MIRA INFORM REPORT

Report Date :

31.10.2007

IDENTIFICATION DETAILS

Name :	CELANESE PTE LTD

Registered Office :	^{111 Somerset Road, #02-02, Singapore Power Building, Singapore – 238164}

Country :	Singapore

Financials (as on) :	31.12.2006

Date of Incorporation :	^27/02/1999

Com. Reg. No.:	^199900962E

Legal Form :	^{Pte Ltd}

Line of Business :	Trading of Basic Chemicals

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
56-70	A	Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums	Fairly Large

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Subject Company

CELANESE PTE LTD

Line Of Business

TRADING OF BASIC CHEMICALS

Parent Company

CELANESE HOLDING GMBH

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2006

COMPANY

Sales : US$776,897,000

Networth : US$60,911,000

Paid-Up Capital : US$10,000,000

Net result : US$7,941,000

Net Margin(%) : 1.02

Return on Equity(%) : 13.04

Leverage Ratio : 1.71

COMPANY IDENTIFICATION

^{Subject Company : CELANESE PTE
LTD}

^{Former Name : -}

^{Business Address: 111 SOMERSET
ROAD}

^#02-02

^{SINGAPORE POWER BUILDING}

^{Town: SINGAPORE}

^{Postcode: 238164}

^{County: -}

^{Country: Singapore}

^{Telephone: 6733
1267}

^{Fax: 6738
6737}

^{ROC Number: 199900962E}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Pte
Ltd}

^{Date Inc.: 27/02/1999}

^{Previous Legal Form: -}

^{Summary year : 31/12/2006}

^{Sales: 776,897,000}

^{Networth : 60,911,000}

^{Capital: -}

^{Paid-Up Capital: 10,000,000}

^{Employees: 40}

^{Net result : 7,941,000}

^{Share value: -}

^{AUDITOR: KPMG}

^{BASED ON ACRA'S RECORD DATED 17/08/2007}

^{NO.
OF SHARES CURRENCY AMOUNT}

^{ISSUED
ORDINARY : 17,097,000 SGD 17,097,000}

^{PAID-UP ORDINARY : - SGD 17,097,000}

REFERENCES

^{Litigation: No}

^{Company status : TRADING}

^{Started : 27/02/1999}

PRINCIPAL(S)

^{PHILIP TAN ENG LAY S2638844I
Managing Director}

DIRECTOR(S)

^{JONATHAN CONRAD MORTIMER G5736676T Director}

^{Appointed on : 16/03/2004}

^{Street : 1003
BUKIT TIMAH ROAD}

^#06-04

^{Town: SINGAPORE}

^{Postcode: 596289}

^{Country: Singapore}

^{JOHN AUSTIN O'DWYER 132076669
Director}

^{Appointed on : 03/01/2005}

^{Street : 4652
COURTYARD TRAIL}

^{PLANO TEXAS 75024}

^Town:

^Postcode:

^{Country: United States}

^{CHANG SOW KUEN S1365694J
Company Secretary}

^{Appointed on : 21/07/2005}

^{Street : 130
GEYLANG EAST AVENUE 1}

^#02-299

^{Town: SINGAPORE}

^{Postcode: 380130}

^{Country: Singapore}

^{PHILIP TAN ENG LAY S2638844I
Director}

^{Appointed on : 03/01/2005}

^{Street : 6
HOUGANG STREET 92}

^#09-02

^REGENTVILLE

^{Town: SINGAPORE}

^{Postcode: 538685}

^{Country: Singapore}

^{PHILIP TAN ENG LAY S2638844I
Managing Director}

^{Appointed on : 23/10/2006}

^{Street : 6
HOUGANG STREET 92}

^#09-02

^REGENTVILLE

^{Town: SINGAPORE}

^{Postcode: 538685}

^{Country: Singapore}

^{TINA MARIE BEIER 132817006
Director}

^{Appointed on : 16/01/2006}

^{Street : 114
RIDGEWOOD DRIVE}

^{COPPELL, TX 75019}

^Town:

^Postcode:

^{Country: United States}

FORMER DIRECTOR(S)

^{ARLENE BELL STANDLEY 157808898}

^{REINHARD GRADL}

^{SAMUEL MCDUFFIE BOULWARE 710066375}

^{GEORGE MICHAEL MCGINN F5642209U}

^{HAMISH ALEXANDER CHRISTIE S2200577D}

ACTIVITY(IES)

^{CHEMICALS Code:3970}

^{BASED ON ACRA'S RECORD AS AT 17/08/2007}

^{1. WHOLESALE OF CHEMICALS AND CHEMICAL
PRODUCTS NEC}

^{SALE AND MARKETING OF CHEMICAL PRODUCTS}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE HONGKONG AND SHANGHAI BANKING CORPORATION
LIMITED}

SHAREHOLDERS(S)

^{CELANESE HOLDING GMBH 17,097,000 Company}

^{Street : FRANKFURTER
STRASSE 111 61476}

^{KRONBERG IM TAUNUS}

^Town:

^Postcode:

^{Country: Germany}

HOLDING COMPANY

^{CELANESE HOLDING GMBH % : 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

Trade Morality: AVERAGE

Liquidity : SUFFICIANT

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 (CLEAN) UNQUALIFIED (CLEAN)
UNQUALIFIED (CLEAN)}

^{Date Account Lodged: 20/07/2007}

^{Balance Sheet Date: 31/12/2006 31/12/2005
31/12/2004}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY
COMPANY}

^---
ASSETS

^{Preliminary Exp 148,000 - 331,000}

^{Tangible Fixed Assets:
415,000 545,000 549,825}

^{Total Fixed Assets: 563,000 545,000
880,825}

^{Inventories: 22,618,000 46,343,000 32,585,671}

^{Receivables: 104,820,000 77,668,000 110,828,929}

^{Cash,Banks,
Securitis: 4,733,000 3,203,000 1,395,933}

^{Other current assets: 32,339,000 34,612,000
2,315,432}

^{Total Current Assets: 164,510,000 161,826,000
147,125,965}

^{TOTAL ASSETS: 165,073,000
162,371,000 148,006,790}

^{---
LIABILITIES}

^{Equity capital: 10,000,000 10,000,000 10,000,000}

^{Profit & loss
Account: 50,911,000 42,970,000 33,770,542}

^{TOTAL EQUITY: 60,911,000 52,970,000
43,770,542}

^{L/T deffered taxes: - 49,000 -}

^{Total L/T
Liabilities: - 49,000 -}

^{Trade Creditors: 58,676,000 65,060,000 58,991,984}

^{Prepay. & Def.
charges: 8,534,000 7,838,000 7,668,308}

^{Provisions: 1,413,000 1,109,000 2,079,261}

^{Other Short term
Liab.: 35,539,000 35,345,000 35,496,695}

^{Total short term
Liab.: 104,162,000 109,352,000 104,236,248}

^{TOTAL LIABILITIES: 104,162,000 109,401,000 104,236,248}

^{PROFIT & LOSS
ACCOUNT}

^{Net Sales 776,897,000 701,931,000 544,559,139}

^{Gross Profit: 38,566,000 37,503,000 40,847,862}

^{Result of ordinary operations - -
19,014,954}

^{NET RESULT BEFORE
TAX: 10,162,000 8,721,000 18,163,042}

^{Tax : 2,221,000 1,536,000 2,365,300}

^{Net income/loss year: 7,941,000 7,185,000
15,797,742}

^{Interest Paid: 1,868,000 2,129,000 851,912}

^{Depreciation: 225,000 169,000 162,848}

^{Purchases,Sces & Other
Goods:738,331,000
664,428,000
-}

^{Wages and Salaries: 279,000 262,000 2,834,241}

^{Financial Income: 1,238,000 293,000 5,643}

RATIOS

^{31/12/2006 31/12/2005 31/12/2004}

^{Turnover per
employee: 19422425.00 17548275.00 13613978.47}

^{Net result /
Turnover(%): 0.01 0.01 0.03}

^{Stock / Turnover(%): 0.03 0.07 0.06}

^{Net Margin(%): 1.02 1.02 2.90}

^{Return on Equity(%): 13.04 13.56
36.09}

^{Return on Assets(%): 4.81
4.43 10.67}

^{Net Working capital: 60348000.00 52474000.00
42889717.00}

^{Cash Ratio: 0.05 0.03 0.01}

^{Quick Ratio: 1.05 0.74 1.08}

^{Current ratio: 1.58 1.48 1.41}

^{Receivables Turnover: 48.57 39.83
73.27}

^{Leverage Ratio: 1.71 2.07 2.38}

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

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED PASSABLE
WITH NET WORTH IMPROVED BY 14.99% FROM US$52,970,000 IN FY 2005 TO
US$60,911,000 IN FY 2006. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF
US$50,911,000 (2005: US$42,970,000); A RISE OF 1.42% FROM THE PRIOR FINANCIAL
YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY
FINANCED BY TRADE CREDITORS WHICH MADE UP 56.33% (2005: 59.49%) OF THE TOTAL
CURRENT LIABILITIES AND AMOUNTED TO US$58,676,000 (2005: US$65,060,000). THE
BREAKDOWN IS AS FOLLOWS:}

^{-TRADE PAYABLES - 2006: US$7,742,000 (2005:
US$5,040,000)}

^{-RELATED COMPANIES - 2006: US$50,934,000
(2004: US$60,020,000)}

^{IN ALL, LEVERAGE RATIO FELL FROM 2.07 TIMES
TO 1.71 TIMES AS A RESULT OF A DECLINE IN
TOTAL LIABILITIES AND A RISE IN TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS
PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL AND LIQUIDITY RATIOS.
CURRENT RATIO ROSE TO 1.58 TIMES, UP FROM 1.48 TIMES AND QUICK RATIO IMPROVED
TO 1.05 TIMES FROM 0.74 TIMES IN FY 2005.}

^{SIMILARLY, NET WORKING CAPITAL IMPROVED BY
15.01% FROM US$52,474,000 IN FY 2005 TO US$60,348,000.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 10.68% FROM
US$701,931,000 IN FY 2005 TO US$776,897,000 AND NET PROFIT ROSE BY 10.52% TO
US$7,941,000 (2005: US$7,185,000). HENCE, NET MARGIN REMAIN AT 1.02% (2005:
1.02%).}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED
IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE
FORTHCOMING.}

^{AVERAGE COLLECTION PERIOD HAS INCREASED FROM
39.83 DAYS TO 48.57 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:}

^{-DEFERRED TAX ASSET - 2006: US$148,000 (2005:
-)}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC
OF SINGAPORE ON 27/02/1999 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER
ITS PRESENT NAMESTYLE AS "CELANESE PTE LTD".}

^{AS AT 17/08/2007, THE COMPANY HAS ISSUED AND
PAID-UP CAPITAL OF 17,097,000 SHARES OF A VALUE OF S$17,097,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1. WHOLESALE OF CHEMICALS AND CHEMICAL
PRODUCTS NEC}

^{SALE AND MARKETING OF CHEMICAL PRODUCTS}

^{DURING THE FINANCIAL YEAR UNDER REVIEW, THE PRINCIPAL
ACTIVITIES OF THE COMPANY CONSIST OF THE SALE AND MARKETING OF CHEMICAL
PRODUCTS. FROM THE RESEARCH DONE, THE
FOLLOWING INFORMATION WAS GATHERED:}

^{BACKGROUND OF CELANESE GROUP:}

^{AS A GLOBAL LEADER IN THE CHEMICALS INDUSTRY,
CELANESE CORPORATION MAKES PRODUCTS ESSENTIAL TO EVERYDAY LIVING. OUR PRODUCTS, FOUND IN CONSUMER AND
INDUSTRIAL APPLICATIONS, ARE MANUFACTURED IN NORTH AMERICA, EUROPE AND ASIA. WE
ARE A LEADING GLOBAL PRODUCER OF ACETYL PRODUCTS, INCLUDING ACETIC ACID AND
VINYL ACETATE MONOMER ("VAM"), POLYACETAL PRODUCTS ("POM"),
AS WELL AS A LEADING GLOBAL PRODUCER OF HIGH-PERFORMANCE ENGINEERED POLYMERS
USED IN CONSUMER AND INDUSTRIAL PRODUCTS AND DESIGNED TO MEET HIGHLY TECHNICAL
CUSTOMER REQUIREMENTS. WE ARE ONE OF
THE LOWEST-COST PRODUCERS OF KEY BUILDING BLOCK CHEMICALS IN THE ACETYLS CHAIN,
SUCH AS ACETIC ACID AND VAM, DUE TO OUR ECONOMIES OF SCALE, OPERATING
EFFICIENCIES AND PROPRIETARY PRODUCTION TECHNOLOGIES.}

^{NET SALES TOTALED $6.7 BILLION IN 2006, WITH
APPROXIMATELY 60% GENERATED OUTSIDE OF NORTH AMERICA. KNOWN FOR OPERATIONAL
EXCELLENCE AND RELENTLESS EXECUTION OF ITS BUSINESS STRATEGIES, CELANESE
DELIVER VALUE TO CUSTOMERS AROUND THE GLOBE WITH INNOVATIONS AND BEST-IN-CLASS
TECHNOLOGIES.}

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* TRADING OF BASIC CHEMICALS}

^{PRODUCTS DEALINGS:}

^ACETYLS

^{* ACETIC ACID}

^{* ACETIC ANHYDRIDE}

^{* CELTONE}

^{* METHANOL}

^{* VINYL ACETATE}

^SOLVENTS

^{* 3-METHOXYBUTANOL}

^{* BUTOXYL}

^{* DIACETONE ALCOHOL}

^{* ETHYL ACETATE}

^{* ISOPROPYL ACETATE}

^{* MESITYL OXIDE}

^{* METHANOL}

^{* METHYL ACETATE}

^{* METHYL ETHYL KETONE (MEK)}

^{* METHYL FORMATE}

^{* METHYL ISOBUTYL KETONE (MIBK)}

^{* N-BUTYL ACETATE}

^{* POLYSOLVAN}

^POLYOLS

^{* FORMALDEHYDE AQUEOUS}

^{* METHYL FORMCEL}

^{* N-BUTYL FORMCEL}

^{* PARAFORMALDEHYDE}

^AMINES

^{* DIMETHYLAMINE}

^{* MONOMETHYLAMINE}

^{* TRIMETHYLAMINE}

^{CARBOXYLIC ACIDS & ANHYDRIDES}

^{* ACETIC ACID}

^{* ACETIC ANHYDRIDE}

^{* N-BUTYRIC ANHYDRIDE}

^{* PROPIONIC ANHYDRIDE}

^{OLEFIN DERIVATIVES}

^{* 3-METHOXYBUTANOL}

^{* ACETALDEHYDE}

^{* BUTOXYL}

^{* CROTONALDEHYDE}

^{* DIBUTYL MALEATE}

^{* DIOCTYL MALEATE}

^{* METHYL ACETATE}

^{* POLYSOLVAN}

^{NEWS: CELANESE SELLS FILMS BUSINESS OF AT
PLASTICS TO BPI "EXTRACTS"}

^{-SOURCE: CELANESE WEBSITE}

^{DATE: 20/08/2007}

^{DALLAS - CELANESE CORPORATION (NYSE: CE), A
GLOBAL HYBRID CHEMICAL COMPANY, TODAY ANNOUNCED THAT THE COMPANY HAS SOLD THE
FILMS BUSINESS OF ITS AT PLASTICS SUBSIDIARY TO BRITISH POLYTHENE INDUSTRIES
PLC (BPI). THE FILMS BUSINESS MANUFACTURES PRODUCTS FOR THE AGRICULTURAL,
HORTICULTURAL AND CONSTRUCTION INDUSTRIES.}

^{THE SALE IS PART OF CELANESE'S ONGOING PLAN
TO DIVEST NON-CORE BUSINESSES. THE TRANSACTION INCLUDES THE TRANSFER TO BPI OF
FILMS PRODUCTION ASSETS, LOCATED IN EDMONTON AND WESTLOCK, ALBERTA, CANADA,
EFFECTIVE IMMEDIATELY.}

^{THE SPECIALTY POLYMERS BUSINESS OF AT PLASTICS,
WHOSE PRODUCTION AND SUPPORT FACILITIES ARE LOCATED IN EDMONTON, REMAINS WITH
CELANESE. TH POLYMERS BUSINESS CONCENTRATES ON THE DEVELOPMENT AND SUPPLY OF
SPECIALTY RESINS AND COMPOUNDS.}

^{BOTH LINES OF BUSINESS REMAIN IN FULL
PRODUCTION.}

^{FROM THE TELE-INTERVIEW CONDUCTED ON
22/08/2007, THE FOLLOWING WAS GATHERED:}

^{NUMBER OF EMPLOYEES:}

^{* COMPANY - 2007: 40}

^{NO OTHER TRADE INFORMATION IS AVAILABLE ON
22/08/2007.}

^{THE IMMEDIATE HOLDING COMPANY IS CELANESE
HOLDINGS GMBH, INCORPORATED IN THE REPUBLIC OF GERMANY. THE ULTIMATE HOLDING
COMPANY IS CELANESE CORPORATION, INCORPORATED IN THE UNITED STATES OF AMERICA.}

^{NUMBER OF EMPLOYEES (31 DECEMBER):}

^{* COMPANY - 2006: NOT AVAILABLE (2005: NOT
AVAILABLE; 2004: 49; 2003: 55; 2002: 55; 2001: 65)}

^{* GROUP - 2006: - (2005: -)}

^{REGISTERED ADDRESS:}

^{138 ROBINSON ROAD}

^{#17-00 THE CORPORATE OFFICE}

^{SINGAPORE 068906}

^{- DATE OF CHANGE OF ADDRESS: 01/11/2001}

^{BUSINESS ADDRESS:}

^{111 SOMERSET ROAD}

^{#02-02 SINGAPORE POWER BUILDING}

^{SINGAPORE 238164}

^{- RENTED PREMISE}

^{- OWNED BY SINGAPORE POWER LIMITED}

^{YOUR PROVIDED ADDRESS:}

^{111 SOMERSET ROAD}

^{#02-02/03 SINGAPORE POWER BUILDING}

^{SINGAPORE 238164}

^{- INCORRECT}

^WEBSITE:

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

^EMAIL:

MANAGEMENT

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

^{1) JOHN AUSTIN O'DWYER, AN AMERICAN}

^{- BASED IN UNITED STATES OF AMERICA.}

^{2) TINA MARIE BEIER, AN AMERICAN}

^{- BASED IN UNITED STATES OF AMERICA.}

^{3) JONATHAN CONRAD MORTIMER, AN AMERICAN}

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

^{CELANESE SINGAPORE PTE. LTD.}

^{4) PHILIP TAN ENG LAY, A SINGAPORE PERMANENT
RESIDENT}

- HOLDS NO OTHER DIRECTORSHIP IN OUR DATABASE.

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.	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