MIRA INFORM REPORT

Report Date :

08.08.2007

IDENTIFICATION DETAILS

Name :	METALFIELD TRADE PTE. LTD.

Registered Office :	^{51 Goldhill Plaza, #09-06, Singapore – 308900}

Country :	Singapore

Financials (as on) :	28.02.2007

Date of Incorporation :	^09/02/2005

Com. Reg. No.:	^200501882M

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Event Management and Consultancy Services and related activities

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 :	Regular

Litigation :	Clear

Subject Company

METALFIELD TRADE PTE. LTD.

Line Of Business

EVENT MANAGEMENT AND CONSULTANCY SERVICES AND RELATED ACTIVITIES

Parent Company

Financial Elements

FY 2007

COMPANY

Sales : S$44,669,570

Networth : S$232,215

Paid-Up Capital : S$50,000

Net result : S$85,286

Net Margin(%) : 0.19

Return on Equity(%) : 36.73

Leverage Ratio : 8.61

COMPANY IDENTIFICATION

^{Subject Company: METALFIELD
TRADE PTE. LTD.}

^{Former Name: -}

^{Business Address: 51 GOLDHILL PLAZA}

^#09-06

^{Town: SINGAPORE}

^{Postcode: 308900}

^{County: -}

^{Country: Singapore}

^{Telephone: 6258
6623}

^{Fax: 6258
2833}

^{ROC Number: 200501882M}

^Reg.^Town^{:
-}

SUMMARY

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

^{Legal Form: Exempt
Pte Ltd}

^{Date Inc.: 09/02/2005}

^{Previous Legal Form: -}

^{Summary year: 28/02/2007}

^{Sales: 44,669,570}

^{Net worth: 232,215}

^{Capital: -}

^{Paid-Up Capital: 50,000}

^{Employees: 4}

^{Net result: 85,286}

^{Share value: -}

^{Auditor: EDWIN
LEE & CO}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 09/02/2005}

PRINCIPAL(S)

^{BIN LAN GEE
S1523510A Director}

DIRECTOR(S)

^{BIN LAN GEE S1523510A Director}

^{Appointed on: 09/02/2005}

^{Street: 130 THOMSON ROAD}

^#03-03

^{Town: SINGAPORE}

^{Postcode: 307682}

^{Country: Singapore}

^{BIN KEE BAN
S1648697C Director}

^{Appointed on: 09/02/2005}

^{Street: 164 BISHAN STREET
13}

^#09-260

^{Town: SINGAPORE}

^{Postcode: 570164}

^{Country: Singapore}

^{LEE LAY CHING LORRAINE S1794045G Company Secretary}

^{Appointed on: 09/02/2005}

^{Street: 251
KIM KEAT LINK}

^#08-117

^{Town: SINGAPORE}

^{Postcode: 310251}

^{Country: Singapore}

ACTIVITY(IES)

^{IMPORTERS And EXPORTERS Code:11760}

^{INVESTMENT ADVISORY SERVICE Code:12080}

^{BASED ON ACRA'S RECORD AS AT
02/08/2007}

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

^{2) OTHER SUPPORT ACTIVITIES; INVESTMENT &
RELATED ACTIVITIES}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

No Banker Information In Our Database

SHAREHOLDERS(S)

^{BIN LAN GEE
60,000 Private Person}

^{Street: 130 THOMSON ROAD}

^#03-03

^{Town: SINGAPORE}

^{Postcode: 307682}

^{Country: Singapore}

^{BIN KEE BAN
140,000 Private Person}

^{Street: 164 BISHAN STREET 13}

^#09-260

^{Town: SINGAPORE}

^{Postcode: 570164}

^{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)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 28/06/2007}

^{Balance Sheet Date: 28/02/2007 28/02/2006}

^{Number of weeks: 52 55}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS}

^{Tangible Fixed Assets: 399 -}

^{Total Fixed Assets}^{: 399 -}

^{Receivables: 1,289,101 146,537}

^{Cash,Banks,Securities: 62,305 207,041}

^{Other current assets: 870,730 159,374}

^{Total Current Assets}^{: 2,222,136 512,952}

^{TOTAL ASSETS: 2,222,535 512,952}

^{---
LIABILITIES}

^{Equity capital: 50,000 50,000}

^{Profit & loss
Account: 182,215 96,929}

^{Total Equity: 232,215 146,929}

^{Trade Creditors: 45,413 -}

^{Prepay. & Def.
charges: 39,671 6,011}

^{Due to Bank: 1,245,633 46,589}

^{Other Short term
Liab.: 669,603 313,423}

^{Total short term Liab}^{.: 2,000,320 366,023}

^{TOTAL LIABILITIES: 2,000,320 366,023}

^{PROFIT & LOSS
ACCOUNT}

^{Net Sales 44,669,570 13,926,722}

^{Purchases,Sces & Other
Goods: 44,006,172 13,775,629}

^{Gross Profit: 663,398 151,093}

^{Result of ordinary
operations 394,617 115,985}

^{NET RESULT BEFORE TAX: 85,286 96,929}

^{Net income/loss year: 85,286 96,929}

^{Depreciation: 200 4,910}

^{Directors Emoluments: 177,892 123,175}

^{Wages and Salaries: 223,493 145,360}

RATIOS

^{28/02/2007
28/02/2006}

^{Turnover per employee: 11167392.50 3481680.50}

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

^{Net Margin(%): 0.19 0.70}

^{Return on Equity(%): 36.73 65.97}

^{Return on Assets(%): 3.84 18.90}

^{Net Working capital: 221816.00 146929.00}

^{Cash Ratio: 0.03 0.57}

^{Quick Ratio: 0.68 0.97}

^{Current ratio: 1.11 1.40}

^{Receivables Turnover: 10.39 3.79}

^{Leverage Ratio: 8.61 2.49}

^{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

^NOTE:

^{THE FINANCIAL STATEMENTS FOR FY 2006 RANGES
FROM 9 FEBRUARY 2005 TO 28} ^{FEBRUARY 2006, A TOTAL OF 55 WEEKS, WHILE THE FINANCIAL STATEMENTS
FOR} ^{FY 2007 RANGES FOR THE FINANCIAL YEAR 2007, A TOTAL OF 52 WEEKS,
HENCE} ^{THE ANALYSIS MAY NOT PROVIDE A TRUE AND FAIR VIEW.}

^{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} ^{58.05% FROM S$146,929 IN 2006 TO S$232,215 IN 2007.}

^{THIS WAS DUE TO HIGHER ACCUMULATED PROFITS OF
S$182,215} ^{(2006:
S$96,929); A RISE OF 87.99% FROM THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM IN 2007, SUBJECT WAS
LARGELY FINANCED BY AMOUNTS} ^{DUE TO BANKS WHICH MADE UP 62.27% (2006: 12.73%) OF THE TOTAL
CURRENT} ^{LIABILITIES AND AMOUNTED TO S$1,245,633 (2006: S$46,589).} ^{THE BREAKDOWN IS AS FOLLOWS:}

^{-BANK OVERDRAFT (UNSECURED) - 2007: S$23,331
(2006: S$46,589)}

^{-TRUST RECEIPTS - 2007: S$1,222,302 (2006: -
)}

^{HOWEVER, IN THE SHORT-TERM IN 2006, SUBJECT
WAS LARGELY FINANCED BY} ^{OTHER SHORT TERM LIABILITIES WHICH MADE UP 85.63% (2007: 33.47%)
OF} ^{THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$313,423} ^{(2007:
S$669,603). THE BREAKDOWN IS AS FOLLOWS:}

^{-RELATED PARTY - 2006: - (2007: S$1,182)}

^{-DIRECTORS (NON TRADE) - 2006: S$171,754
(2007: S$234,280)}

^{-DEPOSITS PAYABLES - 2006: S$141,669 (2007:
S$424,141)}

^{TRADE PAYABLES AMOUNTED TO S$45,413 IN 2007
(2006: - )}

^{SUBJECT DID NOT INCUR ANY LONG TERM
LIABILITIES DURING THE FINANCIAL} ^{YEAR UNDER REVIEW.}

^{IN ALL, LEVERAGE RATIO ROSE FROM 2.49 TIMES
TO 8.61 TIMES AS A RESULT} ^{OF A MORE THAN PROPORTIONATE RISE IN TOTAL LIABILITIES AS COMPARED
TO} ^{THE RISE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS
PASSABLE AS SEEN FROM} ^{THE RISE IN NET WORKING CAPITAL BY 50.97% TO 221,816} ^{(2006:
S$146,929).}

^{HOWEVER, CURRENT RATIO FELL TO 1.11 TIMES,
DOWN FROM 1.40 TIMES} ^{AND QUICK RATIO DECREASED TO 0.68 TIMES FROM 0.97 TIMES IN 2006.}

^{SIMILARLY, CASH AND CASH EQUIVALENTS FELL
SHARPLY BY 69.91% TO} ^{S$62,305 (2006: S$207,041).}

^{PROFITABILITY:}

^{REVENUE POSTED AN SHARP INCREASE OF 2.21
TIMES FROM S$13,926,722 IN} ^{2006 TO S$44,669,570 BUT NET PROFIT DROPPED BY 12.01% TO S$85,286} ^{(2006: S$96,929).}

^{THIS COULD BE DUE TO THE DECREASE IN OTHER
INCOME BY 48.41% TO} ^{S$101,951 (2006: S$197,630), THE INCREASE IN ADMINISTRATIVE
EXPENSES} ^{BY 57.32% TO S$270,027 (2006: S$171,637), THE INCREASE IN
OTHER} ^{OPERATING EXPENSES BY 64.82% TO S$100,705 (2006: S$61,101),
AND THE} ^{INCREASE IN FINANCE COSTS BY 15.23 TIMES TO S$309,331} ^{(2006:
S$19,056).}

^{HENCE, NET MARGIN FELL TO 0.19% (2006:
0.70%).}

^{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 EXPENSES DURING THE} ^{FINANCIAL
YEAR UNDER REIVEW.}

^{NOTES TO THE
FINANCIAL STATEMENTS:}

^{BANK OVERDRAFT
(UNSECURED)}

^{THIS OVERDRAFT IS UNSECURED AND IS ARISING
FROM CHEQUE ISSUED BUT} ^{NOT PRESENTED TO THE BANK AS AT BALANCE SHEET DATE.}

^{BANKING
FACILITIES}

^{THE BANKING FACILITIES ARE SECURED BY THE
PERSONAL GUARANTEES OF TWO} ^{OF THE COMPANY'S DIRECTORS AND PLEDGED OF FIXED DEPOSITS IN THE
NAME} ^{OF THE COMPANY'S DIRECTORS.}

^{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} ^{09/02/2005 AS A LIMITED EXEMPT PRIVATE
COMPANY AND IS TRADING UNDER} ^{THE PRESENT NAMESTYLE OF
"METALFIELD TRADE PTE. LTD.".}

^{AS AT 02/08/2007, 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) GENERAL WHOLESALE TRADE (INCLUDING GENERAL
IMPORTERS & EXPORTERS)}

^{2) OTHER SUPPORT ACTIVITIES; INVESTMENT &
RELATED ACTIVITIES}

^{DURING THE FINANCIAL YEAR (S) UNDER REVIEW,
THE PRINCIPAL ACTIVITIES} ^{OF THE COMPANY ARE TO CARRY ON THE BUSINESS OF EVENT MANAGEMENT
AND} ^{CONSULTANCY SERVICES AND RELATED ACTIVITIES.}

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

^ACTVITIES

^{- TRADING OF METALS}

^PRODUCTS

^{- STEEL SCRAPS}

^{- BILLETS}

^{- HRC/PLATES}

^{- STEEL PROFILES}

^{- ALUMINUM}

^{- ZINC}

^{- LEAD}

^{- COPPER AND NICKEL CATHODES}

^{- SEMI-FINISHED PRODUCTS OF BILLETS}

^{- RODS}

^{- SHEETS AND FOIL}

^{- NON-FERROUS SCRAPS}

^{IMPORT COUNTRIES}

^{- CHINA,
INDONESIA AND INDIA}

^{MARKET PRESENCE}

^{- EXPORT COUNTRIES: MALAYSIA,TAIWAN,
KOREA AND N.EAST ASIA}

^{- SINGAPORE}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE
AS TELE-INTERVIEW WAS} ^{NOT GRANTED ON 08/08/2007.}

^{NUMBER OF EMPLOYEES (28 FEBRUARY)}

^{- COMPANY - 2007: 4 (2006: 3)}

^{REGISTERED ADDRESS:}

^{130 THOMSON
ROAD}

^#03-03

^SINGAPORE³⁰⁷⁶⁸²

^{DATE OF CHANGE OF ADDRESS: 09/02/2005}

^{BUSINESS ADDRESS:}

^{51 GOLDHILL PLAZA}

^#09-06

^SINGAPORE³⁰⁸⁹⁰⁰

^{- RENTED PREMISE}

^{- OWNED BY: GALLANT INVESTMENT PTE LTD}

^WEBSITE:

^{http://www.metalfield.com.sg}

^EMAIL:

^{danbin@metalfield.com.sg}

^{lawrence@metalfield.com.sg}

MANAGEMENT

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

^{1) BIN LAN GEE, A SINGAPOREAN}

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

^{DECOSPAN (S) PTE LTD}

^{2) BIN KEE BAN, A SINGAPOREAN}

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

^{DECOSPAN (S) PTE LTD}

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.	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