MIRA INFORM REPORT

Report Date :

16.07.2007

IDENTIFICATION DETAILS

Name :	MARUBENI CHEMICAL ASIA PACIFIC PTE LTD
Registered Office :	^16 Raffles Quay, #13-01, Hong Leong Building, Singapore – 048581
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^26/02/1996
Com. Reg. No.:	^199601351Z
Legal Form :	^Pte Ltd
Line of Business :	Trading of various Chemical Products, Plastic Resin and related Materials

RATING & COMMENTS

MIRA’s Rating :

A

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

Subject Company

MARUBENI CHEMICAL ASIA PACIFIC PTE LTD

Line Of Business

TRADING OF VARIOUS CHEMICAL PRODUCTS, PLASTIC RESIN AND RELATED MATERIALS

Parent Company

MARUBENI CORPORATION

(PERCENTAGE OF SHAREHOLDING: 80%)

Financial Elements

FY2005

COMPANY

Sales : S$801,695,441

Networth : S$ 7,643,134

Paid-Up Capital : S$ 1,066,050

Net result : S$ 1,726,327

Net Margin(%) : 0.22

Return on Equity(%) : 22.59

Leverage Ratio : 9.59 TIMES

COMPANY IDENTIFICATION

^{Subject Company : MARUBENI CHEMICAL ASIA PACIFIC PTE LTD}

^{Former Name : -}

^{Business Address : 16 RAFFLES QUAY}

^#13-01

^{HONG LEONG BUILDING}

^{Town : SINGAPORE}

^{Postcode : 048581}

^{County : -}

^{Country : Singapore}

^{Telephone : 6323 7226}

^{6227 6056}

^{Fax : 6221 9856}

^{6324 0123}

^{ROC Number : 199601351Z}

^{Reg. Town :}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc. : 26/02/1996}

^{Previous Legal Form : -}

^{Summary year : 31/12/2005}

^{Sales : 801,695,441}

^{Net Worth : 7,643,134}

^{Capital : 4,264,089}

^{Paid-Up Capital : 1,066,050}

^{Employees : 38}

^{Net Result : 1,726,327}

^{Share value : 1}

^{Auditor : ERNST & YOUNG}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 26/02/1996}

PRINCIPAL(S)

No principals recorded in our Database

DIRECTOR(S)

^{YASUTO TAMAI F2303985X Director}

^{Appointed on : 02/01/2002}

^{Street : 475 RIVER VALLEY ROAD}

^#12-01

^{VALLEY PARK}

^{Town : SINGAPORE}

^{Postcode : 248360}

^{Country : Singapore}

^{HISASHI SUNAOSHI G0462368T Director}

^{Appointed on : 01/04/2006}

^{Street : 11 UNITY STREET}

^#07-10

^{Town : SINGAPORE}

^{Postcode : 237995}

^{Country : Singapore}

^{TETSUAKI SAITO TF2716568 Director}

^{Appointed on : 01/04/2006}

^{Street : 2-5-19-402, SEKIGUCHI}

^BUNKYO-KU

^{Town : TOKYO}

^{Postcode : 112-0014}

^{Country : Japan}

^{KOJI SHIBATA TG3105452 Director}

^{Appointed on : 01/04/2006}

^{Street : 104-1-309 TAKIDAI-CHO}

^{FUNABASHI-SHI}

^{Town : CHIBA}

^{Postcode : 274-0075}

^{Country : Japan}

^{SUSUMU UENO TH2777059 Director}

^{Appointed on : 01/04/2007}

^{Street : 2-31-12-401, SHIRANE}

^{ASAHI-KU, YOKOHAMA-SHI}

^{Town : KANAGAWA}

^{Postcode : 241-0005}

^{Country : Japan}

^{SUSUMU UENO TH2777059 Managing Director}

^{Appointed on : 01/04/2007}

^{Street : 2-31-12-401, SHIRANE}

^{ASAHI-KU, YOKOHAMA-SHI}

^{Town : KANAGAWA}

^{Postcode : 241-0005}

^{Country : Japan}

^{KOJI AOKI F2678347W Director}

^{Appointed on : 01/04/2004}

^{Street : 81A CLEMENCEAU AVENUE}

^#10-28

^{Town : SINGAPORE}

^{Postcode : 239918}

^{Country : Singapore}

^{MITSURU INAMURA G5835276X Company Secretary}

^{Appointed on : 06/12/2006}

^{Street : 475 RIVER VALLEY ROAD}

^#16-04

^{VALLEY PARK}

^{Town : SINGAPORE}

^{Postcode : 248360}

^{Country : Singapore}

^{MASAYASU KAWASAKI TG7775226 Director}

^{Appointed on : 01/04/2007}

^{Street : 2-23-15-504, TSURUMAKI}

^SETAGAYA-KU

^{Town : TOKYO}

^{Postcode : 154-0016}

^{Country : Japan}

^{HIROAKI MIYACHI TH1317986 Director}

^{Appointed on : 01/04/2007}

^{Street : 3-16-1-1013, YAMAMOTODAI}

^{TAKARAZUKA-SHI}

^{Town : HYOGO}

^{Postcode : 665-0885}

^{Country : Japan}

FORMER DIRECTOR(S)

^{YVONNE CHOO S0090447C}

^{CHIA LUANG CHEW HAZEL S1407126A}

^{KIYOSHI KOBAYASHI TZ0147818}

^{TAKASHI YAMAGUCHI MP0308537}

^{RYOICHI MURAKAMI MQ3137916}

^{SHOGOG TAKAHASHI TE8547695}

^{TAMOTSU SEI F0409341X}

^{YOSHIHIRO KITAHARA G5699003N}

^{KAZUMASA YAMAMOTO G5699010R}

^{MASAYA TAKADA TF5220777}

^{HIDEO TOKUYA TZ6043901}

^{HIROTO ONODA G5699008P}

^{TADASHI HIROE TE1937829}

^{HIDEAKI OSAWA TF1621632}

^{MASAHARU NASHIMOTO G5589290W}

ACTIVITY (IES)

^{RESINS Code: 18420}

^{CHEMICALS Code: 3970}

^{PLASTIC PRODUCTS Code: 16940}

^{TRADING COMPANIES Code: 22190}

^{BASED ON ACRA'S RECORD AS AT 10/07/2007}

^{1) MANUFACTURE OF POLYMERS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{MIZUHO CORPORATE BANK, LTD}

SHAREHOLDERS(S)

^{MARUBENI SINGAPORE PTE LTD 300,000 Company}

^{Street : 16 RAFFLES QUAY}

^#13-00

^{HONG LEONG BUILDING}

^{Town : SINGAPORE}

^{Postcode : 048581}

^{Country : Singapore}

^{MARUBENI CORPORATION 1,200,000 Company}

^{Street : 4-2 OHTEMACHI 1-CHOME}

^CHIYODA-KU

^{Town : TOKYO}

^{Postcode : 100-8088}

^{Country : Japan}

FORMER SHAREHOLDER(S)

^{YVONNE CHOO 1}

^{CHIA LUANG CHEW HAZEL 1}

^{MARUBENI CHEMIX CORPORATION 75,000}

HOLDING COMPANY

^{MARUBENI CORPORATION UF12663G % : 80.00}

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 : USD}

^{Audit Qualification: UNQUALIFIED UNQUALIFIED UNQUALIFIED}

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

^{Date Account Lodged: 04/05/2006}

^{Balance Sheet Date: 31/12/2005 31/12/2004 31/12/2003}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 182,709 262,485 461,806}

^{Investments 33,812 79,660 117,670}

^{Total Fixed Assets: 216,521 342,145 579,476}

^{Inventories: 145,562 51,725 58,985}

^{Receivables: 79,490,672 97,516,971 51,308,771}

^{Cash, Banks, Securities: 393,592 214,991 149,083}

^{Other current assets: 715,726 1,427,746 966,775}

^{Total Current Assets: 80,745,552 99,211,433 52,483,614}

^{TOTAL ASSETS: 80,962,073 99,553,578 53,063,090}

^{--- LIABILITIES ---}

^{Equity capital: 1,066,050 1,066,050 1,066,050}

^{Profit & loss Account: 6,577,084 4,850,757 3,390,421}

^{Total Equity: 7,643,134 5,916,807 4,456,471}

^{Trade Creditors: 46,032,301 70,660,292 37,935,273}

^{Advanced payments: 847,137 1,534,730 992,206}

^{Due to Bank: - - 3,700,000}

^{Provisions: 532,400 413,039 228,873}

^{Other Short term Liab.: 25,582,524 20,744,419 5,529,319}

^{Prepay. & Def. charges: 324,577 284,291 220,948}

^{Total short term Liab.: 73,318,939 93,636,771 48,606,619}

^{TOTAL LIABILITIES: 73,318,939 93,636,771 48,606,619}

^{PROFIT & LOSS ACCOUNT}

^{Net Sales 801,695,441 783,594,778 530,139,822}

^{Gross Profit: 29,342,465 24,105,818 25,069,306}

^{Result of ordinary operations 3,371,796 2,489,898 1,152,377}

^{NET RESULT BEFORE TAX: 2,230,934 1,832,920 778,411}

^{Tax : 504,607 372,584 189,213}

^{Net income/loss year: 1,726,327 1,460,336 589,198}

^{Interest Paid: 1,140,862 656,958 373,966}

^{Depreciation: 79,776 110,475 129,434}

^{Directors Emoluments: 424,490 392,145 322,016}

^{Purchases,Sces & Other Goods:772,352,976 759,488,960 505,070,516}

^{Wages and Salaries: 1,466,343 1,355,062 1,580,544}

^{Financial Income: 126 85 1,873}

RATIOS

^{31/12/2005 31/12/2004 31/12/2003}

^{Turnover per employee: 21097248.45 20620915.21 13951047.95}

^{Net Margin(%): 0.22 0.19 0.11}

^{Return on Equity(%): 22.59 24.68 13.22}

^{Return on Assets(%): 2.13 1.47 1.11}

^{Net Working capital: 7426613.00 5574662.00 3876995.00}

^{Cash Ratio: 0.01 0.00 0.00}

^{Quick Ratio: 1.09 1.04 1.06}

^{Current ratio: 1.10 1.06 1.08}

^{Receivables Turnover: 35.70 44.80 34.84}

^{Leverage Ratio: 9.59 15.83 10.91}

^{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 IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS PASSABLE WITH TOTAL EQUITY RISING BY 29.18% AMOUNTING TO US$7,643,134 (2004: US$5,916,807). THIS WAS CONTRIBUTED BY HIGHER RETAINED EARNINGS BROUGHT FORWARD OF US$6,577,084 (2004: US$4,850,757).}

^LEVERAGE:

^{THE LEVERAGE RATIO HAD GONE DOWN BUT REMAINED AGGRESSIVE AT 9.59 TIMES (2004: 15.83 TIMES). THIS INDICATED THAT THE COMPANY'S TOTAL LIABILITIES WERE LESS SUBSTANTIAL IN RELATION TO ITS TOTAL EQUITY.}

^{IN THE SHORT TERM, TRADE CREDITORS FELL NOTABLY BY 34.85% TOTALLING US$46,032,301 (2004: US$70,660,292). THERE WERE NO BANK BORROWINGS FOR BOTH FINANCIAL YEARS AND OTHER CURRENT LIABILITIES OF US$25,582,524 (2004: US$20,744,419) COMPRISED OF:}

^{* DEPOSITS PAYABLE OF US$2,574,015 (2004: US$2,080,755)}

^{* AMOUNT DUE TO RELATED COMPANY (NON-TRADE) OF US$23,008,509 (2004: US$18,663,664)}

^LIQUIDITY:

^{THE OVERALL LIQUIDITY OF THE COMPANY WAS FAIRLY HEALTHY AND HAD IMPROVED. NET WORKING CAPITAL HAD INCREASED BY 33.22% TO US$7,426,613 (2004: US$5,574,662).}

^{HOWEVER, THE QUICK AND CURRENT RATIOS POSTED HIGHER BUT REMAINED BARELY SUFFICIENT AT 1.09 TIMES (2004: 1.04 TIMES) AND 1.10 TIMES (2004: 1.06 TIMES) RESPECTIVELY.}

^{PROFITABILITY:}

^{REVENUE FOR FY2005 IMPROVED BY 2.31% AMOUNTING TO US$801,695,441 (2004: US$783,594,778). THIS WAS IN TANDEM WITH THE NET INCOME, WHICH ROSE BY 18.21% TOTALLING US$1,726,327 (2004: US$1,460,336).}

^{AS A RESULT, NET MARGIN STOOD HIGHER BUT WAS CONSERVATIVE AT 0.22% (2004: 0.19%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE ANTICIPATED IN VIEW OF THE IMPROVING LIQUIDITY OF THE COMPANY AND IF TRADE RECEIVABLES WERE FORTHCOMING.}

^{IN ADDITION, AVERAGE COLLECTION PERIOD HAD SHORTENED AND WAS COMPUTED AT 36 DAYS (2004: 45 DAYS).}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT LIABILITY}

^{* BANKER GUARANTEE OF US$8,000,000 (2004: US$8,000,000)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 26/02/1996 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "MARUBENI CHEMICAL ASIA PACIFIC PTE LTD".}

^{AS AT 10/07/2007, SUBJECT 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 & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1) MANUFACTURE OF POLYMERS}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL ACTIVITY IS TO ENGAGE IN THE TRADING OF VARIOUS CHEMICAL PRODUCTS, PLASTIC RESIN AND RELATED MATERIALS.}

^{THE COMPANY IS A SUBSIDIARY OF MARUBENI CORPORATION, INCORPORATED IN JAPAN, WHICH IS ALSO THE COMPANY'S ULTIMATE HOLDING COMPANY.}

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

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

^{SUBJECT IS IN THE TRADING OF PLASTIC RESINS, SPECIALTY CHEMICALS, ORGANIC AND SYNTHETIC FIBER INTERMEDIATES. PRODUCTS INCLUDE VARIOUS CHEMICALS SUCH AS ORGANIC CHEMICALS/ INORGANIC CHEMICALS, SYNTHETIC FIBER INTERMEDIATES AND SPECIALTY CHEMICALS, INCLUDING EXPORT-IMPORT USINESS, OFF-SHORE TRADE.}

^PRODUCTS:

^PLASTICS:

^{* POLYOLEFINS}

^{- LDPE (LOW DENSITY POLYETHYLENE)}

^{- EVA (ETHYLENE VINYL ACETATE COPOLYMER)}

^{- LLDPE (LINEAR LOW DENSITY POLYETHYLENE)}

^{- HDPE (HIGH DENSITY POLYETHYLENE)}

^{- PP (POLYPROPYLENE) HOMOPOLYMER, RANDOM COPOLYMER, BLOCK COPOLYMER, TERPOLYMER}

^{- ALPHA-OLEFIN COPOLYMER}

^{* STYRENE RESINS}

^{- PS (POLYSTYRENE) GENERAL PURPOASE, HIGH IMPACT}

^{- EPS (EXPANDABLE POLYSTYRENE)}

^{- ABS (ACRYLONITRILE BUTADIENE STRYRENE COPOLYMER)}

^{- AS (ACRYLONITRILE STYRENE, SAN)}

^{- AES (ACRYLONITRILE ETHYLENE STYRENE)}

^{- ASA (ACRYLONITRILE STYRENE ACRYLATE)}

^{* ENGINEERING PLASTICSPC (POLYCARBONATE)}

^{- POM (POLYACETAL)}

^{- PA (POLYAMIDE, NYLON)}

^{- PBT (POLYBUTYLENETEREPHTHALATE)}

^{- PPE (POLYPHENYLENE ETHER, PPO = POLYPHENYLENE OXIDE)}

^{- PMMA (POLYMETHYLMETHACRYLATE)}

^{- LCD (LIQUID CRYSTAL POLYMER)}

^{- PTFE (POLYTETRAFLUOROETHYLENE)}

^{* PLASTIC PRODUCTS}

^{- ONF (BIAXIALLY ORIENTED NYLON FILM)}

^{- BOPP FILM (BIAXIALLY ORIENTED POLYPROPYLENE FILM)}

^{- PA (POLYAMIDE, NYLON)}

^{- CPP FILM (CAST POLYPROPYLENE FILM)}

^{- PE BAGS (POLYETHYLENE BAGS)}

^CHEMICALS:

^{* BASIC CHEMICALS}

^{- OLEFINS (ETHYLENE, PROPYLENE, BUTADIENE, BUTENE-1, HEXENE-1, ISOBUTANE, NORMAL HEXENE, ETC.)}

^{- AROMATICS (BENZENE, STYRENE MONOMER, ETC.)}

^{- SYNTHETIC FIBER RAW MATERIALS (PARAXYLENE, MONOETHYLENE GLYCOL, CAPROLACTAM, ETC.)}

^{- VCM (VYNYL CHLORIDE MONOMER)}

^{* PRODUCTS CHEMICALS}

^{- PVA (POLYVINYL ALCOHOL)}

^{- ACRYLATES (ACRYLIC ACID, BUTYL ACRYLATE, ETHYL ACRYLATE, METHYL ACRYLATE, ETC.)}

^{- ETHYLENE AMINS (EDA, DETA, TETA, ETC.)}

^{- POLYURETHANE RAW MATERIAL (ADIPIC ACID, PPG, SILICONE SURFACTANT, AMINE CATALIST, TIN CATALIST)}

^{- POLYURETHANE SYSTEMS}

^{* SPECIALTY CHEMICALS}

^{- OLEOCHEMICALS (FATTY ACID, GLYCERINE, ETC.)}

^{- PLASTIC RELATED MATERIALS (INITIATOR, CATALYST, ADDITIVES, ETC.)}

^{- ELECTRONIC MATERIALS (OPTICAL DISK RELATED MATERIALS, LCP RELATED MATERIALS, ETC.)}

^MARKETS:

^{* POLYOLRFINS}

^{* OLEFINS}

^{* CRUDE OIL & NAPHTHA}

^{TERMS OF PAYMENT:}

^{* TRADE AND OTHER ACCOUNTS RECEIVABLES: 30-120 DAYS TERM}

^{* TRADE AND OTHER ACCOUNTS PAYABLES : 14-90 DAYS TERM}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005: 38 (2004: 36; 2003: 38; 2002: 41; 2001: 43)}

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

^{* SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE}

^{* SINGAPORE PLASTIC INDUSTRY ASSOCIATION}

^{NO OTHER UPDATED TRADE INFORMATION WAS MADE AVAILABLE ON 16/07/2007.}

^{REGISTERED & BUSINESS ADDRESS:}

^{16 RAFFLES QUAY}

^#13-01

^{HONG LEONG BUILDING}

^{SINGAPORE 048581}

^{DATE OF CHANGE OF ADDRESS: 01/06/2007}

^WEBSITE:

^{* www.marubeni.com (HOLDING COMPANY'S)}

^{* www.mcap.com.sg}

^EMAIL:

^{* segawa-i@sgr.marubeni.com.jp}

^{* MCAP-eSales@marubeni.com}

MANAGEMENT

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

^{1) YASUTO TAMAI, A JAPANESE}

^{- BASED IN SINGAPORE.}

^{2) TAMOTSU SEI, A JAPANESE}

^{- BASED IN SINGAPORE.}

^{3) HISASHI SUNAOSHI, A JAPANESE}

^{- BASED IN SINGAPORE.}

^{4) TETSUAKI SAITO, A JAPANESE}

^{- BASED IN JAPAN.}

^{5) KOJI AOKI, A JAPANESE}

^{- BASED IN JAPAN.}

^{6) MASAYASU KAWASAKI, A JAPANESE}

^{- BASED IN JAPAN.}

^{7) HIROAKI MIYACHI, A JAPANESE}

^{- BASED IN JAPAN.}

^{8) SUSUMU UENO, A JAPANESE}

^{- BASED IN JAPAN.}

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.

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE DECLINED BY 7.5% IN Q1 2007. EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 7.4%. SECTORS OF ELECTRONIC COMPONENTS, SHIP CHANDLERS AND BUNKERING, INDUSTRIAL AND CONSTRUCTION MACHINERY REPORTED DECLINES OF 11.6% TO 23.8%.

HOWEVER, WHOLESALERS OF FOOD, BEVERAGES AND TOBACCO REGISTERED HIGHER TURNOVER OF 5.4%.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE IN QUARTER 1 2007 FELL BY 7.6%. EXCLUDING PETROLEUM, FOREIGN SALES DECLINED BY 8.0%. MOST WHOLESALE SECTORS REPORTED LOWER OVERSEAS RECEIPTS IN QUARTER 1 2007 COMPARED TO THE PREVIOUS QUARTER, EXCEPT HOUSEHOLD EQUIPMENT AND FURNITURE SECTOR. SHIP CHANDLERS & BUNKERING REPORTED THE LARGEST DECLINE OF 18.3% IN QUARTER 1 2007, FOLLOWED BY FOOD BEVERAGES & TOBACCO SECTOR OF 17.7%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE MARGINALLY BY 0.7% IN QUARTER 2 2007, COMPARED TO QUARTER 2 2006. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.1%. SALES OF OPTICAL GOODS & BOOKS, FURNITURE & HOUSEHOLD EQUIPMENT AND SUPERMARKETS ENJOYED STRONG GROWTHS OVER A YEAR AGO. PROVISION & SUNDRY SHOPS, WATCHES AND JEWELLERY, DEPARTMENT STORES AND WEARING APPAREL & FOOTWEAR SECTORS ALSO REPORTED HIGHER SALES OF 4.35 TO 5.9% RESPECTIVELY.

HOWEVER, RETAILERS OF MOTOR VEHICLES, FOOD & BEVERAGES, TELECOMMUNICATIONS APPARATUS & COMPUTERS AND PETROL SERVICES STATIONS REPORTED LOWER SALES.

OUTLOOK

GENERALLY, WHOLESALERS EXPECT TO DO WELL FOR THE NEXT 6 MONTHS, WITH A POSITIVE NET WEIGHTED BALANCE OF 17%. DEALERS OF FOOD & BEVERAGES, TROPICAL PRODUCE, TEXTILES & LEATHER GOODS AND HOUSEHOLD ELECTRICAL APPLIANCE & EQUIPMENT ARE AMONG THOSE WHO ARE OPTIMISTIC.

RETAIL TRADE FIRMS ANTICIPATE BUSINESS TO BE LESS BRISK FOR THE NEXT 6 MONTHS. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

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/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

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