MIRA INFORM REPORT

Report Date :

20^th January, 2007

IDENTIFICATION DETAILS

Name :	AQUA AND LEISURE MARKETING PTE LTD
Formerly Known As :	FOTO FOCUS SERVICES PTE LTD
Registered Office :	287 Outram Road, Singapore 169070, Singapore
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	05.02.1983
Legal Form :	Exempt Pte Ltd
Line of Business :	Retailers, Wholesalers, Importers, Exporters and Manufacturers of Sports and Leisure Products, Supplies and Accessories.

RATING & COMMENTS

MIRA’s Rating :

C

RATING		STATUS	PROPOSED CREDIT LINE
<10	C	Absolute credit risk exists. Caution needed to be exercised	Credit not recommended

Status :	Poor
Payment Behaviour :	Regular
Litigation :	--

Company Name

AQUA AND LEISURE MARKETING PTE LTD

Line Of Business 

RETAILERS, WHOLESALERS, IMPORTERS, EXPORTERS AND MANUFACTURERS OF SPORTS AND LEISURE PRODUCTS, SUPPLIES AND ACCESSORIES.

Parent Company

-

Financial Elements

FY 2005

COMPANY

Sales : S$703,508

Networth : S$-252,256

Paid-Up Capital : S$300,000

Net result : S$71,932

Net Margin(%) : 10.22

Return on Equity(%) : -28.52

Leverage Ratio : -7.92

Rating

Credit Requested : USD90,000

Credit Rating : SIGNIFICANT RISK

Credit Opinion : NOT RECOMMENDED

BUSINESS INFORMATION REPORT

COMPANY IDENTIFICATION

Subject Company : AQUA AND LEISURE MARKETING PTE LTD

Former Name : FOTO FOCUS SERVICES PTE LTD

Business Address : 287 OUTRAM ROAD

Town : SINGAPORE

Postcode : 169070

County : -

Country : Singapore

Telephone : 6224 8111

Fax : 6224 0316

ROC Number : 198300555Z

Reg. Town : -

PREVIOUS IDENTIFICATION

^{FOTO FOCUS SERVICES PTE LTD}

^{DATE OF CHANGE OF NAME: 10/03/1989}

SUMMARY

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

Legal Form : Exempt Pte Ltd

Date Inc. : 05/02/1983

Previous Legal Form : -

Summary year : 31/12/2005

Sales : 703,508

Networth : -252,256

Capital : 500,000

Paid-Up Capital : 300,000

Employees : 2

Net result : 71,932

Share value : 1

AUDITOR : KEN TAN & CO

REFERENCES

CCMS Number : 702000877618

Report Date : 19/01/2007

29000

Update Date : 19/01/2007

Credit Requested : USD90,000

Credit Opinion : NOT RECOMMENDED

Credit Rating : SIGNIFICANT RISK

Litigation : No

Company status : TRADING

Started : 05/02/1983

PRINCIPAL(S)

^{TAY AI TEE IRENE S0108693F Director}

DIRECTOR(S)

TAY AI TEE IRENE S0108693F Director

Appointed on : 12/01/1989

Street : 50 KEW DRIVE, KEW GROVE

Town : SINGAPORE

Postcode : 467974

Country : Singapore

TAY AI TEE IRENE S0108693F Company Secretary

Appointed on : 12/01/1989

Street : 50 KEW DRIVE, KEW GROVE

Town : SINGAPORE

Postcode : 467974

Country : Singapore

ONG SEOW MENG S0146342Z Director

Appointed on : 12/01/1989

Street : 50 KEW DRIVE, KEW GROVE

Town : SINGAPORE

Postcode : 467974

Country : Singapore

ACTIVITY(IES)

^{SPORTING GOODS - RETAIL Code:20020}

^{HEALTH APPLIANCES Code:11070}

^{BASED ON ACRA'S RECORD AS AT 15/01/2007}

^{1) RETAIL SALE OF SPORTING GOODS AND EQUIPMENT (INCLUDING HEALTHCARE}

^EQUIPMENT)

CHARGES

^{Date : 28/06/2004}

^{Comments : CHARGE NO: C200403091}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): UNITED OVERSEAS BANK LIMITED}

PREMISES/PROPERTY INFORMATIONS

Date : 24/02/2004

Tax rate : 10

Site Address : 287 OUTRAM ROAD

Town : SINGAPORE

Postcode : 169070

Country : Singapore

Annual Value : 42,000

*TAX RATE OF 4% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS OWNER OCCUPIED.

*TAX RATE OF 10% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS PARTIALLY OR FULLY RENTED OUT BY THE OWNER/OWNED BY COMPANY.

*FOR PROPERTIES OTHER THAN RESIDENTIAL PROPERTIES REGARDLESS RENTED OUT OR NOT, THE TAX RATE IS 10% (I.E INDUSTRIAL AND COMMERCIAL PROPERTY).

*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.

BANKERS

^{UNITED OVERSEAS BANK LIMITED}

SHAREHOLDERS(S)

^{TAY AI TEE IRENE 150,000 Private Person}

Street : 50 KEW DRIVE, KEW GROVE

Town : SINGAPORE

Postcode : 467974

Country : Singapore

ONG SEOW MENG 150,000 Private Person

Street : 50 KEW DRIVE, KEW GROVE

Town : SINGAPORE

Postcode : 467974

Country : Singapore

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : LACKING}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation :BAD}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

^{Audit Qualification: GOING CONCERN QUALIF GOING CONCERN QUALIF}

^{Date Account Lodged: 26/09/2006}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

ASSETS

^{Tangible Fixed Assets: 1,604,154 1,621,624}

^{Total Fixed Assets: 1,604,154 1,621,624}

^{Inventories: 18,743 19,885}

^{Receivables: 122,555 179,225}

^{Other current assets: 1,133 2,912}

^{Total Current Assets: 142,431 202,022}

^{TOTAL ASSETS: 1,746,585 1,823,646}

LIABILITIES

^{Equity capital: 300,000 300,000}

^{Profit & lost Account: -552,256 -624,188}

^{TOTAL EQUITY: -252,256 -324,188}

^{Long Term Loans: 116,673 148,349}

^{Total L/T Liabilities: 116,673 148,349}

^{Trade Creditors: 19,070 221,725}

^{Prepay. & Def. charges: 7,382 15,621}

^{Due to Bank: 209,225 136,910}

^{Other Short term Liab.: 1,646,491 1,625,229}

^{Total short term Liab.: 1,882,168 1,999,485}

^{TOTAL LIABILITIES: 1,998,841 2,147,834}

PROFIT & LOSS ACCOUNT

^{Net Sales 703,508 694,585}

^{Result of ordinary operations 83,668 45,084}

^{NET RESULT BEFORE TAX: 71,932 37,457}

^{Net income/loss year: 71,932 37,457}

^{Interest Paid: 11,736 7,627}

^{Depreciation: 19,670 20,649}

^{Directors Emoluments: 39,960 30,510}

^{Wages and Salaries: 27,948 23,739}

RATIOS

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

^{Turnover per employee: 351754.00 347292.50}

^{Net result / Turnover(%): 0.10 0.05}

^{Fin. Charges / Turnover(%): 0.02 0.01}

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

^{Net Margin(%): 10.22 5.39}

^{Return on Equity(%): -28.52 -11.55}

^{Return on Assets(%): 4.12 2.05}

^{Net Working capital: -1739737.00 -1797463.00}

^{Quick Ratio: 0.07 0.09}

^{Current ratio: 0.08 0.10}

^{Receivables Turnover: 62.71 92.89}

^{Leverage Ratio: -7.92 -6.63}

^{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}

^{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

AUDITORS' REPORT:

^{WITHOUT QUALIFYING OUR OPINION, WE DRAW ATTENTION TO NOTE 16 IN THE FINANCIAL STATEMENTS. AS AT THE BALANCE SHEET DATE, THE COMPANY'S CURRENT LIABILITIES EXCEEDED ITS CURRENT ASSETS BY S$1,739,737 AND ITS TOTAL LIABILITIES EXCEEDED ITS TOTAL ASSETS BY S$252,256. THESE FACTORS RAISE SUBSTANTIAL DOUBT THAT THE COMPANY WILL BE ABLE TO CONTINUE AS A GOING CONCERN WITHOUT THE FINANCIAL SUPPORT MENTIONED IN NOTE 16 TO THE ACCOUNTS.}

^{THE FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE LIMITED IN VIEW OF THE FOLLOWING:}

NET WORTH:

^{THE BALANCE SHEET WAS CONSIDERED INADEQUATE WITH NEGATIVE NET WORTH DECLINING BY 22.19% FROM S$324,188 IN FY 2004 TO S$252,256 IN FY 2005.THIS WAS DUE TO LOWER ACCUMULATED LOSS OF S$552,256 (2004: S$- 624,188); A DECLINE OF 11.52% FROM THE PRIOR FINANCIAL YEAR.}

LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY OTHER SHORT TERM LIABILITIES WHICH MADE UP 87.48% (2004: 81.28%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$1,646,491 (2004: S$1,625,229). THE BREAKDOWN IS AS FOLLOWS:}

^{-RELATED PARTY - 2005: S$956,508 (2004: S$1,166,393)}

^{-DIRECTOR - 2005: S$689,983 (2004: S$ 458,836)}

^{IN THE LONG-TERM, SUBJECT WAS WHOLLY FINANCED BY LONG TERM LOAN AND AMOUNTED TO S$116,673 (2004: S$148,349). THE BREAKDOWN IS AS FOLLOWS:}

^{-TERM LOAN - 2005: S$116,673 (2004: S$148,349)}

^{AMOUNT DUE TO BANKS OF S$209,225 (2004: S$136,910) CONSISTED OF:}

^{-TERM LOAN - 2005: S$36,466 (2004: S$36,197)}

^{-BANK OVERDRAFT - 2005: S$172,759 (2004: S$100,713)}

^{IN ALL, LEVERAGE RATIO IS SIGNIFICANT AT -7.92 TIMES TO 2.26 TIMES AS A RESULT OF A SUBSTANTIALLY GREATER TOTAL LIABILITIES THAN TOTAL EQUITY.}

LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS WEAK AS SEEN FROM THE NEGATIVE NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL TO 0.08 TIMES, DOWN FROM 0.10 TIMES.}

^{NET WORKING CAPITAL DEFICIT FELL BY 3.21% FROM S$1,797,463 IN FY 2004 TO S$1,739,737.}

PROFITABILITY:

^{REVENUE POSTED AN INCREASE OF 1.28% FROM S$694,585 IN FY 2004 TO S $703,508 AND NET PROFIT ROSE BY 92.04% TO S$71,932 (2004: S$37,457). HENCE, NET MARGIN ROSE TO 10.22% (2004: 5.39%).}

DEBT SERVICING:

^{DEBT SERVICING PROBLEMS MIGHT BE EXPECTED WITH THE NEGATIVR NET WORTH AND LOW LIQUIDITY. IN ADDITION, THE SUBJECT HAS SUBSTANTIAL GEARING.}

NOTES TO THE FINANCIAL STATEMENTS:

^{BANKING FACILITIES}

^{THE BANKING FACILITIES, INCLUDING THE TERM LOAN AND BANK OVERDRAFT,}

^{FOR THE YEAR ARE SECURED BY:}

^{(I) LEGAL MORTGAGE OF FRREHOLD PROPERTY MENTIONED IN NOTE 4}

^{(II) JOINTLY AND SEVERALLY GUARANTEED BY THE DIRECTORS}

^{THE TERM LOAN IS REPAYABLE BY 72 EQUAL MONTHLY INSTALMENTS. THE INTEREST RATE IS 2.75% TO 3% (2004: 2.75%) PER ANNUM ON MONTHLY REST BASIS.}

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 05/02/1983 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "FOTO FOCUS SERVICES PTE LTD".}

^{SUBSEQUENTLY, ON 10/03/1989, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "AQUA AND LEISURE MARKETING PTE LTD".}

^{AS AT 15/01/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 300,000 SHARES OF A VALUE OF S$300,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) RETAIL SALE OF SPORTING GOODS AND EQUIPMENT (INCLUDING HEALTHCARE}

^EQUIPMENT)

^{2) RETAIL SALE OF SPORTING, RECREATIONAL GOODS AND PERSONAL EFFECTS)}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF RETAILERS, WHOLESALERS, IMPORTERS, EXPORTERS AND MANUFACTURERS OF SPORTS AND LEISURE PRODUCTS, SUPPLIES AND ACCESSORIES.}

^{FROM THE TELE-INTERVIEW CONDUCTED ON 19/01/2007, THE FOLLOWING WAS GATHERED:}

^{THE SUBJECT IS INVOLVED IN THE SELLING OF FISH TO HOTEL.}

^{IMPORT COUNTRIES:}

^{* INDONESIA}

^{THE SUBJECT DOES NOT EXPORT AND ONLY SELLS LOCALLY.}

^{THE SUBJECT HAS A RELATED COMPANY, AQUA AND LEISURE SPORTS WHICH HAS AN OUTLET AT MARINA SQUARE.}

^{AQUA AND LEISURE SPORTS IS INVOLVED IN THE RETAILING OF SPORTS AND DIVING EQUIPMENT.}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2007: 2}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON 19/01/2007.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005: 1 (2004: 2)}

^{* GROUP - 2005: - (2004: -)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{287 OUTRAM ROAD}

^{SINGAPORE 169070}

^{- DATE OF CHANGE OF ADDRESS: 27/12/1993}

^WEBSITE:

^-

^EMAIL:

^-

MANAGEMENT

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

^{1) TAY AI TEE IRENE, A SINGAPOREAN}

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

^{2) ONG SEOW MENG, A SINGAPOREAN}

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

Singapore’s Country Rating 2006

Rating: A1

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 SECTOR

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%.

MOST OF THE MAJOR SECTORS REGISTERED SLOWER BUSINESS IN 1Q2006 WITH THE EXCEPTION OF TELECOMMUNICATIONS & COMPUTERS AND GENERAL WHOLESALE TRADE.

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%.

ON A MONTH-ON-MONTH BASIS, ADJUSTED FOR SEASONAL FACTORS, RETAIL SALES IN JUNE DECLINED BY 3.7% OVER MAY. EXCLUDING MOTOR VEHICLES, RETAIL SALES CONTRACTED BY 1.2% FROM MAY.

APPAREL AND FOOTWEAR BUSINESS GREW BY 4.9% WHILE THOSE OF WATCHES AND JEWELLERY ROXE BY 9.5%.

JUNE’S MOTOR VEHICLES SALES GREW BY 2.5% COMPARED WITH JUNE 2005. IT PALE IN COMPARISON WITH A 16.4% GROWTH IN MAY. THE MOTOR VEHICLE SALES GREW BY A MARGINAL 0.4% OVER MAY.

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.

IN ADDITION, RETAILERS ARE EXPECTING A BOOST FROM THE INTERNATONAL MONETARY FUND AND WORLD BANK ANNUAL MEETING IN SEPTEMBER WHICH WILL BE HELD IN SINGAPORE

AS THE GATHERING IS EXPECTED TO DRAW 16,000 OVERSEAS DELEGATES.

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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