MIRA INFORM REPORT

Report Date :

22.03.2007

IDENTIFICATION DETAILS

Name :	SINGAPORE TECHNOLOGIES ENGINEERING LTD
Registered Office :	^51 Cuppage Road, #09-08, Starhub Centre, Singapore – 229469
Country :	Singapore
Financials (as on) :	31.12.2005
Date of Incorporation :	^08/09/1997
Com. Reg. No.:	^199706274H
Legal Form :	^Public Limited Company
Line of Business :	Investment Holding Company and the Provision of Engineering and related services

RATING & COMMENTS

MIRA’s Rating :

Aaa

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

Status :	Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

SINGAPORE TECHNOLOGIES ENGINEERING LTD

Line Of Business 

INVESTMENT HOLDING COMPANY AND THE PROVISION OF ENGINEERING AND RELATED SERVICES

Parent Company

TEMASEK HOLDINGS (PRIVATE) LIMITED

(PERCENTAGE OF SHAREHOLDING: 55.19%)

Financial Elements

FY 2005

CONSOLIDATED

Sales : S$3,337,895,000

Networth : S$1,541,856,000

Paid-Up Capital : S$291,450,000

Net result : S$411,252,000

Net Margin(%) : 12.32

Return on Equity(%) : 26.67

Leverage Ratio : 2.56

Note: Based on Accounting and Corporate Regulatory Authority’s (ACRA) record dated 19/03/2007, the paid-up capital has increased to S$500,716,221.74.

Rating

Credit Rating : Sing $ 50000001 & OVER

COMPANY IDENTIFICATION

^{Subject Company : SINGAPORE TECHNOLOGIES ENGINEERING LTD}

^{Former Name : SINGAPORE TECHNOLOGIES ENGINEERING PTE LIMITED}

^{Business Address: 51 CUPPAGE ROAD}

^#09-08

^{STARHUB CENTRE}

^{Town: SINGAPORE}

^{Postcode: 229469}

^{County: -}

^{Country: Singapore}

^{Telephone: 6722 1818}

^{Fax: 6720 2293}

^{ROC Number: 199706274H}

^{Reg. Town: -}

PREVIOUS IDENTIFICATION

^{SINGAPORE TECHNOLOGIES ENGINEERING PTE LIMITED}

^{DATE OF CHANGE OF NAME: 01/10/1997}

SUMMARY

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

^{Legal Form: Pub Ltd Co}

^{Date Inc.: 08/09/1997}

^{Previous Legal Form: -}

^{Summary year : 31/12/2005}

^{Sales: 3,337,895,000}

^{Networth : 1,541,856,000}

^{Capital: 500,000,000}

^{Paid-Up Capital: 291,450,000}

^{Employees: 11,619}

^{Net result : 411,252,000}

^{Share value:}

^{AUDITOR : ERNST & YOUNG}

^{BASED ON ACRA'S RECORD AS AT 19/03/2007}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 2,958,731,985 SGD 500,716,221.64}

^{ISSUED OTHERS 1 SGD 0.10}

^{PAID-UP ORDINARY - SGD 500,716,221.64}

^{PAID-UP OTHERS - SGD 0.10}

REFERENCES

^{Litigation: Yes}

^{Company status : TRADING}

^{Started : 08/09/1997}

PRINCIPAL(S)

^{WONG YUEN KUAI LUCIEN S0161234D Director}

DIRECTOR(S)

^{PHILIP NALLIAH PILLAI DR S0006781D Director}

^{Appointed on : 01/04/2000}

^{Street : 40 NASSIM HILL}

^#04-42

^{NASSIM MANSION}

^{Town: SINGAPORE}

^{Postcode: 258474}

^{Country: Singapore}

^{CHUA SU LI S0141972B Company Secretary}

^{Appointed on : 01/10/1997}

^{Street : 24 LLIMAU GARDEN}

^{BEDOK PARK}

^{Town: SINGAPORE}

^{Postcode: 467883}

^{Country: Singapore}

^{TAN TIEN HIN WINSTON S0158053A Director}

^{Appointed on : 01/10/1997}

^{Street : 26 MOUNT ECHO PARK}

^{MOUNT ECHO PARK}

^{Town: SINGAPORE}

^{Postcode: 248786}

^{Country: Singapore}

^{WONG YUEN KUAI LUCIEN S0161234D Director}

^{Appointed on : 01/10/1997}

^{Street : 35 LENGKOK MERAK}

^{Town: SINGAPORE}

^{Postcode: 248881}

^{Country: Singapore}

^{PROFESSOR LUI PAO CHUEN LIONEL S0356011B Director}

^{Appointed on : 01/10/1997}

^{Street : 34 GREENLEAF ROAD}

^{BAN GUAN PARK}

^{Town: SINGAPORE}

^{Postcode: 279334}

^{Country: Singapore}

^{TAN PHENG HOCK S1273380A Director}

^{Appointed on : 01/05/2001}

^{Street : 1 DEDAP PLACE}

^{Town: SINGAPORE}

^{Postcode: 809500}

^{Country: Singapore}

^{TAN KIM SIEW S0082093H Director}

^{Appointed on : 15/12/2003}

^{Street : 3A GOODMAND ROAD}

^{Town: SINGAPORE}

^{Postcode: 438969}

^{Country: Singapore}

^{KOH BENG SENG S0148910J Director}

^{Appointed on : 15/09/2003}

^{Street : 1A SURREY ROAD}

^#09-00

^{STAR MANSIONS}

^{Town: SINGAPORE}

^{Postcode: 307741}

^{Country: Singapore}

^{PETER SEAH LIM HUAT S0337313D Director}

^{Appointed on : 15/04/2002}

^{Street : 45 BINJAI PARK}

^{BINJAI PARK}

^{Town: SINGAPORE}

^{Postcode: 589845}

^{Country: Singapore}

^{QUEK POH HUAT S1192814E Director}

^{Appointed on : 15/04/2002}

^{Street : 18 KINGSMEAD ROAD}

^{Town: SINGAPORE}

^{Postcode: 267969}

^{Country: Singapore}

^{TAN PHENG HOCK S1273380A Manager}

^{Appointed on : 20/02/2002}

^{Street : 1 DEDAP PLACE}

^{Town: SINGAPORE}

^{Postcode: 809500}

^{Country: Singapore}

^{NG YAT CHUNG BG S1506557E Director}

^{Appointed on : 15/06/2003}

^{Street : 144 TAGORE AVENUE}

^{TEACHER'S HOUSING ESTATE}

^{Town: SINGAPORE}

^{Postcode: 787734}

^{Country: Singapore}

^{TAN KOK KIANG BERNARD RICHARD S1746412D Alternate Director}

^{Appointed on : 15/06/2003}

^{Street : 30 JALAN SENI}

^{Town: SINGAPORE}

^{Postcode: 299028}

^{Country: Singapore}

^{VENKATACHALAM KRISHNAKUMAR S2678017I Director}

^{Appointed on : 15/04/2002}

^{Street : 9 ARDMORE PARK}

^#16-04

^{ARDMORE PARK}

^{Town: SINGAPORE}

^{Postcode: 259955}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{LIM NEO CHIAN S0006792Z}

^{EDDIE TEO CHAN SENG S0035288H}

^{TAN YUEN FAH PHILIP S0046407D}

^{TIEN SING CHEONG S0131660E}

^{HO CHING S0144440I}

^{TAN GUONG CHING S0416187D}

^{CHAN LAI YIN S1296164B}

^{ONG BOON KWEE PETER S1462421Z}

^{LG LIM CHUAN POH S1491242H}

^{NEO AI LIN MICHELLE S2191565C}

^{LIM CHIN BENG S0461797E}

ACTIVITY(IES)

^{INVESTMENT COMPANIES Code:12095}

^{HOLDING COMPANIES Code:11320}

^{BASED ON ACRA'S RECORD AS AT 19/03/2007}

^{1. OTHER INVESTMENT HOLDING COMPANIES}

^{2. ACTIVITIES NOT ADEQUATELY DEFINED}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{CITIBANK N.A.}

^{DBS BANK LTD.}

^{OVERSEA-CHINESE BANKING CORPORATION LIMITED}

ASSOCIATED COMPANY(IES)

^{AEROSPACE ENGINEERING SERVICES PTY LTD}

^Australia

^{AEROSPACE ENGINEERING SERVICES PTY LTD}

^Australia

^{1988 JV PTE. LTD.}

^Singapore

^{COMPOSITE TECHNOLOGY INTERNATIONAL PTE LTD}

^Singapore

^{EUROCOPTER SOUTH EAST ASIA PRIVATE LIMITED}

^Singapore

^{SINGAPORE PRECISION REPAIR AND OVERHAUL PTE LTD}

^Singapore

^{TURBINE COATING SERVICES PTE LTD}

^Singapore

^{TURBINE OVERHAUL SERVICES PTE LTD}

^Singapore

^{INFOWAVE PTE LTD}

^Singapore

^{IWOW TECHNOLOGY PTE LTD}

^Singapore

^{MOBILE SOLUTIONS AND PAYMENT SERVICES PTE LTD}

^Singapore

^{MPAYMENT PTE LTD}

^Singapore

^{POLARSAT INC}

^Canada

^{RF KOREA, INC}

^{Republic of Korea}

^{SENTRY TECHNOLOGIES PTE LTD}

^Singapore

^{ST LOGITRACK PTE LTD}

^Singapore

^{CIS- OERLIKON PTE LTD}

^Singapore

^{CITYCAB PTE LTD}

^Singapore

^{DEFENCE ELECTRONICS OF SINGAPORE PTE LTD}

^Singapore

^{TIMONEY HOLDINGS LIMITED}

^Ireland

^{ANCHORVILLE PTE LTD}

^Singapore

^{AQUAGEN INTERNATIONAL PTE LTD}

^Singapore

^{PT SSE- VAN DER HORST INDONESIA}

^Indonesia

^{NANOSCIENCE INNOVATION PTE LTD}

^Singapore

^{NUSANTARA TECHNOLOGIES SDN BHD}

^Malaysia

^{2006 JV PTE. LTD.}

^Singapore

^{WIZVISION PTE. LTD.}

^Singapore

^{TRUSTED HUB LTD}

^Singapore

^{SANDZ SOLUTIONS (SINGAPORE) PTE LTD}

^Singapore

^{KNOWLEDGE ALIVE PTE LTD}

^Singapore

^{ECS HOLDINGS LIMITED}

^Singapore

^{GREEN DOT INTERNET SERVICES PTE LTD}

^Singapore

^{SHANGHAI TECHNOLOGIES AEROSPACE COMPANY LIMITED}

^China

^{AUTOSCAN TECHNOLOGY PTE LTD}

^Singapore

^{COMAT TRAINING SERVICES PTE LTD}

^Singapore

^{PRESCIENT SYSTEMS & TECHNOLOGIES PTE. LTD.}

^Singapore

^{SINO STRIDE TECHNOLOGY (HOLDINGS) LIMITED}

^{Cayman Islands}

^{SANDZ SOLUTIONS (HK) PTE LTD}

^{Hong Kong}

^{WIZVISION (HK) PTE LIMITED}

^{Hong Kong}

^{2006 JV PTE. LTD.}

^Singapore

SHAREHOLDERS(S)

^{RAFFLES NOMINEES PTE LTD 396,943,400 Company}

^{Street : 000}

^{Town: SINGAPORE}

^{Postcode: 000}

^{Country: Singapore}

^{HSBC (SINGAPORE) NOMINEES PTE LTD 178,339,116 Company}

^{Street : 10 COLLYER QUAY}

^#02-02

^{OCEAN BUILDING}

^{Town: SINGAPORE}

^{Postcode: 049315}

^{Country: Singapore}

^{UNITED OVERSEAS BANK NOMINEES 59,791,826 Company}

^{Street : 80 RAFFLES PLACE}

^{#UOB PLAZA}

^{Town: SINGAPORE}

^{Postcode: 048624}

^{Country: Singapore}

^{DBS NOMINEES (PTE) LTD 391,478,553 Company}

^{Street : 24 RAFFLES PLACE}

^#B1-00

^{CLIFFORD CENTRE}

^{Town: SINGAPORE}

^{Postcode: 048621}

^{Country: Singapore}

^{SHANWOOD DEVELOPMENT PL 2,077,000 Company}

^{Street : 16 RAFFLES QUAY}

^{25-01 HONG LEONG BUILDING}

^{Town: SINGAPORE}

^{Postcode: 0104}

^{Country: Singapore}

^{CITIBANK NOMINEES SINGAPORE PTE LTD 119,477,805 Company}

^{Street :}

^Town:

^Postcode:

^{Country: Singapore}

^{KI INVESTMENTS (HK) LIMITED 13,370,000 Company}

^{Street :}

^Town:

^Postcode:

^{Country: Singapore}

^{UOB KAY HIAN PRIVATE LIMITED 7,257,806 Company}

^{Street : 80 RAFFLES PLACE}

^#30-01

^{UOB PLAZA 1}

^{Town: SINGAPORE}

^{Postcode: 048624}

^{Country: Singapore}

^{SOCIETE GENERALE SINAPORE BRANCH 1,639,011 Company}

^{Street :}

^Town:

^Postcode:

^{Country: Singapore}

^{THE ASIA LIFE ASSURANCE SOCIETY LTD 2,401,809 Company}

^{Street :}

^Town:

^Postcode:

^{Country: Singapore}

^{PHILLIP SECURITIES PTE LTD 2,436,080 Company}

^{Street : 250 NORTH BRIDGE ROAD}

^#06-00

^{RAFFLES CITY TOWER}

^{Town: SINGAPORE}

^{Postcode: 179101}

^{Country: Singapore}

^{MORGAN STANLEY ASIA (S) PTE LTD 6,319,000 Company}

^{Street :}

^Town:

^Postcode:

^{Country: Singapore}

^{TEMASEK HOLDINGS (PRIVATE) LIMITED 147,416,871 Company}

^{Street : 60B ORCHARD ROAD}

^#06-18

^{THE ATRIUM @ ORCHARD, TOWER 2}

^{Town: SINGAPORE}

^{Postcode: 238891}

^{Country: Singapore}

^{OCBC NOMINEES SINGAPORE PTE LTD 5,417,506 Company}

^{Street : 65 CHULIA STREET}

^#28-01

^{OCBC CENTRE}

^{Town: SINGAPORE}

^{Postcode: 049513}

^{Country: Singapore}

^{MERRILL LYNCH (SINGAPORE) PTE LTD 4,014,391 Company}

^{Street :}

^Town:

^Postcode:

^{Country: Singapore}

^{OCBC SECURITIES PRIVATE LIMITED 4,190,658 Company}

^{Street : 18 CHURCH STREET}

^#01-00

^{OCBC CENTRE SOUTH}

^{Town: SINGAPORE}

^{Postcode: 049479}

^{Country: Singapore}

^{OVERSEA-CHINESE BANK NOMINEES PTE 3,369,587 Company}

^{Street : 000}

^{Town: 000}

^{Postcode: 000}

^{Country: Singapore}

^{THE BANK OF EAST ASIA NOMINEES PTE 2,091,505 Company}

^{Street :}

^{Town: SINGAPORE}

^Postcode:

^{Country: Singapore}

^{THIOEQUITIES PTE LTD 2,050,000 Company}

^{Street :}

^Town:

^Postcode:

^{Country: Singapore}

^{SUNFIELD PTE LTD 2,000,000 Company}

^{Street :}

^Town:

^Postcode:

^{Country: Singapore}

FORMER SHAREHOLDER(S)

^{OVERSEAS UNION BANK NOMINEES (PTE) 8,778,073}

^{KEPPEL CORPORATION LIMITED 15,000,000}

^{RHB-CATHAY SECURITIES PTE LTD 6,465,651}

^{J.M. SASSOON & CO (PTE) LTD 2,568,528}

^{CIMB-GK SECURITIES (F.K.A. G K GOH 2,070,460}

^{E G TAN NOMINEES PL 1,420,624}

^{DB NOMINEES (SINGAPORE) PTE LTD 8,623,182}

^{KB NOMINEES PTE LTD 2,127,555}

^{NTUC INCOME INSURANCE CO-OPERATIVE 2,213,408}

^{ABN AMRO NOMINEES S'PORE PTE LTD 3,996,570}

^{DEXIA NOMINEES SINGAPORE PTE LTD 6,754,429}

^{ANG BENG SIONG @ HENDRIK ATMAJA 2,706,947}

^{NATSTEEL ASIA (S) PTE. LTD. 1,567,918,719}

^{THE BANK OF EAST ASIA NOMINEES PTE 2,331,505}

^{SINGAPORE NEWSPAPER SERVICES 2,200,000}

^{PFISSION PTE LTD 2,536,155}

^{CAPITAL INTELLIGENCE LTD 3,602,000}

^{DBS VICKERS SECURITIES (S) PTE LTD 2,551,799}

HOLDING COMPANY

^{TEMASEK HOLDINGS (PRIVATE) LIMITED 197401143C % : 55.19}

SUBSIDIARY(IES)

^{SINGAPORE TECHNOLOGIES ELECTRONICS LIMITED}

Singapore

^{SINGAPORE TECHNOLOGIES MARINE LTD}

Singapore

^{SINGAPORE TECHNOLOGIES KINETICS LTD}

Singapore

^{SINGAPORE TECHNOLOGIES AEROSPACE LTD}

Singapore

^{ST SYNTHESIS PTE LTD}

Singapore

^{SINGAPORE TECHNOLOGIES DYNAMICS PTE LTD}

Singapore

^{VISION TECHNOLOGIES SYSTEMS,INC}

^{United States of America}

^{FUSIONTECH PTE LTD}

Singapore

^{KAZ-ST ENGINEERING BASTAU LLP}

^Kazakhstan

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: GOOD

Liquidity : SUFFICIANT

Payments : REGULAR

Trend : UPWARD

Financial Situation: AVERAGE

LITIGATION(S)

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

^{Case Number: DCS002844/1998}

Defendant SINGAPORE TECHNOLOGIES ENGINEERIN ROC # : 199706274H

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 13/04/2006}

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

^{Number of weeks: 52 52 52}

^{Consolidation Code: CONSOLIDATED CONSOLIDATED CONSOLIDATED}

^{--- ASSETS}

^{Preliminary Exp 110,678,000 104,166,000 85,884,000}

^{Intangible Fixed Assets: 360,205,000 56,204,000 58,165,000}

^{Tangible Fixed Assets: 475,197,000 415,490,000 419,247,000}

^{Investments 383,310,000 316,425,000 232,801,000}

^{Total Fixed Assets: 1,329,390,000 892,285,000 796,097,000}

^{Inventories: 812,186,000 663,592,000 640,483,000}

^{Receivables: 665,466,000 491,704,000 447,029,000}

^{Cash,Banks, Securitis: 306,328,000 558,249,000 846,361,000}

^{Other current assets: 1,453,025,000 1,436,297,000 1,392,310,000}

^{Total Current Assets: 3,237,005,000 3,149,842,000 3,326,183,000}

^{TOTAL ASSETS: 4,566,395,000 4,042,127,000 4,122,280,000}

^{--- LIABILITIES}

^{Equity capital: 291,450,000 289,217,000 288,603,000}

^{Reserves: 168,905,000 114,272,000 116,879,000}

^{Profit & loss Account: 915,246,000 878,318,000 851,488,000}

^{Other: 49,058,000 37,936,000 39,630,000}

^{Surplus equity: 117,197,000 76,602,000 67,557,000}

^{TOTAL EQUITY: 1,541,856,000 1,396,345,000 1,364,157,000}

^{Long Term Loans: 1,138,000 13,317,000 12,388,000}

^{L/T deffered taxes: 7,751,000 4,654,000 4,566,000}

^{Other long term Liab.: 395,300,000 426,511,000 465,164,000}

^{Total L/T Liabilities: 404,189,000 444,482,000 482,118,000}

^{Trade Creditors: 495,229,000 461,880,000 545,743,000}

^{Prepay. & Def. charges: 616,424,000 564,904,000 603,678,000}

^{Short term liabilities: 2,391,000 1,760,000 1,653,000}

^{Advanced payments: 460,623,000 394,083,000 468,951,000}

^{Due to Bank: 333,755,000 130,018,000 134,692,000}

^{Provisions: 385,828,000 370,577,000 369,067,000}

^{Other Short term Liab.: 326,100,000 278,078,000 152,221,000}

^{Total short term Liab.: 2,620,350,000 2,201,300,000 2,276,005,000}

^{TOTAL LIABILITIES: 3,024,539,000 2,645,782,000 2,758,123,000}

PROFIT & LOSS ACCOUNT

^{Net Sales 3,337,895,000 2,948,127,000 2,818,989,000}

^{Gross Profit: 716,216,000 653,786,000 675,185,000}

^{Result of ordinary}

^{Operations 444,343,000 383,275,000 356,312,000}

^{NET RESULT BEFORE TAX: 503,245,000 446,244,000 412,697,000}

^{Tax : 91,993,000 87,056,000 86,759,000}

^{Net income/loss year: 411,252,000 359,188,000 325,938,000}

^{Interest Paid: 7,952,000 4,182,000 2,216,000}

^{Depreciation: 79,092,000 77,691,000 86,445,000}

^{Dividends: 359,769,000 326,492,000 449,906,000}

^{Directors Emoluments: 2,207,748 1,974,603 1,753,358}

^{Purchases,Sces & Other}

^{Goods: 2,621,679,000 2,294,341,000 2,143,804,000}

^{Wages and Salaries: 899,474,252 828,036,397 798,140,642}

^{Financial Income: 30,610,000 19,326,000 7,295,000}

RATIOS

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

^{Turnover per employee: 287279.03 253733.28 242618.90}

^{Net result / Turnover(%): 0.12 0.12 0.12}

^{Stock / Turnover(%): 0.24 0.23 0.23}

^{Net Margin(%): 12.32 12.18 11.56}

^{Return on Equity(%): 26.67 25.72 23.89}

^{Return on Assets(%): 9.01 8.89 7.91}

^{Dividends Coverage: 1.14 1.10 0.72}

^{Net Working capital: 616655000.00 948542000.00 1050178000.00}

^{Cash Ratio: 0.12 0.25 0.37}

^{Quick Ratio: 0.37 0.48 0.57}

^{Current ratio: 1.24 1.43 1.46}

^{Receivables Turnover: 71.77 60.04 57.09}

^{Leverage Ratio: 2.56 1.97 2.11}

^{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 GROUP WAS SEEN TO BE STABLE TO FAIR IN VIEW OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED SOUND WITH NET WORTH IMPROVED BY 10.42% FROM S$1,396,345,000 IN FY 2004 TO S$1,541,856,000 IN FY 2005. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF S$915,246,000 (2004: S$878,318,000); A RISE OF 4.20% FROM THE PRIOR FINANCIAL YEAR.}

^{THERE IS AN INCREASE IN THE PAID-UP SHARE CAPITAL FROM S$289,217,000 TO S$291,450,000.}

^{GROUP AND COMPANY}

^{2005 2004}

^{$'000 $'000}

^AUTHORISED

^{4,999,999,999 ORDINARY SHARES OF S$0.10 EACH AND 1 SPECIAL SHARE OF $0.10 EACH 500,000 500,000}

^{ISSUED AND FULLY PAID:}

^{AT BEGINNING OF YEAR}

^{2,892,164,908 (2004: 2,886,028,628) ORDINARY}

^{SHARES OF $0.10 EACH AND 1 SPECIAL SHARE OF}

^{$0.10 EACH 289,217 288,603}

^{ISSUED DURING THE YEAR}

^{22,330,718 (2004: 6,136,280) ORDINARY SHARES}

^{OF $0.10 EACH 2,233 614}

^{________ _______}

^{AT END OF THE YEAR}

^{2,914,495,626 (2004: 2,892,164,908)}

^{ORDINARY SHARES OF $0.10 EACH AND 1}

^{SPECIAL SHARE OF $0.10 EACH 291,450 289,217}

^{INCLUDED IN SHARE CAPITAL IS A SPECIAL SHARE OF $0.10 ISSUED TO THE MINISTER FOR FINANCE (INCORPORATED). THE SPECIAL SHARE ENJOYS ALL THE RIGHTS ATTACHED TO THE ORDINARY SHARES. IN ADDITION, THE SPECIAL SHARE CARRIES THE RIGHT TO APPROVE ANY RESOLUTION TO BE PASSED BY THE COMPANY, EITHER IN GENERAL MEETING OR BY ITS BOARD OF DIRECTORS, ON CERTAIN MATTERS SPECIFIED IN THE COMPANY'S ARTICLES OF ASSOCIATION. THE SPECIAL SHARE MAY BE CONVERTED AT ANY TIME INTO AN ORDINARY SHARE.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY ACCRUALS WHICH MADE UP 23.52% (2004: 25.66%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$616,424,000 (2004: S$564,904,000). THE BREAKDOWN IS AS FOLLOWS:}

^{-ACCRUED OPERATING EXPENSES - 2005: S$615,288,000 (2004: S$564,164,000)}

^{-ACCRUED INTEREST PAYABLE - 2005: S$1,136,000 (2004: S$740,000)}

^{IN THE LONG-TERM, SUBJECT WAS LARGELY FINANCED BY OTHER LONG-TERM LIABILITIES WHICH MADE UP 97.80% (2004: 95.96%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$395,300,000 (2004: S$426,511,000). THE BREAKDOWN IS AS FOLLOWS:}

^{-NON-CURRENT PORTION OF PAYMENTS FROM CUSTOMERS - 2005:S$377,918,000 (2004: S$411,262,000)}

^{-DEFERRED INCOME - 2005: S$2,303,000 (2004: S$2,055,000)}

^{-NON-CURRENT PORTION OF LEASE OBLIGATIONS - 2005:S$12,201,000 (2004: S$13,000,000)}

^{-NON-CURRENT PORTION OF OTHER LOANS - 2005: S$2,878,000 (2004: S$194,000)}

^{AMOUNT DUE TO BANKS OF S$333,755,000 (2004: S$130,018,000) CONSISTED OF:}

^{-SHORT-TERM BANK LOANS (UNSECURED) - 2005: S$323,594,000 (2004: S$128,798,000)}

^{-BANK LOANS - 2005: S$9,430,000 (2004: S$864,000)}

^{-BANK OVERDRAFTS - 2005: S$731,000 (2004: S$356,000)}

^{IN ALL, LEVERAGE RATIO ROSE FROM 1.97 TIMES TO 2.56 TIMES AS A RESULT OF A GREATER RISE IN TOTAL LIABILITIES THAN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE, THOUGH DECLINING AS SEEN FROM THE DECLINE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS. CURRENT RATIO FELL TO 1.24 TIMES, DOWN FROM 1.43 TIMES AND QUICK RATIO FELL TO 0.37 TIMES FROM 0.48 TIMES IN FY 2004.}

^{SIMILARLY, NET WORKING CAPITAL FELL BY 34.99% FROM S$948,542,000 IN FY 2004 TO S$616,655,000.}

^{CASH AND CASH EQUIVALENTS COMPRISE OF:}

^{-FIXED DEPOSITS WITH FINANCIAL INSTITUTIONS - 2005: S$148,187,000 (2004: S$434,793,000)}

^{-CASH AND BANK BALANCES - 2005: S$158,141,000 (2004: S$111,276,000)}

^{-SHORT-TERM NOTES - 2005: - (2004: S$12,000)}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 13.22% FROM S$2,948,127,000 IN FY 2004 TO S$3,337,895,000 AND NET PROFIT ROSE BY 14.49% TO S$411,252,000 (2004: S$359,188,000). HENCE, NET MARGIN ROSE TO 12.32% (2004: 12.18%).}

^REVENUE:

^{-SALE OF GOODS - 2005: S$1,330,439,000 (2004: S$1,051,106,000)}

^{-SERVICE INCOME - 2005: S$2,007,456,000 (2004: S$1,897,021,000)}

^{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 CONSIDERING THAT ITS INTEREST EXPENSES WERE LOW AT S$7,952,000 IN FY 2005 (2004: S$4,182,000).}

^{AVERAGE COLLECTION PERIOD HAS INCREASED FROM 60.04 DAYS TO 71.77 DAYS. A HIGHER AVERAGE COLLECTION PERIOD POSES GREATER RISK OF TURNING INTO BAD DEBTS. HOWEVER, IT IS STILL WORTH NOTING THAT DEBT SERVICING ABILITY MAY NOT BE AFFECTED IF TRADE RECEIVABLES ARE FORTHCOMING.}

^{NON-CURRENT ASSETS:}

^{THE FOLLOWING ITEMS ARE CLASSIFIED UNDER PRELIMINARY:}

^{-LONG-TERM RECEIVABLES - 2005: S$15,329,000 (2004: S$19,394,000)}

^{-DEFERRED TAX ASSETS - 2005: S$95,349,000 (2004: S$84,772,000)}

^{NOTES TO THE FINANCIAL STATEMENTS:}

^{SHORT-TERM BANK LOANS (UNSECURED)}

^{BANK LOANS - EFFECTIVE INTEREST RATE: 2.93-5.60% MATURITY WITHIN 1 MONTH}

^{THE BANK LOANS ARE DENOMINATED IN US DOLLARS, STERLING POUNDS AND AUSTRALIAN DOLLARS.}

^{LONG-TERM BANK LOANS}

^{BANK LOANS - EFFECTIVE INTEREST RATE: 2.53-7% MATURITY UP TILL 2008 REPAYABLE WITHIN 1 YEAR - 2005: S$9,430,000 (2004: S$864,000) REPAYABLE AFTER 1 YEAR - 2005: S$1,138,000 (2004: S$13,317,000)}

^{THE BANK LOANS ARE DENOMINATED IN US DOLARS AND SECURED BY ASSETS OF A SUBSIDIARY.}

^{OTHER LOANS}

^{INCLUDED IN OTHER LOANS ARE:}

^{(A) AN AMOUNT OF S$669,000 (2004: S$317,000) RELATING TO LOAN OF AN OVERSEAS SUBSIDIARY. THE DETAILS OF THE LOAN IS AS FOLLOWS:}

^{BEGINNING ON 1 JUNE 2000 AND EVERY QUARTER THEREAFTER UNTIL 1 APRIL 2005, THE SUBSIDIARY IN CANADA MUST PAY THE LOAN UNDER INDUSTRIAL RESEARCH ASSISTANCE PROGA ("IRAP"), AN ASSISTANCE PROGRAM IN CANADA, 2.2% OF GROSS REVENUES FOR THE QUAARTER PRECEDING THE REPAYMENT.}

^{SUBSEQUENT TO 1 ARPIL 2005, AS THE TOTAL AMOUNT REPAID TO IRAP IS LESS THAN THE ORIGINAL LOAN, THE SUBSIDIARY IS COMMITTED TO MAKE PAYMENTS TO IRAP UNDER THE SAME TERMS UNTIL THE EARLIER OF THE FULL REPAYMENT OR 1 JUNE 2010; AND IF AT ANY TIME DURING THE LIFE OF THE AGREEMENT THE TOTAL AMOUNT PAID TO IRAP EQUALS OR EXCEEDS 150% OF THE ORIGINAL LOAN, THE SUBSIDIARY WILL CEASE TO HAVE ANY FURTHER OBLIGATION TO IRAP.}

^{THIS LOAN IS EXPECTED TO BE REPAID WITHIN THE NEXT TWELVE MONTHS.}

^{(B) AN AMOUNT OF S$2,843,000 (2004: S$1,192,000) RELATING TO SHORT- TERM LOANS FROM MINORITY SHAREHOLDERS OF A SUBSIDIARY. THESE LOANS ARE UNSECURED, BEARS INTERST AT 7% (2004: 7%) PER ANNUM, WHICH IS ALSO THE EFFECTIVE INTEREST RATE AND ARE REPAYABLE WITHIN THE NEXT 12 MONTHS.}

^{(C) US DOLLAR DENOMINATED TERM NOTES OF S$1.7 MILLION (US$1.0 MILLION) (2004: NIL) AND S$0.4 MILLION (US$0.2 MILLION) (2004: NIL) OWING TO THE PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY AND THE INDUSTRIAL PROPERTIES CORPORATION, RESPECTIVELY, BY A US ENTITY OF THE GROUP. THESE NOTES ARE SECURED BY ASSETS OF THE ENTITY AND BEAR INTEREST, RESPECTIVELY, AT 2.75% AND 4.0% PER ANNUM, WHICH ARE ALSO THE EFFECTIVE INTEREST RATES, AND ARE PAYABLE THROUGH 1 JULY 2019 AND 28 JUNE 2019, RESPECTIVELY.}

^{ANOTHER US DOLLAR DENOMINATED TERM NOTE OF S$0.6 MILLION (US$0.4 MILLION) (2004: NIL) IS OWNED BY THE SAME ENTITY TO THE PENNSYLVANIA DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT. THIS NOTE IS UNSECURED, BEARS INTEREST OF 2.75% PER ANNUM, WHICH IS ALSO THE EFFECTIVE INTEREST RATE, AND IS PAYABLE THROUGH 1 FEBRUARY 2012.}

^{(D) AN AMOUNT OF S$194,000 (2004: S$194,000) RELATING TO A LONG-TERM LOAN FROM MINORITY SHAREHOLDER OF A SUBSIDIARY. THE LOAN IS UNSECURED, INTEREST-FREE AND THE SHAREHOLDER HAS INDICATED THAT THEY WILL NOT REQUEST FOR THE REPAYMENT OF THE LOAN WITHIN THE NEXT 12 MONTHS.}

^{LONG-TERM RECEIVABLES}

^{HOUSING AND CAR LOANS AND ADVANCES TO STAFF - 2005: S$1,171,000 (2004: S$1,233,000)}

^{TRADE DEBTORS - 2005: S$6,600,000 (2004: S$7,309,000)}

^{DUE FROM A JOINT VENTURE - 2005: S$8,256,000 (2004: S$5,981,000)}

^{LOANS TO THIRD PARTIES - 2005: S$12,097,000 (2004: S$19,281,000)}

^{ALLOWANCE FOR DOUBTFUL LOANS - 2005: S$12,097,000 (2004: S$13,855,000)}

^{REMAINING - 2005: - (2004: S$5,426,000)}

^{TOTAL - 2005: S$16,027,000 (2004: S$19,949,000)}

^RECEIVABLE:

^{WITHIN 1 YEAR - 2005: S$ 698,000 (2004: S$ 555,000)}

^{AFTER 1 YEAR - 2005: S$15,329,000 (2004: S$19,394,000)}

^INVESTMENTS

^{(I) AS AT 31 DECEMBER 2005, THE GROUP HAS OUTSTANDING COMMITMENTS IN RESPECT OF UNCALLED CAPITAL TO THE EXTENT OF S$7.8 MILLION (2004: S$0.2 MILLION) IN A SUBSIDIARY}

^{(II) AS AT 31 DECEMBER 2005, THE GROUP HAS OUTSTANDING COMMITMENTS IN RESPECT OF UNCALLED CAPITAL TO THE EXTENT OF S$47.1 MILLION (2004: US $28.2 MILLION) (2004: S$50.1 MILLION (US$30.4 MILLION) IN AN ASSOCIATED COMPANY}

^{(III) AS AT 31 DECEMBER 2005, IN RESPECT OF INVESTMENTS IN UNQUOTED EQUITY SHARES OF VENTURE CAPITAL FUND COMPANIES, THERE IS UNCALLED CAPITAL CONTRIBUTION AMOUNTING TO S$0.7 MILLION (2004: S$0.8 MILLION) FOR THE GROUP}

^{(IV) IN DECEMBER 2005, SINGAPORE TECHNOLOGIES AEROSPACE LTD ("ST AEROSPACE) AND SCANDINAVIA-BASED AIRLINE GROUP SAS AB ("SAS") ENTERED INTO AN AGREEMENT TO ACQUIRE A 67% STAKE IN SAS COMPONENT A/S ("SASC") FOR EURO80.4 MILLION (S$161 MILLION). SASC IS A WHOLLY-OWNED SUBSIDIARY OF SAS, WHICH WILL RETAIN THE REMAINING 33% OF SASC.}

^{ST AEROSPACE AND SAS HAVE ALSO AGREED FOR SASC TO ACQUIRE ST AEROSPACE'S EUROPEAN COMPONENTS AND MATERIAL SERVICES OPERATIONS, NAMELY AIRLINES ROTABLES LIMITED, A GLOBAL AIRCRAFT COMPONENTS SUPPLIER. THIS WILL CONSOLIDATE ALL OF ST AEROSPACE'S EUROPEAN COMPONENTS AND MATERIAL SERVICES OPERATIONS UNDER ONE ROOF, STRENGTHENING ITS MARKET POSITION AND YIELDING ECONOMIES OF SCALE. THE DEAL, WHICH NEEDS APPROVAL FROM THE SCANDINAVIAN COMPETITION AUTHORITIES, IS EXPECTED TO BE COMPLETED IN ABOUT 10 TO 15 WEEKS.}

^{UNDER THE AGREEMENT, ST AEROSPACE HAS A CALL OPTION TO ACQUIRE THE REMAINING 33% STAKE IN SASC, FROM THE FOURTH ANNIVERSARY TO THE SEVENTH ANNIVERSARY AFTER THE CLOSE OF THE TRANSACTION. SAS MAY ALSO SELL ITS STAKE IN SASC FROM THE SECOND ANNIVERSARY TO THE SEVENTH ANNIVERSARY AFTER THE CLOSE OF THE TRANSACTION. THERE ARE NO TRIGGER EVENTS AND THE PRICE, SUBJECT TO A FLOOR AND CEILING, IS THE FAIR MARKET VALUE DETERMINED BY AN INDEPENDENT VALUER WHEN THE OPTION IS EXERCISED.}

^{PRIOR TO THE ABOVE TRANSACTION, THE COMPANY WAS PART OF A CONSORTIUM FORMED IN APRIL 2005 UNDER A LETTER 0F INTENT ("LOI") TO EXPLORE AN ACQUISITION OF SASC.}

^{AFTER THE WITHDRAWAL OF A FINANCIAL PARTNER, THE CONSORTIUM BROKE UP. ANOTHER PARTY TO THE CONSORTIUM AND THEIR FINANCIAL ADVISOR HAVE NOW MADE A CLAIM OF EURO6.68 MILLION PLUS FUTURE EXIT FEE AGAINST THE COMPANY FOR ALLEGED BREACH OF A CONTRACTUAL OBLIGATION UNDER THE LOI. THIS CLAIM IS BEING DISPUTED BY THE COMPANY.}

^LOANS

^{AS AT 31 DECEMBER 2005, THE GROUP HAS OUTSTANDING COMMITMENTS IN RESPECT OF LOAN TO JOINT VENTURE COMPANY OF US$788,900 (2004: NIL)}

^{TO BE DISBURSED BY 1 MARCH 2006.}

^{CONTINGENT LIABILITIES}

^{(A) CORPORATE GUARANTEES GIVEN BY THE COMPANY TO THIRD PARTIES IN RESPECT OF THE PROVISION OF GOODS AND SERVICES TO A SUBSIDIARY AMOUNTED TO NIL (2004: S$6.9 MILLION)}

^{(B) CORPORATE GUARANTEES GIVEN BY THE COMPANY TO BANKS IN RESPECT OF LOAN FACILITIES EXTENDED TO CERTAIN US SUBSIDIARIES AMOUNTED TO S$481.8 MILLION (US$290 MILLION) (2004: S$156.3 MILLION) (US$95 MILLION)}

^{(C) CORPORATE GUARANTEES GIVEN BY THE COMPANY TO THIRD PARTIES IN RESPECT OF THE PERFORMANCE OF A CONTRACT AMOUNTED TO S$189.3 (2004: S$88.8 MILLION)}

^{(D) CORPORATE GUARANTEES GIVEN BY SUBSIDIARIES IN RESPECT OF BANKING FACILITIES AMOUNTED TO S$26.9 MILLION (2004: S$31.6 MILLION)}

^{(E) CORPORATE GUARANTEES GIVEN BY SUBSIDIARIES TO THIRD PARTIES IN RESPECT OF THE PROVISION OF GOODS AND SERVICES AMOUNTED TO S$4.0 MILLION (2004: S$4.3 MILLION)}

^{(F) CORPORATE GUARANTEES GIVEN BY SUBSIDIARIES TO THIRD PARTIES IN RESPECT OF THE PERFORMANCE OF CONTRACTS AMOUNTED TO S$117.0 MILLION (2004: S$105.8 MILLION)}

^{(G) CORPORATE GUARANTEES GIVEN BY A SUBSIDIARY IN RESPECT OF BANKING FACILITIES TO A 50% JOINT VENTURE COMPANY AMOUNTED TO S$15.0 MILLION (2004: S$15.0 MILLION)}

^{(H) CORPORATE GUARANTEES GIVEN BY A SUBSIDIARY TO A THIRD PARTY IN RESPECT OF THE PERFORMANCE OF A CONTRACT BY A 50% JOINT VENTURE COMPANY AMOUNTED TO S$13.3 MILLION (2004: S$37.2 MILLION)}

^{SEGMENT INFORMATION}

^TURNOVER

^{EXTERNAL SALES}

^{AEROSPACE - 2005: S$1,235,641,000 (2004: S$1,118,016,000)}

^{ELECTRONICS - 2005: S$701,368,000 (2004: S$625,908,000)}

^{LAND SYSTEMS - 2005: S$599,722,000 (2004: S$591,164,000)}

^{MARINE - 2005: S$659,671,000 (2004: S$484,138,000)}

^{OTHERS - 2005: S$141,493,000 (2004: S$128,901,000)}

^{ELIMINATION - 2005: - (2004: -)}

^{GROUP - 2005: S$3,337,895,000 (2004: S$2,948,127,000)}

^{INTER-SEGMENT SALES}

^{AEROSPACE - 2005: S$270,000 (2004: S$293,000)}

^{ELECTRONICS - 2005: S$10,855,000 (2004: S$10,773,000)}

^{LAND SYSTEMS - 2005: S$4,925,000 (2004: S$3,136,000)}

^{MARINE - 2005: S$176,000 (2004: S$226,000)}

^{OTHERS - 2005: S$450,424,000 (2004: S$410,082,000)}

^{ELIMINATION - 2005: -S$466,650,000 (2004: -S$424,510,000)}

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

^TOTAL

^{AEROSPACE - 2005: S$1,235,911,000 (2004: S$1,118,309,000)}

^{ELECTRONICS - 2005: S$712,223,000 (2004: S$636,681,000)}

^{LAND SYSTEMS - 2005: S$604,647,000 (2004: S$594,300,000)}

^{MARINE - 2005: S$659,847,000 (2004: S$484,364,000)}

^{OTHERS - 2005: S$591,917,000 (2004: S$538,983,000)}

^{ELIMINATION - 2005: -S$466,650,000 (2004: -S$424,510,000)}

^{GROUP - 2005: S$3,337,895,000 (2004: S$2,948,127,000)}

^TURNOVER

^{ANALYSIS BY GEOGRAPHICAL AREAS}

^{ASIA - 2005: S$2,216,400,000 (2004: S$1,977,564,000)}

^{USA - 2005: S$ 836,683,000 (2004: S$ 703,820,000)}

^{EUROPE - 2005: S$ 135,918,000 (2004: S$ 126,571,000)}

^{OTHERS - 2005: S$ 148,894,000 (2004: S$ 140,172,000)}

^{TOTAL - 2005: S$3,337,895,000 (2004: S$2,948,127,000)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 08/09/1997 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS NAMESTYLE AS "SINGAPORE TECHNOLOGIES ENGINEERING PTE LIMITED".}

^{SUBSEQUENTLY, ON 01/10/1997, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE AS "SINGAPORE TECHNOLOGIES ENGINEERING LTD" AND IS TRADING AS A PUBLIC COMPANY LIMITED BY SHARES.}

^{AS AT 19/03/2007, THE COMPANY HAS ISSUED AND PAID-UP CAPITAL OF 2,958,731,986 SHARES OF A VALUE OF S$500,716,221.74.}

^{PRINCIPAL ACTIVITIES:}

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

^{1. OTHER INVESTMENT HOLDING COMPANIES}

^{2. ACTIVITIES NOT ADEQUATELY DEFINED}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY CONSIST OF AN INVESTMENT HOLDING COMPANY AND THE PROVISION OF ENGINEERING AND RELATED SERVICES.}

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

^{BACKGROUND OF THE SUBJECT:}

^LISTINGS

^{* LISTED ON 8 DECEMBER 1997 ON SGX MAINBOARD}

^{THE COMPANY IS FORMED BY THE AMALGAMATION OF SINGAPORE TECHNOLOGIES AEROSPACE LTD, SINGAPORE TECHNOLOGIES AUTOMOTIVE LTD, SINGAPORE TECHNOLOGIES SHIPBUILDING & ENGINEERING LTD AND ST ELECTRONIC & ENGINEERING LTD, EFFECTIVE ON 6 DECEMBER 1997. UPON AMALGAMATION, THE FOUR COMPANIES BECAME ITS WHOLLY-OWNED SUBSIDIARIES. SINGAPORE TECHNOLOGIES PTE LTD IS THE GROUP'S HOLDING COMPANY. IN LATE 1999, THE GROUP ACQUIRED CHARTERED INDUSTRIES OF SINGAPORE (PTE) LTD}

^{THE GROUP HAS DIVERSE COMMERCIAL ACTIVITIES SPANNING THE AEROSPACE, ELECTRONICS, LAND SYSTEMS AND MARINE SECTORS. ITS COMMERCIAL CUSTOMERS RANGE FROM AIRLINES, SHIPPING LINES, TRANSPORTATION SERVICE PROVIDERS TO TRUCK LEASING OPERATORS.}

^{THE GROUP IS NOW RE-ORGANISED AS 4 DIVISIONS.}

^AEROSPACE

^{AS THE WORLD'S LARGEST MRO PROVIDER WITH AN ANNUAL COMMERCIAL AIRFRAM CAPACITY OF MORE THAN SIX MILLION MANHOURS, THE AEROSPACE SECTOR IS CAPABLE OF SUPPORTING ENGINES, COMPONENTS, ENGINEERING AND MATERIALS SERVICES, INCLUDING TOTAL AVIATION SUPPORT, FOR AIRCRAFT OPERATORS.}

^{THE AEROSPACE SECTOR HAS ESTABLISHED ITS PRESENCE IN KEY HUBS AROUND THE WORLD, NAMELY ASIA PACIFIC, EUROPE AND THE UNITED STATES. IT OFFERS MAINTENANCE, STRUCTURAL REPAIR AND AGING MODIFICATION SERVICES FOR A RANGE OF COMMERCIAL AIRCRAFT INCLUDING AIRBUS, BOEING, MCDONNELL DOUGLAS, LOCKHEED MARTIN, CESSNA AND EMBRAER FLEET. ITS GLOBAL CUSTOMER BASE INCLUDES MANY OF THE WORLD'S LARGEST PASSENGER, FREIGHT AND LOW COST AIRLINES.}

^{THE AEROSPACE SECTOR DELIVERS ON-TIME AND COST EFFECTIVE SUPPORT, WORKING CLOSELY WITH CUSTOMERS TO MINIMISE THEIR COST OF OWNERSHIP BY IMPROVING TURN-AROUND TIME AND MAINTENANCE LIFECYCLE.}

^ELECTRONICS

^{THE ELECTRONICS SECTOR HAS CORE CAPABILITIES IN DESIGN, DEVELOPMENT AND INTEGRATION OF ADVANCED ELECTRONICS SYSTEMS SUCH AS BROADBAND RADIO FREQUENCY AND MICROWAVE COMMUNICATION, E-GOVERNMENT SOLUTIONS, RAIL AND TRAFFIC MANAGEMENT, REAL-TIME COMMAND & CONTROL, TRAINING AN SIMULATION, DIGITAL MEDIA, INTELLIGENT BUILDING MANAGEMENT, AND INFORMATION SECURITY AND MOBILE COMMERCE SOLUTIONS. THROUGH CONSTANT R&D, THE ELECTRONICS SECTOR DELIVERS COST-EFFECTIVE PROPRIETARY PRODUCTS AT BOTH SYSTEM AND COMPONENT LEVEL TO PROVIDE PURPOSE-BUILT SOLUTIONS FOR ITS CUSTOMERS.}

^{SOME OF THE ELECTRONICS SECTOR'S ACHIEVEMENTS INCLUDE THE INFRARED FEVER SCREENING SYSTEM (IFSS), WHICH WAS USED AT BORDER CHECKPOINTS DURING THE SARS CRISIS. THE IFSS WAS AWARDED THE US TECH MUSEUM AWARD (HEALTH CATEGORY) IN 2004. ANOTHER LANDMARK PRODUCT IS THE MINI-V, ON OF THE WORLD'S SMALLEST PORTABLE SATELLITE COMMUNICATION TERMINALS.}

^{THE ELECTRONICS SECTOR COMPRISES THREE CORE BUSINESS GROUPS:}

^{* LARGE-SCALE SYSTEMS GROUP}

^{* COMMUNICATION & SENSOR SYSTEMS GROUP}

^{* SOFTWARE SYSTEMS GROUP}

^{LAND SYSTEMS}

^{THE SPECIALTY VEHICLE AND LAND SYSTEMS ARM OF THE GROUP IS ONE OF THE REGION'S LARGEST SPECIALTY VEHICLES AND DEFENCE COMPANIES, WITH A GROWING PORTFOLIO OF PRODUCTS AND SERVICES FOR THE DEFENCE, HOMELAND SECURITY AND COMMERCIAL MARKETS. THE LAND SYSTEMS SECTOR'S CAPABILITIES INCLUDE THE DESIGN AND DEVELOPMENT, SYSTEMS INTEGRATION, PRODUCTION, OPERATIONS & SUPPORT AND LIFE CYCLE MANAGEMENT OF A WIDE RANGE OF SPECIALTY VEHICLES AND SPECIALISED EQUIPMENT.}

^{IT COMPRISES TWO STRATEGIC BUSINESS GROUPINGS:}

^{* INTEGRATED SYSTEMS & SERVICES GROUP WHICH PROVIDES DEFENCE & HOMELAND SECURITY PRODUCTS AND SERVICES}

^{* SPECIALTY VEHICLES & SERVICES GROUP WHICH DELIVERS A RANGE OF COMMERCIAL SPECIALTY VEHICLES AND AUTOMOTIVE SERVICES IN SINGAPORE, THE LAND SYSTEMS SECTOR OFFERS AUTOMOTIVE REPAIR SERVICES THROUGH ITS NETWORK OF STAR SATELLITE CENTRES LOCATED ISLANDWIDE. IT CONDUCTS COMPULSORY VEHICLE INSPECTION SERVICES AND IS A CERTIFIED INDEPENDENT DAMAGE ASSESSMENT CENTRE FOR ALL CATEGORIES O VEHICLES.}

^{IN CHINA, THE LAND SYSTEMS SECTOR HAS A BEIJING-BASED JOINT VENTURE COMPANY, WHICH DESIGNS AND PRODUCES SPECIALISED HEAVY CONSTRUCTION AND INDUSTRIAL VEHICLES SUCH AS OFF-ROAD DUMP TRUCKS, BULK CEMENT TANKERS CONCRETE MIXERS AND TERMINAL PORT TRACTOR. IN GUIYANG, IT HOLDS A MAJORITY STAKE IN A COMPANY WHICH DESIGNS, MANUFACTURES AND DISTRIBUTES CONSTRUCTION EXCAVATORS. IN SHANGHAI, ITS WHOLLY OWNED SUBSIDIARIES PRODUCE A RANGE OF ELECTRIC TWO- AND FOUR-WHEELERS AND A RANGE OF HYBRID-ELECTRIC DRIVE SYSTEMS RESPECTIVELY. IT ALSO HAS A JOINT VENTURE EACH IN GUANGZHOU AND HANGZHOU FOR STAR AUTOMOTIVE SERVICES.}

^{IN THE US, THE LAND SYSTEMS SECTOR SERVICES A CUSTOMER BASE THAT INCLUDES MAJOR FLEET AND TRUCK LEASING OPERATORS, FOOD AND BEVERAGE DISTRIBUTORS, AS WELL AS MUNICIPAL AUTHORITIES. KEY PRODUCTS INCLUDE MULTI-TEMPERATURE BEVERAGE TRUCKS, DRY FREIGHT VANS AND TRAILERS, EMERGENCY RESPONSE AND RECOVERY VEHICLES AND SPECIALISED APPLICATION TRUCKS.}

^MARINE

^{THE MARINE SECTOR PROVIDES SHIPBUILDING, SHIPREPAIR AND SHIP CONVERSION SERVICES FOR A RANGE OF COMMERCIAL VESSELS. ITS SHIP DESIGN CAPABILITIES AND THE USE OF A SOPHISTICATED 3D MODELING CAD CAM SYSTEM ALLOW THE MARINE SECTOR TO TAILOR VESSELS THAT ARE CUSTOMISED TO MEET THE SPECIFIC OPERATIONAL REQUIREMENTS OF ITS CUSTOMERS. WITH THE CAPABILITIES TO BUILD VESSELS UP TO 30,000 DWT, ITS TRACK RECORD INCLUDES THE DESIGN AND CONSTRUCTION OF CONTAINER VESSELS, RORO/LOLO VESSELS AND OFFSHORE SUPPLY VESSELS, INCLUDING THE FIRST EVER PURE CAR TRUCK CARRIER DELIVERED BY ITS SHIPYARD IN THE US. ITS US OPERATIONS IS CURRENTLY CONSTRUCTING A DOUBLE-ENDED PASSENGER FERRY AS WELL AS ARTICULATED TUG BARGE UNITS.}

^{IN SHIPREPAIR, THE MARINE SECTOR PROVIDES HIGH ENGINEERING CONTENT REPAIR SERVICES INCLUDING SHIP CONVERSIONS AND JUMBOISATION, FOR VESSELS UP TO 70,000 DWT. ITS RELIABLE REPAIR SERVICES EXTEND TO A WIDE ARRAY OF COMMERCIAL VESSELS INCLUDING BULK CARRIER, RO-RO VESSELS, SEISMIC VESSELS, OFFSHORE SUPPLY VESSELS AND CRUISE LINERS. THE SECTOR HAS ESTABLISHED ITSELF IN THE DREDGER AND CHEMICAL TANKER REPAIR MARKETS INCLUDING TANK COATING PROJECTS.}

^{ST ENGINEERING HAS OVER 100 SUBSIDIARIES IN 35 CITIES IN 20 COUNTRIES. ITS CUSTOMER BASE COVERS OVER 60 COUNTRIES.}

^{GLOBALISATION IS A KEY GROWTH STRATEGY FOR SINGAPORE TECHNOLOGIES ENGINEERING (ST ENGINEERING). THE STRATEGIC THRUST IS TO DELIVER SUSTAINABLE GROWTH BY PENETRATING NEW MARKETS AROUND THE WORLD THROUGH PARTNERSHIPS AND ACQUISITIONS. IN 2005 ALONE, IT INVESTED ABOUT US$300 MILLION IN ACQUISITIONS.}

^{THE US IS A KEY MARKET FOR THE GROUP. ITS GROWTH IN THIS MARKET IS SPEARHEADED BY ITS US HEADQUARTERS, VT SYSTEMS INC. (VTS), SET UP IN 2001 IN VIRGINIA, NEAR THE NATION'S CAPITAL. VTS DELIVERS THE ENGINEERING EXCELLENCE OF ST ENGINEERING TO THE AMERICAS IN THE CORE BUSINESS AREAS OF AEROSPACE, ELECTRONICS, LAND SYSTEMS AND MARINE. I OVERSEES SUBSIDIARIES AND AFFILIATES THROUGHOUT THE CONTINENTAL US AND IN CANADA, PROVIDING TOTAL CUSTOMER SERVICE THROUGH THE DEVELOPMENT OF TRANSFORMATIONAL TECHNOLOGIES.}

^{CHINA IS ALSO AN IMPORTANT MARKET FOR THE GROUP, WHERE IT HAS PRESENC IN THE AEROSPACE, ELECTRONICS AND LAND SYSTEMS SECTORS AND PLANS TO FURTHER EXPAND ITS BUSINESSES THERE, INCLUDING THE MARINE SECTOR. THE GROUP'S KEY OPERATIONS IN CHINA COMPRISE AN AIRCRAFT MRO FACILITY IN SHANGHAI; AN IT SOFTWARE DEVELOPMENT IN SHENZHEN AND R&D CENTRE IN SHANGHAI; AUTOMOTIVE MAINTENANCE CENTRES IN GUANGZHOU AND HANGZHOU; AND JVS IN BEIJING AND GUIYANG TO PRODUCE SPECIALTY VEHICLES FOR THE CONSTRUCTION AND MINING INDUSTRIES. THE GROUP ALSO HAS REPRESENTATIVE OFFICES IN BEIJING, HONG KONG, GUANGZHOU, SHANGHAI, SHENZHEN AND CHENGDU.}

^{THE GROUP ALSO HAS REPRESENTATIVE OFFICES IN INDIA AND THE REPUBLIC OF KAZAKHSTAN.}

^{PRODUCTS DEALINGS:}

^AEROSPACE

^{* COMMERCIAL AIRCRAFT}

^{* COMPONENTS & SPARES SUPPORT}

^{* DESIGN, DEVELOPMENT & UPGRADES}

^{* ENGINE SUPPORT}

^{* GENERAL AVIATION}

^{* HELICOPTERS}

^{* MILITARY AIRCRAFT}

^ELECTRONICS

^{* ADVANCED FLEET MANAGEMENT SYSTEMS}

^{* AIRPORT SYSTEMS}

^{* COMBAT & ELECTRONIC SYSTEMS INTEGRATION FOR NAVAL & LAND APPLICATIONS}

^{* COMMON APPLICATION PLATFORMS (CAP)}

^{* COMMUNICATIONS SYSTEMS}

^{* CONTACT TRACK & TRACE}

^{* ELECTRO-OPTICS SYSTEMS}

^{* EMERGENCY INTEGRATED COMMUNICATIONS SYSTEMS}

^{* EMI/EMC TEST & MEASUREMENT SERVICES}

^{* FLIGHT SIMULATORS}

^{* HOMELAND SECURITY SOLUTIONS}

^{* INFRARED FEVER SCREENING SYSTEMS}

^{* INTELLIGENT ACCESS CONTROL SYSTEMS}

^{* INTELLIGENT BUILDING MANAGEMENT SYSTEMS}

^{* INTELLIGENT SCHOOL}

^{* INTELLIGENT TRAFFIC MANAGEMENT SYSTEMS}

^{* LAND-BASED SIMULATORS}

^{* LICENSE PLATE RECOGNITION SYSTEMS}

^{* MICROWAVE SENSORS}

^{* MOBILE TRACK & TRACE}

^{* NAVAL SIMULATION}

^{* ROAD SYSTEMS}

^{* RUGGED LAPTOP - TSC750M COMPUTER}

^{* SHIPBOARD INTEGRATED COMMUNICATION SYSTEMS}

^{* SUPERNET SHIPBOARD INTEGRATED COMMUNICATION SYSTEM (SICS)}

^{* UNDER VEHICLE SURVEILLANCE SYSTEMS}

^{LAND SYSTEMS}

^{* 0.50 INCH CARTRIDGE}

^{* 120MM ICM P138 MORTAR BOMB}

^{* 120MM SUPER RAPID ADVANCED MORTAR SYSTEM}

^{* 155MM CARGO ROUND}

^{* 40MM AIR BURSTING MUNITION SYSTEM}

^{* 40MM ENHANCED BLAST EXPLOSIVE ROUND S409}

^{* 40MM HIGH VELOCITY AMMUNITION}

^{* 40MM HIGH VELOCITY HEDP SD S413}

^{* 40MM LESS THAN LETHAL AMMUNITION}

^{* 40MM LESS THAN LETHAL AMMUNITION}

^{* 40MM LOW VELOCITY AMMUNITION}

^{* 40MM LOW VELOCITY HEDP SELF DESTRUCT S408}

^{* 40MM SPARCS ROUND S407}

^{* 5.56MM CARTRIDGE}

^{* 7.62MM CARTRIDGE}

^{* AC1000 SERVICE BODY}

^{* ACTIVE ARTICULATION VEHICLE}

^{* ADVANCED LOGISTICS PROACTIVE SOLUTIONS}

^{* AMX-13 SM1 UPGRADE}

^{* ANALYSIS, TEST AND EVALUATION}

^{* AOS 40MM L70 FIELD AIR DEFENCE MOUNT}

^{* ASPHALT DISTRIBUTORS}

^{* ASPHALT MAXIMISER 2 AND 3 DISTRIBUTORS}

^{* ASPHALT PAVERS}

^{* ASSET MAINTENANCE}

^{* BIONIX INFANTRY FIGHTING VEHICLE}

^{* BLAST AND CONTAMINATION MITIGATION SOLUTIONS}

^{* BRONCO ALL TERRAIN TRACKED CARRIER}

^{* BROOMS}

^{* CARGO STAR DRY FREIGHT TRUCK BODIES}

^{* CHIP SPREADER}

^{* CIS 40MM AUTOMATIC GRENADE LAUNCHER}

^{* CIS 40MM GRENADE LAUNCHER}

^{* CIS 50 MG MACHINE GUN}

^{* COMPACTION / ROLLERS}

^{* DEMUL X BCDS}

^{* DUMPTRUCKS}

^{* EMPEROR REFRIGERATED DISTRIBUTION TRAILER}

^{* EXCAVATORS}

^{* FH 2000 52 CALIBRE 155MM FIELD HOWITZER}

^{* FORCE FEED LOADER}

^{* FORKLIFTS & STACKERS}

^{* HACKNEY E/DM BEVERAGE TRAILER}

^{* LAND REMOTE WEAPON STATION}

^{* LIGHT ARMOURED MULTI-ROLE VEHICLE}

^{* M113 UPGRADE}

^{* MAINTAINERS}

^{* MINI ALL TERRAIN VEHICLE}

^{* MOTOR GRADER}

^{* NAVAL REMOTE WEAPON SYSTEM}

^{* P2000 SERVICE BODY}

^{* PEGASUS 155MM 39 CALIBRE LIGHT WEIGHT HOWITZER}

^{* PEOPLE PORTAL}

^{* PERFORMER FLOW-THRU VENDING BODY}

^{* PERFORMER VENDING BODY}

^{* PHOTOCATALYTIC PRODUCTS}

^{* POTHOLE PATCHERS}

^{* PRIMUS 155MM 39 CALIBRE SELF PROPELLED HOWITZER}

^{* ROLLERS / COMPACTION}

^{* SAR 21 ASSAULT RIFLE}

^{* SPIDER LIGHT STRIKE VEHICLE}

^{* SQUAD SUPPORT WEAPON}

^{* SUPER LIGHT WEIGHT AUTOMATIC GRENADE LAUNCHER}

^{* SURVIVABILITY SOLUTIONS}

^{* TERREX AV81 INFANTRY FIGHTING VEHICLE}

^{* THREAT CONTAINMENT VESSEL}

^{* ULTIMAX 100 LIGHT MACHINE GUN}

^{* ULTRA REFRIGERATED DISTRIBUTION TRUCK BODIES}

^MARINE

^{* CARGO CONTAINER VESSEL}

^{* COAST GUARD PATROL VESSEL}

^{* FAST CRAFT EQUIPMENT AND PERSONNEL (FCEP)}

^{* FAST CRAFT UTILITY (FCU)}

^{* FLOATING DOCK}

^{* FUEL OIL BUNKERING TANKER}

^{* HIGH SPEED INSHORE PATROL BOAT}

^{* HIGH SPEED PASSENGER CATAMARAN}

^{* LANDING & SUPPLY CRAFT}

^{* LANDING SHIP TANK}

^{* LPG TANKER}

^{* MINE COUNTER-MEASURE VESSEL}

^{* MISSILE ATTACK CRAFT}

^{* MISSILE CORVETTE}

^{* PATROL VESSEL}

^{* PLATFORM SUPPLY VESSEL}

^{* STEALTH INTERCEPTOR}

^{* STEALTH PATROL VESSEL}

^{* TEU CONTAINER VESSEL}

^{* TEU FEEDER CONTAINER VESSEL}

^{* TEU RORO/LOLO FEEDER CONTAINER VESSEL}

^{* TIGER 40 HOVERCRAFT}

^AWARDS

^{* SILVER OF THE BEST ANNUAL REPORT AWARD 2005 (FOR COMPANIES WITH $500M OR MORE IN MARKET CAPITALISATION) AT THE SINGAPORE CORPORATE AWARDS}

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

^{* SINGAPORE INTERNATIONAL CHAMBERS OF COMMERCE}

^{NEWS: ST ENGINEERING'S ELECTRONICS ARM INCREASES STAKE IN RIPPLE SYSTEMS}

^{-SOURCE: ST ENGINEERING WEBSITE}

^{DATE: 01/03/2007}

^{SINGAPORE - SINGAPORE TECHNOLOGIES ENGINEERING LTD (ST ENGINEERING) TODAY ANNOUNCED THAT ITS ELECTRONICS ARM, SINGAPORE TECHNOLOGIES ELECTRONICS LIMITED (ST ELECTRONICS), HAS ENTERED INTO AN AGREEMENT TO ACQUIRE THE REMAINING 30% SHARE EQUITY IN RIPPLE SYSTEMS PTY LIMITED (RIPPLE SYSTEMS) FOR A TOTAL CONSIDERATION OF A$1.00. THE CONSIDERATION WAS ARRIVED AT ON A WILLING-BUYER-WILLING-SELLER BASIS. SYSTEMS IS A SUBSIDIARY OF ST ELECTRONICS INCORPORATED IN PERTH, AUSTRALIA.}

^{THIS ACQUISITION IS NOT EXPECTED TO HAVE ANY MATERIAL IMPACT ON THE CONSOLIDATED NET TANGIBLE ASSETS PER SHARE AND EARNINGS PER SHARE OF ST ENGINEERING FOR THE CURRENT FINANCIAL YEAR.}

^{ST ELECTRONICS ACQUIRED A 70% INTEREST IN RIPPLE SYSTEMS IN NOVEMBER 2002. THE OTHER 30% SHARE IN RIPPLE SYSTEMS WAS HELD BY RIPPLE SYSTEMS' MANAGEMENT. THE INVESTMENT IN RIPPLE SYSTEMS GAVE ST ELECTRONICS ACCESS TO ADDITIONAL CAPABILITIES AND RESOURCES TO DELIVER A COMPREHENSIVE SOFTWARE SOLUTION THAT INTEGRATES VARIOUS INTELLIGENT TRANSPORTATION AND INTELLIGENT RAIL MANAGEMENT TECHNOLOGIES FOR CUSTOMERS IN SINGAPORE AND OTHER REGIONAL AND INTERNATIONAL MARKETS.}

^{ON COMPLETION OF THE ACQUISITION, RIPPLE SYSTEMS WILL BECOME A WHOLLY OWNED SUBSIDIARY OF ST ELECTRONICS. THIS ALLOWS ST ELECTRONICS TO HAVE 100% OWNERSHIP OF ITS TRANSPORTATION SOFTWARE ARCHITECTURE AND CAPABILITIES.}

^{NO OTHER TRADE INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT GRANTED BY SUBJECT'S PERSONNEL ON 22/03/2007.}

^{THE COMPANY'S IMMEDIATE AND ULTIMATE HOLDING COMPANY IS TEMASEK HOLDINGS (PRIVATE) LIMITED, A COMPANY INCORPORATED IN SINGAPORE.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2005: NOT AVAILABLE (2004: 57; 2003: 48; 2002: 51)}

^{* GROUP - 2005: NOT AVAILABLE (2004: 11,619; 2003: 11,748; 2002: 11,656)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{51 CUPPAGE ROAD}

^{#09-08 STARHUB CENTRE}

^{SINGAPORE 229469}

^{- RENTED PREMISE}

^{- OWNED BY BERMUDA TRUST (SINGAPORE) LIMITED}

^{- DATE OF CHANGE OF ADDRESS: 04/05/1999}

^WEBSITE:

^{http://www.stengg.com}

^EMAIL:

^{limbs@st.com.sg}

MANAGEMENT

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

^{1) DR PHILIP N PILLAI, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{LINDETEVES-JACOBERG LIMITED}

^{SINGAPORE TECHNOLOGIES ELECTRONICS LIMITED}

^{SINGAPORE PRESS HOLDINGS LIMITED}

^{MEDIACORP TV12 SINGAPORE PTE LTD}

^{SINGAPORE INSTITUTE OF MANAGEMENT}

^{SINGAPORE INTERNATIONAL FOUNDATION}

^{2) DR TAN KIM SIEW, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{SINGAPORE SYMPHONIA COMPANY LIMITED}

^{3) KOH BENG SENG, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{UNITED OVERSEAS BANK LIMITED}

^{OVERSEAS UNION BANK LIMITED}

^{FAR EASTERN BANK LTD}

^{ST ASSEMBLY TEST SERVICES LTD}

^{INDUSTRIAL & COMMERCIAL BANK LIMITED}

^{4) TAN TIEN HIN WINSTON, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{SINGAPORE TECHNOLOGIES KINETICS LTD}

^{ASTRALINK TECHNOLOGY PTE LTD}

^{MARINE FOOD CHAIN INTERNATIONAL PTE LTD}

^{JADE ROOM RESTAURANT (PTE) LTD}

^{5) WONG YUEN KUAI LUCIEN, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{EASTERN DEVELOPMENT PRIVATE LIMITED}

^{RAFFLES INVESTMENTS SINGAPORE PTE LTD}

^{RAFFLES HOTEL (1886) LTD.}

^{CAPITALAND LIMITED}

^{THE ASCOTT HOLDINGS LTD}

^{SEMBAWANG CAPITAL PTE LTD}

^{MABANAFT SINGAPORE PTE LTD}

^{IQ FINANCIAL SYSTEMS (SINGAPORE) PTE LTD}

^{CONSTRUCTION EXCHANGE PTE LTD}

^{LINKLATERS ALLEN & GLEDHILL PTE LTD}

^{6) SEAH LIM HUAT PETER, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{SINGAPORE TECHNOLOGIES HOLDINGS PTE LTD}

^{INTERNATIONAL BANK OF SINGAPORE LTD}

^{OUB ASSET MANAGEMENT LTD}

^{OUB CENTRE LIMITED}

^{GOVERNMENT OF SINGAPORE INVESTMENT CORPORATION PTE LTD}

^{TAN KAH KEE FOUNDATION}

^{SECURITIES INVESTMENTS PTE LTD}

^{CHARTERED SEMICONDUCTOR MANUFACTURING LTD.}

^{SINGAPORE TECHNOLOGIES PTE LTD}

^{EDB INVESTMENTS PTE LTD}

^{SINGAPORE POWER LIMITED}

^{ST ASSEMBLY TEST SERVICES LTD}

^{STARHUB PTE LTD}

^{SEMBCORP INDUSTRIES LTD}

^{7) PROFESSOR LUI PAO CHUEN LIONEL, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{SINGAPORE TECHNOLOGIES ELECTRONICS LIMITED}

^{SEMBCORP ENGINEERS AND CONSTRUCTORS PTE LTD}

^{DSO NATIONAL LABORATORIES}

^{JTC CONSULTANCY SERVICES (HOLDINGS) PTE LTD}

^{SINGAPORE TECHNOLOGIES DYNAMICS PTE LTD}

^{8) QUEK POH HUAT, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{SINGAPORE TECHNOLOGIES KINETICS LTD}

^{FULLERTON (PRIVATE) LIMITED}

^{ASIAN AEROSPACE PTE LTD}

^{SELETAR INVESTMENTS PTE LTD}

^{SINGAPORE TELECOMMUNICATIONS LIMITED}

^{SINGAPORE POWER INTERNATIONAL PTE LTD}

^{TEMASEK LIFE SCIENCES LABORATORY LIMITED}

^{9) TAN PHENG HOCK, A SINGAPOREAN}

^{- OTHER DIRECTORSHIP(S) IN OUR DATABASE:}

^{SINGAPORE TECHNOLOGIES DYNAMICS PTE LTD}

^{SEMBCORP MARINE LTD}

^{SINGAPORE TECHNOLOGIES MARINE LTD}

^{SINGAPORE TECHNOLOGIES ELECTRONICS LIMITED}

^{SINGAPORE TECHNOLOGIES KINETICS LTD}

^{UNICORN INTERNATIONAL PTE LIMITED}

^{SINGAPORE TECHNOLOGIES AEROSPACE LTD}

^{ST TRAINING & SIMULATION PTE LTD}

^{SINGAPORE TECHNOLOGIES DYNAMICS PTE LTD}

^{10) NG YAT CHUNG BG, A SINGAPOREAN}

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

^{11) COL TAN KOK KIANG BERNARD RICHARD, A SINGAPOREAN}

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

^{12) VENKATACHALAM KRISHNAKUMAR, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP 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 ECONOMY GREW BY 6.6% IN 4Q 23006, AFTER A 7.0% GROWTH IN 3Q 2006. THE GROWTH MOMENTUM, ON AN ANNUALISED QUARTER-TO-QUARTER BASIS, DOUBLED TO 7.9% IN 4Q 2006, FROM 3.9% IN THE PREVIOUS QUARTER. THIS BROUGHT FULL-YEAR REAL GDP GROTH TO 7.9%, HIGHER THAN THE 6.6% GROWTH IN 2005.

THE MANUFACTURING SECTOR GREW AT A MORE MODEST PACE OF 7.7% IN 4Q 2006, AFTER A 9.5% EXPANSION IN 3Q 2006. THIS WAS DUE MAINLY TO A FALL IN THE OUTPUT OF THE ELECTRONICS AND CHEMICALS CLUSTERS, AND SLOWER GROWTH IN THE PRECISION ENGINEERING CLUSTER. GROWTH IN THE TRANSPORT ENGINEERING CLUSTER EASED BUT REMAINED STRONG. MEANWHILE, THE BIOMEDICAL MANUFACTURING CLUSTER ACCELERATED FROM A GROWTH OF 4.7% IN 3Q 2006 TO 27% IN 4Q 2006. FOR THE WHOLE YEAR, THE MANUFACTURING SECTOR GREW BY 12%, UP FROM 9.5% IN 2005, SUPPORTED BY STRONGER PERFORMANCES IN THE TRANSPORT ENGINEERING, BIOMEDICAL

MANUFACTURING AND PRECISION ENGINEERING CLUSTERS.

THE WHOLESALE AND RETAIL TRADE SECTOR EXPANDED 6.9% IN 4Q 2006, BUT ITS GROWTH MOMENTUM WAS DOWN BY 3.5%. THE WHOLESALE SEGMENT MODERATED, WITH GROWTH OF NON-OIL RE-EXPORTS HALVED FROM 13% IN 3Q 2006 TO 6.3% IN 4Q 2006. PERFORMANCE OF THE RETAIL SEGMENT IMPROVED FURTHER AS RETAIL SALES WENT UP 7.9% IN 4Q 2006, COMPARED TO 5.2% IN THE PREVIOUS QUARTER. OVER 2006, THE WHOLESALE AND RETAIL SECTOR EXPANDED STRONGLY BY 10%, UP FROM 9.6% IN 2005.

THE FINANCIAL SERVICES SECTOR EXPANDED BY 11% IN 4Q 2006, AFTER GROWING BY 7.4% FROM THE PREVIOUS QUARTER. THE EXPANSION WAS BROAD-BASED ACROSS MOST SEGMENTS. IN PARTICULAR, THE STOCK TRADING SEGMENT ENJOYED A SHARP INCREASE IN ACTIVITY DURING THE QUARTER. FUND MANAGEMENT, ASIAN CURRENCY UNITS, AND FOREX SEGMENTS ALSO REGISTERED STRONG GROWTH IN 4Q 2006. THE STRONG PERFORMANCE IN THE FINAL QUARTER BROUGHT THE SECTOR’S FULL-YEAR GROWTH TO 9.2%, HIGHER THAN THE 7.6% GAIN IN 2005.

THE CONSTRUCTION SECTOR CONTINUED TO EXPAND BY 4.7%, FOLLOWING 5.8% IN 3Q 2006. GROWTH MOMENTUM ON A SEASONALLY ADJUSTED QUARTER-ON-QUARTER BASIS REMAINED STRONG AT 12%. CERTIFIED PAYMENTS GREW SLIGHTLY BY 0.7%, DOWN FROM 9.8% IN 3Q 2006. CONTRACTS AWARDED DIPPED 8.0% IN 4Q 2006 AFTER A RISE IN GROWTH IN THE PREVIOUS QUARTER. FOR THE YEAR, THE SECTOR GREW BY 2.7%, UP FROM 0.7% IN 2005.

THE HOTELS AND RESTAURANTS SECTOR CONTINUED TO STRENGTHEN IN 4Q 2006 WITH A 6.1% INCREASE FOLLOWING A 4.4% GROWTH IN 3Q 2006. VISITOR ARRIVALS ROSE 8.4% COMPARED WITH 4.5% IN THE PREVIOUS QUARTER. THIS HELPED TO RAISE THE AVERAGE OCCUPANCY RATE OF HOTELS TO 88% IN 4Q 2006, COMPARED TO 85% A YEAR EARLIER. HOTEL ROOM REVENUES WENT UP 12% AFTER A 28% INCREASE IN 3Q 2006. FOR THE YEAR AS A WHOLE, THE SECTOR GREW BY 5.1%, UP FROM 4.3% IN 2005, ON THE BACK OF A RECORD 9.7 MILLION VISITOR ARRIVALS.

THE FINANCIAL SERVICES SECTOR EXPANDED BY 11% IN 4Q 2006, AFTER GROWING BY 7.4% A QUARTER EARLIER. THE EXPANSION WAS BROAD-BASED ACROSS MOST SEGMENTS. IN PARTICULAR, THE STOCK TRADING SEGMENT ENJOYED AN INCREASE IN ACTIVITY DURING THE QUARTER. FUND MANAGEMENT, ASIAN CURRENCY UNITS, AND FOREX SEGMENTS ALSO REGISTERED STRONG GROWTH IN 4Q 2006. THE STRONG PERFORMANCE IN THE FINAL QUARTER BROUGHT THE SECTOR’S FULL-YEAR GROWTH TO 9.2%, HIGHER THAN THE 7.6% GAIN IN 2005.

THE TRANSPORT AND STORAGE SECTOR INCREASE BY 4.0% IN 4Q 2006, SAME AS THE PREVIOUS QUARTER. WITHIN THE SECTOR, THE AIR TRANSPORT SEGMENT TURNED IN BETTER PERFORMANCE WHILE THE WATER TRANSPORT SEGMENT MODERATED. SLOWER GROWTH WAS SEEN IN BOTH SEA CARGO AND AIR CARGO HANDLED. MEANWHILE, GROWTH IN AIR PASSENGERSHANDLED AND CONTAINER THROUGHPUT IMPROVED COMPARED TO 3Q 2006. OVERALL, THE TRANSPORT AND STORAGE SECTOR EXPANDED 4.3% IN 2006, SIMILAR TO THE 4.2% IN 2005.

THE INFORMATION AND COMMUNICATIONS SECTOR POSTED A BETTER PERFORMANCE IN 4Q 2006 WITH A GROWTH OF 6.0%, FOLLOWING A 3.6% GAIN IN 3Q 2006. THE NUMBER OF BROADBAND SUBSCRIBERS CONTINUED TO REGISTER DOUBLE-DIGIT GROWTH IN THE QUARTER. INTERNATIONAL TELEPHONE CALL DURATION AND THE NUMBER OF MOBILE PHONE SUBSCRIBERS GREW AT A FASTER PACE COMPARED TO THE PREVIOUS QUARTER. THE SECTOR EXPANDED BY 4.6% DURING THE YEAR, COMPARED TO 5.5% IN 2005.

THE BUSINESS SERVICES SECTOR ROSE BY 5.4% IN 4Q 2006, FOLLOWING A 5.1% GAIN IN THE PREVIOUS QUARTER. THE EXPANSION IN THE SECTOR WAS DRIVEN BY ACTIVITIES IN THE CONSULTANCY, ARCHITECTURAL & ENGINEERING AND BUSINESS REPRESENTATIVE OFFICES AS WELL AS REAL ESTATE SEGMENT. FOR THE YEAR AS A WHOLE, THE BUSINESS SERVICES SECTOR INCREASED BY 5.8%, SIMILAR TO THE 5.9% GROWTH ACHIEVED IN 2005.

APART FROM WHOLESALE AND RETAIL TRADE, ALL SECTORS EXPERIENCED POSITIVE GROWTH MOMENTUM IN 4Q 2006. FOR 2006 AS A WHOLE, ALL SECTORS REGISTERED GROWTH, LED BY MANUFACTURING, WHOLESALE & RETAIL TRADE AND FINANCIAL SERVICES.

OUTLOOK

THE OUTLOOK FOR THE ECONOMY IS GENERALLY POSITIVE ALTHOUGH THERE ARE SOME DOWNSIDE RISKS. THE AVIAN FLU PANDEMIC TREAT HAS RESURFACED AS A GROWING NUMBER OF COUNTRIES REPORTED CASES OF INFECTION IN BIRDS IN RECENT WEEKS. OTHER UNCERTAINTIES INCLUDE THE DISORDERLY UNWINDING OF GLOBAL IMBALANCES, TERRORISM AND THE VULNERABILITY OF OIL PRICES TO SUPPLY SHOCKS. AS A RESULT, THE ECONOMIC GROWTH FORECAST FOR 2007 IS BEING RAISE FROM 4.0% TO 6.0% TO 4.5% TO 6.5%.

REAL ESTATE DEVELOPERS AND AGENTS AND 73% OF THE REAL ESTATE FIRMS ARE THE MOST OPTIMISTIC. THIS SECTOR IS EXPECTING TO DO WELL IN THE FIRST HALF OF 2007.

THE MANUFACTURING SECTOR IS CAUTIOUSLY OPTIMISTIC ABOUT BUSINESS SITUATIONS IN THE NEXT SIX MONTHS OF 2007.

WITHIN THE FINANCIAL SERVICES INDUSTRY, 46% OF THE FIRMS, INCLUDING COMPANIES ENGAGED IN BANKING AND FINANCE, STOCK, SHARE AND BOND BROKERAGE, FUND MANAGEMENT AND INSURANCE ACTIVITIES, ANTICIPATED HIGHER LEVELS OF BUSINESS ACTIVITIES IN THE FIRST 6 MONTHS.

IN THE BUSINESS SERVICES INDUSTRY, 27% OF THE FIRMS EXPECTS BUSINESS TO PICK UP DURING THE FIRST HALF OF THE YEAR. IN PARTICULAR, FIRMS ENGAGED IN ACCOUNTING, ARCHITECTURAL AND ENGINEERING, ADVERTISING AND SECURITY SERVICES AND THE RENTING OF CONSTRUCTION AND INDUSTRIAL MACHINERY FORESEE HIGHER DEMAND FOR THEIR SERVICES.

WITHIN THE CATERING TRADE INDUSTRY, 31% OF THE FIRM EXPRESSES POSITIVE BUSINESS SENTIMENTS. MOST HOTELIERS EXPECTS TO DO WELL IN THE FIRST HALF, IN ANTICIPATION OF HIGHER TOURIST ARRIVALS AND OCCUPANCY RATE.

RETAILERS, PARTICULARLY DEPARTMENT STORES OWNERS AND RETAILER OF FURNITURE AND FURNISHINGS, PREDICTS BUSINESS CONDITIONS TO IMPROVE IN THE NEXT SIX MONTHS.

WHOLESALERS ARE GENERALLY LESS OPTIMISTIC ABOUT THE BUSINESS ENVIRONMENT. IN PARTICULAR, DEALERS OF JEWELLERY AND WATCHES, INDUSTRIES MACHINERY AND EQUIPMENT, TELECOMMUNICATIONS EQUIPMENT AND ELECTRONIC COMPONENTS ARE THOSE WHO FORESEE SLOWER BUSINESS IN THE COMING MONTHS.

ALSO, TRANSPORT AND COMMUNICATIONS INDUSTRY IS LESS POSITIVE ABOUT THE BUSINESS OUTLOOK. SHIPPING LINES EXPECT SLOWER BUSINESS IN THE FIRST HALF DUE TO SEASONAL FACTORS. IN CONTRAST, FIRMS PROVIDING POST AND COURIER SERVICES FORESEE MORE FAVOURABLE CONDITIONS.

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

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