MIRA INFORM REPORT

Report Date :

04.09.2007

IDENTIFICATION DETAILS

Name :	MULTI-RENTAL SYSTEMS (S) PTE LTD

Registered Office :	^{11 Tuas View Crescent}, Multico Building, Singapore – 637643

Country :	Singapore

Financials (as on) :	31.03.2006

Date of Incorporation :	^24/09/1994

Com. Reg. No.:	^199406885H

Legal Form :	^{Pte Ltd}

Line of Business :	Servicing and Renting of Plant and Machinery

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Small Company

Payment Behaviour :	Regular

Litigation :	Clear

Subject Company

MULTI-RENTAL SYSTEMS (S) PTE LTD

Line Of Business

SERVICING AND RENTING OF PLANT AND MACHINERY

Parent Company

MULTI-CORPORATION (S) PTE. LTD

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : S$472,525

Networth : S$-1,741,258

Paid-Up Capital : S$200,000

Net result : S$-17,814

Net Margin(%) : -3.77

Return on Equity(%) : 1.02 (NOTE: POSITIVE ROE DUE TO OFF SET OF NEGATIVE EARNINGS AND

NEGATIVE TOTAL EQUITY)

Leverage Ratio : -1.32

Rating

Credit Rating : Up To Sing $ 10000

COMPANY IDENTIFICATION

^{Subject Company: MULTI-RENTAL
SYSTEMS (S) PTE LTD}

^{Former Name: EQUIPMENT
PLANT HIRE PTE LTD}

^{Business Address: 11 TUAS
VIEW CRESCENT}

^{MULTICO
BUILDING}

^{Town: SINGAPORE}

^{Postcode: 637643}

^{County: -}

^{Country: Singapore}

^{Telephone:
6865 6561}

^{Fax: 6863
6817}

^{ROC Number: 199406885H}

^Reg. Town: -

PREVIOUS IDENTIFICATION

^{EQUIPMENT PLANT HIRE PTE LTD DATE OF CHANGE OF NAME: 26/01/1998}

SUMMAR

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

^{Legal Form: Pte
Ltd}

^{Date Inc.: 24/09/1994}

^{Previous Legal Form: -}

^{Summary year: 31/03/2006}

^{Sales: 472,525}

^{Net worth: -1,741,258}

^{Capital: -}

^{Paid-Up Capital: 200,000}

^{Employees: Not
available}

^{Net result: -17,814}

^{Share value: -}

^{Auditor: DELOITTE
& TOUCHE}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started:
24/09/1994}

PRINCIPAL(S)

^{HENRICUS JOSEF HENDRA S2197958I Director}

DIRECTOR(S)

^{QUEK HUNG GUAN S0546086G
Company Secretary}

^{Appointed on: 11/10/2004}

^{Street: 2A
PRINCESS OF WALES ROAD}

^{Town: SINGAPORE}

^{Postcode: 266901}

^{Country: Singapore}

^{HENRICUS JOSEF HENDRA S2197958I Director}

^{Appointed on: 24/09/1994}

^{Street: 19
CHILTERN DRIVE}

^{BRADDELL HEIGHTS ESTATE}

^{Town: SINGAPORE}

^{Postcode: 359738}

^{Country: Singapore}

^{PEPEN HANDIANTO DANUATMADJA S2634634G Director}

^{Appointed on: 24/09/1994}

^{Street: 1P
PINE GROVE}

^#16-82

^{PINE GROVE}

^{Town: SINGAPORE}

^{Postcode: 591401}

^{Country: Singapore}

ACTIVITY(IES)

^{MACHINERY Code:13260}

^{PLANTS - RETAIL Code:16890}

^{BASED ON ACRA'S RECORD
AS AT 31/08/2007}

^{1) OTHER SUPPORT ACTIVITIES; SERVICING AND
RENTING OF PLANT & MACHINERY}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

No Banker Information In Our Database

SHAREHOLDERS(S)

^{MULTI-CORPORATION (S) PTE. LTD 200,000 Company}

^{Street: 11
TUAS VIEW CRESCENT}

^{MULTICO
BUILDING}

^{Town: SINGAPORE}

^{Postcode: 637643}

^{Country: Singapore}

HOLDING COMPANY

^{MULTI-CORPORATION (S) PTE. LTD 197301797M %: 100}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity: LACKING}

^{Payments: REGULAR}

^{Trend: LEVEL}

^{Financial Situation: BAD}

LITIGATION(S)

No Litigation In Our Database

FINANCIAL ELEMENTS

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

^{Audit Qualification: "MILD" UNCERTAINTIES "MILD" UNCERTAINTIES}

^{Date Account Lodged: 27/09/2006}

^{Balance Sheet Date: 31/03/2006 31/03/2005}

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^---
ASSETS

^{Tangible Fixed
Assets: 333,293 730,240}

^{Total Fixed Assets}^{: 333,293 730,240}

^{Receivables: 109,527 132,074}

^{Cash,Banks,Securities: 107,397 43,616}

^{Other current assets: 1,737 10,350}

^{Total Current Assets}^{: 218,661 186,040}

^{TOTAL ASSETS: 551,954 916,280}

^{---
LIABILITIES}

^{Equity capital: 200,000 200,000}

^{Profit & loss
Account: -1,941,258 -1,923,444}

^{Total Equity: -1,741,258 -1,723,444}

^{Other long term
Liab.: 60,019 270,361}

^{Total L/T Liabilities}^{: 60,019 270,361}

^{Trade Creditors: 1,568,479 1,437,869}

^{Prepay. & Def. charges: 10,593 11,080}

^{Short term liabilities: 191,642 290,287}

^{Other Short term
Liab.: 462,479 630,127}

^{Total short term Liab}^{.: 2,233,193
2,369,363}

^{TOTAL LIABILITIES: 2,293,212 2,639,724}

^{PROFIT & LOSS
ACCOUNT}

^{Net Sales 472,525 345,428}

^{NET RESULT BEFORE
TAX: -17,814 -273,584}

^{Net income/loss year: -17,814 -273,584}

^{Interest Paid: 29,503 46,322}

^{Depreciation: 292,919 301,766}

^{Wages and Salaries: 98,263 81,428}

RATIOS

^{31/03/2006
31/03/2005}

^{Net result /
Turnover(%): -0.04 -0.79}

^{Fin. Charges /
Turnover(%): 0.06 0.13}

^{Net Margin(%): -3.77 -79.20}

^{Return on Equity(%): 1.02 15.87}

^{Return on Assets(%): -3.23 -29.86}

^{Net Working capital: -2014532.00 -2183323.00}

^{Cash Ratio: 0.05 0.02}

^{Quick Ratio: 0.10 0.07}

^{Current ratio: 0.10 0.08}

^{Receivables Turnover: 83.44 137.65}

^{Leverage Ratio: -1.32 -1.53}

^{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}

^{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 LIMITED IN VIEW} ^{OF THE FOLLOWING:}

^{NET WORTH:}

^{THE BALANCE SHEET WAS CONSIDERED INADEQUATE
WITH NET WORTH IN} ^{NEGATIVE REGION, AND WORSENING BY 1.03% TO S$1,741,258} ^{(2005:
S$-1,723,444).}

^{THIS WAS DUE TO HIGHER ACCUMULATED LOSSES OF
S$1,941,258}

^{(2005: ACCUMULATED LOSSE OF S$1,923,444); A
RISE OF 0.93% FROM THE} ^{PRIOR FINANCIAL YEAR.}

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY
FINANCED BY TRADE CREDITORS} ^{WHICH MADE UP 70.23% (2005: 60.69%) OF THE TOTAL CURRENT
LIABILITIES} ^{AND AMOUNTED TO S$1,568,479 (2005: S$1,437,869).} ^{THE
BREAKDOWN IS AS FOLLOWS:}

^{-ADVANCE RENTAL RECIEVED - 2006: S$16,983 (2005:
S$13,985)}

^{-OUTSIDE PARTIES - 2006: S$3,557 (2005:
S$7,310)}

^{-HOLDING COMPANY - 2006: S$227,853 (2005:
S$238,086)}

^{-RELATED COMPANIES - 2006: S$1,320,086 (2005:
S$1,178,488)}

^{SUBJECT'S LONG TERM LIABILITIES, WHICH
CONSIST OF FINANCE LEASES,} ^{FELL BY 77.80% TO S$60,019 (2005: S$270,361).}

^{IN ALL, LEVERAGE RATIO REMAINED IN NEGATIVE
REGION OF 1.32 TIMES}

^{(2005: -1.53 TIMES). THIS WAS DUE TO THE
RELATIVE INCREASE IN} ^{SUBJECT'S NEGATIVE TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS
INADEQUATE AS SEEN} ^{FROM THE NEGATIVE NET WORKING CAPITAL, WHICH NARROWED BY 7.73% TO} ^{S$2,014,532 (2005: S$-2,183,323).}

^{CURRENT RATIO ROSE TO 0.10 TIMES, UP FROM
0.08 TIMES AND} ^{QUICK RATIO
IMPROVED TO 0.10 TIMES FROM 0.07 TIMES IN 2005.}

^{THESE COULD INDICATE THAT SUBJECT MAY FACE
DIFFICULTIES IN FULFILLING} ^{ITS FUTURE LONG TERM OBLIGATIONS.}

^{CASH AND CASH EQUIVALENTS, HOWEVER, ROSE
SHARPLY BY 1.46 TIMES TO} ^S$107,397

^{(2005: S$43,616).}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 36.79% FROM
S$345,428 IN 2005 TO} ^{S$472,525 BUT SUBJECT STILL SUFFERED A NET LOSS OF S$17,814} ^{(2005:
NET LOSS OF S$273,584).}

^{HENCE, NET MARGIN REMIANED IN NEGATIVE REGION
BUT NARROWED TO 3.77%} ^{(2005: -79.20%).}

^{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 AS SHOWN BY ITS INTEREST} ^{COVERAGE RATIO OF 1.60 TIMES (2005: -4.91 TIMES).}

^{NOTES TO THE
FINANCIAL STATEMENTS}

^{THE COMPANY IS DEPENDENT ON ITS HOLDING
COMPANY FOR CONTINUED} ^{FINANCIAL SUPPORT AND THE DIRECTORS ARE SATISFIED THAT SUCH
SUPPORT} ^{WILL BE AVAILABLE AS AND WHEN REQUIRED.}

BACKGROUND/OPERATION

^{THE COMPANY WAS INCORPORATED IN THE REPUBLIC
OF SINGAPORE ON} ^{24/09/1994 AS A LIMITED PRIVATE COMPANY
UNDER THE NAMESTYLE OF} ^{"ASTRA HEAVY INDUSTRY (S) PTE LTD".
ON 24/12/1997, IT CHANGED TO} ^{THE NAMESTYLE OF "EQUIPMENT PLANT
HIRE PTE LTD".}

^{SUBSEQUENTLY ON 26/01/1998, THE COMPANY
CHANGED TO ITS PRESENT} ^{NAMESTYLE OF "MULTI-RENTAL SYSTEMS (S) PTE LTD".}

^{AS AT 31/08/2007, THE COMPANY HAS AN ISSUED
AND PAID-UP CAPITAL OF} ^{200,000 SHARES, OF A VALUE OF S$200,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) OTHER SUPPORT ACTIVITIES; SERVICING AND RENTING OF PLANT &
MACHINERY}

^{DURING THE FINANCIAL YEAR (S) UNDER REVIEW,
THE PRINCIPAL ACTIVITIES} ^{OF THE COMPANY ARE THAT OF SERVICING AND RENTING OF PLANT AND} ^MACHINERY.

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

^{ABOUT MULTI-CORPORATION (S) PTE. LTD (HOLDING
COMPANY)}

^{- MULTI-CORPORATION (S) PTE LTD WAS
INCORPORATED IN 1973. TODAY, IT} ^{HAS SEEN ITS}

^{ANNUAL GROUP TURNOVER GROW TO OVER $80 MILLION AT} ^{CURRENT ESTIMATES. THE}

^{PRINCIPAL ACTIVITIES OF THE GROUP CAN BE} ^{BROADLY CATEGORIZED INTO :-}

^{1. SALE OF
HEAVY EQUIPMENT & MATERIAL HANDLING EUIPMENT SUCH AS} ^MOBILE CRANES,

^{AERIAL PLATFORMS, REACH STACKERS AND FOLDED TRUCK} ^CRANES.

^{2. SALE
OF GENERATING SETS AND DIESEL ENGINES.}

^{3. SALE
OF SPARE PARTS FOR HEAVY EQUIPMENT AND DIESEL ENGINES.}

^{4. PROVISION OF SHIPPING, WAREHOUSING,
TECHNICAL SERVICES, WORKSHOP} ^{SERVICES AND}

^{LOGISTICS SERVICES, ESPECIALLY FOR HEAVY EQUIPMENT.}

^{5. SUPPLY & INSTALLATION OF ACCESS FLOOR
SYSTEMS}

^{6. RENTAL OF AERIAL PLATFORMS}

^{MULTICO HAS ESTABLISHED SUBSIDIARIES AND
NETWORKS IN THE FOLLOWING} ^{COUNTRIES :-}

^{- SINGAPORE}

^{- MALAYSIA}

^{- INDONESIA}

^{- MYANMAR}

^{- PHILIPPINES}

^{- THAILAND}

^{- VIETNAM}

^{- TAIWAN}

^{NO OTHER TRADE INFORMATION WAS MADE AVAILABLE
AS TELE-INTERVIEW WAS} ^{NOT GRANTED ON 04/09/2007.}

^{THE COMPANY IS A WHOLLY OWNED SUBSIDIARY
MULTI-CORPORATION (S) PTE.} ^{LTD, INCORPORATED IN SINGAPORE,
WHICH IS ALSO THE COMPANY'S ULTIMATE} ^{HOLDING COMPANY.}

^{NUMBER OF EMPLOYEES (31 MARCH)}

^{- COMPANY - 2006: NOT AVAILABLE (2005: NOT
AVAILABLE)}

^{REGISTERED AND BUSINESS ADDRESS:}

^{11 TUAS VIEW CRESCENT}

^MULTICO BUILDING

^SINGAPORE 637643

^{DATE OF CHANGE OF ADDRESS: 13/11/2000}

^{- RENTED PREMISE}

^{- OWNED BY: MULTI-CORPORATION (S) PTE. LTD}

^WEBSITE:

^{http://www.multicor.com.sg (HOLDING
COMPANY'S)}

^EMAIL:

^{mse@multicor.com.sg}

MANAGEMENT

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

^{1) HENRICUS JOSEF HENDRA, A SINGAPORE
PERMANENT RESIDENT}

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

^{MULTI-CORPORATION (S) PTE. LTD}

^{SUNRAY PTE LTD}

^{SUMMA INTERNATIONAL INVESTMENT PL}

^{MULTICO SYSTEM ENGINEERS PTE LTD}

^{DYNAMIC DIESEL ENGINEERING PTE LTD}

^{MULTICO POWER DRIVE PTE LTD}

^{UT HEAVY INDUSTRY (S) PTE LTD}

^{FLORITECH SINGAPORE PTE LTD}

^{2) PEPEN HANDIANTO DANUATMADJA, A SINGAPOREAN}

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

^{MULTI-CORPORATION (S) PTE. LTD}

^{SUNRAY PTE LTD}

^{MULTICO SYSTEM ENGINEERS PTE LTD}

^{DYNAMIC DIESEL ENGINEERING PTE LTD}

^{MULTICO POWER DRIVE PTE LTD}

^{UT HEAVY INDUSTRY (S) 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.

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

SINGAPORE’S ECONOMY GREW BY 6.1% IN QUARTER 1 OF 2007 AFTER A 6.6% GROWTH IN QUARTER 4 OF 2006. THE GROWTH MOMENTUM EASED SLIGHTLY TO 7.6% IN 1Q 2007, COMPARED WITH 7.9% A QUARTER EARLIER. GROWTH IN QUARTER 1 WAS LED BY THE FINANCIAL SERVICES AND CONSTRUCTION SECTORS. THE MANUFACTURING SECTOR CONTINUED TO EXPERIENCE A MODERATION IN GROWTH.

THE FINANCIAL SERVICES SECTOR SIGNIFICANTLY INCREASED BY 13% IN 1Q 2007 ON THE HEELS OF THE 11% GROWTH A QUARTER AGO. THE STRONG PERFORMANCE WAS ACROSS ALL MAJOR FINANCIAL SEGMENTS, PARTICULARLY IN THE CAPITAL AND MONEY MARKETS. FUND MANAGEMENT ACTIVITIES REMAINED BOUYANT, IN LINE WITH THE CONTINUED STRENGTH IN ECONOMIC CLIMATE. SIMILARLY, BANKS SAW STRONG GROWTH, BOUYED BY SUSTAINED RESILIENCE IN THE ASIA DOLLAR MARKET AS WELL AS A STEADY INCREASE IN DOMESTIC LENDING ACTIVITY.

THE CONSTRUCTION SECTOR GREW BY 9.7% IN 1Q 2007, ITS STRONGEST GROWTH IN 9 YEARS. CERTIFIED PAYMENTS INCREASE BY 9.5% IN 1Q 2007, SUPPORTED BY STRONG GROWTH IN THE PRIVATE RESIDENTIAL, COMMERCIAL AND INDUSTRIAL SEGMENTS AS WELL AS PUBLIC RESIDENTIAL SEGMENT. HOWEVER, CONTRACTS AWARDED FELL BY 11% IN 1Q 2007, DUE MAINLY TO THE DROP IN THE PRIVATE COMMERCIAL AND PUBLIC INSTITUTIONAL SEGMENTS.

MANUFACTURING SECTOR INCREASED BY 4.3% IN 1Q 2007, DOWN FROM 7.7% IN THE PREVIOUS QUARTER. BOTH BIOMEDICAL MANUFACTURING (-5.0%) AND PRECISION ENGINEERING (-0.7%) CLUSTERS SAW LOWER PRODUCTION DURING THE QUARTER. THE ELECTRONICS CLUSTER, HOWEVER, RECOVERED FROM A 4.1% CONTRACTION IN 4Q 2006 TO REGISTER AN INCREASE OF 2.6% IN 1Q 2007. THE TRANSPORT ENGINEERING CLUSTER CONTINUED TO EXPAND STRONGLY AT 23%, FOLLOWING A 25% INCREASE IN 4Q 2006.

THE WHOLESALE AND RETAIL TRADE SECTOR EXPANDED 6.7% IN 1Q 2007 AFTER A 6.9 GROWTH IN 4Q 2006. RETAIL SALES GROWTH EASED FROM 7.9% IN THE PREVIOUS QUARTER TO 6.1% IN 1Q 2007, MAINLY DUE TO A DECELERATION IN MOTOR VEHICLES SALES. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.9%, UP FROM 4.2% IN 4Q 2006. IN THE WHOLESALE SEGMENT, GROWTH OF NON-OIL RE-EXPORTS REMAINED FIRM AT 5.9%, SLOWER THAN 6.3% IN 4Q 2006.

THE TRANSPORT AND STORAGE SECTOR GREW 4.4% IN 1Q 2007, UP FROM 4.0% A QUARTER EARLIER. THE AIR SEGMENT SAW A SLOWDOWN DUE TO A MODERATION IN AIR PASSENGER TRAFFIC GROWTH AND A DECLINE IN AIR CARGO. STRONGER ACTIVITY WAS RECORDED IN THE SEA SEGMENT ON THE BACK OF BETTER PERFORMANCE IN SEA CARGO HANDLED AND CONTAINER THROUGHPUT.

THE HOTELS AND RESTAURANTS SECTOR REGISTERED A SLOWER GROWTH OF 4.7% IN 1Q 2007, DOWN FROM 6.1% 4Q 2006. VISITOR ARRIVALS GREW AT A MORE MODEST PACE OF 4.1% COMPARED TO 8.4% IN THE PREVIOUS QUARTER. THE INCREASE IN HOTEL ROOM REVENUE MODERATED FROM THE 21% GAIN IN 4Q 2006 TO 14% IN 1Q 2007. HOWEVER, THE AVERAGE OCCUPANCY RATE OF HOTELS REMAINED HIGH AT 87%, A 4.3% POINTS INCREASE OVER THE CORRESPONDING PERIOD LAST YEAR.

THE INFORMATION AND COMMUNICATIONS SECTOR GREW 6.6% IN 1Q 2007, UP FROM 6.0% IN THE PREVIOUS QUARTER. WHILE THE IT SEGMENT SAW SOME MODERATION IN ACTIVITIES, THE TELECOMMUNICATIONS SEGMENT PERFORMED BETTER. INTERNATIONAL TELEPHONE CALL DURATION WENT UP SHARPLY BY 19%, UP FROM 11% IN 4Q 2006. GROWTH IN THE NUMBER OF MOBILE SUBSCRIBERS AND BROADBAND SUBSCRIBERS ALSO REMAINED STRONG DURING THE QUARTER.

BUSINESS SERVICES SECTOR EXPANDED BY 6.6% IN 1Q 2007, BETTER THAN THE 5.4% POSTED IN 4Q 2006. ROBUST PERFORMANCE WAS SEEN IN THE REAL ESTATE SEGMENT ON THE BACK OF CONTINUED STRENGTH IN THE LUXURY PROPERTY MARKET. THE SECTOR WAS ALSO WELL SUPPORTED BY THE OTHER SEGMENTS, PARTICULARLY BUSINESS REPRESENTATIVE OFFICES, AND BUSINESS & MANAGEMENT CONSULTANCY ACTIVITIES.

OUTLOOK

THE ECONOMIC OUTLOOK IS GENERALLY POSITIVE BUT SOME DOWNSIDE RISKS REMAIN. THESE INCLUDE A SLOWDOWN IN THE US ECONOMY, VULNERABILITY OF OIL PRICES TO SUPPLY SHOCKS AND A DISORDERLY UNWINDING OF GLOBAL UNBALANCES. BARRING THESE UNCERTAINTIES, ECONOMIC GROWTH IS EXPECTED TO REMAIN HEALTHY IN 2007.

BUSINESS SENTIMENTS ARE GENERALLY POSITIVE IN THE FINANCIAL SERVICES INDUSTRY. BANKS AND FINANCE COMPANIES, FUND MANAGEMENT FIRMS AND INSURANCE COMPANIES EXPECT AN IMPROVEMENT IN THE BUSINESS CLIMATE IN THE COMING MONTHS.

AN OVERALL NET WEIGHTED BALANCE OF 61% OF FIRMS IN THE REAL ESTATE INDUSTRY EXPECTS BETTER BUSINESS CONDITIONS FOR THE NEXT 6 MONTHS. WITHIN THE INDUSTRY, REAL ESTATE DEVELOPERS AND AGENTS FORESEE BRISK BUSINESS ACTIVITY AHEAD.

MANUFACTURING SECTORS ARE MORE OPTIMISTIC IN THE NEXT 6 MONTHS 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 7% RECORDED A QUARTER AGO.

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

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

WITHIN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 18% OF FIRMS FORECASTS IMPROVED BUSINESS PROSPECTS FOR THE NEXT 6 MONTHS. IN PARTICULAR, FIRMS IN THE WATER TRANSPORT AND SUPPORTING SERVICES EXPECT HIGHER LEVEL OF BUSINESS ACTIVITY.

HOTELIERS PROJECT A FAVOURABLE BUSINESS OUTLOOK, WHICH IS IN TANDEM WITH THE POSITIVE SENTIMENTS IN THE TOURISM MARKET. FOR THE CATERING TRADE INDUSTRY, BUSINESS OUTLOOK IN THE COMING MONTHS REMAINS THE SAME.

FIRMS IN THE INFORMATION AND COMMUNICATION INDUSTRY ANTICIPATES A HIGHER LEVEL OF BUSINESS ACTIVITY, WITH A POSITIVE NET WEIGHTED BALANCE OF 12%.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 24% OF FIRMS EXPRESSES POSITIVE SENTIMENTS. THESE INCLUDE FIRM ENGAGED IN RENTING OF CONSTRUCTION & INDUSTRIAL MACHINERY, ARCHITECTURAL & ENGINEERING, SPECIALISED DESIGN AND LABOUR RECRUITMENT SERVICES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

CHANNELNEWS ASIA

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