MIRA INFORM REPORT

Report Date :

28.12.2007

IDENTIFICATION DETAILS

Name :	SIEMENS PTE LTD

Registered Office :	^{60 Macpherson Road, The Siemens Centre, Singapore – 348615}

Country :	^Singapore

Financials (as on) :	30.09.2006

Date of Incorporation :	^30/09/2006

Com. Reg. No.:	^199605166D

Legal Form :	^{Pte Ltd}

Line of Business :	Manufacture of Electrical/Electronic Engineering and Scientific Instruments; Engineering, Sales & Services for Electrical and Electronic Equipment

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 :	Exists

Subject Company

SIEMENS PTE LTD

Line Of Business

MANUFACTURE OF ELECTRICAL/ELECTRONIC ENGINEERING AND SCIENTIFIC INSTRUMENTS; ENGINEERING, SALES & SERVICES FOR ELECTRICAL AND ELECTRONIC EQUIPMENT

Parent Company

^{SIEMENS INTERNATIONAL HOLDING B.V}

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : S$686,621,000

Networth : S$97,036,000

Paid-Up Capital : S$ 30,000,000

Net result : S$40,944,000

Net Margin(%) : 5.96

Return on Equity(%) : 42.19

Leverage Ratio : 3.33

COMPANY IDENTIFICATION

^{Subject Company : SIEMENS PTE LTD}

^{Former Name :
SIEMENS ADVANCED ENGINEERING}

^{Business
Address : 60 MACPHERSON ROAD}

^{THE SIEMENS CENTRE}

^{Town :
SINGAPORE}

^{Postcode : 348615}

^{County :
-}

^{Country :
Singapore}

^{Telephone : 6490 6000}

^{Fax :
6490 6001}

^{ROC Number :
199605166D}

^{Reg. Town : -}

PREVIOUS IDENTIFICATION

^{SIEMENS ADVANCED
ENGINEERING PTE LTD DATE}

SUMMARY

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

^{Legal Form :}^{Pte Ltd}

^{Date Inc. :}

^{Previous Legal Form :}^{Pte Ltd}

^{Summary year :}^30/09/2006

^{Sales :}^686,621,000

^{Networth :}^97,036,000

^{Capital :
-}

^{Paid-Up Capital :}^30,000,000

^{Employees :
1,000}

^{Net result :}^40,944,000

^{Share value :
-}

^{Auditor :}^KPMG

REFERENCES

^{Protested Bills :
NO}

^{Litigation :
YES}

^{Company status :
TRADING}

^{Started :
15/07/1996}

PRINCIPAL(S)

^{HANS-DIETER
BOTT
G5788295L Managing Director}

DIRECTOR(S)

^{KLAUS VOGES 8834025606 Director}

^{Appointed on :
20/11/1996}

^{Street : SIEMENS AG PAUL-GOOSEN-STRASSE}

^{100 91052 ERLANGEN}

^{Town :}

^{Postcode
:}

^{Country
: Germany}

^{LEAN MIN-TZE S7277153B Company Secretary}

^{Appointed on : 28/09/2001}

^{Street : 1
ZION CLOSE}

^#07-03

^{Town :
SINGAPORE}

^{Postcode : 247811}

^{Country
: Singapore}

^{FRED HELMUT
RETTLINGER G5752904R Director}

^{Appointed on : 01/06/2004}

^{Street : 10
WALSHE ROAD}

^#07-01

^GARDENVILLE

^{Town :
SINGAPORE}

^{Postcode : 257654}

^{Country
: Singapore}

^{HANS-DIETER
BOTT G5788295L Director}

^{Appointed on : 10/01/2005}

^{Street : 59A
BELMONT ROAD}

^{Town :
SINGAPORE}

^{Postcode : 269892}

^{Country
: Singapore}

^{HANS-DIETER
BOTT G5788295L Managing Director}

^{Appointed on : 10/01/2005}

^{Street : 59A
BELMONT ROAD}

^{Town :
SINGAPORE}

^{Postcode : 269892}

^{Country
: Singapore}

FORMER DIRECTOR(S)

^{LIM MERNG
PHANG
S1790004H}

^{TOH WEE MENG
TONY S1799343G}

^{PETER ALBRICH SU0440801}

^{KLAUS PETERS 3227004741}

^{MICHAEL DENEKE 8275030292}

^{UWE WERNER
SCHUMACHER 8994119261}

^{ANG WEN PO
ANDREW S7247388D}

^{LEE GHIM HA S1618050E}

^{THOMAS
FRISCHMUTH F5514145L}

^{PATRICK PIERRE DE
ROYER-DUPRE}

ACTIVITY(IES)

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

^{CONTRACTORS -
ENGINEERING, GENERAL
Code:5500}

^{ELECTRONIC
EQUIPMENT And SUPPLIES - REPAIRING
Code:7630}

^{BUSINESS
SERVICES
Code:4}

^{BASED ON ACRA'S
RECORD AS AT 19/12/2007,}

^{1) MIXED
CONSTRUCTION ACTIVITIES; GENERAL CONTRACTOR & MIXED CONSTRUCTION
ACTIVITIES ELECTRICAL/ELECTRONIC
EQUIPMENT}

SHAREHOLDERS(S)

^{SIEMENS
INTERNATIONAL HOLDING B.V.
30,000,000 Company}

^{Street : NL-2595
BN THE HAGUE PRINSES}

^BEATRIXLAAN

^Town:

^{Postcode: 800}

^{Country: Netherlands}

FORMER SHAREHOLDER(S)

^{SIEMENS
BETEILIGUNGSVERWALTUNG GMBH
30,000,000}

HOLDING COMPANY

^{SIEMENS
INTERNATIONAL HOLDING B.V.
UF38476W % : 100}

SUBSIDIARY(IES)

^{SIEMENS
WESTINGHOUSE TECHNICAL SERVICES PTE LTD}

^{FLENDER SINGAPORE
PTE LTD}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality :
AVERAGE}

^{Liquidity : UNKNOWN}

^{Payments : REGULAR}

^{Trend :
LEVEL}

^{Financial
Situation : UNKNOWN}

LITIGATION(S)

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

^{Case Number: DCS03106/2006}

Defendant SIEMENS PTE LTD ROC # : 199605166D

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

^{Case Number: DCS03829/2005}

Defendant SIEMENS PTE LTD ROC # : 199605166D

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

^{Case Number: MCS20820/2004}

Defendant SIEMENS PTE LTD ROC # : 199605166D

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

^{Case Number: DCS000041/1998}

Defendant SIEMENS PTE LTD ROC # : 199605166D

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 14/12/2005}

^{Balance
Sheet Date:
30/09/2006
30/09/2005}

^{Number of weeks: 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED}

^{--- ASSETS
---}

^{Preliminary
Exp 3,134,000 4,067,000}

^{Intangible
Fixed Assets:
21,675,000
21,675,000}

^{Tangible
Fixed Assets:
14,862,000
20,315,000}

^{Investments
170,000}

^{Total Fixed Assets: 39,671,000 46,227,000}

^{Inventories: 122,995,000 145,723,000}

^{Receivables: 72,954,000 76,967,000}

^{Cash,Banks,
Securitis: 105,999,000 67,736,000}

^{Other
current assets:
6,047,000
5,869,000}

^{Total Current Assets: 307,995,000 296,295,000}

^{TOTAL ASSETS: 347,666,000 342,522,000}

^{--- LIABILITIES ---}

^{Equity
capital:
30,000,000
30,000,000}

^{Profit
& lost Account: 67,036,000 53,092,000}

^{Total Equity: 97,036,000 83,092,000}

^{L/T
deffered taxes: 188,000}

^{Total L/T Liabilities:
188,000}

^{Trade
Creditors:
84,232,000
75,379,000}

^{Prepay. & Def. charges: 53,951,000 58,354,000}

^{Advanced
payments:
12,000}

^{Due
to Bank:
404,000
795,000}

^{Provisions: 32,143,000 34,636,000}

^{Other
Short term Liab.:
79,888,000
90,078,000}

^{Total short term Liab.: 250,630,000 259,242,000}

^{TOTAL LIABILITIES: 250,630,000 259,430,000}

^{PROFIT
& LOSS ACCOUNT}

^{Net
Sales
686,621,000
588,078,000}

^{Gross
Profit:
109,981,000
95,074,000}

^{Result
of ordinary operations
47,478,000
35,849,000}

^{NET
RESULT BEFORE TAX:
47,089,000 35,848,000}

^{Tax
:
6,145,000
8,403,000}

^{Net
income/loss year:
40,944,000
27,445,000}

^{Interest
Paid:
389,000
1,000}

^{Depreciation: 5,166,000 5,351,000}

^{Dividends: 27,000,000}

^{Directors
Emoluments:}

^{Purchases,Sces
& Other Goods:
576,640,000
493,004,000}

^{Wages
and Salaries: 108,042,000 106,272,000}

^{Financial
Income:
2,255,000
764,000}

RATIOS

^{30/09/2006 30/09/2005}

^{Turnover
per employee: 686621.00 588078.00}

^{Net
result / Turnover(%): 0.06 0.05}

^{Stock
/ Turnover(%): 0.18 0.25}

^{Net
Margin(%): 5.96 4.67}

^{Return
on Equity(%): 42.19 33.03}

^{Return
on Assets(%): 11.78 8.01}

^{Dividends
Coverage: 1.52 1.52}

^{Net
Working capital: 57365000.00 37053000.00}

^{Cash
Ratio: 0.42 0.26}

^{Quick
Ratio: 0.71 0.56}

^{Current
ratio: 1.23 1.14}

^{Receivables
Turnover: 38.25 47.12}

^{Leverage
Ratio: 3.33 4.22}

^{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}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total liabilities/(Total
equity-Intangible assets)}

FINANCIAL COMMENTS

^{NOTE: THE
FINANCIAL STATEMENTS FOR FY2006 AND FY2005 WERE PREPARED ON THE GROUP LEVEL
WHILE THOSE OF FY2004 WERE ON COMPANY LEVEL.}

^{THE FINANCIAL
CONDITION OF THE GROUP WAS DEEMED TO BE FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS PASSABLE WITH TOTAL
EQUITY RISING BY 16.78% AMOUNTING TO S$97,036,000 (2005: S$83,092,000). THIS
WAS CONTRIBUTED BY HIGHER RETAINED EARNINGS BROUGHT FORWARD OF S$67,036,000
(2005: S$53,092,000).}

^LEVERAGE:

^{THE LEVERAGE RATIO
HAD IMPROVED TO 3.33 TIMES (2005: 4.22 TIMES), INDICATING THAT THE GROUP'S
TOTAL LIABILITIES WERE LESS SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY. IN THE SHORT TERM, TRADE CREDITORS INCREASED
BY 11.74%, TOTALLING S$84,232,000 (2005: S$75,379,000). BANK OVERDRAFTS (UNDER
DUE TO BANKS) OF S$404,000 (2005: S$795,000) WERE UNSECURED.}

^{OTHER CURRENT
LIABILITIES OF S$79,888,000 (2005: S$90,078,000) REPRESENTED:}

^{* EXCESS OF
PROGRESS BILLINGS OVER WORK-IN-PROGRESS OF S$70,945,000 (2005: S$86,405,000)}

^{* ADVANCES FROM
CUSTOMERS OF S$8,734,000 (2005: S$3,225,000)}

^{* NEGATIVE MARK TO
MARKET ADJUSTMENTS ARISING FROM FORWARD EXCHANGE CONTRACTS OF S$209,000 (2005:
S$448,000)}

^LIQUIDITY:

^{THE OVERALL
LIQUIDITY OF THE GROUP WAS FAIRLY HEALTHY AND IMPROVING. NET WORKING CAPITAL
WAS ADEQUATE AT S$57,365,000 (2005: S$37,053,000).}

^{ON THE OTHER HAND,
THE QUICK RATIO WAS LACKING AT 0.71 TIMES (2005: 0.56 TIMES) WHILE THE CURRENT
RATIO WAS JUST SUFFICIENT AT 1.23 TIMES (2005: 1.14 TIMES).}

^{PROFITABILITY:}

^{REVENUE FOR FY2006
ROSE BY 16.76%, TOTALLING S$686,621,000 (2005: S$588,078,000). THIS WAS IN
TANDEM WITH THE NET INCOME, WHICH SURGED BY 49.19%, AMOUNTING TO S$40,944,000
(2005: S$27,445,000).}

^{AS A RESULT, NET
MARGIN STOOD HIGHER AT 5.96% (2005: 4.67%).}

^{REVENUE COMPRISED
OF:}

^{* INVOICED SALE OF
GOODS AND SERVICES OF S$467,316,000 (2005: S$325,826,000)}

^{* CONTRACT REVENUE
OF S$219,305,000 (2005: S$262,252,000).}

^{DEBT
SERVICING:}

^{DEBT SERVICING
PROBLEMS MIGHT NOT BE ANTICIPATED IN VIEW OF THE SUFFICIENT NET WORKING CAPITAL,
IMPROVED REVENUES AND NET INCOMES, AND IF TRADE RECEIVABLES WERE FORTHCOMING.}

^{IN ADDITION,
AVERAGE COLLECTION PERIOD HAD SHORTENED TO 38 DAYS (2005: 47 DAYS).}

^{NOTES TO THE
FINANCIAL STATEMENTS:}

^{SUBSEQUENT EVENT}

^{ON 1 OCTOBER 2006,
FLENDER SINGAPORE PTE LTD TRANSFERRED ITS BUSINESS AND RELATED NET ASSETS TO
THE COMPANY FOR A CONSIDERATION OF S$3,275,000.}

BACKGROUND/OPERATION

^{THE COMPANY WAS
INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 15/07/1996 AS A LIMITED PRIVATE
COMPANY BY SHARES UNDER THE NAMESTYLE OF "SIEMENS ADVANCED ENGINEERING PTE
LTD".}

^{SUBSEQUENTLY ON
02/01/2002, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "SIEMENS PTE
LTD".}

^{AS AT 19/12/2007,
THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 30,000,000 SHARES, OF A VALUE
OF S$30,000,000.}

^{PRINCIPAL
ACTIVITIES:}

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

^{1) MIXED
CONSTRUCTION ACTIVITIES; GENERAL CONTRACTOR & MIXED CONSTRUCTION ACTIVITIES}

^{2) MANUFACTURE OF
ELECTRICAL/ELECTRONIC ENGINEERING AND SCIENTIFIC INSTRUMENTS; ENGINEERING,
SALES & SERVICES FOR ELECTRICAL/ELECTRONIC EQUIPMENT}

^{SUBJECT WAS LISTED
IN THE SINGAPORE LOCAL DIRECTORY UNDER THE CLASSIFICATION OF: TELEPHONE
EQUIPMENT & SYSTEMS.}

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

^ACTIVITIES:

^{* SALES AND SERVICE OF ELECTRICAL AND
ELECTRONIC PRODUCTS AND SYSTEMS IN THE FIELDS OF POWER ENGINEERING, INDUSTRY,
INFORMATION AND COMMUNICATION, MEDICAL ENGINEERING, TRANSPORTATION,
ELECTROMECHANICAL COMPONENTS AND PROCUREMENT. IT ALSO ACTS AS AN AGENT FOR ITS
HOLDING AND RELATED CORPORATIONS BY SOURCING PRODUCTS ON BEHALF OF THOSE
COMPANIES.}

^PRODUCTS:

^{* AUTOMATION SYSTEMS & EQUIPMENT}

^{* BUILDING AUTOMATION SYSTEMS}

^{* BUSBAR TRUNKINGS}

^{* CABLE TESTING & MEASURING EQUIPMENT}

^{* CABLES: COAXIAL, COMMUNICATION, FLAT,
OPTICAL FIBRE, POWER, TELECOMMUNICATION}

^{* CHROMATOGRAPHIC EQUIPMENT: GAS}

^{* CIRCUIT BREAKERS: AIR, EARTH LEAKAGE,
MINIATURE, MOULDED CASE}

^{* COMMUNICATION EQUIPMENT}

^{* COMPUTER TOMOGRAPHY SYSTEMS}

^{* CONTROLS: ELECTRIC MOTOR, PROCESS,
PROGRAMMABLE}

^{* CONVERTERS: AC TO DC, DC TO AC}

^{* CRANE ELECTRIFICATION SYSTEMS}

^{* DATA COMMUNICATION EQUIPMENT & SUPPLIES}

^{* DENTAL EQUIPMENT & SUPPLIES}

^{* ELECTRIC MOTORS: A.C., D.C., SINGLE-PHASE,
SLIP-RING, SQUIRREL CAGE, SYNCHRONOUS, THREE PHASE, VARIABLE SPEED}

^{* ELECTRICAL FUSES}

^{* ELECTRICAL SWITCHBOARDS: INDUSTRIAL, MARINE}

^{* ELECTRICAL SWITCHGEARS}

^{* ELECTRONIC COMPONENT INSERTION MACHINES}

^{* GENERATING SETS: GAS TURBINE, STEAM TURBINE}

^{* GENERATORS: AC, DC}

^{* HAND DRYERS}

^{* INTERNATIONAL PROCUREMENT OFFICE}

^{* LIGHT FITTINGS: FLOOD, FLUORESCENT, MERCURY,
SODIUM, STREET, TUNGSTEN HALOGEN}

^{* LIGHTS: FLOOD, HIGH BAY, MERCURY, PILOT, SODIUM,
SPOT, STAGE, TRACK, STREET, TUNGSTEN HALOGEN, UNDERWATER}

^{* LINEAR ACCELERATORS}

^{* MAGNETIC RESONANCE IMAGING}

^{* MEDICAL EQUIPMENT & SUPPLIES}

^{* MEDICAL PRODUCTS - MANUFACTURERS}

^{* METERS: KILO-WATT HOUR}

^{* MICROWAVE COMMUNICATION EQUIPMENT}

^{* POWER SUPPLIES: SWITCHING}

^{* POWER TRANSMISSION & DISTRIBUTION
EQUIPMENT}

^{* POWER TRANSMISSION PRODUCTS}

^{* PRINTING MACHINES}

^{* SATELLITE COMMUNICATION SYSTEMS}

^{* SPECTROMETERS}

^{* SURFACE MOUNT EQUIPMENT}

^{* SWITCHES: FUSE-SWITCH, LIMIT, LOAD BREAK,
LOW-VOLTAGE, MOTOR STARTER, PROXIMITY, PUSHBUTTON, PUSHBUTTON ILLUMINATED,
SAFETY INTERLOCK, TIME, TIME & CUT-OUT}

^{* TELECOMMUNICATION EQUIPMENT: SATELLITE}

^{* TIMERS: ELECTRONIC, PROGRAMMABLE, SEVEN
DAYS, SIXTY MINUTES, TWENTY- FOUR HOURS}

^{* TRANSFORMERS: CURRENT, DRY TYPE, VOLTAGE}

^{* TRANSMISSION SYSTEMS: DIGITAL/ ANALOG SIGNAL}

^{* TURBINES: GAS, STEAM}

^{* ULTRASOUND MEDICAL EQUIPMENT}

^{* UNINTERRUPTIBLE POWER SUPPLIES}

^{* VARIABLE SPEED DRIVES}

^{* VOLTAGE REGULATORS & STABILIZERS}

^{* X-RAY EQUIPMENT}

^AWARDS:

^{* MARKET LEADERSHIP - PLC MARKET (SOUTHEAST
ASIA) - SIEMENS PTE LTD}

^{SUBJECT IS ONE OF
THE RECIPIENTS OF THE 2006 INDUSTRIAL TECHNOLOGIES AWARDS BY FROST &
SULLIVAN (A GLOBAL GROWTH CONSULTING COMPANY)}

^{SUBJECT IS A
MEMBER OF THE FOLLOWING ENTITIES:}

^{* SINGAPORE MANUFACTURERS' FEDERATION}

^{* SINGAPORE INFORMATION TECHNOLOGY FEDERATION}

^{* SINGAPORE INTERNATIONAL CHAMBER OF COMMERCE}

^{FROM THE
TELE-INTERVIEW CONDUCTED ON 27/12/2007, SUBJECT HAS 1,000 EMPLOYEES. NO OTHER
TRADE INFORMATION WAS AVAILABLE.}

^{NUMBER OF EMPLOYEES
(30 SEPTEMBER):}

^{* COMPANY - 2006:
NOT AVAILABLE (2005: 984; 2004: 881; 2003: 639; 2002: 672; 2001: 717)}

^{* GROUP - 2006: NOT AVAILABLE (2005: 1,165 (2004:
1,061; 2003: 938; 2002: 823; 2001: 857)}

^{REGISTERED AND
BUSINESS ADDRESSES:}

^{60 MACHPHERSON
ROAD}

^{THE SIEMENS CENTRE}

^{SINGAPORE 348615}

^{DATE OF CHANGE OF
ADDRESS: 11/07/2003}

^{- RENTED PREMISE}

^{- PREMISE OWNED BY HSBC INSTITUTIONAL TRUST
SVC (S) AS TRUSTEE OF ASCENDAS REAL ESTATE INVESTMENT TRUST}

^{WEBSITE:
www.siemens.com.sg}

^{EMAIL:
thomas.frischmuth@sae.siemens.com.sg}

^{webmaster@siemens.com.sg}

MANAGEMENT

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

^{(1) KLAUS VOGES, A
GERMAN}

^{- BASED IN GERMANY}

^{(2) FRED HELMUT
RETTLINGER, A GERMAN}

^{- BASED IN GERMANY}

^{(3) HANS-DIETER
BOTT, A GERMAN}

^{- BASED IN
SINGAPORE}

ADVERSE ON DIRECTORS

^{DIRECTOR'S NAME:
KLAUS VOGES}

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

^{ANNUAL VALUE: N/A}

^{CO-OWNER (S): N/A}

^{DIRECTOR'S NAME:
FRED HELMUT RETTLINGER}

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

^{PROPERTY
OWNERSHIP: NIL}

^{ANNUAL VALUE: N/A}

^{CO-OWNER (S): N/A}

^{DIRECTOR'S NAME:
HANS-DIETER BOTT}

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

^{PROPERTY
OWNERSHIP: NIL}

^{ANNUAL VALUE: N/A}

^{CO-OWNER (S): N/A}

^{* 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.

SERVICES SECTOR

PAST PERFORMANCE

THE OVERALL BUSINESS RECEIPTS FOR SERVICES INDUSTRIES IN 1Q 2007 ROSE BY 11.7% OVER THE SAME QUARTER IN 2006 BUT EXCLUDING FINANCIAL AND INSURANCE SERVICES, BUSINES RECEIPTS INCREASED BY 7%.

THE DOUBLE-DIGIT GROWTH IN OVERALL BUSINESS RECEIPTS WAS ATTRIBUTED TO POSITIVE GROWTH ACROSS ALL MAJOR SERVICES INDUSTRIES LIKE FINANCIAL & INSURANCE, REAL ESTATE & LEASING, IT SERVICES, HEALTHCARE AND BUSINESS SERVICES.

TURNOVER OF THE OVERALL IT SERVICES INDUSTRY CONTINUED TO GROW BY 10% IN 1Q 2007, AFTER RISING 14% IN THE PREVIOUS QUARTER. IN PARTICULAR, IT CONSULTANCY FIRMS REPORTED AN INCREASE ON 14.2% IN REVENUE DURING THE QUARTER.

RECEIPTS FROM INSURANCE SERVICES ROSE FURTHER BY 45.8% IN 1Q 2007 FOLLOWING A STRONG 53.1% INCREASE IN THE LAST QUARTER, LARGELY ATTRIBUTED TO BRISK BUSINESS REPORTED BY LIFE INSURANCE FIRMS.

IN 1Q 2007, FIRMS IN LEASING SERVICES REGISTERED AN INCREASE OF 3% IN REVENUE. FIRMS ENGAGED IN LEASING OF LAND TRANSPORT EQUIPMENT AND ENGINEERING MACHINERY AND EQUIPMENT REPORTED A RISE IN REVENUE.

BOOSTED BY POSITIVE GROWTH ACROSS ALL CATEGORIES WITHIN THE BUSINESS SERVICES INDUSTRY, THE OVERALL INDUSTRY'S TURNOVER WENT UP BY 9.6% INCREASE IN 1Q 2007.

IN PARTICULAR, LEGAL AND ACCOUNTING FIRMS AND ARCHITECTURAL, ENGINEERING AND TECHNICAL SERVICES REGISTERED 23.8% AND 21.5% INCREASE IN EARNINGS RESPECTIVELY.

THE EDUCATION SERVICES INDUSTRY EXPERIENCED A 3.2% RISE IN REVENUE IN 1Q 2007 AS COMPARED TO THE CORRESPONDING QUARTER IN 2006.

EARNINGS FROM THE HEALTHCARE SERVICES INDUSTRY MOVED UP BY 10.4% IN 1Q 2007, REPRESENTING THE FIFTH CONSECUTIVE QUARTER OF DOUBLE-DIGIT GROWTH SINCE 1Q 2006. HOSPITALS REGISTERED A GROWTH OF 6.4% WHILE CLINICS AND SPECIALISED MEDICAL SERVICES PROVIDERS RECORDED A 13.7% RISE IN REVENUE.

RECREATIONAL ACTIVITIES ALSO ROSE BY 3.3% IN 1Q 2007 AFTER EXPANDING BY 15.4% IN THE PREVIOUS QUARTER.

OUTLOOK

IN GENERAL, A NET WEIGHTED BALANCE OF 22% OF FIRMS IN THE SERVICES SECTOR PRODUCTS BETTER BUSINESS CONDITIONS FOR THE NEXT 6 MONTHS. THIS MAGNITUDE IS SMALLER THAN THE NET WEIGHTED BALANCE OF 25% REGISTERED IN THE SAME PERIOD OF PREVIOUS YEAR, BUT LARGER THAT THE NET WEIGHTED BALANCE OF 18% RECORDED FOR JAN-JUN 2007.

HOTELIERS PROJECT A FAVOURABLE BUSINESS OUTLOOK FOR THE NEXT 6 MONTHS, WHICH IS IN TANDEM WITH THE POSITIVE SENTIMENTS IN THE TOURISM MARKET. FOR THE CATERING TRADE INDUSTRY, BUSINESS OUTLOOK IN THE COMINGS MONTHS REMAINS THE SAME.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSES POSITIVE SENTIMENTS FOR THE NEXT 6 MONTHS. THESE INCLUDE FIRMS ENGAGED IN RENTING OF CONSTRUCTION & INDUSTRIAL MACHINERY, ARCHITECTURAL & ENGINEERING, SPECIALISED DESIGN AND LABOUR RECRUITMENT SERVICES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY

SINGAPORE DEPARTMENT OF STATISTICS

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%)

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