MIRA INFORM REPORT

Report Date :

27.08.2008

IDENTIFICATION DETAILS

Name :	CELANESE PTE LTD
Registered Office :	^111 Somerset Road ^#02-02 ^Singapore Power Building ^238164
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^26.04.1995
Com. Reg. No.:	^199900962E
Legal Form :	^Pte Ltd
Line of Business :	Trader of Basic Chemicals

RATING & COMMENTS

MIRA’s Rating :

Aa

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 :	Very Good
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

CELANESE PTE LTD

Line Of Business 

TRADING OF BASIC CHEMICALS

Parent Company

-

Financial Elements

FY 2006

^COMPANY

Sales : US$776,897

Networth : US$60,911,000

Paid-Up Capital : US$10,000

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. : 26/04/1995}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 776,897}

^{Networth : 60,911,000}

^{Capital : -}

^{Paid-Up Capital : 10,000}

^{Employees : 40}

^{Net result : 7,941,000}

^{Share value : -}

^{AUDITOR: KPMG}

^{BASED ON ACRA'S RECORD}

^{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 : -}

^{Started : 26/04/1995}

PRINCIPAL(S)

^{RORY NICHOLAS CARRICK G6062927M Director}

DIRECTOR(S)

^{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}

^{RORY NICHOLAS CARRICK G6062927M Director}

^{Appointed on : 06/06/2008}

^{Street : 9A MAPLE AVENUE}

^{EDEN PARK}

^{Town : SINGAPORE}

^{Postcode : - 277573}

^{Country : Singapore}

^{JONATHAN CONRAD MORTIMER 016623094 Director}

^{Appointed on : 16/03/2004}

^{Street : HOUSE H10 TOPREGENT PARK}

^{VILLA NO. 8, HUANLIN ROAD}

^{THE NANJING}

^{Town : -}

^{Postcode : -}

^{Country : China}

^{JOHN JOSEPH GALLAGHER III 135016307 Director}

^{Appointed on : 25/01/2008}

^{Street : 2200 VAQUERO CLUB DRIVE}

^{WESTLAKE, TX 7626}

^{Town : TEXAS}

^{Postcode : -}

^{Country : United States}

^{ANTHONY JOHN HAWES 406504075 Director}

^{Appointed on : 25/01/2008}

^{Street : NO. 281, LANE 418}

^{JINXIU ROAD (EAST), PUDONG}

^{Town : SHANGHAI}

^{Postcode : -}

^{Country : China}

FORMER DIRECTOR(S)

^{ARLENE BELL STANDLEY 157808898}

^{REINHARD GRADL}

^{SAMUEL MCDUFFIE BOULWARE 710066375}

^{GEORGE MICHAEL MCGINN F5642209U}

^{HAMISH ALEXANDER CHRISTIE S2200577D}

^{JOHN AUSTIN O'DWYER 132076669}

^{PHILIP TAN ENG LAY S2638844I}

^{TINA MARIE BEIER 132817006}

ACTIVITY(IES)

^{CHEMICALS Code:3970}

^{BASED ON ACRA'S RECORD}

^{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 : SUFFICIENT}

^{Payments : REGULAR}

^{Trend : UPWARD}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

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

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

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

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

^{Number of weeks : 52 52}

^{Consolidation Code : COMPANY COMPANY}

^{--- ASSETS ---}

^{Preliminary Exp 148,000 -}

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

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

^{Inventories: 22,618,000 46,343,000}

^{Receivables: 104,820,000 77,668,000}

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

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

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

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

^{--- LIABILITIES ---}

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

^{Profit & lost Account: 50,911,000 42,970,000}

^{Total Equity: 60,911,000 52,970,000}

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

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

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

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

^{Provisions: 1,413,000 1,109,000}

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

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

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

^{--- PROFIT & LOSS ACCOUNT ---}

^{Net Sales : 776,897,000 701,931,000 Purchases,Sces & Other Goods : 738,331,000 664,428,000 Gross Profit : 38,566,000 37,503,000 Result of ordinary operations : - -}

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

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

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

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

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

^{Wages and Salaries: : 279,000 262,000}

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

RATIOS

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

^{Turnover per employee : 19422425.00 17548275.00}

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

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

^{Net Margin(%) : 1.02 1.02}

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

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

^{Net Working capital : 60348000.00 52474000.00}

^{Cash Ratio : 0.05 0.03}

^{Quick Ratio : 1.05 0.74}

^{Current ratio : 1.58 1.48}

^{Receivables Turnover : 48.57 39.83}

^{Leverage Ratio : 1.71 2.07}

^{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 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".}

^{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.}

^{BASED IN DALLAS, TEXAS, THE COMPANY EMPLOYS APPROXIMATELY 8,400 EMPLOYEES WORLDWIDE.}

^{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 CORPORATION REPORTS RECORD SECOND QUARTER RESULTS;}

^{REAFFIRMS 2008 OUTLOOK}

^{DATE: 21/07/2008}

^{SOURCE: CELANESE WEBSITE}

^"EXTRACTS"

^{SECOND QUARTER HIGHLIGHTS:}

^{* NET SALES INCREASED 20% TO $1,868 MILLION FROM PRIOR YEAR}

^{* OPERATING PROFIT INCREASED TO $207 MILLION FROM $71 MILLION IN}

^{PRIOR YEAR}

^{* NET EARNINGS INCREASED TO $134 MILLION FROM A LOSS OF $117 MILLION}

^{IN PRIOR YEAR}

^{* OPERATING EBITDA INCREASED 24% TO $406 MILLION}

^{* DILUTED EPS FROM CONTINUING OPERATIONS INCREASED TO $1.21 FROM A}

^{LOSS OF $0.81 IN PRIOR YEAR}

^{* ADJUSTED EPS INCREASED TO $1.20 FROM $0.85 IN PRIOR YEAR}

^{* REAFFIRMS 2008 OUTLOOK FOR ADJUSTED EARNINGS PER SHARE OF BETWEEN}

^{$3.60 AND $3.85 AND OPERATING EBITDA OF BETWEEN $1,355 MILLION AND}

^{$1,415 MILLION}

^{CELANESE CORPORATION (NYSE: CE) REPORTED RECORD NET SALES OF $1,868 MILLION, A 20 PERCENT INCREASE FROM THE PRIOR YEAR'S RESULTS, AS HIGHER PRICING ON CONTINUED STRONG DEMAND, POSITIVE CURRENCY IMPACTS, AND HIGHER VOLUMES ASSOCIATED WITH THE COMPANY'S GROWTH STRATEGY IN ASIA, ALL CONTRIBUTED TO STRONG TOP-LINE GROWTH. OPERATING PROFIT MORE THAN DOUBLED TO $207 MILLION FROM $71 MILLION IN THE PRIOR YEAR PERIOD. THE COMPANY'S GROWTH IN ASIA AND CERTAIN ADVANTAGED RAW MATERIAL POSITIONS HELPED TO MITIGATE THE IMPACT OF SIGNIFICANTLY HIGHER OVERALL RAW MATERIAL AND ENERGY COSTS. LAST YEAR'S RESULTS INCLUDED $105 MILLION OF OTHER EXPENSES PRIMARILY RELATED TO A LONG-TERM MANAGEMENT COMPENSATION PROGRAM AND ALSO INCLUDED THE IMPACT OF THE UNPLANNED OUTAGE AT THE COMPANY'S CLEAR LAKE, TEXAS, FACILITY. NET EARNINGS WERE $134 MILLION COMPARED WITH A LOSS OF $117 MILLION IN THE SAME PERIOD LAST YEAR. THE SECOND QUARTER 2008 RESULTS INCLUDED APPROXIMATELY $69 MILLION IN NET LOSSES FROM DISCONTINUED OPERATIONS, PRINCIPALLY RELATED TO A PREVIOUSLY ANNOUNCED LITIGATION SETTLEMENT. THE 2007 RESULTS INCLUDED THE IMPACT OF THE COMPANY'S DEBT REFINANCING TRANSACTION, WHICH WAS COMPLETED IN APRIL 2007.}

^{ADJUSTED EARNINGS PER SHARE FOR THE SECOND QUARTER WERE $1.20, A 41 PERCENT INCREASE OVER THE PRIOR YEAR PERIOD, REFLECTING STRONG VOLUME AND PRICING ON CONTINUED STRONG DEMAND, AS WELL AS INCREASED DIVIDENDS FROM THE COMPANY'S STRATEGIC AFFILIATES. THIS QUARTER'S RESULTS EXCLUDED APPROXIMATELY $24 MILLION OF CERTAIN OTHER ADJUSTMENTS, PRIMARILY RELATED TO THE COMPANY'S REVITALIZATION ACTIVITIES. OPERATING EBITDA INCREASED TO A RECORD $406 MILLION, UP 24 PERCENT FROM LAST YEAR.}

^{FROM THE TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS GATHERED:}

^{NO. OF EMPLOYEES:}

^{* 2008: 40}

^{NO OTHER TRADE INFORMATION IS AVAILABLE}

^{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.}

^{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}

^WEBSITE:

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

^EMAIL:

^-

MANAGEMENT

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

^{1) JONATHAN CONRAD MORTIMER, AN AMERICAN}

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

^{CELANESE SINGAPORE PTE. LTD.}

^{2) JOHN JOSEPH GALLAGHER III, , AN AMERICAN}

^{- BASED IN UNITED STATES OF AMERICA.}

^{3) ANTHONY JOHN HAWES, AN AMERICAN}

^{- BASED IN CHINA}

^{4) RORY NICHOLAS CARRICK, A SOUTH AFRICAN}

^{- BASED IN UNITED SINGAPORE}

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

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 5.2% IN 1Q 2008, SLOWER THAN THE 6.0% GROWTH IN 4Q 2007. NON-OIL RE-EXPORTS GREW BY 2.0% IN 1Q 2008, IN CONTRAST TO THE 1.2% DECLINE IN 4Q 2007. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY A MODERATE 1.4% IN 1Q 2008, FOLLOWING A HIGHER 9.9% GROWTH IN 4Q 2007.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE FELL BY 7.1% IN 1Q 2008 OVER 4Q 2007.

EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 6.5%.

AFTER SEASONAL ADJUSTMENT, DOMESTIC SALES ROSE BY 4.4% IN 1Q 2008 OVER 4Q 2007.

EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 2.7%.

ON A YEAR-ON-YEAR BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE GREW BY 26.5% OVER THE PREVIOUS YEAR. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 12.2%. AFTER REMOVING PRICE EFFECT, THE OVERALL DOMESTIC WHOLESALE TRADE GREW BY 2.8% IN 1Q 2008 OVER 1Q 2007.

ON A QUARTER-OVER-QUARTER BASIS, MOST WHOLESALE SECTORS REPORTED LOWER DOMESTIC SALES AFTER RECORDING BRISK BUSINESS IN THE PREVIOUS QUARTER.

GENERAL WHOLESALE TRADE FELL BY 24.6% IN 1Q 2008, AFTER RECORDING HIGHER SALES OF 26.8% IN 4Q 2007. THE SALES OF TELECOMMUNICATIONS AND COMPUTERS, INDUSTRIAL AND CONSTRUCTION MACHINERY, AND HOUSEHOLD EQUIPMENT AND FURNITURE REPORTED LOWER SALES BY 13.3% 15.3% IN 1Q 2008.

DOMESTIC SALES OF PETROLEUM AND PETROLEUM PRODUCTS FELL BY 7.7% IN 1Q 2008 OVER 4Q 2007. AFTER ADJUSTING FOR PRICE CHANGES, SALES DECLINED BY 12.4%.

ON THE OTHER HAND, SHIP CHANDLERS AND BUNKERING, FOOD, BEVERAGES AND TOBACCO RECORDED HIGHER TURNOVER OF 8.8% AND 0.8% OVER THE PREVIOUS QUARTER RESPECTIVELY.

MAJORITY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 1Q 2008 OVER 1Q 2007.

THE GROWTH IN THE OVERALL DOMESTIC SALES WAS MAINLY CONTRIBUTED BY PETROLEUM AND

PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERING, AND GENERAL WHOLESALE TRADE, WHICH REPORTED HIGHER SALES OF 42.9% TO 47.4%. AFTER ADJUSTING FOR PRICE CHANGES, THE TRADING VOLUME CHANGED MARGINALLY FOR PETROLEUM AND PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERING WHILE THE SALE VOLUME ROSE BY 27.8% FOR GENERAL WHOLESALERS.

OTHER SECTORS THAT RECORDED BETTER SALES INCLUDE TIMBER, PAINTS AND CONSTRUCTION MATERIALS (20.3%) CHEMICALS AND CHEMICAL PRODUCTS (8.7%) INDUSTRIAL AND CONSTRUCTION MACHINERY (7.6%) TRANSPORT EQUIPMENT (7.2%) AND FOOD, BEVERAGES AND TOBACCO (0.7%).

CONVERSELY, DOMESTIC SALES OF ELECTRONIC COMPONENTS FELL BY 10.9%, THE FIFTH CONSECUTIVE QUARTER OF DECLINE SINCE 1Q 2007. AFTER REMOVING PRICE CHANGES, SALES OF ELECTRONIC COMPONENTS FELL BY 3.6%. WHOLESALE VALUES OF TELECOMMUNICATIONS AND COMPUTERS, AND HOUSEHOLD EQUIPMENT AND FURNITURE ALSO DECLINED MARGINALLY IN 1Q 2008. AFTER REMOVING PRICE CHANGES, SALES OF THE TWO SECTORS ROSE COMPARED TO A YEAR AGO.

FOREIGN WHOLESALE TRADE INDEX

FOREIGN WHOLESALE TRADE SALES FELL MARGINALLY BY 0.6% IN 1Q 2008 OVER 4Q 2007.

EXCLUDING PETROLEUM, SALES FELL BY 2.4%.

AFTER SEASONAL ADJUSTMENT, FOREIGN SALES ROSE BY 5.6% OVER 4Q 2007. EXCLUDING PETROLEUM, SALES ROSE BY 5.2%.

ON A YEAR-ON-YEAR BASIS, FOREIGN WHOLESALE SALES ROSE BY 31.4% OVER 1Q 2007.

EXCLUDING PETROLEUM, SALES ROSE BY 18.3%. AFTER REMOVING PRICE EFFECT, OVERSEAS SALES ROSE BY 6.7% OVER 1Q 2007.

COMPARED TO 4Q 2007, THERE WAS MIXED PERFORMANCE IN FOREIGN SALES AMONG THE WHOLESALE SECTORS IN 1Q 2008.

FOOD, BEVERAGES AND TOBACCO WHOLESALERS REPORTED HIGHER OVERSEAS SALES OF 16.0% IN 1Q 2008 OVER 4Q 2007, THE LARGEST INCREASE AMONG ALL SECTORS. IT WAS FOLLOWED BY GENERAL WHOLESALE TRADE (9.4%) SHIP CHANDLERS AND BUNKERING (4.7%) AND WHOLESALING OF CHEMICALS AND CHEMICAL PRODUCTS (2.2%).

SALES OF PETROLEUM AND PETROLEUM PRODUCTS ROSE SLIGHTLY BY 1.3% IN 1Q 2008 OVER 4Q 2007. HOWEVER, AFTER ADJUSTING FOR PRICE CHANGES, THE SALES VOLUME FELL BY 3.8%.

CONVERSELY, FOREIGN SALES OF HOUSEHOLD EQUIPMENT AND FURNITURE, TELECOMMUNICATIONS AND COMPUTERS, TIMBER, PAINTS AND CONSTRUCTION MATERIALS, TRANSPORT EQUIPMENT, INDUSTRIAL AND CONSTRUCTION MACHINERY AND ELECTRONIC COMPONENTS FELL IN 1Q 2008 OVER 4Q 2007.

COMPARED TO A YEAR AGO, SOME WHOLESALE SECTORS REPORTED DOUBLE-DIGIT GROWTHS IN FOREIGN SALES IN 1Q 2008 WHILE OTHERS FELL.

WHOLESALING OF FOOD, BEVERAGES AND TOBACCO CONTINUED TO RECORD HIGH GROWTH RATES IN FOREIGN SALES, WITH HIGHER TURNOVER OF 89.0% IN 1Q 2008 OVER A YEAR AGO. AFTER ADJUSTING FOR PRICES, SALES VOLUME ROSE BY 72.9% OVER A YEAR AGO.

WITH HIGHER FUEL PRICES. WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERINH REPORTED HIGHER FOREIGN SALES OF 49.2% AND 46.3% RESPECTIVELY OVER A YEAR AGO. AFTER REMOVING PRICE EFFECT, THE SALES VOLUME OF

PETROLEUM AND PETROLEUM PRODUCTS FELL BY 3.1% WHILE SALES VOLUME OF SHIP CHANDLERS AND BUNKERING HELD ITS LEVEL.

GENERAL WHOLESALE TRADE, CHEMICALS AND CHEMICAL PRODUCTS, TRANSPORT EQUIPMENT, AND

INDUSTRIAL AND CONSTRUCTION MACHINERY ALSO REGISTERED STRONG SALES GROWTHS BETWEEN 10.5% TO 47.4%.

CONVERSELY, FOREIGN SALES DECLINED IN 1Q 2008 FOR HOUSEHOLD EQUIPMENT AND FURNITURE, TIMBER, PAINTS AND CONSTRUCTION MATERIALS, ELECTRONIC COMPONENTS, AND

TELECOMMUNICATIONS AND COMPUTERS. THE SALES FELL BY 4.3% TO 8.7% FOR THESE SECTORS COMPARED TO 1Q 2007.

NEWS

MARCH RETAIL GROWTH FUELLED BY PETROL PRICES

THE VALUE OF PETROL SALES IN MARCH SOARED 39%, AS A RESULT OF RISING CRUDE OIL PRICES, EVEN THOUGH THE ACTUAL VOLUME WAS ONLY MARGINALLY HIGHER.

PETROL STATION SALES POSTED THE FASTEST GROWTH OF ALL RETAIL SEGMENTS IN MARCH, ACCORDING TO FIGURES THE DEPARTMENT OF STATISTICS RELEASED YESTERDAY.

PETROL SALES ROSE 28.2% IN FEBRUARY.

MOST RETAIL SEGMENTS POSTED HIGHER GROWTH MARCH AFTER A WEAKER SHOWING IN FEBRUARY FOR THE COMPUTERS, FURNITURE, OPTICAL GOODS AND BOOKS SEGMENTS. BUT MOTOR VEHICLES FELL 8.1% FROM MARCH 2007 AS A RESULT OF THE ESCALATING PETROL PRICES. CRUDE OIL HIT ALMOST US$127 A BARREL RECENTLY.

THE SUPERMARKET AND FOOD AND BEVERAGE SEGMENTS ALSO REPORTED LOWER SALES ACTIVITY THAN IN FEBRUARY, WITH FALLS OF 4.7% AND 11.9%, RESPECTIVELY.

OVERALL RETAIL SALES ROSE BY 5.6% COMPARED TO MARCH 2007. EXCLUDING MOTOR VEHICLES, SALES VOLUME ROSE BY 12.5%.

OCBC ECONOMIST SELENA LING NOTED THE RETAIL NUMBERS INDICATED RELATIVELY HEALTHY CONSUMER SPENDING. “THIS IS A TESTIMONY TO THE FACT THAT THE SINGAPOREAN ECONOMY IS STILL ENJOYING BROAD-BASED GROWTH DESPITE THE GLOBAL SLOWDOWN,” SHE SAID.

THE TOTAL VALUE OF RETAIL SALES IN MARCH WAS ESTIMATED AT S$2.89 BILLION, COMPARED WITH S$2.59 BILLION IN FEBRUARY.

OUTLOOK

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 9% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THOSE DEALING IN TROPICAL PRODUCE, WEARING APPAREL AND FOOTWEAR, AND INDUSTRIAL MACHINERY AND EQUIPMENT ARE THE ONES EXPRESSING OPTIMISM.

A NET WEIGHTED BALANCE OF 29% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE PERIOD ENDING SEPTEMBER 2008. SUPERMARKETS AND RETAILERS OF JEWWELLERY AND WATCHES EXPECT SLOWER BUSINESS AFTER THE FESTIVE PERIOD. AS A RESULT OF THE REDUCED CERTIFICATE OF ENTITLEMENT (COE) QUOTA, MOTOR VEHICLES RETAILERS ARE ESPECIALLY CONCERNED WITH THE SALES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

THE STRAITS TIMES

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.43.73
UK Pound	1	Rs.80.31
Euro	1	Rs.64.61

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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