MIRA INFORM REPORT

Report Date :

01.11.2007

IDENTIFICATION DETAILS

Name :	STANDARD FORM PTE. LTD.

Registered Office :	^{37 Tampines Street 92, #04-00/01, Standard Form Building, Singapore - 528885}

Country :	Singapore

Financials (as on) :	30.09.2005

Date of Incorporation :	^26/12/1981

Com. Reg. No.:	^198105885R

Legal Form :	^{Pte Ltd}

Line of Business :	Manufacturer, Wholesaler and Exporter of Computer Forms

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good

Payment Behaviour :	Regular

Litigation :	Exists

Subject Company

STANDARD FORM PTE. LTD.

Line Of Business

MANUFACTURER, WHOLESALER AND EXPORTER OF COMPUTER FORMS

Parent Company

N.A.

Financial Elements

FY 2005

COMPANY

Sales : S$17,441,241

Networth : S$12,964,470

Paid-Up Capital : S$ 2,000,000

Net result : S$ -873,333

Net Margin(%) : -5.01

Return on Equity(%) : -6.74

Leverage Ratio : 1.44

COMPANY IDENTIFICATION

^{Subject Company : STANDARD FORM PTE. LTD.}

^{Former Name :
-}

^{Business Address : 37 TAMPINES STREET 92}

^#04-00/01

^{STANDARD FORM BUILDING}

^{Town :
SINGAPORE}

^{Postcode : 528885}

^{Country :
Singapore}

^{Telephone : 6744 8080}

^{Fax :
6862 3033 / 6862 3022}

^{ROC Number :
198105885R}

^{Reg. Town : -}

SUMMARY

^{Legal Form : Pte Ltd}

^{Date Inc. : 26/12/1981}

^{Previous Legal
Form : -}

^{Summary year :
30/09/2005}

^{Sales :
17,441,241}

^{Networth :
12,964,470}

^{Capital :
2,000,000}

^{Paid-Up Capital : 2,000,000}

^{Employees : 120}

^{Net result : -873,333}

^{Share value : 1}

^{Auditor :
C.S. CHOONG & CO.}

REFERENCES

^{Litigation : YES}

^{Company status : TRADING}

^{Started :
26/12/1981}

PRINCIPAL(S)

^{YEE CHARNG
LIANG S1586758B Director}

DIRECTOR(S)

^{KOH MEE MEE S0630037E Director}

^{Appointed on : 01/08/1993}

^{Street : 36
LENGKONG EMPAT}

^{Town :
SINGAPORE}

^{Postcode : 417623}

^{Country : Singapore}

^{YEE TIONG HUI @
YEE AH KIN S1167182I Director}

^{Appointed on : 26/12/1981}

^{Street :
20 CHUAN PLACE}

^{Town :
SINGAPORE}

^{Postcode : 554618}

^{Country : Singapore}

^{YEE TIONG HUI @
YEE AH KIN S1167182I Company Secretary}

^{Appointed on : 26/12/1981}

^{Street : 20 CHUAN
PLACE}

^{Town :
SINGAPORE}

^{Postcode : 554618}

^{Country : Singapore}

^{YEE CHARNG
LIANG S1586758B Director}

^{Appointed on : 31/03/1988}

^{Street : 43 LORONG
J TELOK KURAU}

^{Town :
SINGAPORE}

^{Postcode : 425827}

^{Country : Singapore}

FORMER DIRECTOR(S)

^{TAY CHING
KHEOW
S0013983A}

^{ANG ENG SING S0014119D}

^{YEE HOONG
CHENG S0630031F}

^{TAN LIAN CHOON
ANDREW S1230473J}

^{TEO HOCK ENG S1270378C}

^{YEO HWA YAK
HENDRY S1348454F}

^{YEE TIONG
MING S1393602A}

^{YEE SIEW PENG S6928305E}

ACTIVITY(IES)

^{PRINTERS-CONTINUOUS
And INDIVIDUAL FORM Code: 17545}

^{COMPUTER
FORMS
Code:
5087}

^{BASED ON ACRA'S
RECORD AS AT 07/09/2007}

^{(1) PRINTING OF
CONTINUOUS AND FAN-FOLD FORMS;}

^{PRINTING OF
CONTINUOUS FAN-FOLD FORMS AND COMMERCIAL PRINTING}

CHARGES

^{Date: 01/07/2005}

^{Comments : CHARGE
NO: C200503783 [DISCHARGE]}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): OVERSEA-CHINESE BANKING CORPORATION LTD}

^{Date: 05/11/2005}

^{Comments : CHARGE
NO: C200506875}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): HONG LEONG FINANCE LTD}

^{Date: 09/12/2005}

^{Comments : CHARGE
NO: C200507617}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): GE CAPITAL SERVICES PTE LTD}

^{Date: 23/08/1991 Amount:
500,000}

^{Comments : CHARGE
NO: 9103450 (DISCHARGED)}

^{SECURED: 500,000.00 S'PORE DOLLARS}

^{CHARGEE: OVERSEAS UNION BANK LTD}

^{Date: 20/01/1992 Amount:
488,000,000}

^{Comments : CHARGE
NO: 9200295 (DISCHARGED)}

^{SECURED: 0.00 ALL MONIES OWING}

^{CHARGEE: OVERSEAS UNION BANK LTD}

^{Date: 23/12/1997 Amount:
346,500}

^{Comments : CHARGE
NO: 199707944 (DISCHARGED)}

^{SECURED: ALL MONIES OWING}

^{CHARGEE(S): DBS FINANCE LIMITED}

^{Date: 23/12/1997 Amount:
722,400}

^{Comments : CHARGE
NO: 199707943}

^{AMOUNT SECURED: S$722,400.00 AND ALL MONIES OWING}

^{CHARGEE(S): DBS FINANCE LIMITED}

^{Date: 04/06/1997}

^{Comments : CHARGE
NO: 199703332}

^{AMOUNT SECURED:
0.00 AND ALL MONIES OWING}

^{CHARGEE(S): THE DEVELOPMENT BANK OF SINGAPORE LIMITED}

^{Date: 01/02/1997}

^{Comments : CHARGE
NO: 199700790 [DISCHARGED]}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): KEPPEL BANK OF SINGAPORE LIMITED}

^{Date: 18/11/1999}

^{Comments : CHARGE
NO:199905083}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): DBS FINANCE LIMITED}

^{Date: 16/05/2002}

^{Comments : CHARGE
NO: 200202227 [DISCHARGED]}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): OVERSEA-CHINESE BANKING CORPORATION LTD}

^{Date: 17/01/2002}

^{Comments : CHARGE
NO: 200200285 (DISCHARGED)}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): HELLER FINANCIAL (S) LTD}

^{Date: 31/10/2003 Amount:
87,591,000}

^{Comments : CHARGE
NO: C200305202}

^{AMOUNT SECURED: 87,591,000.00 YEN}

^{CHARGEE(S): SUMISHO LEASE CO LTD}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{DBS BANK LTD.}

^{UNITED OVERSEAS
BANK LIMITED}

SHAREHOLDERS(S)

^{YEE BROTHERS
INVESTMENTS PTE LTD 980,000 Company}

^{Street : 37
TAMPINES STREET 92}

^{Town :
SINGAPORE}

^{Postcode : 528885}

^{Country : Singapore}

^{TAY CHING
KHEOW
16,667 Private Person}

^{Street : 229
SERANGOON AVENUE 4}

^#07-39

^{Town :
SINGAPORE}

^{Postcode : 550229}

^{Country : Singapore}

^{YEE TIONG HUI @
YEE AH KIN
473,333 Private Person}

^{Street : 20 CHUAN
PLACE}

^{Town :
SINGAPORE}

^{Postcode : 554618}

^{Country : Singapore}

^{YEE CHARNG
LIANG 530,000 Private Person}

^{Street : 43 LORONG
J TELOK KURAU}

^{Town :
SINGAPORE}

^{Postcode : 425827}

^{Country : Singapore}

FORMER SHAREHOLDER(S)

^{ANG ENG SING 56,667}

^{TEO HOCK ENG 16,666}

^{YEE TIONG
SENG
400,000}

SUBSIDIARY(IES)

^{COMMERCIAL FORMS
(2005) PTE LTD (F.K.A. COMMUNIQUE PAPIER INDUSTRIES PTE LTD)}

^{QUEPAC PTE LTD}

^{A & P
CO-ORDINATOR PTE LTD}

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality :
AVERAGE}

^{Liquidity : LACKING}

^{Payments : REGULAR}

^{Trend :
DOWNWARD}

^{Financial
Situation : AVERAGE}

LITIGATION(S)

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

^{Case Number: MCS12267/2003}

Defendant STANDARD FORM PTE. LTD. ROC #: 198105885R

FINANCIAL ELEMENTS

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

^{Date
Account Lodged: 03/06/2006}

^{Balance
Sheet Date: 30/09/2005 30/09/2004 30/09/2003}

^{Number
of weeks: 52 52 52}

^{Consolidation
Code: COMPANY COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible
Fixed Assets: 24,790,036 25,678,857 25,288,806}

^{Investments 1,439,175 1,614,735 2,049,132}

^{Total Fixed Assets: 26,229,211 27,293,592 27,337,938}

^{Inventories: 2,161,585 2,339,404 2,334,018}

^{Receivables: 3,001,087 2,767,579 2,923,335}

^{Cash,
Banks, Securities: 3,373 4,681 2,407}

^{Other
current assets: 175,684 173,431 391,958}

^{Total Current Assets: 5,341,729 5,285,095
5,651,718}

^{TOTAL ASSETS: 31,570,940 32,578,687
32,989,656}

^{--- LIABILITIES ---}

^{Equity
capital: 2,000,000 2,000,000 2,000,000}

^{Reserves: 10,145,278 10,145,278 10,145,278}

^{Profit
& lost Account: 819,192 1,692,525
1,383,702}

^{Total Equity: 12,964,470 13,837,803
13,528,980}

^{Long
Term Loans: 8,354,556 8,394,879 8,913,874}

^{L/T
deffered taxes:
1,659,110
1,490,950
1,874,555}

^{Other
long term Liab.: 1,068,916 1,223,400 1,608,680}

^{Total L/T Liabilities: 11,082,582 11,109,229 12,397,109}

^{Trade
Creditors: 486,203 661,620 535,892}

^{Prepay.
& Def. charges:
358,274 470,365 475,084}

^{Short
term liabilities: 613,849 577,420 618,771}

^{Advanced
payments: 496,386 371,819 339,297}

^{Due
to Bank:
5,391,689
5,312,922
4,815,135}

^{Provisions: 54,425 54,425
110,197}

^{Other
Short term Liab.: 123,062 183,084 169,191}

^{Total short term Liab.: 7,523,888 7,631,655
7,063,567}

^{TOTAL LIABILITIES: 18,606,470 18,740,884 19,460,676}

^{PROFIT
& LOSS ACCOUNT}

^{Net
Sales
17,441,241
19,410,225
18,082,258}

^{Purchases,Sces
& Other Goods: 14,377,235
15,424,085
13,904,853}

^{Gross
Profit: 3,064,006 3,986,140 4,177,405}

^{Result
of ordinary operations 27,046 853,325}

^{NET
RESULT BEFORE TAX:
-638,113
280,079              260,022}

^{Tax
:
168,160 -368,644 88,000}

^{Net
income/loss year:
-873,333
410,223              172,022}

^{Interest
Paid: 665,159 573,246 698,514}

^{Depreciation: 1,708,471 1,632,667 1,515,196}

^{Dividends:
101,400 148,200}

^{Directors
Emoluments: 380,636 396,216 417,997}

^{Wages
and Salaries: 4,107,026 4,104,125 3,737,643}

^{Extraordinary
Items: 67,060 238,500}

RATIOS

^{30/09/2005 30/09/2004
30/09/2003}

^{Turnover
per employee: 145343.67 161751.88 150685.48}

^{Net
result / Turnover(%):
-0.05 0.02 0.01}

^{Fin.
Charges / Turnover(%): 0.04 0.03
0.04}

^{Stock
/ Turnover(%): 0.12 0.12 0.13}

^{Net
Margin(%):
-5.01 2.11 0.95}

^{Return
on Equity(%): -6.74 2.96
1.27}

^{Return
on Assets(%): -2.77 1.26 0.52}

^{Dividends
Coverage:
4.05 1.16}

^{Net
Working capital:
-2182159.00 -2346560.00 -1411849.00}

^{Quick
Ratio: 0.40 0.36 0.41}

^{Current
ratio: 0.71 0.69 0.80}

^{Receivables
Turnover: 61.94 51.33
58.20}

^{Leverage
Ratio: 1.44 1.35 1.44}

^{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)/1000}

^{Quick
Ratio :
(Cash Bank securities+Receivables)/Total Short term liabilities}

^{Current
ratio :
Total current assets/Total short term liabilities}

^{Inventory
Turnover :
(360*Inventories)/Net sales}

^{Receivables
Turnover : (Receivable*360)/Net
sales}

^{Leverage
Ratio : Total
liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

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

^NET
WORTH:

^{THE BALANCE SHEET
WAS PASSABLE WITH TOTAL EQUITY DECREASING BY 6.31% AMOUNTING TO S$12,964,470
(2004: S$13,837,803). THIS WAS ATTRIBUTED TO LOWER RETAINED EARNINGS BROUGHT
FORWARD OF S$819,192 (2004: S$1,692,525).}

^LEVERAGE:

^{THE LEVERAGE RATIO
WAS MORE AGGRESSIVE, POSTING HIGHER AT 1.44 TIMES IN YEAR 2005 (2003: 1.35
TIMES). IN THE SHORT-TERM, TRADE CREDITORS
AMOUNTED TO S$486,203 (2004: S$661,620), DECREASING BY 26.51%. THIS SHOWED THAT
THE COMPANY RELIED LESSER ON EXTERNAL FINANCING.}

^{THE AMOUNT DUE TO
BANKS OF S$5,391,689 (2004: S$5,312,922) COMPRISED OF THE FOLLOWING:}

^{* TERM LOANS
(SECURED) OF S$1,160,953 (2004: S$2,101,632)}

^{* BANK OVERDRAFTS
(SECURED) OF S$1,549,294 (2004: S$772,811)}

^{* BILLS PAYABLE OF
S$2,681,442 (2004: S$2,438,479)}

^{THE BANK
OVERDRAFTS ARE SECURED BY A LEGAL MORTGAGE OVER THE COMPANY'S LEASHOLD
PROPERTIES AND GUARANTEE FOR $11.7 MILLION (2004: $11.7 MILLION) BY THE
DIRECTORS OF THE COMPANY.}

^{THE BILLS PAYABLE
IS SECURED BY A JOINT AND SEVERAL PERSONAL GUARANTEES FROM THE DIRECTORS OF THE
COMPANY.}

^{OTHER LONG TERM
LIABILITIES OF S$1,068,916 (2004: S$1,223,400) REFERRED TO OBLIGATIONS UNDER
HIRE PURCHASE CONTRACTS.}

^LIQUIDITY:

^{THE OVERALL
LIQUIDITY SITUATION WAS UNHEALTHY THOUGH IT SHOWED IMPROVEMENT. BOTH QUICK AND
CURRENT RATIOS REGISTERED HIGHER BUT WERE LACKING AT 0.40 TIMES (2004: 0.36
TIMES) AND 0.71 TIMES (2004: 0.69 TIMES) RESPECTIVELY. NET WORKING CAPITAL HAS
ALSO IMPROVED BUT STILL REMAINED INADEQUATE, TOTALLING -S$2,182,159 (2004:
-S$2,346,560).}

^{PROFITABILITY:}

^{REVENUE FOR THE
COMPANY POSTED LOWER BY 10.14%, TOTALLING S$17,441,241.00 (2004: S$19,410,225).
THIS WAS IN TANDEM WITH THE NET INCOME, WHICH ALSO REGISTERED UNFAVOURABLY AT
-S$873,333 (2004: S$410,223). AS A
RESULT, NET MARGIN WAS DISAPPOINTING AT -5.01% (2004: 2.11%).}

^{DEBT
SERVICING:}

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

^{NOTES
TO THE FINANCIAL STATEMENTS:}

^{CONTINGENT
LIABILITIES (COMPANY):}

^{2005 2004}

^{S$ S$}

^{BANKER'S GUARANTEE
(SECURED)
354,516 429,249}

BACKGROUND/OPERATION

^{THE COMPANY WAS
INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 26/12/1981 AS A LIMITED PRIVATE
COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "STANDARD FORM PTE.
LTD.".}

^{AS AT 07/09/2007,
THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 2,000,000 SHARES, OF A VALUE
OF S$2,000,000.}

^{PRINCIPAL
ACTIVITIES:}

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

^{(1) PRINTING OF
CONTINUOUS AND FAN-FOLD FORMS;}

^{PRINTING OF
CONTINUOUS FAN-FOLD FORMS AND COMMERCIAL PRINTING}

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

^{SUBJECT ENGAGES IN
THE FOLLOWING ACTIVITIES:}

^{* MANUFACTURER,
WHOLESALER AND EXPORTER OF COMPUTER FORMS}

^{PRODUCTS DEALINGS:}

^{* PRINTERS
EQUIPMENT}

^{* SUPPLIES AND
SERVICES PRINTERS}

^{* BUSINESS FORMS
& SYSTEMS}

^{* COMPUTER FORMS}

^{* COMPUTER LABELS}

^{* DATA PROCESSING
SUPPLIES}

^SERVICES:

^{PRINTING MACHINE
SERVICES}

^{* CONTINUOUS AND
INDIVIDUAL FORM PRINTING}

^{* PRINTING}

^{* COLOUR PRINTING}

^{NUMBER OF
EMPLOYEES:}

^{* 120 (AS OF 2006)}

^{FROM THE
TELE-INTERVIEW CONDUCTED ON 01/11/2007, THE FOLLOWING INFORMATION WAS GATHERED:}

^{SUBJECT IS A PRINTING
COMPANY. SUBJECT SUPPLIES MAINLY TO THE SINGAPORE MARKET. FURTHER PROBE ABOUT
THE FOREIGN MARKETS WERE REJECTED. IN ADDITION, SUBJECT REVEALED THAT RAW
MATERIALS ARE PROCURED LOCALLY AND IN THE OVERSEAS. THE END PRODUCTS ARE
MANUFACTURED IN SINGAPORE. AS FOR THE EXPORT COUNTRIES, IT WAS REVEALED THAT IT
IS MAINLY FROM THE ASIA REGION.}

^{NO OTHER TRADE
INFORMATION WAS MADE AVAILABLE ON 01/11/2007.}

^{REGISTERED
ADDRESS:}

^{37 TAMPINES STREET
92}

^{SINGAPORE 528885}

^{DATE OF CHANGE OF
ADDRESS: 01/08/2001}

^{- RENTED PREMISE}

^{- PREMISE OWNED
BY: RBC DEXIA TRUST SERVICES SINGAPORE LIMITED CAMBRIDGE INDUSTRIAL TRUST}

^{BUSINESS ADDRESS:}

^{37 TAMPINES STREET
92}

^#04-00/01

^{STANDARD FORM
BUILDING}

^{SINGAPORE 528885}

^{OLD BUSINESS
ADDRESS:}

^{16 TUAS AVENUE 18A}

^{SINGAPORE 638864}

^{YOUR PROVIDED
ADDRESS:}

^{27 TAMPINES STREET
92}

^{SINGAPORE 528885}

^{- UNABLE TO
CONFIRM}

^{WEBSITE : http://www.stdform.com.sg/ (UNDER
CONSTRUCTION)}

^{E-MAIL : stdform@pacific.net.sg}

MANAGEMENT

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

^{1) KOH MEE MEE,
MDM, A SINGAPOREAN}

^{- HOLDS OTHER
DIRECTORSHIPS AS RECORDED IN OUR DATABASE:}

^{YEE BROTHERS
INVESTMENTS PTE LTD}

^{2) YEE TIONG HUI @
YEE AH KIN, A SINGAPOREAN}

^{- HOLDS OTHER
DIRECTORSHIPS AS RECORDED IN OUR DATABASE:}

^{COMMERCIAL FORMS
(2005) PTE LTD (F.K.A. COMMUNIQUE PAPIER INDUSTRIES PTE LTD)}

^{QUEPAC PTE LTD}

^{3) YEE CHARNG
LIANG, A SINGAPOREAN}

^{- HOLDS OTHER
DIRECTORSHIPS AS RECORDED IN OUR DATABASE:}

^{YEE BROTHERS
INVESTMENTS PTE LTD}

^{QUEPAC PTE LTD}

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.

Manufacturing sector

PAST PERFORMANCE

THE MANUFACTURING SECTOR GREW BY 18.8% COMPARED TO Q2 OF 2006, RIDING ON STRONG GROWTH FROM THE BIOMEDICAL MANUFACTURING AND TRANSPORT ENGINEERING CLUSTERS. TOTAL MANUFACTURING OUTPUT GREW BY 7.8% COMPARED TO OUTPUT IN THE SAME PERIOD LAST YEAR.

THE ELECTRONICS CLUSTER’S OUTPUT IN Q2 INCREASED BY 7.4% COMPARED TO Q2 OF 2006, BOOSTED MAINLY BY THE 18.0% INCREASE IN THE PRODUCTION OF SEMICONDUCTORS. THE ELECTRONIC MODULES AND COMPONENTS SEGMENT GREW 5.5%. ON THE OTHER HAND, CONTRACTIONS WERE SEEN IN THE OUTPUT OF INFOCOMMS & CONSUMER ELECTRONICS (-10.1%), DATA STORAGE (-2.8%) AND COMPUTER PERIPHERALS (-0.2%). FOR THE FIRST FOUR MONTHS OF THIS YEAR, THE ELECTRONICS CLUSTER GREW CUMULATIVELY BY 3.9% COMPARED TO THE SAME PERIOD IN 2006.

THE GENERAL MANUFACTURING INDUSTRIES GREW 11.3% YEAR-ON-YEAR IN Q2 2007. THE FOOD, BEVERAGES AND TOBACCO INDUSTRIES CONTRIBUTED LARGELY TO THE GROWTH WITH OUTPUT INCREASES OF 18.3%. THE MISCELLANEOUS INDUSTRIES ALSO GREW 14.9%. CUMULATIVE OUTPUT FOR THIS GROUP OF INDUSTRIES GREW 9.8% IN THE FIRST FOUR MONTHS OF THIS YEAR COMPARED TO THE SAME PERIOD IN 2006.

OUTLOOK

THE MANUFACTURING SECTOR IS MORE OPTIMISTIC IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007, COMPARED TO THE FIRST QUARTER OF THE YEAR. OVERALL, A WEIGHTED 30% OF MANUFACTURERS FORESEE AN IMPROVED OUTLOOK, WHILE 4% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 26% OF MANUFACTURERS EXPECTING BUSINESS CONDITIONS TO IMPROVE, WHICH IS HIGHER THAN THE 7% RECORDED A QUARTER AGO. THE POSITIVE BUSINESS SENTIMENT IS LED BY THE ELECTRONICS CLUSTER.

THE ELECTRONICS CLUSTER IS SIGNIFICANTLY MORE OPTIMISTIC COMPARED TO THE FIRST QUARTER OF THE YEAR. A NET WEIGHTED BALANCE OF 38% OF MANUFACTURERS EXPECTS BUSINESS CONDITIONS TO IMPROVE IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007, COMPARED TO A NET WEIGHTED BALANCE OF -1% RECORDED IN THE FIRST QUARTER. IN PARTICULAR, MANUFACTURERS IN THE COMPUTER PERIPHERALS AND INFOCOMMS AND CONSUMER ELECTRONICS SEGMENTS ARE MORE BULLISH DUE TO NEW PRODUCT INTRODUCTIONS AND AN EXPECTED PICK UP IN MARKET DEMAND FOLLOWING THE FIRST QUARTER SEASONAL LULL. CHIP MAKERS ALSO PREDICT SUSTAINED GLOBAL DEMAND OVER THE SECOND AND THIRD QUARTERS OF THE YEAR, AS EVIDENCED BY AN EXPECTED INCREASE IN EXPORT ORDERS AND SALES. PRODUCTION IN ALL SEGMENTS OF THE CLUSTER IS EXPECTED TO RISE IN THE SECOND QUARTER, OVER THE LOW LEVELS IN THE FIRST QUARTER OF 2007. IN TERMS OF EMPLOYMENT OUTLOOK, A NET WEIGHTED 24% OF THE ELECTRONICS CLUSTER IS EXPECTED TO HIRE MORE WORKERS IN THE SECOND QUARTER OF 2007, AS PRODUCTION AND SALES INCREASE.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

economic development board

CONTACT SINGAPORE

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%)

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