MIRA INFORM REPORT

Report Date :

15^th February, 2007

IDENTIFICATION DETAILS

Name :	TSING YI ENTERPRISES PTE LTD

Registered Office :	10 Kranji Crescent, Singapore 728660, Singapore

Country :	Singapore

Financials (as on) :	31.12.2005

Date of Incorporation :	11.02.1995

Legal Form :	Pte Ltd

Line of Business :	Dealer in all kind of Ferrous and Non Ferrous Metals, Electrical and Electronics and Insulated Cable Scraps.

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

Company Name

TSING YI ENTERPRISES PTE LTD

Line Of Business

DEALER IN ALL KIND OF FERROUS AND NON FERROUS METALS, ELECTRICAL AND ELECTRONICS AND INSULATED CABLE SCRAPS

Parent Company

GREEN WORLD HOLDINGS PTE LTD

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2005

COMPANY

Sales : S$256,140,933

Networth : S$12,800,258

Paid-Up Capital : S$1,500,000

Net result : S$5,646,252

Net Margin(%) : 2.20

Return on Equity(%) : 44.11

Leverage Ratio : 2.18

Rating

Credit Rating : Sing 10 000 001 & Sing $ 50 000 000

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

Subject Company : TSING YI ENTERPRISES PTE LTD

Former Name : -

Business Address : 10 KRANJI CRESCENT

Town : SINGAPORE

Postcode : 728660

County : -

Country : Singapore

Telephone : 6368 3788/

Fax : 6368 5766/ 6305 1000

ROC Number : 199500992H

Reg. Town : -

SUMMARY

All amounts in this report are in: SGD unless otherwise stated

Legal Form : Pte Ltd

Date Inc. : 11/02/1995

Previous Legal Form : -

Summary year : 31/12/2005

Sales : 256,140,933

Net worth : 12,800,258

Capital : 5,000,000

Paid-Up Capital : 1,500,000

Employees : Not Available

Net result : 5,646,252

Share value : 1

Auditor : ERNST & YOUNG

REFERENCES

Litigation : No

Company status : TRADING

Started : 11/02/1995

PRINCIPAL(S)

^{CHANG CHEO CHAI S1086332E Director}

DIRECTOR(S)

CHANG CHEO CHAI S1086332E Director

Appointed on : 13/11/2006

Street : 412 PANDAN GARDENS, #11-106

Town : SINGAPORE

Postcode : 600412

Country : Singapore

OH BOON CHYE S1684672D Director

Appointed on : 07/11/2006

Street : 335 SEMBAWANG CLOSE, #05-475

Town : SINGAPORE

Postcode : 750335

Country : Singapore

CHOO TZY SIONG S1713305E Company Secretary

Appointed on : 31/07/2006

Street : 54 HUME AVENUE, #05-04, SUMMERHILL

Town : SINGAPORE

Postcode : 596231

Country : Singapore

FORMER DIRECTOR(S)

^{LEE POH CHOO S6831418F}

^{SEAH HOCK BOON S7014300C}

ACTIVITY(IES)

^{METAL SPECIALTIES Code:13890}

^{BASED ON ACRA'S RECORD AS AT 13/02/2007}

^{1) MECHANICAL ENGINEERING WORKS;} ^{MECHANICAL ENGINEERING MANUFACTURERS AND ENGINEERING WORKS}

CHARGES

Date : 13/03/2006

Comments : CHARGE NO : C200601656, C200601655, C200601654

AMOUNT SECURED : 0.00 AND ALL MONIES OWING

CHARGEE(S) : MALAYAN BANKING BHD

Date : 21/02/2003

Comments : CHARGE NO : C200300763, C200300760

AMOUNT SECURED : 0.00 AND ALL MONIES OWING

CHARGEE(S) : KBC BANK N.V.

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{MALAYAN BANKING BHD}

^{K.B.C. BANK N.V.}

^{DBS BANK LTD.}

^{OVERSEA-CHINESE BANKING CORPORATION} ^LIMITED

^{UNITED OVERSEAS BANK LIMITED}

SHAREHOLDERS(S)

GREEN WORLD HOLDINGS PTE LTD 1,500,000 Company

Street : 6 TUAS VIEW CIRCUIT

Town : SINGAPORE

Postcode : 637599

Country : Singapore

FORMER SHAREHOLDER(S)

^{LEE POH CHOO
1,499,999}

^{SEAH HOCK BOON 1}

HOLDING COMPANY

^{GREEN WORLD HOLDINGS PTE LTD
199903944K %: 100}

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: 15/08/2006}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

ASSETS

^{Tangible Fixed Assets: 9,654,813 9,694,398}

^{Total Fixed Assets}^{: 9,654,813 9,694,398}

^{Inventories: 7,433,815 6,840,376}

^{Receivables: 13,370,693 11,978,558}

^{Short Term Fin. Assets: 11,001 -}

^{Cash,Banks,Securities: 3,591,798 5,330,145}

^{Other current assets: 6,604,975 4,309,284}

^{Total Current Assets}^{: 31,012,282 28,458,363}

^{TOTAL ASSETS: 40,667,095 38,152,761}

LIABILITIES

^{Equity capital: 1,500,000 1,500,000}

^{Profit & loss Account: 11,300,258 10,214,006}

^{Total Equity: 12,800,258 11,714,006}

^{Long Term Loans: - 252,619}

^{L/T deferred taxes: 544,000 427,000}

^{Other long term Liab.: 12,583,495 11,546,341}

^{Total L/T Liabilities}^{: 13,127,495 12,225,960}

^{Trade Creditors: 1,790,147 2,715,430}

^{Prepay. & Def. charges: 2,236,187 1,420,536}

^{Short term liabilities: 129,147 261,993}

^{Due to Bank: 4,869,293 5,093,426}

^{Provisions: 1,854,555 1,570,389}

^{Other Short term Liab.: 3,860,013 3,151,021}

^{Total short term Liab}^{.: 14,739,342 14,212,795}

^{TOTAL LIABILITIES:
27,866,837
26,438,755}

PROFIT & LOSS ACCOUNT

^{Net Sales 256,140,933 240,699,323}

^{Purchases,Sces & Other Goods: 241,813,066 226,360,318}

^{Gross Profit: 14,327,867 14,339,005}

^{Result of ordinary operations 7,552,826 7,866,282}

^{NET RESULT BEFORE TAX: 7,198,252 7,351,454}

^{Tax: 1,552,000 1,621,000}

^{Net income/loss year: 5,646,252 5,730,454}

^{Interest Paid: 354,574 514,828}

^{Depreciation: 999,390 1,031,367}

^{Dividends: 4,560,000 3,444,600}

^{Directors Emoluments: 214,096 198,365}

^{Wages and Salaries: 3,764,534 3,120,787}

^{Financial Income: 35,357 13,662}

RATIOS

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

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

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

^{Net Margin(%): 2.20 2.38}

^{Return on Equity(%): 44.11
48.92}

^{Return on Assets(%): 13.88 15.02}

^{Dividends Coverage: 1.24 1.66}

^{Net Working capital: 16272940.00 14245568.00}

^{Cash Ratio: 0.24 0.38}

^{Quick Ratio: 1.15 1.22}

^{Current ratio: 2.10 2.00}

^{Receivables Turnover: 18.79 17.92}

^{Leverage Ratio: 2.18 2.26}

^{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} ^{9.27% FROM S$11,714,006 IN 2004 TO
S$12,800,258 IN 2005.}

^{THIS WAS DUE TO HIGHER REVENUE RESERVE OF S$11,300,258} ^{(2004: S$10,214,006); A RISE OF 10.63% FROM
THE PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY AMOUNTS DUE TO} ^{BANKS WHICH MADE UP 33.04% (2004: 35.84%) OF
THE TOTAL CURRENT} ^{LIABILITIES AND AMOUNTED TO S$4,869,293 (2004:
S$5,093,426).}

^{TRADE CREDITORS FELL BY 34.08% TO S$1,790,147 (2004: S$2,715,430),} ^{AND CONSIST OF THE FOLLOWING:}

^{-TRADE CREDITORS - 2005: S$64,769 (2004: S$489,468)}

^{-AMOUNTS DUE TO RELATED COMPANIES - 2005: S$1,725,378} ^{(2004: S$2,225,962)}

^{SUBJECT'S LONG TERM LIABILITIES ROSE BY 7.37% TO S$13,127,495} ^{(2004: S$12,225,960), AND CONSIST OF THE
FOLLOWING:}

^{-LOANS FROM HOLDING COMPANY - 2005: S$12,168,213 (2004: S$10,047,965)}

^{-LOANS FROM A RELATED COMPANY - 2005: - (2004: S$1,214,814)}

^{-HIRE PURCHASE CREDITORS - 2005: S$415,282 (2004: S$283,562)}

^{-DEFERRED INCOME TAX - 2005: S$544,000 (2004: S$427,000)}

^{-AMOUNTS DUE TO BANKERS (SECURED) - 2005: - (2004: S$252,619)}

^{IN ALL, LEVERAGE RATIO FELL FROM 2.26 TIMES TO 2.18 TIMES AS A RESULT} ^{OF A MORE THAN PROPORTIONATE RISE IN TOTAL
EQUITY AS COMPARED TO THE} ^{RISE IN TTOAL LIABILITIES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM} ^{THE RISE IN NET WORKING CAPITAL BY 14.23% TO
S$16,272,940} ^{(2004: S$14,245,568).}

^{CURRENT RATIO ROSE TO 2.10 TIMES, UP FROM 2.00 TIMES BUT} ^{QUICK RATIO DECREASED TO 1.15 TIMES FROM 1.22
TIMES IN 2004.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 6.42% FROM S$240,699,323 IN 2004 TO} ^{S$256,140,933 BUT NET PROFIT DROPPED BY 1.47%
TO S$5,646,252} ^{(2004: S$5,730,454).}

^{THIS COULD BE DUE TO LOWER GROSS MARGIN OF 5.59% IN 2005} ^{(2004: 5.96%).}

^{HENCE, NET MARGIN FELL TO 2.20% (2004: 2.38%).}

^{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, ITS INTEREST COVERAGE WAS
HEALTHY AS SHOWN BY ITS INTEREST} ^{COVERAGE RATIO OF 21.30 TIMES}

^{(2004: 15.28 TIMES).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{AMOUNTS DUE TO BANKERS}

^{THE BANK OVERDRAFTS, TRUST RECEIPTS AND SHORT TERM LOANS ARE SECURED} ^{BY CORPORATE GUARANTEES FROM HOLDING COMPANY.} ^{THE BANK OVERDRAFTS BEAR INTEREST RANGING FROM 6% TO 7%} ^{(2004:
6% TO 7%) PER ANNUM.}

^{THE TRUST RECEIPTS HAVE A MAXIMUM TENURE PERIOD OF 90 DAYS AND BEAR} ^{INTEREST RANGING FROM 4.10% TO 5.92% (2004:
2.11% TO 4.35%) PER ANNUM.}

^{THE SHORT TERM REVOLVING LOANS HAVE A MAXIMUM TENURE PERIOD OF 90 DAYS} ^{AND BEAR INTEREST RANGING FROM 3.35% TO 4.81%} ^{(2004: 2.63% TO 3.725%) PER ANNUM.}

^{INCLUDED IN AMOUNT DUE TO BANKERS IS AN AMOUNT OF S$3,369,000} ^{(2004: S$2,435,000) DENOMINATED IN US
DOLLARS.}

^{COMMITMENTS AND CONTINGENCIES}

^{1) CONTINGENT LIABILITIES (UNSECURED)}

^{AS AT 31 DECEMBER 2005, THE COMPANY HAD OUTSTANDING BANKERS GUARANTEE} ^{OF APPROXIMATELY $574,420 (2004: $447,721)
ISSUED IN FAVOR OF THIRD} ^{PARTIES IN THE NORMAL COURSE OF BUSINESS.}

^{2) CAPITAL COMMITMENTS}

^{CAPITAL EXPENDITURE CONTRACTED FOR AS AT BALANCE SHEET DATE BUT NOT} ^{RECOGNIZED IN THE FINANCIAL STATEMENTS IS AS
FOLLOWS:}

^{CAPITAL COMMITMENTS IN RESPECT OF THE}

^{CPNSTRUCTION OF THE BUILDING AT}

^{KRANJI CRESCENT
- 2005: $4,695,000 (2004: - )}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{11/02/1995 AS A LIMITED PRIVATE COMPANY AND
IS TRADING UNDER THE} ^{PRESENT NAMESTYLE OF "TSING YI ENTERPRISES
PTE LTD".}

^{AS AT 13/02/2007, THE COMPANY HAS AN 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) TO BE PRINCIPALLY ENGAGED IN
THE BUSINESS OF:}

^{1) MECHANICAL ENGINEERING WORKS;}

^{MECHANICAL ENGINEERING MANUFACTURERS AND ENGINEERING WORKS}

^{DURING THE FINANCIAL YEAR (S) UNDER REVIEW, THE PRINCIPAL ACTIVITIES} ^{OF THE COMPANY ARE THOSE RELATING TO THAT OF
A DEALER IN ALL KIND OF} ^{FERROUS AND NON FERROUS METALS, ELECTRICAL
AND ELECTRONICS AND} ^{INSULATED CABLE SCRAPS.}

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

^ACTIVITIES

^{- TRADING OF FERROUS/NON-FERROUS METALS, ELECTRICAL & ELECTRONICS
AND} ^INSULATED

^{CABLE SCRAP}

^{- MARKET THE GROUP'S PRODUCTS TO THE REST OF THE ASIAN MARKETS SUCH} ^{AS INDIA,}

^{KOREA, AND THE PRC AND TO EXPAND INTO THE EUROPEAN MARKET}

^{- SOURCE FOR SCRAP METAL FROM NEIGHBOURING COUNTRIES SUCH AS} ^{MALAYSIA, INDONESIA}

^{AND BRUNEI TO COPE WITH ITS INCREASING} ^{PRODUCTION NEEDS}

^{QUALITY ASSESSMENT}

^{- ISO9002}

^{- ISO 14000}

^{- JIS Z 9902 (THE JAPANESE EQUIVALENT OF ISO9002)}

^{- PSB ODS FREE PROCESS VERTIFICATION}

^{SUBJECT IS A MEMBER OF THE FOLLOWING ENTITY}

^{- SINGAPORE BUSINESS FEDERATION}

^{*ABOUT GREEN WORLD HOLDINGS PTE LTD (HOLDING COMPANY)}

^{- THE GROUP'S HISTORY DATES BACK TO 1988 AS A HUMBLE SOLE} ^{PROPRIETORSHIP UNDER THE NAME OF SEAH METAL
TRADING. LED BY MR SEAH} ^{HOCK THIAM, FOUNDER AND AN ENTERPRISING
VISIONARY, THE GROUP HAS} ^{GROWN FROM A MODEST OUTFIT TO BECOME A}

^{SIGNIFICANT PLAYER IN THE} ^{METAL
RECYCLING INDUSTRY}

^{- TO MEET THE INCREASING MARKET DEMAND AND BUSINESS VOLUME, TSING YI} ^ENTERPRISES

^{PTE LTD AND TSINGTECH RECYCLING PTE LTD WERE} ^{SUBSEQUENTLY FORMED TO STREAMLINE}

^{BUSINESS OPERATIONS AND TO MEET} ^{THE CHALLENGES OF EXPANDING INTO BOTH THE}

^{REGIONAL AND EUROPEAN} ^MARKETS

^{- IN DECEMBER 2000, GREEN WORLD HOLDINGS LIMITED WAS SUCCESSFULLY} ^{LISTED ON THE}

^{SINGAPORE STOCK EXCHANGE}

^{- GREEN WORLD HOLDINGS GROUP OPERATES OUT OF A 7,000 SQM MODERN} ^{FACTORY BUILDING EQUIPPED WITH HIGH VOLUME
COMPUTERIZED PROCESSING} ^{EQUIPMENT AND A HI-TECH LABORATORY. THE
MODERN FACTORY IS CAPABLE OF} ^{PRODUCING MORE THAN 5000 TONS OF A
BROAD VARIETY OF METAL PRODUCTS} ^{WHICH ARE EXPORTED TO MANY ASIAN MARKETS
SUCH AS JAPAN, HONG KONG} ^{AND THAILAND AS WELL AS SEVERAL EUROPEAN
COUNTRIES}

^{ACCORDING TO THE TELE-INTERVIEW CONDUCTED ON 15/02/2007, THE} ^{FOLLOWING INFORMATION WAS GATHERED:}

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

^{THE COMPANY IS A WHOLLY OWNED SUBSIDIARY OF GREEN WORLD HOLDINGS PTE} ^{LTD, WHICH IS ALSO THE COMPANY'S ULTIMATE
HOLDING COMPANY.}

^{NUMBER OF EMPLOYEES (31 DECEMBER)}

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

^{REGISTERED AND BUSINESS ADDRESS:}

^{10 KRANJI CRESCENT}

^{SINGAPORE 728660}

^{DATE OF CHANGE OF ADDRESS: 11/09/2006}

^{- HEAD OFFICE}

^{- SUBJECT STATED THAT THE PREFERRED BUSINESS CONTACT NUMBER IS} ^{(TEL: 6368 3788)}

^{OTHER BUSINESS ADDRESS:}

^{6 TUAS VIEW CIRCUIT}

^{SINGAPORE 637599}

^{- ALSO YOUR PROVIDED ADDRESS}

^WEBSITE:

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

^EMAIL:

^{sales@greenworld.com.sg}

MANAGEMENT

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

^{1) CHANG CHEO CHAI, A SINGAPOREAN}

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

^{2) OH BOON CHYE, 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.

WHOLESALE AND RETAIL TRADE

^{PAST PERFORMANCE}

^{WITH THE GROWTH IN NON-OIL RE-EXPORTS AND THE RISE IN RETAIL SALES, THE} ^{WHOLESALE AND RETAIL TRADE SECTOR GREW BY A
ROBUST 15% IN 1Q2006, UP FROM THE} ^{12% GAIN IN 4Q2005.}

^{WHOLESALE TRADE}

^{DOMESTIC WHOLESALE TRADE INDEX}

^{FOLLOWING SEVEN QUARTERS OF DOUBLE-DIGIT GROWTH, THE OVERALL DOMESTIC
WHOLESALE} ^{TRADE INDEX
MODERATED TO 7.5% IN 1Q2006. EXCLUDING PETROLEUM, THE INDEX ROSE BY} ^{14.2%
OVER THE SAME PERIOD LAST YEAR.}

^{AT CONSTANT PRICES, THE OVERALL INDEX DECLINED BY 4.4% IN 1Q2006 OVER
1Q2005,} ^{MAINLY DUE TO
LOWER ACTIVITY IN CHEMICAL AND PETROLEUM SECTORS. EXCLUDING} ^{PETROLEUM,
IT WAS 7.9% HIGHER THAN A YEAR AGO.}

^{ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX POSTED A DECLINE OF
16.5%} ^{COMPARED TO
4Q2005. EXCLUDING PETROLEUM, THE INDEX WERE LOWER BY 8.9%.}

^{FOREIGN WHOLESALE TRADE INDEX}

^{AS COMPARED TO 1Q2005, THE OVERALL FOREIGN WHOLESALE TRADE IN 1Q2006
ROSE BY} ^{15.4%. EXCLUDING
PETROLUEM, THE INDEX EXPANDED BY 11.5%.}

^{AT CONSTANT PRICES, THE OVERALL INDEX ROSE MARGINALLY BY 0.9% IN 1Q2006
OVER A} ^{YEAR AGO.
EXCLUDING PETROLEUM, IT WAS UP BY 7.6%.}

^{ON A QUARTER-ON-QUARTER BASIS, THE OVERALL INDEX POSTED A DECLINE OF
9.4%} ^{FOLLOWING GROWTH
FOR THREE CONSECUTIVE QUARTERS. EXCLUDING PETROLEUM, THE INDEX} ^{WERE
LOWER BY 8.6%.}

^{THE MAJOR SECTORS MOSTLY POSTED LOWER FOREIGN SALES WITH THE EXCEPTION
OF} ^{TELECOMMUNICATIONS
& COMPUTERS SECTOR IN 1Q2006. THE HOUSEHOLD EQUIPMENT &} ^{FURNITURE,
FOOD, BEVERAGES & TOBACCO SECTOR ALL REPORTED DECLINE IN TURNOVER OF} ^{MORE
THAN 17% IN THE FIRST QUARTER OF 2006 OVER 4Q2005.}

^{RETAIL TRADE}

^{RETAIL SALES CHALKED UP 8.0% GROWTH IN 1Q2006, FELLING MARGINALLY FROM
THE 8.2%} ^{GROWTH IN 4Q2005.
SALES OF MOTOR VEHICLES ROSE BY 10% IN 1Q2006, HIGHER THAN THE} ^{8.5%
GAIN IN THE LAST QUARTER. EXCLUDING MOTOR VEHICLES, RETAIL SALES MODERATED} ^{TO 5.2% GROWTH, SLOWER THAN THE 7.8% RISE IN 4Q2005.}

^{ALL THE MAJOR SEGMENTS RECORDED GROWTH IN 1Q2006 OVER 1Q2005, WITH
GROWTH} ^{RANGING FROM 1.6%
TO 18%. THE SEGMENTS WERE TELECOMMUNICATIONS AND COMPUTERS,} ^{FOOD AND
BEVERAGES, WEARING APPAREL AND FOOTWEAR, OPTICAL GOODS AND BOOKS,} ^{PROVISION
AND SUNDRY SHOPS, DEPARTMENT STORES, SUPERMARKETS, MEDICAL GOODS AND} ^{TOILETRIES,
RECREATIONAL GOODS, FURNITURE AND HOUSEHOLD EQUIPMENT, WATCHES AND} ^{JEWELLERY,
AND PETROL SERVICE STATIONS.}

^{A ROSY OUTLOOK FOR RETAILERS}

^{RETAIL SALES IN SINGAPORE ROSE IN JUNE FOR THE 16TH STRAIGHT MONTH AS AN} ^{IMPROVING JOB MARKET AND A RISE IN TOURIST
ARRIVALS INCREASED CONSUMER SPENDING.}

^{THE RETAIL SALES INDEX GREW BY 5.1% FROM A YEAR EARLIER AFTER EXPANDING
BY 13.1%} ^{IN MAY. EXCLUDING
MOTOR VEHICLES, RETAIL SALES GREW BY 7.8%.}

^AHEAD

^{WHOLESALERS PREDICTS POSITIVE BUSINESS CONDITIONS FOR THE PERIOD ENDING
DECEMBER} ^{2006. THOSE
DEALING IN FURNITURE & FURNISHINGS, COSMETICS & TOILETRIES,} ^{JEWELLERY
& WATCHES, HOUSEHOLD ELECTRICAL APPLIANCES & EQUIPMENT, ELECTRONIC} ^{COMPONENTS, SCIENITIFIC & PRECISION EQUIPMENT, ARE AMONG THOSE WHO ARE} ^{OPTIMISTIC ABOUT THE BUSINESS OUTLOOK AHEAD.}

^{RETAILERS ALSO FORECAST BETTER BUSINESS SENTIMENTS FOR THE COMING MONTHS
ENDING} ^{DECEMBER 2006, WITH
A NET BALANCE OF 22%, ESPECIALLY DEPARTMENT STORES AND} ^{RETAILERS OF
WEARING APPAREL AND FURNITURE & FURNISHINGS EXPECTING A POSITIVE} ^{BUSINESS
OUTLOOK FROM THE YEAR-END FESTIVE SHOPPING.}

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

^{SINGAPORE DEPARTMENT OF STATISTICS}

^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

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