ALLIED TO TRANSPORT OF GOODS NEC}

^{2) FREIGHT FORWARDING, PACKING AND CRATING
SERVICES;} ^{AIR/SEA
CARGO SERVICES}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW,
THE PRINCIPAL ACTIVITIES} ^{OF THE COMPANY ARE TO CARRY ON THE BUSINESS AS AIR AND SEA
CHARTERED} ^{CARGO AGENTS, AIR COURIER AND CLEARING AGENTS.}

^{FROM THE RESEARCH DONE, THE FOLLOWING
INFORMATION WAS GATHERED:}

^ACTIVITIES

^{- AIR AND SEA FREIGHT TRANSPORTATION SERVICES}

^{PRODUCTS AND SERVICES}

^{- COURIER SERVICE}

^{- LORRY TRANSPORT SERVICE}

^{- TRANSPORT AGENTS}

^{- AIR CARGO AGENTS}

^{MARKET PRESENCE}

^{- SINGAPORE, INDONESIA, LAOS AND CAMBODIA}

^{ACCORDING AN EARLIER TELE-INTERVIEW CONDUCTED
ON 12/10/2006, THE} ^{FOLLOWING INFORMATION WAS GATHERED:}

^ACTIVIITIES

^{- AIR AND SEA FREIGHT SERVICES}

^{SUBJECT'S PERSONNEL CONFIRMED THE BUSINESS
ADDRESSES AND CONTACT} ^{NUMBERS OF THE COMPANY, BUT DECLINED TO REVEAL MORE INFORMATION,
HENC} ^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE VIA THE
TELE-INTERVIEW.}

^{NUMBER OF EMPLOYEES (31 DECEMBER)}

^{- COMPANY - 2005: NOT AVAILABLE (2004: NOT
AVAILABLE)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{150 SOUTH BRIDGE ROAD}

^{#01-21 FOOK HAI BUILDING}

^{SINGAPORE 058727}

^{DATE OF CHANGE OF ADDRESS: -}

^{- RENTED PREMISE}

^{- OWNED BY: LOH TAI MIN (DIRECTOR/
SHAREHOLDER)}

^{-- OFFICE}

^{OTHER BUSINESS ADDRESS:}

^{150 SOUTH BRIDGE ROAD}

^{#01-15/20 FOOK HAI BUILDING}

^{SINGAPORE 058727}

^{-- OFFICE}

^{163 PASIR PANJANG ROAD}

^#01-19

^{PASIR PANJANG DISTRIPARK}

^{SINGAPORE 118498}

^{-- WAREHOUSE}

^EMAIL:

^{kmepl@pacific.net.sg}

^WEBSITE:

^NIL

MANAGEMENT

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

^{(1)
LOH TAI MIN, A SINGAPOREAN}

^{- HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE:}

^{ROYAL COURIER & CARGO (S) PTE LTD}

^{(2)
CHOO MEE KUEN, A SINGAPOREAN}

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

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.

SERVICES SECTOR

^{PAST PERFORMANCE}

LARGELY REFLECTING VIGOUR IN THE KEY SECTORS OF THE ECONOMY, THE BUSINESS SERVICES SECTOR GREW BY 6.6 PER CENT IN THE FIRST QUARTER, COMPARED WITH THE 6.3 PER CENT EXPANSION IN THE PREVIOUS QUARTER. THE SECTOR WAS DRIVEN BY GROWTH IN IT-RELATED SERVICES, BUSINESS REPRESENTATIVE OFFICES, AND LEGAL AND ACCOUNTING SERVICES. THE REAL ESTATE SEGMENT WAS ALSO SPURRED BY CONTINUED STRENGTH IN THE LUXURY PROPERTY MARKET.

^{THE EXPANSION IN THE HOTELS AND RESTAURANTS
SECTOR GATHERED PACE TO REACH 7.3 PER CENT, UP FROM THE 6.2 PER CENT IN THE
PREVIOUS QUARTER. BOTH THE HOTELS AND RESTAURANTS SEGMENTS CONTINUED TO
IMPROVE.}

^{GROWTH OF THE WHOLESALE AND RETAIL TRADE
SECTOR STRENGTHENED TO 15 PER CENT IN THE FIRST QUARTER, FROM THE 12 PER CENT
EXPANSION IN THE LAST THREE MONTHS OF 2005. THIS CAME ON THE BACK OF FURTHER
GAINS IN NON-OIL REEXPORTS WHILE RETAIL SALES HELD UP.}

^{THE FINANCIAL SERVICES SECTOR RECORDED ITS
FIFTH STRAIGHT QUARTERLY GAIN IN THE FIRST QUARTER OF 2006. IT GREW BY 8.3 PER
CENT IN YEAR-ON-YEAR TERMS, PICKING UP FROM THE 7.4 PER CENT CLIP IN THE
PREVIOUS QUARTER. ON A SEASONALLY ADJUSTED QUARTER-ON-QUARTER ANNUALISED BASIS,
HOWEVER, THE SECTOR DECLINED BY 4.6 PER CENT, AFTER EXPANDING BY 11 PER CENT IN
THE FOURTH QUARTER LAST YEAR.}

^{THE TRANSPORT AND COMMUNICATIONS SECTOR GREW
BY 5.0 PER CENT IN THE FIRST QUARTER, SIMILAR TO THE 5.1 PER CENT GROWTH IN THE
PREVIOUS QUARTER. THE SEA SEGMENT SAW SOME SLOWDOWN IN ACTIVITY. CONTAINER
THROUGHPUT ROSE BY 4.3 PER CENT IN THE FIRST QUARTER, COMPARED TO THE 5.8 PER
CENT CLIP IN THE FOURTH QUARTER OF 2005. CORRESPONDINGLY, SEA CARGO GREW BY 1.8
PER CENT, LOWER THAN THE 4.1 PER CENT INCREASE IN THE LAST QUARTER.}

^{THE AIR SEGMENT, ON THE OTHER HAND,
ACCELERATED IN THE FIRST QUARTER. THE IMPROVEMENT WAS MAINLY DUE TO THE 11 PER
CENT INCREASE IN AIR PASSENGERS, DOUBLED THE 5.5 PER CENT GROWTH IN THE
PREVIOUS QUARTER. THERE WAS ALSO A SIGNIFICANT PICKUP IN AIR CARGO GROWTH, FROM
6.9 PER CENT A QUARTER AGO TO 9.0 PER CENT IN THE FIRST QUARTER.}

^{BUSINESS EXPECTATIONS FOR JULY - DECEMBER
2006}

^{BUSINESS SENTIMENTS IN THE OVERALL SERVICES
SECTOR HAVE ALSO IMPROVED. AN OVERALL NET BALANCE OF 25 PER CENT OF FIRMS IN
THE SERVICES SECTOR IS OPTIMISTIC ABOUT BUSINESS PROSPECTS FOR THE NEXT SIX
MONTHS ENDING SEPTEMBER 2006. THIS IS HIGHER THAN THE 18 PER CENT IN THE
PREVIOUS QUARTER AND THE 19 PER CENT RECORDED IN THE SAME PERIOD OF 2005.}

^{FIRMS IN THE SERVICE SECTOR ARE OPTIMISTIC
ABOUT PROSPECTS FOR THE REST OF THE YEAR, ESPECIALLY HOTELIERS AND REAL ESTATE
PLAYERS, ACCORDING TO A SURVEY BY THE DEPARTMENT OF STATISTICS (DOS).}

^{AN OVERALL NET BALANCE OF 25 PER CENT OF FIRMS
IN THE SERVICES SECTOR IS OPTIMISTIC ABOUT BUSINESS PROSPECTS FOR THE NEXT SIX
MONTHS. THIS IS HIGHER THAN THE 18 PER CENT IN THE PREVIOUS QUARTER AND THE 19
PER CENT RECORDED IN THE SAME PERIOD OF 2005. SERVICES SECTOR PLAYERS FROM
FINANCIAL SERVICES FIRMS TO WHOLESALERS REPORTED BULLISH SENTIMENTS ON THE
WHOLE.}

^{FIRMS IN THE REAL ESTATE INDUSTRY, ESPECIALLY
REAL ESTATE DEVELOPERS, ARE THE MOST BULLISH. OVERALL, A NET BALANCE OF 63 PER
CENT OF FIRMS EXPRESSES UPBEAT BUSINESS SENTIMENTS FOR THE PERIOD APRIL -
SEPTEMBER 2006.}

^{HOTELIERS ARE ALSO OPTIMISTIC, AMONG THEM, A
NET BALANCE OF 68 PER CENT ARE UPBEAT ABOUT THE JUNE-TO-DECEMBER PERIOD. THIS
IS IN ANTICIPATION OF HIGHER OCCUPANCY RATES AND BANQUET SALES RESULTING FROM
UPCOMING MAJOR EVENTS SUCH AS THE FOOD AND HOTEL ASIA (FHA) TRADE SHOW,
COMMUNICASIA 2006 AND THE INTERNATIONAL MONETARY FUND (IMF)-WORLD BANK MEETINGS
IN SEPTEMBER.}

^{IN FINANCIAL SERVICES, A NET BALANCE OF 51
PER CENT OF FIRMS FORESEES A MORE FAVOURABLE BUSINESS CLIMATE IN THE NEXT SIX
MONTHS. BANKS AND FINANCE COMPANIES, STOCK, SHARE AND BOND BROKERAGE FIRMS,
FUND MANAGEMENT COMPANIES AND INSURANCE COMPANIES PREDICT BETTER BUSINESS
AHEAD.}

^{LIKEWISE, IN WHOLESALE TRADE, A NET BALANCE
OF 14 PER CENT OF FIRMS EXPECTS BUSINESS TO IMPROVE. DEALERS OF ELECTRONICS
COMPONENTS, INDUSTRIAL MACHINERY AND EQUIPMENT, METALS AND GENERAL HARDWARE,
COSMETICS AND TOILETRIES, AND FURNITURE AND FURNISHINGS ARE AMONG THOSE
EXPRESSING POSITIVE SENTIMENTS.}

^{FIRMS IN THE RETAIL TRADE GENERALLY ALSO
FORESEE LOWER BUSINESS ACTIVITY, WITH A NET BALANCE OF 13 PER CENT OF RETAILERS
BEING LESS SANGUINE ABOUT THEIR BUSINESS OUTLOOK AHEAD. IN PARTICULAR,
DEPARTMENT STORES AND SUPERMARKETS AS WELL AS RETAILERS OF WEARING APPAREL, AND
WATCHES AND CLOCKS ANTICIPATE BUSINESS TO BE SLOWER. IN THE TRANSPORT AND
COMMUNICATIONS INDUSTRY, A NET BALANCE OF 8 PER CENT OF FIRMS FORECASTS AN
INCREASE IN BUSINESS ACTIVITY. TRAVEL AGENCIES AND FIRMS PROVIDING SHIP AND
BOAT LEASING SERVICES PROJECT AN UPTURN IN BUSINESS CONDITIONS, WHILE NETWORK
OPERATORS AND THOSE ENGAGED IN DATA COMMUNICATIONS SERVICES ARE LESS
OPTIMISTIC.}

^{ON THE OTHER HAND, A NET BALANCE OF 5 PER
CENT OF FIRMS IN THE CATERING TRADE, PARTICULARLY RESTAURANTS, EXPECTS BUSINESS
ACTIVITY TO SLOW DOWN, IN CONTRAST TO THE BRISK BUSINESS EXPERIENCED IN THE
PREVIOUS SIX MONTHS DUE TO THE YEAR-END HOLIDAY SEASON AND CHINESE NEW YEAR
FESTIVITIES.}

^{IN THE BUSINESS SERVICES INDUSTRY, A NET
BALANCE OF 17 PER CENT OF FIRMS ANTICIPATES AN INCREASE IN THE LEVEL OF
BUSINESS ACTIVITY. THESE INCLUDE FIRMS ENGAGED IN BUSINESS AND MANAGEMENT
CONSULTANCY SERVICES, ENGINEERING SERVICES AND EXHIBITION FAIR AND CONVENTION
ACTIVITIES.}

^{EXTRACTED FROM:}

^{MINISTRY OF TRADE AND INDUSTRY}

^{THE STRAITS TIMES}

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