MIRA INFORM REPORT

Report Date :

11.01.2007

IDENTIFICATION DETAILS

Name :	ECO TROPICAL RESOURCES PTE LTD

Registered Office :	^{531 Upper Cross Street, #03-45, Hong Lim Complex, Singapore - 050531}

Country :	Singapore

Financials (as on) :	31.12.2004

Date of Incorporation :	^02/02/1998

Com. Reg. No.:	^199800513K

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Trading, Recycling and Manufacturing of Metals and Plastics.

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

ECO TROPICAL RESOURCES PTE LTD

Line Of Business

TRADING, RECYCLING, MANUFACTURING OF METALS AND PLASTICS.

Parent Company

Financial Elements

FY2004

COMPANY

Sales : S$100,500,695

Net worth : S$ 1,935,592

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

Net result : S$ 611,749

Net Margin(%) : 0.61

Return on Equity(%) : 31.61

Leverage Ratio : 2.39 TIMES

COMPANY IDENTIFICATION

^{Subject
Company : ECO TROPICAL
RESOURCES PTE LTD}

^{Former
Name :
-}

^{Business
Address : 531 UPPER CROSS
STREET}

^#03-45

^{HONG LIM COMPLEX}

^{Town :
SINGAPORE}

^{Postcode : 050531}

^{County :
-}

^{Country :
Singapore}

^{Telephone : 6535 7058}

^{Fax :
6535 3055}

^{ROC
Number :
199800513K}

^{Reg.
Town : -}

SUMMARY

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

^{Legal
Form :
Exempt Pte Ltd}

^{Date
Inc. :
02/02/1998}

^{Previous
Legal Form :
-}

^{Summary
year :
31/12/2004}

^{Sales :
100,500,695}

^{Net
Worth :
1,935,592}

^{Capital :
1,000,000}

^{Paid-Up
Capital :
1,000,000}

^{Employees :
9}

^{Net
Result :
611,749}

^{Share
value :
1}

^{Auditor :
GOH YAU KEE & CO}

REFERENCES

^{Litigation :
No}

^{Company
status :
TRADING}

^{Started
:
02/02/1998}

PRINCIPAL(S)

^{LIM
HUA PENG
S0212174C Director}

DIRECTOR(S)

^{LIM
HUA PENG S0212174C Director}

^{Appointed
on : 02/02/1998}

^{Street
: 26
MUNSHI ABDULLAH WALK}

^{RAINTREE VALLEY}

^{Town :
SINGAPORE}

^{Postcode : 788606}

^{Country : Singapore}

^{SEAH
HONG GIOK S1415663A Director}

^{Appointed
on : 02/02/1998}

^{Street
: 26
MUNSHI ABDULLAH WALK}

^{RAINTREE VALLEY}

^{Town :
SINGAPORE}

^{Postcode : 788606}

^{Country : Singapore}

^{FONG
YEAU LING S7119529E Company Secretary}

^{Appointed
on : 22/09/2003}

^{Street
: 26
TANGLIN HALT ROAD}

^#03-58

^{Town :
SINGAPORE}

^{Postcode : 141026}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{LEE
BOON CHONG S1445059I}

ACTIVITY(IES)

^{TRADING
COMPANIES Code: 22190}

^{SCRAP
METALS Code: 19045}

^{BUSINESS
MANAGEMENT Code:
3160}

^{BASED
ON ACRA'S RECORD AS AT 28/11/2006}

^{1)
RECYCLING OF METAL WASTE AND SCRAP}

^{2)
BUSINESS MANAGEMENT AND CONSULTANCY SERVICES}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

No Bankers’ Information In Our Databases

SHAREHOLDERS(S)

^{LIM
HUA PENG
1,000,000 Private Person}

^{Street
: 26
MUNSHI ABDULLAH WALK}

^{RAINTREE VALLEY}

^{Town :
SINGAPORE}

^{Postcode : 788606}

^{Country : Singapore}

^{SEAH
HONG GIOK
1,000,000 Private Person}

^{Street
: 26
MUNSHI ABDULLAH WALK}

^{RAINTREE VALLEY}

^{Town :
SINGAPORE}

^{Postcode : 788606}

^{Country : Singapore}

SUBSIDIARY (IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade
Morality :
AVERAGE}

^{Liquidity
:
SUFFICIENT}

^{Payments
: REGULAR}

^{Trend
:
UPWARD}

^{Financial
Situation : AVERAGE}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

^{Audit Qualification: UNQUALIFIED UNQUALIFIED UNQUALIFIED}

^{(CLEAN) (CLEAN) (CLEAN)}

^{Date Account Lodged: 26/10/2005}

^{Balance Sheet Date: 31/12/2004 31/12/2003 31/12/2002}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY
COMPANY}

^{---
ASSETS ---}

^{Preliminary Exp - - 4,663}

^{Tangible Fixed Assets: 86,912 144,594
38,003}

^{Total Fixed Assets}^{: 86,912 144,594 42,666}

^{Inventories: 967,937 132,343
1,387,893}

^{Receivables: 4,651,478 2,387,951
710,605}

^{Cash,Banks, Securities: 839,425 1,050,087
637,753}

^{Other current assets: 6,564 2,224 11,455}

^{Total Current Assets}^{: 6,465,404 3,572,605 2,747,706}

^{TOTAL ASSETS: 6,552,316 3,717,199
2,790,372}

^{---
LIABILITIES ---}

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

^{Profit & loss Account: 935,592 323,843
22,285}

^{Total Equity}^{: 1,935,592 823,843 522,285}

^{L/T deferred taxes: 2,809 1,163 -}

^{Total L/T Liabilities}^{: 2,809 1,163 -}

^{Trade Creditors: 2,458,920 892,011 368,082}

^{Advanced payments: 13,878 - -}

^{Due to Bank: 149,248 190,767
187,863}

^{Provisions: 169,644 106,534
1,328}

^{Other Short term Liab.: 1,797,160 1,420,317
1,710,814}

^{Prepay. & Def. charges: 25,065 282,564 -}

^{Total short term Liab.: 4,613,915 2,892,193
2,268,087}

^{TOTAL LIABILITIES:
4,616,724 2,893,356 2,268,087}

PROFIT & LOSS ACCOUNT

^{Net Sales 100,500,695 52,598,491
32,885,212}

^{Result of ordinary operations 795,336 413,950
154,585}

^{NET RESULT BEFORE TAX: 783,039 413,918
154,346}

^{Tax : 171,290 112,360
12,685}

^{Net income/loss year: 611,749 301,558 141,661}

^{Interest Paid: 12,297 32 239}

^{Depreciation: 83,629 102,250
88,614}

^{Directors Emoluments: 683,160 405,960 167,040}

^{Wages and Salaries: 202,267 126,759 145,547}

^{Financial Income: 29,679 9,288 -}

RATIOS

^{31/12/2004 31/12/2003
31/12/2002}

^{Turnover per employee: 11166743.89 5844276.78
3653912.44}

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

^{Stock / Turnover(%): 0.01 0.00 0.04}

^{Net Margin(%): 0.61 0.57
0.43}

^{Return on Equity(%): 31.61 36.60
27.12}

^{Return on Assets(%): 9.34 8.11
5.08}

^{Net Working capital: 1851489.00 680412.00
479619.00}

^{Cash Ratio: 0.18 0.36
0.28}

^{Quick Ratio: 1.19 1.19 0.59}

^{Current ratio: 1.40 1.24
1.21}

^{Receivables Turnover: 16.66 16.34
7.78}

^{Leverage Ratio: 2.39 3.51
4.34}

^{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}

^{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 DEEMED TO BE FAIR TO STABLE IN VIEW OF
THE FOLLOWING:}

^NET
WORTH:

^{THE
BALANCESHEET WAS CONSIDERED ADEQUATE WITH TOTAL EQUITY SURGING HIGHER BY 1.35
TIMES, AMOUNTING TO S$1,935,592 (2003: S$823,843).}

^{THIS
WAS CONTRIBUTED BY HIGHER ACCUMULATED PROFITS BROUGHT FORWARD OF S$935,592
(2003: S$323,843), UP NOTABLY BY 1.89 TIMES.}

^LEVERAGE:

^{THE
LEVERAGE RATIO WAS SLIGHTLY AGGRESSIVE AT 2.39 TIMES BUT HAS DROPPED FROM THE
PRIOR FINANCIAL YEAR OF 3.51 TIMES. THIS INDICATED THAT THE COMPANY'S TOTAL
LIABILITIES WERE SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^{IN
THE SHORT-TERM, TRADE CREDITORS AMOUNTED TO S$2,458,920 (2003: S$892,011),
INCREASING BY 1.76 TIMES. OTHER SHORT TERM LIABILITIES OF S$1,797,160 (2003:
S$1,420,317) REPRESENTED:}

^{*
OTHER CREDITORS OF S$273,440 (2003: S$13,532)}

^{*
AMOUNT DUE TO RELATED PARTIES (NON-TRADE) OF S$314,089 (2003: S$355,642)}

^{*
ADVANCE FROM DIRECTORS OF S$1,209,631 (2003: S$1,051,143)}

^LIQUIDITY:

^{THE
OVERALL LIQUIDITY SITUATION OF THE COMPANY WAS FAIRLY HEALTHY. QUICK RATIO REMAINED AT 1.19 TIMES FOR BOTH
FINANCIAL YEARS. THE CURRENT RATIO REGISTERED HIGHER AT 1.40 TIMES (2003: 1.24
TIMES).}

^{THIS
WAS IN TANDEM WITH THE NET WORKING CAPITAL, WHICH ALSO ROSE BY 1.72 TIMES,
TOTALLING S$1,851,489 (2003: S$680,412).}

^{HOWEVER,
CASH AND CASH EQUIVALENTS FELL BY 20.06%, POSTING LOWER AT S$839,425 (2003:
S$1,050,087).}

^{PROFITABILITY:}

^{REVENUE
FOR FY2004 AMOUNTED TO S$100,500,695 (2003: S$52,598,491), SURGING BY 91.07%.
LIKEWISE, NET PROFIT FOR THE YEAR ALSO POSTED FAVOURABLY AT S$611,749 (2003:
S$301,558), UP BY 1.03 TIMES. HOWEVER, NET MARGIN WAS CONSERVATIVE AT 0.61%,
DESPITE INCREASING MARGINALLY FROM 0.57%.}

^{DEBT
SERVICING:}

^{DEBT
SERVICING PROBLEMS WOULD NOT BE ANTICIPATED IN VIEW OF THE HEALTHY NET WORKING
CAPITAL AND IF REVENUES CONTINUED TO BE GENERATED.}

^{IN
ADDITION, INTEREST COVERAGE RATIO WAS HEALTHY AT 64.68 TIMES (2003: 12,935.94
TIMES).}

^{NOTES TO THE FINANCIAL STATEMENTS}^:

^{CONTINGENT
LIABILITY:}

^{BANKER'S
GUARANTEE OF S$100,000 (2003: S$100,000) ISSUED IN FAVOUR OF NATIONAL
ENVIRONMENT AGENCY IS SECURED BY DEED OF GUARANTEE SIGNED BY DIRECTORS.}

^{SUBSEQUENT
EVENT:}

^{IN
APRIL 2005, THE COMPANY INCREASED ITS AUTHORISED CAPITAL TO S$2,000,000 BY THE
CREATION OF AN ADDITIONAL 1,000,000 SHARES OF S$1 EACH AND ISSUED 1,000,000
SHARES OF S$1 EACH AT PAR PAYABLE IN FULL ON ALLOTMENT. THESE NEW SHARES RANK
PARI PASEU WITH THE EXISTING SHARES OF THE COMPANY.}

^{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 02/02/1998 AS A
LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS
"ECO TROPICAL RESOURCES PTE LTD".}

^{AS
AT 28/11/2006, SUBJECT HAS AN ISSUED AND PAID-UP CAPITAL OF 2,000,000 SHARES OF
A VALUE OF S$2,000,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1)
RECYCLING OF METAL WASTE AND SCRAP}

^{2)
BUSINESS MANAGEMENT AND CONSULTANCY SERVICES}

^{DURING
THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITIES WERE TO
CARRY ON THE BUSINESS OF TRADING, RECYCLING, MANUFACTURING OF METALS AND
PLASTICS.}

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

^{THE
COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE CLASSIFICATION
OF: TRADING COMPANIES.}

^{SUBJECT
ENGAGES IN THE FOLLOWING ACTIVITY:}

^{*
IMPORTER, EXPORTER AND STOCKIST OF NON-FERROUS METALS INGOTS-TIN, ZINC, LEAD.}

^{*
RECYCLING OF NON-FERROUS METAL SCRAP AND PLASTIC.}

^{NO
OTHER INFORMATION WAS GATHERED VIA THE TELE-INTERVIEW CONDUCTED ON 30/11/2006.
SUBJECT WAS ONLY WILLING TO VERIFY THE BUSINESS ADDRESSES AS WELL AS THE
CONTACT NUMBERS.}

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

^{*
SINGAPORE CHINESE CHAMBER OF COMMERCE AND INDUSTRY (SCCCI)}

^{NO.
OF EMPLOYEES (31 DECEMBER) :}

^{*
COMPANY - 2004: 9 (2003: 6)}

^{REGISTERED
AND BUSINESS ADDRESS:}

^{531
UPPER CROSS STREET}

^#03-45

^{HONG
LIM COMPLEX}

^{SINGAPORE
050531}

^{DATE
OF CHANGE OF ADDRESS: -}

^--
OFFICE

^WEBSITE:

^{*
http://www.ecometal.com.sg (UNDER CONSTRUCTION)}

^EMAIL:

^{*
hong@ecometal.com.sg}

^{* ecores@magix.com.sg}

MANAGEMENT

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

^{1) LIM
HUA PENG, A SINGAPOREAN}

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

^{2)
SEAH HONG GIOK, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP 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.

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

SINGAPORE’S ECONOMIC GROWTH MODERATED IN THE SECOND QUARTER TO 7.5% YEAR-ON-YEAR DUE TO A WEAKER MANUFACTURING SECTOR. PRELIMINARY ESTIMATES ISSUED SHOWN GROWTH IN REAL GROSS DOMESTIC PRODUCT SLOWED FROM A REVISED 10.7% IN THE FIRST QUARTER. ON A QUARTER-ON-QUARTER BASIS, SEASONALLY ADJUSTED ANNUALISED BASIS, GDP GREW 1.1% AFTER A 7% EXPANSION IN THE PREVIOUS QUARTER.

THE MANUFACTURING SECTOR IS FORECASTED TO HAVE EXPANDED BY A MORE MODERATE 10.2% IN THE SECOND QUARTER, MAINLY ATTRIBUTED TO LOWER PRODUCTION FROM THE BIOMEDICAL MANUFACTURING CLUSTER. IT FELL BY ABOUT HALF FROM THE 20.2% IN THE FIRST QUARTER BUT HIGHER THAN THE 9.3% REGISTERED FOR THE WHOLE OF 2005. THE MANUFACTURING SECTOR ACCOUNTS FOR ABOUT A THIRD OF SINGAPORE’S ECONOMY WORTH S$194 BILLION.

THE KEY ELECTRONICS SECTOR IN MANUFACTURING IS GROWING STRONGLY, AGAINST THE VOLATILE BIOMEDICAL SEGMENT. ELECTRONICS ARE SINGAPORE’S MAIN EXPORT AND THE INDUSTRY ROSE 8.6% YEAR-ON-YEAR IN MAY, BOOSTED BY A 38.9% GROWTH IN THE SEMICONDUCTOR SEGMENT.

THE ACTUAL FIGURES SHOWN THAT THE CONSTRUCTION SECTOR GREW 0.2% IN THE SECOND QUARTER OVER 2Q2005. THIS IS IN CONTRAST WITH A 0.8% DECLINE IN THE TWO PRECEDING QUARTERS AND DECLINES IN THE SIX QUARTERS BEFORE THAT.

THE SERVICES SECTOR ACTUALLY ROSE 7% FROM A YEAR EARLIER, SLOWER THAN THE 8.2% IN THE FIRST QUARTER BUT ABOVE THE 6% RECORDED IN 2Q2005. SERVICES INDUSTRIES, WHICH RANGE FROM HOSPITALITY TO TRANSPORT, MADE UP NEARLY TWO-THIRDS OF THE ECONOMY LAST YEAR. THOSE IN FINANCIAL SERVICES, PARTICULARLY BANKERS, FUND MANAGERS AND STOCKBROKERS, REPORTED STRONG GROWTH OF 9.5% FROM THE SAME PERIOD LAST YEAR AND UP FROM 8.7% IN THE PREVIOUS QUARTER.

WHOLESALE AND RETAIL TRADE ROSE 10.1% IN THE SECOND QUARTER, AGAINST 15.1% IN THE PREVIOUS QUARTER, AS WHOLESALERS WERE AFFECTED BY A SLOWDOWN IN NON-OIL RE-EXPORTS.

HOTELS AND RESTAURANTS GAINED 6.1% IN THE SECOND QUARTER SLOWER THAN 7.1% IN THE LAST QUARTER.

ON THE EMPLOYMENT MARKET, MORE JOBS WERE CREATED IN THE SECOND QUARTER BUT UNEMPLOYMENT ROSE TO 2.9% AS MORE PEOPLE, ESPECIALLY TERTIARY GRADUATES, ENTERED THE JOB MARKET. SOME 36,500 MORE JOBS WERE CREATED IN THE SECOND QUARTER, REFLECTING THE CONTINUED GROWTH IN THE ECONOMY. IT BROUGHT THE TOTAL NUMBER OF JOBS CREATED IN THE FIRST HALF OF 2006 TO A RECORD 81,500, WHICH IS ABOUT TWO-THIRDS MORE THAN THE 49,500 REGISTERED IN THE SAME PERIOD LAST YEAR.

THE SERVICE INDUSTRY CONTRIBUTED MOSTLY TO THE JOBS CREATION, ADDING 24,200 JODS, WHILE MANUFACTURING AND CONSTRUCTION POSTED INCREASE OF 8,300 AND 4,000 JOBS RESPECTIVELY.

RETRENCHED WORKERS TOTAL 3,100, LOWER THAN THE 3,500 IN THE FIRST QUARTER, BUT HIGHER THAN THE 2,100 IN 2Q2005.

AHEAD

THE OUTLOOK FOR THE ECONOMY REMAINS POSITIVE, AMID SIGNS OF A SLOWDOWN IN GLOBAL GROWTH. ON 8 AUGUST 2006, PRIME MINISTER LEE HISEN LOONG ANNOUNCED THAT THE SINGAPORE ECONOMY GREW 9.4% IN THE FIRST HALF OF 2005. AS A RESULT, BARRING AN OIL SHOCK, THE FULL YEAR OFFICIAL FORECAST IS BEING RAISED TO BETWEEN 6.5% AND 7.5% FOR 2006, UP FROM THE EARLIER 5 TO 7% RANGE.

IN THE SECOND HALF, MODERATE GROWTH WILL BE REGISTERED IN LINE WITH THE COOLING GLOBAL ECONOMY. BUT SURPRISINGLY, THE COMPOSITE LEADING INDEX (CLI), AN INDICATOR THAT LEADS ECONOMIC ACTIVITY BY ABOUT ONE TO TWO QUARTERS AHEAD, ROSE 1.5% IN ITS FASTEST GROWTH IN OVER TWO YEARS. CLI COMPRISES NINE COMPONENTS SUCH AS MONEY SUPPLY, LIQUIDITY AND STOCK PRICES.

THE GLOBAL ENERGY PRICES WILL CONTINUE TO FLUCTUATE WITH THE VIOLENCE IN THE MIDDLE EAST AND POTENTIAL SUPPLY PROBLEMS IN NIGERIA, IRAN AND IRAQ. OTHER RISK FACTORS INCLUDE AN AVIAN FLU OUTBREAK, A SLOWDOWN IN THE UNITED STATES ECONOMY, AND THE UNWINDING OF GLOBAL IMBALANCES SUCH AS THE US TRADE DEFICIT.

HOTELS AND RESTAURANTS ARE BANKING ON SEPTEMBER’S INTERNATIONAL MONETARY FUND/WORLD BANK MEETING TO MAINTAIN THE GROWTH MOMENTUM.

THE FINANCIAL SERVICES SECTOR IS HOPEFUL THAT WITH THE PICK-UP IN BUSINESS LOANS, BILLION-DOLLAR HEDGE FUNDS RELOCATING HERE FROM HONG KONG AND STRONG INSURANCE SALES, THE INDUSTRY WILL BE GROWING ROBUSTLY FOR THE REST OF THE YEAR.

SLOWER 8.4% GROWTH IN NON-OIL EXPORTS LAST MONTH

SINGAPORE’S NON-OIL DOMESTIC EXPORTS (NODX) GREW AT A SLOWER-THAN-EXPECTED 8.4% IN JULY 2006 OVER THE SAME MONTH A YEAR AGO, MAINLY DUE TO WEAKER SHIPMENTS OF ELECTRONICS, PHARMACEUTICALS AND PETROCHEMICALS.

ELECTRONICS EXPORTS, WHICH ACCOUNTED FOR SLIGHTLY LESS THAN HALF OF OVERALL NODX IN 2005, GREW 5% IN JULY TO S$6.62 BILLION. IT WAS THE 12TH STRAIGHT MONTH OF EXPANSION BUT WEAKER THAN THE 9.1% GROWTH REGISTERED IN JUNE. IT WAS HURT BY A 23% FELL IN DISK DRIVE EXPORTS, WHICH WAS BEING VALUED AT S$843 MILLION IN JULY, AND A 21% DECLINE IN PERSONAL COMPUTER SHIPMENTS VALUED AT S$86 MILLION.

NON-ELECTRONIC EXPORTS, WHICH CONSIST MAINLY OF PHARMACEUTICALS AND PETROCHEMICALS, ROSE 11.7% TO S$7.14 BILLION. PHARMACEUTICALS ROSE 7.1% TO S$1.27 BILLION IN JULY, SIGNIFICANTLY SLOWER THAN THE JUNE’S RISE OF 25% TO S$1.45 BILLION. PETROCHEMICAL EXPORTS ROSE 11.5% TO S$1.02 BILLION, IN COMPARISON WITH THE 32% GROWTH IN JUNE TO S$1.1 BILLION.

SHIPMENTS TO SINGAPORE’S MAJOR MARKETS SUCH AS MALAYSIA, HONG KONG AND THE UNITED STATES GREW IN JULY BUT THESE WERE OFFSET BY DECLINES IN OTHER DESTINATIONS, INCLUDING JAPAN, CHINA AND EUROPEAN UNION.

TOTAL TRADE IN JULY ROSE 15.9% TO ALMOST S$69 BILLION.

REGIONAL ECONOMIST SONG SENG WUN OF CIMB-GK RESEARCH PREDICTED THAT THE TECHNOLOGY SECTOR COULD ENJOY A REBOUND IN THE COMING MONTHS AS DEMAND TYPICALLY PICK UP WITH THE CHRISTMAS SEASON. THE TECHNOLOGY EXPORTS WILL GROW BY THE LOW-TO-MID TEENS RANGE AS THE DISK DRIVE EXPORTS IMPROVE.

EXTRACTED FROM : MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

IE SINGAPORE

THE STRAITS TIMES

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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