MIRA INFORM REPORT

Report Date :

02.08.2007

IDENTIFICATION DETAILS

Name :	EASTERN NAVIGATION PTE. LTD.

Registered Office :	³^{Pandan Road, Singapore}^{– 609255}

Country :	Singapore

Date of Incorporation :	^25/05/1960

Com. Reg. No.:	^196000051C

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Charter of Vessels such as Tugboats, Utility (Anchor Handling) Vessels, Barges (General and Offshore Pipehaul) to service the Transportation requirements of the Marine Construction and Offshore Petroleum Industries

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

EASTERN NAVIGATION PTE. LTD.

Line Of Business

CHARTER OF VESSELS SUCH AS TUGBOATS, UTILITY (ANCHOR HANDLING) VESSELS, BARGES (GENERAL AND OFFSHORE PIPEHAUL) TO SERVICE THE TRANSPORTATION REQUIREMENTS OF THE MARINE CONSTRUCTION AND OFFSHORE PETROLEUM INDUSTRIES

Parent Company

Financial Elements

Sales : -

Networth : -

Paid-Up Capital : S$9,600,000

Net result : -

Net Margin(%) : -

Return on Equity(%) : -

Leverage Ratio : -

COMPANY IDENTIFICATION

^{Subject Company : EASTERN
NAVIAGTION PTE. LTD.}

^{Former Name : -}

^{Business Address: 3 PANDAN ROAD}

^{Town: SINGAPORE}

^{Postcode: 609255}

^{County: -}

^{Country: Singapore}

^{Telephone: 62683222/98773410}

^{Fax: 6265 9494}

^{ROC Number: 196000051C}

^Reg.^Town^{:
-}

SUMMARY

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

^{Legal Form: Exempt
Pte Ltd}

^{Date Inc.: 25/05/1960}

^{Previous Legal Form: -}

^{Summary year : -}

^{Sales: -}

^{Capital: -}

^{Paid-Up Capital: 9,600,000}

^{Employees: 10}

^{Net result : -}

^{Share value: -}

^{AUDITOR : C.N.TIEW
& CO}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 25/05/1960}

PRINCIPAL(S)

^{TAN EE BENG S0079619J Director}

DIRECTOR(S)

^{TAN EE BENG S0079619J Director}

^{Appointed on : 09/07/1992}

^{Street : 390A
PASIR PANJANG ROAD}

^{Town: SINGAPORE}

^{Postcode: 118723}

^{Country: Singapore}

^{TAN SER GIAM S1222628D Director}

^{Appointed on : 09/07/1992}

^{Street : 302
UPPER EAST COAST ROAD}

^#03-02

^{RICH EAST GARDEN}

^{Town: SINGAPORE}

^{Postcode: 466440}

^{Country: Singapore}

^{TAN SER THONG S1439067G Director}

^{Appointed on : 09/07/1992}

^{Street : 76A
FRANKEL AVENUE}

^{Town: SINGAPORE}

^{Postcode: 458206}

^{Country: Singapore}

^{TAN SER THONG S1439067G Company Secretary}

^{Appointed on : 25/07/2003}

^{Street : 76A
FRANKEL AVENUE}

^{Town: SINGAPORE}

^{Postcode: 458206}

^{Country: Singapore}

ACTIVITY(IES)

^{SHIP BROKERS
Code:19280}

^{BASED ON ACRA'S RECORD AS AT
30/07/2007}

^{1) SHIPPING AGENCIES (FREIGHT); SEA
TRANSPORTATION, SHIP BUILDING CONTRACTORS}

CHARGES

^{Date:
27/10/1981 Amount: 200,000}

^{Comments :
CHARGE NO :
8104497}

^{CHARGEE(S) : THE DBS LTD}

^{SECURED : 200000.00 AND ALL MONIES OWING}

^{Date:
07/02/1980 Amount: 200,000}

^{Comments :
CHARGE NO :
8000336}

^{CHARGEE(S) : THE DBS LTD}

^{SECURED : 200000.00 AND ALL MONIES OWING}

^{Date:
04/12/1980 Amount: 350,000}

^{Comments :
CHARGE NO :
8003616}

^{CHARGEE(S) : THE DBS LTD}

^{SECURED : 350,000.00 AND ALL MONIES OWING}

^{Date:
12/11/1983 Amount: 600,000}

^{Comments :
CHARGE NO :
8305421}

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

^{SECURED : 600,000.00 AND ALL MONIES OWING}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{DBS BANK LTD.}

SHAREHOLDERS(S)

^{TAN HUI KIAN
484,616 Private Person}

^{Street : 156 MARIAM WAY}

^#03-06

^{BALLOTA PARK
CONDOMINIUM}

^{Town: SINGAPORE}

^{Postcode: 507082}

^{Country: Singapore}

^{TAN GEOK HUAN
484,616 Private Person}

^{Street : 76 FRANKEL AVENUE}

^{Town: SINGAPORE}

^{Postcode: 458205}

^{Country: Singapore}

^{TAN EE BENG
2,067,948 Private Person}

^{Street : 390A
PASIR PANJANG ROAD}

^{Town: SINGAPORE}

^{Postcode: 118723}

^{Country: Singapore}

^{TAN SER GIAM
1,084,615 Private Person}

^{Street : 302 UPPER EAST COAST ROAD}

^#03-02

^{RICH EAST GARDEN}

^{Town: SINGAPORE}

^{Postcode: 466440}

^{Country: Singapore}

^{TAN SER CHOON
484,616 Private Person}

^{Street : 512 HOUGANG AVENUE
10}

^#05-69

^{Town: SINGAPORE}

^{Postcode: 530512}

^{Country: Singapore}

^{CHAN SHU MIN
476,282 Private Person}

^{Street : 390A
PASIR PANJANG ROAD}

^{Town:
SINGAPORE}

^{Postcode: 118723}

^{Country: Singapore}

^{TAN SEOK ENG
484,615 Private Person}

^{Street : 19 CARMEN STREET}

^{Town: SINGAPORE}

^{Postcode: 459747}

^{Country: Singapore}

^{TAN SOK KIM
84,615 Private Person}

^{Street : 205A
COMPASSVALE LANE}

^#06-43

^{Town: SINGAPORE}

^{Postcode: 541205}

^{Country: Singapore}

^{TAN SIOK HIAN
484,615 Private Person}

^{Street : 701 WOODLANDS DRIVE
40}

^#10-118

^{Town: SINGAPORE}

^{Postcode: 730701}

^{Country: Singapore}

^{TAN FANNY
28,205 Private Person}

^{Street : 724 CLEMENTI WEST STREET
2}

^#11-184

^{Town: SINGAPORE}

^{Postcode: 120724}

^{Country: Singapore}

^{TAN CHING LIS
28,205 Private Person}

^{Street : 27 WEST COAST CRESCENT}

^#13-23

^{BLUE HORIZON}

^{Town: SINGAPORE}

^{Postcode: 128048}

^{Country: Singapore}

^{TAN CHENG SUN
28,205 Private Person}

^{Street : 724 CLEMENTI WEST STREET
2}

^#11-184

^{Town: SINGAPORE}

^{Postcode: 120724}

^{Country:
Singapore}

^{BRUCE EDMUND PHILIP DARRINGTON 476,282 Private Person}

^{Street : 33/298
MOOBAN LADAWAN SRINAKARIN}

^{ROAD, BANGKAEW}

^{BANGPLEE SAMUT
PRAKARN}

^Town:

^Postcode:

^{Country: Thailand}

^{HO SWEE LIAN
766,667 Private Person}

^{Street : 76 FRANKEL AVENUE}

^{Town: SINGAPORE}

^{Postcode: 458205}

^{Country: Singapore}

^{NG LUCY 1,566,667 Private Person}

^{Street : 76A FRANKEL
AVENUE}

^{Town: SINGAPORE}

^{Postcode: 458206}

^{Country: Singapore}

^{TAN SOCK KHENG
84,615 Private Person}

^{Street : 76A
FRANKEL AVENUE}

^{Town: SINGAPORE}

^{Postcode: 458206}

^{Country: Singapore}

^{TAN SER THONG
484,616 Private Person}

^{Street : 76A FRANKEL
AVENUE}

^{Town: SINGAPORE}

^{Postcode: 458206}

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{TAN SOK HUA
476,282}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : UNKNOWN

Payments : UNKNOWN

Trend : UNKNOWN

Financial Situation: UNKNOWN

LITIGATION(S)

No Litigation In Our Database

FINANCIAL COMMENTS

^{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 25/05/1960 AS A LIMITED
EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS
"EASTERN NAVIGATION PTE. LTD.".}

^{AS AT 30/07/2007, THE COMPANY HAS ISSUED AND
PAID-UP CAPITAL OF 9,600,000 SHARES OF A VALUE OF S$9,600,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) SHIPPING AGENCIES (FREIGHT); SEA
TRANSPORTATION, SHIP BUILDING CONTRACTORS}

^{2) SHIP OWNERS}

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

^{BACKGROUND OF EASTERN NAVIGATION GROUP}

^{EASTERN NAVIGATION GROUP - HEADQUARTERED IN SINGAPORE - BEGAN IN THE 1950'S AS A LIGHTERAGE
COMPANY, SUPPORTING SINGAPORE
HARBOUR AUTHORITY'S CARGO
OPERATIONS.}

^{FROM ITS HUMBLE BEGINNINGS AS A LIGHTERAGE
COMPANY, THE ORGANIZATION GREW WITH THE DEVELOPMENT OF THE SINGAPORE PORT
AND THE REGION. EASTERN NAVIGATION'S ENTRY INTO THE OFFSHORE MARINE
TRANSPORTATION SECTOR SINCE THE 1970'S, IS NOW REGARDED AS A MARINE TOWAGE AND
OFFSHORE ENGINEERING COMPANY}

^{TO SUPPORT THE GROUP'S MAIN ACTIVITIES,
PANDAN SHIPYARD WAS INCORPORATED - IN 1977 - TO PROVIDE AN IN-HOUSE,
COMPREHENSIVE SUPPORT IN THE MAINTENANCE OF OUR VESSELS.}

^{THEY ARE A OWNER-OPERATOR TUG AND BARGE
COMPANY, PROVIDING FULL SERVICE IN ALL ASPECTS OF MARINE TRANSPORTATION, WITH
OUR OWN EQUIPMENT AND SUPPORTING SHIPYARD FACILITIES IN SINGAPORE AND BATAM,
INDONESIA.}

^{THE GROUP HAS ALSO DIVERSIFIED INTO OVERSEAS
PROPERTY INVESTMENTS, TRADING AND THE DISTRIBUTION OF MOTOR VEHICLES AND IS
LOOKING FOR OPPORTUNITIES TO GROW THE COMPANY.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* CHARTER OF VESSELS SUCH AS TUGBOATS,
UTILITY (ANCHOR HANDLING) VESSELS, BARGES (GENERAL AND OFFSHORE PIPEHAUL) TO
SERVICE THE TRANSPORTATION REQUIREMENTS OF THE MARINE CONSTRUCTION AND OFFSHORE
PETROLEUM INDUSTRIES}

^SERVICES:

^{* BUILDING
OF TUGS, BARGES AND
MARINE CRAFTS FOR THE MARITIME INDUSTRIES}

^{WHOLLY-OWNED SHIPYARD FACILITIES:}

^{* SINGAPORE}

^{* BATAM,
INDONESIA}

^{WORK CARRIED OUT BY THE SHIPYARD INCLUDES:}

^{* DRY-DOCKING}

^{* SHIP REPAIRS}

^{* OFFSHORE FABRICATION AND RELATED WORK}

^{SOME OF SUBJECT'S CLIENTS:}

^{* SAIPEM, HYUNDAI, GLOBAL MARINE, NIPPON STEEL, EMC AND VARIOUS OTHER OFFSHORE CONSTRUCTION
COMPANIES.}

^{MAJOR WORK ACHIEVEMENT}

^{* THE PROVISION OF TUGS AND BARGES FOR PIPE
TRANSPORTATION FOR THE WEST NATUNA GAS
PIPELINE PROJECT. THE WORK WAS PERFORMED ON BEHALF OF J. RAY MCDERMOTT.}

^{PAST JOBS PERFORMED FOR THE OFFSHORE INDUSTRY
INCLUDES:}

^{* TUG & BARGE SHIPMENTS FOR THE YETAGUN PIPELINE
PROJECT IN MYANMAR
FOR MCCONNELL DOWELL}

^{* THE JAMNAGAR
PROJECT FOR RELIANCE REFINERY IN INDIA}

^{FROM THE TELE-INTERVIEW CONDUCTED ON
02/08/2007, THE FOLLOWING WAS GATHERED:}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2007: LESS THAN 10}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON
02/08/2007.}

^{REGISTERED AND BUSINESS ADDRESS:}

^{3 PANDAN ROAD}

^SINGAPORE⁶⁰⁹²⁵⁵

^{- OWNED BY PANDAN SHIPYARD PTE. LTD.}

^{- DATE OF CHANGE OF ADDRESS: 01/08/1987}

^WEBSITE:

^{http://www.easternnavigation.com}

^EMAIL:

^{info@easternnavigation.com}

MANAGEMENT

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

^{1) TAN EE BENG, A SINGAPOREAN}

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

^{SSANGYONG MOTORS (S) PTE LTD}

^{2) TAN SER GIAM, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR
DATABASE.}

^{3) TAN SER THONG, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR
DATABASE.}

ADVERSE ON DIRECTORS

^{DIRECTOR'S NAME: TAN EE BENG}

^{ADVERSE REPORT AGAINST DIRECTOR: NOT
AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP: OWNS 1}

^{ANNUAL VALUE: S$26,400}

^{CO-OWNER (S): NIL}

^{DIRECTOR'S NAME: TAN SER GIAM}

^{ADVERSE REPORT AGAINST DIRECTOR: NOT
AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP: OWNS 1}

^{ANNUAL VALUE: S$15,600}

^{CO-OWNER (S): LEE SIEW WAH}

^{DIRECTOR'S NAME: TAN SER THONG}

^{ADVERSE REPORT AGAINST DIRECTOR: NOT
AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP: OWNS 1}

^{ANNUAL VALUE: S$30,000}

^{CO-OWNER (S): NG LUCY}

* ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT.

Singapore’s Country Rating 2007

Investment Grade

IN SINGAPORE, THE POLITICAL SITUATION REMAINS STABLE.

SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA, WITH AN EFFECTIVE LEGAL SYSTEM FACILITATING DEBT COLLECTION AND TO A HIGH DEGREE OF FINANCIAL TRANSPARENCY.

EXTERNAL ACCOUNTS HAVE REMAINED SUBSTANTIALLY IN SURPLUS, CONTRIBUTED TO THE DYNAMISM OF THE ELECTRONICS AND PHARMACEUTICALS SECTORS AND TO REPATRIATION OF PROFITS FROM SINGAPORE INVESTMENTS. THE FINANCIAL AND TOURISM SECTORS HAVE ALSO CONTRIBUTED TO THE LARGE CURRENT ACCOUNT SURPLUS.

SINGAPORE CONTINUES TO KEENLY WELCOME FOREIGN INVESTMENT AND OFFERS A VERY OPEN AND WELL-PLANNED ECONOMIC AND POLITICAL ENVIRONMENT. IT HAS BEEN IMPLEMENTING AMBITIOUS DIVERSIFICATION STRATEGY, FOCUSED PARTICULARLY ON THE CHEMICALS AND PHARMACEUTICAL SECTORS.

THE GOVERNMENT USES FOREIGN DIRECT INVESTMENT TO DEVELOP PRIORITY SECTORS (ELECTRONICS, CHEMICALS, BIOTECHNOLOGY). THE AIM IS TO ENCOURAGE THE GROWTH OF HIGH ADDED-VALUE ACTIVITIES AND TURN SINGAPORE INTO A REGIONAL HUB FOR FOREIGN INVESTORS INTERESTED IN ASIA.

CERTAIN SECTORS (MEDIA, LEGAL AND FINANCIAL SERVICES) ARE HOWEVER ONLY PARTIALLY OPEN TO FOREIGN INVESTMENT. THESE SECTORS ARE SLOWLY OPENING UP, BUT THE PROGRESS IS SLOW.

AFTER HIGH GROWTH IN 2006, BUOYED BY THE DYNAMISM OF BOTH EXPORTS AND HOUSEHOLD CONSUMPTION, A SLOWDOWN IS EXPECTED IN 2007.

ASSETS

MAJOR EXPORTER OF CAPITAL IN ASIA, NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY.
HIGH QUALITY COMPETITIVENESS IN ASIA
EXCELLENT BUSINESS CLIMATE
POLITICAL STABILITY.

WEAKNESSES

SKILLED MANPOWER HAS BEEN LACKING IN THE SECTORS TARGETED FOR DEVELOPMENT.
AN AGEING POPULATION COULD, ULTIMATELY, AFFECT ECONOMIC PERFORMANCE.
GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
BEING THE WORLD’S MOST OPEN ECONOMY, IT HAS BEEN VULNERABLE TO WORLD ECONOMIC DOWNTURNS.

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

SINGAPORE’S ECONOMY GREW BY 6.1% IN QUARTER 1 OF 2007 AFTER A 6.6% GROWTH IN QUARTER 4 OF 2006. THE GROWTH MOMENTUM EASED SLIGHTLY TO 7.6% IN 1Q 2007, COMPARED WITH 7.9% A QUARTER EARLIER. GROWTH IN QUARTER 1 WAS LED BY THE FINANCIAL SERVICES AND CONSTRUCTION SECTORS. THE MANUFACTURING SECTOR CONTINUED TO EXPERIENCE A MODERATION IN GROWTH.

THE FINANCIAL SERVICES SECTOR SIGNIFICANTLY INCREASED BY 13% IN 1Q 2007 ON THE HEELS OF THE 11% GROWTH A QUARTER AGO. THE STRONG PERFORMANCE WAS ACROSS ALL MAJOR FINANCIAL SEGMENTS, PARTICULARLY IN THE CAPITAL AND MONEY MARKETS. FUND MANAGEMENT ACTIVITIES REMAINED BOUYANT, IN LINE WITH THE CONTINUED STRENGTH IN ECONOMIC CLIMATE. SIMILARLY, BANKS SAW STRONG GROWTH, BOUYED BY SUSTAINED RESILIENCE IN THE ASIA DOLLAR MARKET AS WELL AS A STEADY INCREASE IN DOMESTIC LENDING ACTIVITY.

THE CONSTRUCTION SECTOR GREW BY 9.7% IN 1Q 2007, ITS STRONGEST GROWTH IN 9 YEARS. CERTIFIED PAYMENTS INCREASE BY 9.5% IN 1Q 2007, SUPPORTED BY STRONG GROWTH IN THE PRIVATE RESIDENTIAL, COMMERCIAL AND INDUSTRIAL SEGMENTS AS WELL AS PUBLIC RESIDENTIAL SEGMENT. HOWEVER, CONTRACTS AWARDED FELL BY 11% IN 1Q 2007, DUE MAINLY TO THE DROP IN THE PRIVATE COMMERCIAL AND PUBLIC INSTITUTIONAL SEGMENTS.

MANUFACTURING SECTOR INCREASED BY 4.3% IN 1Q 2007, DOWN FROM 7.7% IN THE PREVIOUS QUARTER. BOTH BIOMEDICAL MANUFACTURING (-5.0%) AND PRECISION ENGINEERING (-0.7%) CLUSTERS SAW LOWER PRODUCTION DURING THE QUARTER. THE ELECTRONICS CLUSTER, HOWEVER, RECOVERED FROM A 4.1% CONTRACTION IN 4Q 2006 TO REGISTER AN INCREASE OF 2.6% IN 1Q 2007. THE TRANSPORT ENGINEERING CLUSTER CONTINUED TO EXPAND STRONGLY AT 23%, FOLLOWING A 25% INCREASE IN 4Q 2006.

THE WHOLESALE AND RETAIL TRADE SECTOR EXPANDED 6.7% IN 1Q 2007 AFTER A 6.9 GROWTH IN 4Q 2006. RETAIL SALES GROWTH EASED FROM 7.9% IN THE PREVIOUS QUARTER TO 6.1% IN 1Q 2007, MAINLY DUE TO A DECELERATION IN MOTOR VEHICLES SALES. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.9%, UP FROM 4.2% IN 4Q 2006. IN THE WHOLESALE SEGMENT, GROWTH OF NON-OIL RE-EXPORTS REMAINED FIRM AT 5.9%, SLOWER THAN 6.3% IN 4Q 2006.

THE TRANSPORT AND STORAGE SECTOR GREW 4.4% IN 1Q 2007, UP FROM 4.0% A QUARTER EARLIER. THE AIR SEGMENT SAW A SLOWDOWN DUE TO A MODERATION IN AIR PASSENGER TRAFFIC GROWTH AND A DECLINE IN AIR CARGO. STRONGER ACTIVITY WAS RECORDED IN THE SEA SEGMENT ON THE BACK OF BETTER PERFORMANCE IN SEA CARGO HANDLED AND CONTAINER THROUGHPUT.

THE HOTELS AND RESTAURANTS SECTOR REGISTERED A SLOWER GROWTH OF 4.7% IN 1Q 2007, DOWN FROM 6.1% 4Q 2006. VISITOR ARRIVALS GREW AT A MORE MODEST PACE OF 4.1% COMPARED TO 8.4% IN THE PREVIOUS QUARTER. THE INCREASE IN HOTEL ROOM REVENUE MODERATED FROM THE 21% GAIN IN 4Q 2006 TO 14% IN 1Q 2007. HOWEVER, THE AVERAGE OCCUPANCY RATE OF HOTELS REMAINED HIGH AT 87%, A 4.3% POINTS INCREASE OVER THE CORRESPONDING PERIOD LAST YEAR.

THE INFORMATION AND COMMUNICATIONS SECTOR GREW 6.6% IN 1Q 2007, UP FROM 6.0% IN THE PREVIOUS QUARTER. WHILE THE IT SEGMENT SAW SOME MODERATION IN ACTIVITIES, THE TELECOMMUNICATIONS SEGMENT PERFORMED BETTER. INTERNATIONAL TELEPHONE CALL DURATION WENT UP SHARPLY BY 19%, UP FROM 11% IN 4Q 2006. GROWTH IN THE NUMBER OF MOBILE SUBSCRIBERS AND BROADBAND SUBSCRIBERS ALSO REMAINED STRONG DURING THE QUARTER.

BUSINESS SERVICES SECTOR EXPANDED BY 6.6% IN 1Q 2007, BETTER THAN THE 5.4% POSTED IN 4Q 2006. ROBUST PERFORMANCE WAS SEEN IN THE REAL ESTATE SEGMENT ON THE BACK OF CONTINUED STRENGTH IN THE LUXURY PROPERTY MARKET. THE SECTOR WAS ALSO WELL SUPPORTED BY THE OTHER SEGMENTS, PARTICULARLY BUSINESS REPRESENTATIVE OFFICES, AND BUSINESS & MANAGEMENT CONSULTANCY ACTIVITIES.

OUTLOOK

THE ECONOMIC OUTLOOK IS GENERALLY POSITIVE BUT SOME DOWNSIDE RISKS REMAIN. THESE INCLUDE A SLOWDOWN IN THE US ECONOMY, VULNERABILITY OF OIL PRICES TO SUPPLY SHOCKS AND A DISORDERLY UNWINDING OF GLOBAL UNBALANCES. BARRING THESE UNCERTAINTIES, ECONOMIC GROWTH IS EXPECTED TO REMAIN HEALTHY IN 2007.

BUSINESS SENTIMENTS ARE GENERALLY POSITIVE IN THE FINANCIAL SERVICES INDUSTRY. BANKS AND FINANCE COMPANIES, FUND MANAGEMENT FIRMS AND INSURANCE COMPANIES EXPECT AN IMPROVEMENT IN THE BUSINESS CLIMATE IN THE COMING MONTHS.

AN OVERALL NET WEIGHTED BALANCE OF 61% OF FIRMS IN THE REAL ESTATE INDUSTRY EXPECTS BETTER BUSINESS CONDITIONS FOR THE NEXT 6 MONTHS. WITHIN THE INDUSTRY, REAL ESTATE DEVELOPERS AND AGENTS FORESEE BRISK BUSINESS ACTIVITY AHEAD.

MANUFACTURING SECTORS ARE MORE OPTIMISTIC IN THE NEXT 6 MONTHS COMPARED TO THE FIRST QUARTER OF THE YEAR. OVERALL, A WEIGHTED 30% OF MANUFACTURERS FORESEE AN IMPROVED OUTLOOK, WHILE 4% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 26% OF MANUFACTURERS EXPECTING BUSINESS CONDITIONS TO IMPROVE, WHICH IS HIGHER THAN 7% RECORDED A QUARTER AGO.

WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD AND BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC ABOUT THE BUSINESS OUTLOOK AHEAD.

FIRMS IN THE RETAIL TRADE FORESEE BUSINESS TO BE LESS BRISK. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

WITHIN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 18% OF FIRMS FORECASTS IMPROVED BUSINESS PROSPECTS FOR THE NEXT 6 MONTHS. IN PARTICULAR, FIRMS IN THE WATER TRANSPORT AND SUPPORTING SERVICES EXPECT HIGHER LEVEL OF BUSINESS ACTIVITY.

HOTELIERS PROJECT A FAVOURABLE BUSINESS OUTLOOK, WHICH IS IN TANDEM WITH THE POSITIVE SENTIMENTS IN THE TOURISM MARKET. FOR THE CATERING TRADE INDUSTRY, BUSINESS OUTLOOK IN THE COMING MONTHS REMAINS THE SAME.

FIRMS IN THE INFORMATION AND COMMUNICATION INDUSTRY ANTICIPATES A HIGHER LEVEL OF BUSINESS ACTIVITY, WITH A POSITIVE NET WEIGHTED BALANCE OF 12%.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSES POSITIVE SENTIMENTS. THESE INCLUDE FIRM ENGAGED IN RENTING OF CONSTRUCTION & INDUSTRIAL MACHINERY, ARCHITECTURAL & ENGINEERING, SPECIALISED DESIGN AND LABOUR RECRUITMENT SERVICES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

CHANNELNEWS ASIA

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