MIRA INFORM REPORT

 

 

 

Report Date :

05.12.2008

 

IDENTIFICATION DETAILS

 

Name :

EXXONMOBIL CHEMICAL ASIA PACIFIC

 

 

Formerly Known As :

EXXON CHEMICAL ASIA PACIFIC     

 

 

Registered Office :

1 Harbourfront Place #07-00  098633

 

 

Country :

Singapore

 

 

Date of Incorporation :

27.05.1999

 

 

Com. Reg. No.:

52893724C

 

 

Legal Form :

Sole Proprietor

 

 

Line of Business :

Other Support Activities                                          

 

 

RATING & COMMENTS

 

MIRA’s Rating :

Ba

 

RATING

STATUS

PROPOSED CREDIT LINE

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

Satisfactory

 

Status :

Good

 

 

Payment Behaviour :

No Complaints

 

 

Litigation :

Clear

 

 

Subject Company     

 

EXXONMOBIL CHEMICAL ASIA PACIFIC

 

 

Line Of Business  

 

OTHER SUPPORT ACTIVITIES                                          

 

 

Parent Company    

 

-

 

 

Financial Elements

 

 

                         

Sales                            : N.A.

Networth                                   : N.A.

Paid-Up Capital                                             : N.A.

Net result                      : N.A.

 

Net Margin(%)                : -

Return on Equity(%)       : -

Leverage Ratio               : -

 

 

 

 

COMPANY IDENTIFICATION

 

Subject Company :

EXXONMOBIL CHEMICAL ASIA PACIFIC

Former Name :

EXXON CHEMICAL ASIA PACIFIC      DATE OF CHANGE : 14/03/2000

Business Address:

1 HARBOURFRONT PLACE #07-00

Town:

SINGAPORE

Postcode:

098633

Country:

Singapore

Telephone:

6885 8000

Fax:

6885 8405

ROC Number:

52893724C

 

 

PREVIOUS IDENTIFICATION

 

EXXON CHEMICAL ASIA PACIFIC                                                          DATE OF CHANGE: 14/03/2000

 

 

SUMMARY

 

Legal Form:

Sole Proprietor

Date Inc.:

27/05/1999

Summary year :

-

All amounts in this report are in :

SGD

Sales:

-

Capital:

-

Paid-Up Capital:

-

Employees:

2,000

Net result :

-

Share value:

-

 

 

REFERENCES

 

 

Litigation:

No

Company status :

TRADING

Started :

26/05/1999

 

 

FORMER DIRECTOR(S)

 

ROBERT ERIC HARAYDA

710108715

 

 

 

ACTIVITY(IES)

 

Activity Code:

4

BUSINESS SERVICES

 
 
BASED ON ACRA'S RECORD 
1) OTHER SUPPORT ACTIVITIES

 

 

SHAREHOLDERS(S)

 

EXXONMOBIL ASIA PACIFIC PTE. LTD.

 

Company

 

Street :

1 HARBOURFRONT PLACE #07-00 HARBOURFRONT TOWER ONE

Town:

SINGAPORE

Postcode:

098633

Country:

Singapore

 

FORMER SHAREHOLDER(S)

 

EXXONMOBIL CHEMICAL SINGAPORE PTE LTD

 

 

 

 

PAYMENT HISTORY AND EXPERIENCES

 

Trade Morality:

AVERAGE

Liquidity :

UNKNOWN

Payments :

UNKNOWN

Trend :

UNKNOWN

Financial Situation:

UNKNOWN

 

 

 

FINANCIAL COMMENTS

 

SOLE PROPRIETORSHIP:                                                  
BEING A SOLE PROPRIETORSHIP BUSINESS, THERE IS NO OBLIGATIONS ON THE PART OF THE OWNER TO SUPPLY REGULAR FINANCIAL UPDATES TO THE REGISTRYOF COMPANIES AND BUSINESSES.THE CREDIT OPINION IS BASED ON NON-FINANCIAL INDICATORS AS WELL AS OTHER BUSINESS ELEMENTS AND DATA AVAILABLE.                                                   
                                                                      
NO FINANCIAL INFORMATION WAS REVEALED BY THE MANAGEMENT.

 

 

BACKGROUND/OPERATION

 

THE SUBJECT WAS REGISTERED IN THE REPUBLIC OF SINGAPORE ON 27/05/1999 AND COMMENCED BUSINESS ON 26/05/1999 AS A SOLE PROPRIETORSHIP AND IS TRADING UNDER THE NAMESTYLE AS "EXXON CHEMICAL ASIA PACIFIC".         
                                                                      
SUBSEQUENTLY ON 14/03/2000, THE SUBJECT CHANGED TO ITS PRESENT NAMESTYLE AS "EXXONMOBIL CHEMICAL ASIA PACIFIC".                      
                                                                      
THE LICENCE WAS RENEWED ON 04/03/2008 AND WILL EXPIRE ON 27/05/2009.  
                                                                      
THE BUSINESS WAS FIRST STARTED BY EXXON CHEMICAL SINGAPORE PTE LTD ON 26/05/1999. ON 01/01/2001, EXXONMOBIL ASIA PACIFIC PTE. LTD.TOOK OVER THE BUSINESS.                                               
                                                                      

PRINCIPAL ACTIVITIES:                                                 
SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:        
1) OTHER SUPPORT ACTIVITIES                                           
                                                                      
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:
 
BACKGROUND OF EXXONMOBIL CHEMICAL GROUP:                              
EXXONMOBIL CHEMICAL IS ONE OF THE LARGEST WORLDWIDE PETROCHEMICAL COMPANIES. THE GROUP IS AN INTEGRATED MANUFACTURER AND GLOBAL MARKETER OF OLEFINS, AROMATICS, FLUIDS, SYNTHETIC RUBBER, POLYETHYLENE, POLYPROPYLENE, ORIENTED POLYPROPYLENE PACKAGING FILMS, PLASTICIZERS, SYNTHETIC LUBRICANT BASESTOCKS, ADDITIVES FOR FUELS AND LUBRICANTS, ZEOLITE CATALYSTS AND OTHER PETROCHEMICAL PRODUCTS.  
                 
WITH WORLDWIDE OPERATIONS, THE CHEMICAL COMPANY IS A SIGNIFICANT AND GROWING PART OF EXXON MOBIL CORPORATION. THE GROUP IS AMONG THE TOP THREE PETROCHEMICAL COMPANIES WITH MANUFACTURING LOCATIONS IN MORE THAN 20 COUNTRIES. THE PRODUCTS ARE MARKETED IN MORE THAN 150 COUNTRIES.                                                            
                                                                      
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:                          
* CHEMICAL ASSOCIATES PROJECT MANAGEMENT
                                                                      
THERE ARE A NUMBER OF PLANTS IN SINGAPORE.                            
                                                                      
- PULAU AYER CHAWAN FLUIDS PLANT
MAILING ADDRESS:                                                      
JURONG POINT POST OFFICE, P.O. BOX 23                                 
SINGAPORE 916401, SINGAPORE                                           
                                                                      
THE SINGAPORE PLANT SUPPLIES INDUSTRIAL FLUIDS TO THE ASIA PACIFIC MARKETS.                                                              
                                                                      
PRODUCTS:                                                             
* ALIPHATIC FLUIDS: EXXSOL AND EXXSOL D FLUIDS, EXX-PRINT FLUIDS,     
ESCAID FLUIDS
                                                                      
- JURONG PETROCHEMICAL COMPLEX                                        
                                                                      
JURONG PARAXYLENE PLANT                                               
18 PIONEER ROAD
JURONG, SINGAPORE 628498, SINGAPORE                                   
TEL: (65) 660 6000                                                    
                                                                      
THE EXXONMOBIL PETROCHEMICAL COMPLEX AT JURONG INTEGRATES A WORLD- CLASS PETROCHEMICALS PLANT WITH A MODERN FUELS REFINERY.
                                                                      
WITH A CAPACITY OF 245,000 BARRELS A DAY, THE JURONG REFINERY REFINES CRUDE OIL INTO PRODUCTS LIKE LIQUEFIED PETROLEUM GASOLINE, NAPHTHA, GASOLINE, KEROSENE, DIESEL AND FUEL OIL. OUTPUT FROM THE PETROCHEMICALS COMPLEX IS SOLD TO DOWNSTREAM COMPANIES THAT TRANSFORM THEM INTO POLYESTER FIBERS, NYLON, TEXTILES, CARPETS, PLASTIC       PRODUCTS, PAINTS, DYE OR POLYSTYRENE PRODUCTS.                        
                                                                      
THE COMPLEX INCLUDES FACILITIES WITH MANUFACTURING CAPACITIES TO PRODUCE 880 MILLION POUNDS OF PARAXYLENE, 660 MILLION POUNDS OF BENZENE, 198 MILLION POUNDS OF ORTHOXYLENE, 500 MILLION POUNDS OF CYCLOHEXANE AND 110 MILLION POUNDS OF TOLUENE EACH YEAR.              
                                                                      
PRODUCTS:                                                             
* AROMATICS: BENZENE, TOLUENE, PARAXYLENE, ORTHOXYLENE
* CYCLOHEXANE                                                         
                                                                      
- SINGAPORE CHEMICAL PLANT                                            
                                                                      
100 JURONG ISLAND HIGHWAY
SINGAPORE 627867                                                      
                                                                      
THIS HIGHLY INTEGRATED COMPLEX IS NOW SUPPLYING PETROCHEMICAL PRODUCTS TO THE MARKETPLACE.
 
PRODUCTS:                                                             
* OLEFINS: ETHYLENE, PROPYLENE                                        
* AROMATICS: BENZENE                                                  
* POLYETHYLENE                                                        
* POLYPROPYLENE
* OXO ALCOHOLS                                                        
                                                                      
BRANDS:                                                               
* ACHIEVE                                                             
* AUROPOL
* ADEVA                                                               
* BICOV                                                               
* CEKANOIC                                                            
* COPPCO                                                              
* DF-2000
* DIGILYTE                                                            
* EXXON MOBIL PE                                                      
* EXXON CHLOROBUTYL                                                   
* EXXON BROMOBUTYL                                                    
* EXXELOV
                                                                      
FROM THE TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS GATHERED:                                                             
                                                                      
THE SUBJECT OCCUPIES THE 5TH FLOOR TO 8TH FLOOR AND 10TH FLOOR AT 1 HARBOURFRONT PLACE SINGAPORE 098633.                                
                                                                      
NUMBER OF EMPLOYEES:                                                  
* 2008: 2000 (HARBOURFRONT OFFICE)
 
NO OTHER TRADE INFORMATION WAS AVAILABLE 
                                                                      
REGISTERED AND BUSINESS ADDRESS:                                      
1 HARBOURFRONT PLACE                                                  
#07-00
SINGAPORE 098633                                                      
DATE OF CHANGE OF ADDRESS: 20/01/2003                                 
                                                                      
OTHER BUSINESS ADDRESS:                                               
1 HARBOURFRONT PLACE
#06-00                                                                
SINGAPORE 098633                                                      
                                                                      

WORLDWIDE HEAD OFFICES:
NORTH AMERICA, WORLDWIDE HEADQUARTERS                                 
EXXONMOBIL CHEMICAL COMPANY                                           
13501 KATY FREEWAY                                                    
HOUSTON, TX 77079-1398, USA                                           
TEL.: (281) 870-6000
FAX: (281) 870-6661                                                   
                                                                      
EUROPE HEAD OFFICE                                                    
HERMESLAAN 2                                                          
1831 MACHELEN, BELGIUM
TEL: (32) 2 722 21 11                                                 
FAX: (32) 2 722 27 80                                                 
                                                                                                
LATIN AMERICA HEAD OFFICE                                             
EXXONMOBIL CHEMICAL COMPANY
13501 KATY FREEWAY                                                    
HOUSTON, TX 77079-1398, USA                                           
TEL.: (281) 870-6000                                                  
FAX: (281) 870-6661
 
MIDDLE EAST AND AFRICA HEAD OFFICE                                    
HERMESLAAN 2                                                          
1831 MACHELEN, BELGIUM                                                
TEL: (32) 2 722 21 11                                                 
FAX: (32) 2 722 27 80
                                                                      
WEBSITE:                                                              
http://www.exxonmobilchemical.com                                     
                                                                      
EMAIL:
-

 

MANAGEMENT

 

THE OWNER AT THE TIME OF THIS REPORT IS                               
                                                                      
1) EXXONMOBIL ASIA PACIFIC PTE. LTD.                                  
   - PAID-UP CAPITAL: S$ 1,966,290,474.02 (AS AT 24/09/2008)          
   - AVERSE REPORT AGAINST OWNER: YES
                                                                      
     TYPE OF CASE: DISTRICT COURT - W/S                               
     CASE NO     : DCS00807/2008                                      
     DEFENDANT   : EXXONMOBIL ASIA PACIFIC PTE. LTD.
 
     TYPE OF CASE: HIGH COURT - W/S                                   
     CASE NO     : HWS00421/2006                                      
     DEFENDANT   : EXXONMOBIL ASIA PACIFIC PTE. LTD.

 

GENERAL COMMENTS

 

Singapore’s Country Rating 2008

 

Investment Grade

 

IN SINGAPORE, THE POLITICAL AND ECONOMIC SITUATION IS VERY GOOD. A QUALITY BUSINESS ENVIRONMENT HAS A POSITIVE INFLUENCE ON CORPORATE PAYMENT BEHAVIOUR. CORPORATE DEFAULT PROBABILITY IS VERY LOW ON AVERAGE.

ECONOMIC GROWTH REMAINED STRONG IN 2007 AND IN Q1 2008 (6.7%) THANKS TO A SHARP INCREASE IN CONSUMPTION SPURRED BY A BRIGHT EMPLOYMENT PICTURE, RISING REAL WAGES, AND A POSITIVE WEALTH EFFECT PRODUCED BY RISING PROPERTY PRICES. IN THIS CONTEXT, BANKRUPTCIES CONTINUE TO DECLINE, AS REFLECTED BY THE FAVOURABLE COFACE PAYMENT INCIDENT INDEX TREND. SINGAPORE MOREOVER BOASTS THE BEST GOVERNANCE IN ASIA THANKS TO AN EFFECTIVE LEGAL SYSTEM AND A GOOD LEVEL OF FINANCIAL TRANSPARENCY.

HOWEVER, A GROWTH SLOWDOWN IS EXPECTED FOR 2008 (4.5%) AMID WEAKER DEMAND GROWTH IN THE UNITED STATES, SINGAPORE'S NUMBER TWO TRADING PARTNER. THE FOREIGN TRADE CONTRIBUTION TO GROWTH WILL THUS DECLINE ESPECIALLY WITH EXPORTS REPRESENTING 210 PER CENT OF GDP.

INFLATION ACCELERATED IN 2007 AND REACHED 7.5% IN MAY 2008 BECAUSE OF RISING RAW MATERIAL PRICES. INDEED, SINGAPORE IMPORTS ALMOST ALL ITS ENERGY AND FOOD. HOWEVER, FOR THE ENTIRE YEAR, INFLATION SHOULD MODERATE AND REACH 2.8%.

THE FINANCIAL SITUATION HAS REMAINED ROBUST AS THE EQUILIBRIUM OF PUBLIC SECTOR FINANCES AND THE SOLIDITY OF A BANKING SYSTEM POISED TO ADOPT BASEL II PRUDENTIAL STANDARDS ATTEST. EXTERNAL ACCOUNTS CONTINUE MOREOVER TO SHOW LARGE SURPLUSES THANKS TO GOOD PERFORMANCE IN A RANGE OF SECTORS INCLUDING ELECTRONICS, TRANSPORT, CONSTRUCTION, TOURISM, AND FINANCIAL SERVICES. THE DECLINE EXPECTED IN THE CURRENT ACCOUNT SURPLUS IN 2008 SHOULD NOT JEOPARDISE SINGAPORE'S EXCEPTIONAL FINANCIAL SOLIDITY.

UNDERPINNED BY SUBSTANTIAL FISCAL RESERVES AND A LARGE MAJORITY IN PARLIAMENT, THE PEOPLE'S ACTION PARTY OF PRIME MINISTER LEE HSIEN LOONG HAS SOUGHT AT ONCE TO MAKE THE CITY-STATE MORE ATTRACTIVE TO FOREIGN INVESTORS AND TO BOLSTER THE SPECIALISATION IN HIGH-VALUE ADDED SECTORS TO MEET THE GROWING COMPETITION FROM LOW-COST ASIAN ECONOMIES. BESIDES REDUCTIONS IN CORPORATE INCOME TAX AND TAX INCENTIVES FOR COMPANIES SETTING UP OPERATIONS IN SINGAPORE, THE GOVERNMENT CONTINUES TO PURSUE ITS INFRASTRUCTURE AND R&D INVESTMENT POLICY.

ASSETS

·         THE COUNTRY HAS BEEN PURSUING AMBITIOUS DIVERSIFICATION STRATEGY, ESPECIALLY TO HIGH VALUE-ADDED SECTORS LIKE CHEMICALS, PHARMACEUTICALS, AND FINANCE.

·         IT IS AMONG THE MOST ADVANCED COUNTRIES OF ASIA IN QUALITY COMPETITIVENESS TERMS.

·         SINGAPORE HAS BECOME A MAJOR EXPORTER OF CAPITAL IN ASIA IN MANY ECONOMIC SECTORS —SUCH AS FINANCE, TELECOMMUNICATIONS, TRANSPORT — NOTABLY VIA THE STATE-OWNED TEMASEK HOLDING COMPANY

·         THE ECONOMY HAS BENEFITED FROM THE COUNTRY'S POLITICAL STABILITY AND EXCELLENT BUSINESS CLIMATE.

 

WEAKNESSES

·         SKILLED LABOUR IS IN SHORT SUPPLY IN THE SECTORS THE COUNTRY WISHES TO DEVELOP.

·         THE AGEING POPULATION COULD ULTIMATELY UNDERMINE ECONOMIC PERFORMANCE.

·         GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.

·         THE VERY OPEN ECONOMY IS VULNERABLE TO A WORLD ECONOMIC DOWNTURN.

 

OVERVIEW OF SINGAPORE

 

PAST PERFORMANCE

 

The Singapore economy grew at a moderate pace of 2.1% in 2Q 2008. On an annualised quarter-on-quarter basis, growth fell by 6.0%, in contrast to the 15.7% growth in the previous quarter.

 

The manufacturing sector fell by 5.2% in 2Q 2008, compared to 2Q 2007. The decline was mainly driven by the biomedical manufacturing cluster which fell by 28.0%.

 

The financial services sector rose by a smaller 10.2% in 1Q 2008, following a 13% gain in 1Q 2008. Growth was across the board, supported by robust expansions in both the domestic and offshore banking segments.

 

The construction sector recorded high growth, rising by 17.4%, following the robust 15% growth in 1Q 2008.

 

The wholesale and retail trade sector grew by 6.0% in 2Q 2008, faster than the 5.5% growth in 1Q 2008. Non-oil re-exports grew by 14.0% in 1Q 2008, higher than the 11.0% growth in 1Q 2008. Excluding motor vehicles, retail sales fell by 1.4% in 2Q 2008, compared to 1Q 2008.

 

The transport and storage sector rose by 5.7% in 2Q 2008, marginally higher than 5.4% in 1Q 2008. This was attributed to the double-digit growth for container throughput.

 

The hotels and restaurants sector grew by a slightly smaller 2.1% in 2Q 2008, following the 2.4% growth in 1Q 2008.

 

The information and communications sector rose 7.6% in 2Q 2008, higher than the 6.8% in 1Q 2008.

 

The business services sector expanded by 7.5%, slower than the 8.3% gain in 1Q 2008.

 

NEWS

 

IT’S RECESSION WATCH 2009

 

THE GLOOM WAS NOT JUST IN THE OFFICIAL NEWS – THAT SINGAPORE HAS SLIPPED INTO TECHNICAL RECESSION, THE FIRST TIME SINCE 2002, AND THAT THIS YEAR’S ECONOMIC GROWTH MIGHT ONLY HIT 3.0%.

 

IT WAS EVEN MORE VISIBLE IN THE OPINION OF SEVERAL ECONOMISTS: NEXT YEAR COULD BE WORSE.

 

CITIGROUP ECONOMIST KIT WEI ZHENG EXPECTS 2009 GROWTH TO BE “SLOWER, OR EVEN NEGATIVE”. THE LAST TIME SINGAPORE EXPERIENCED A FULL-SCALE RECESSION WAS IN 2001, WHEN THE ECONOMY CONTRACTED BY 2.4% DURING THE YEAR.

 

IN FACT, SOME ECONOMISTS FELT THE CURRRENT CRISIS COULD SURPASS THE 1997 ASIAN FINANCIAL CRISIS, ECLIPSING THE POST-911 AND SARS SLUMPS IN RECENT YEARS. OR EVEN THE RECESSIONS TRIGGERED BY THE 1985 PAN ELECTRIC COLLAPSE AND 1973 OIL SHOCK.

 

AND HOW QUICKLY SINGAPORE – THE FIRST ASIAN ECONOMY TO SLIP INTO RECESSION – RECOVERS HINGES ON WHETHER WESTERN GOVERNMENTS AND CENTRAL BANKS CAN RESOLVE THE CREDIT CRISIS IN THE COMING MONTHS.

 

“IN THE WORST-CASE SCENARIOS, IT WILL BE FAR WORSE THAN ANYTHING WE’VE SEEN BEFORE BECAUSE WE ARE TALKING ABOUT JOB LOSSES WHICH WILL CUT ACROSS ALL INDUSTRIES,” SAID CIMB-GK REGIONAL ECONOMIST SONG SENG WUN.

 

AND WHILE THE GOVERNMENT IS EXPECTED TO DIP INTO ITS COFFERS, THE ABILITY TO STIMULATE THE ECONOMY COULD BE HINDERED BY THE RESOURCE CRUNCH IN THE CONSTRUCTION SECTOR.

 

SAID SINGAPORE MANAGEMENT UNIVERSITY ECONOMICS PROFESSOR DAVIN CHOR:”THE CONSTRUCTION SECTOR HAS RELATIVELY LIMITED CAPACITY TO EXPAND IN THE SHORT TERM.”

 

BUT MR SONG ARGUED THAT THE CONSTRUCTION CRUNCH COULD BE A BLESSING IN DISGUISE, GIVEN THAT BUILDING COSTS WOULD “TUMBLE QUICKLY” BY THE FIRST QUARTER OF NEXT YEAR. SAID MR SONG: “PROJECTS, WHICH HAVE BEEN PUT ON THE BACKBURNER, CAN BE BROUGHT FORWARD.”

 

AND WHILE MUCH HOPES ARE PINNED ON THE UPCOMING MARINA BAY SANDS INTEGRATED RESORT – SLATED TO OPEN ITS DOORS NEXT YEAR – EXPERTS ARE CAUTIOUS ABOUT ITS IMPACT, ESPECIALLY LAS VEGAS SANDS – WHICH CLINCHED THE LICENCE TO BUILD THE IR – HAS SEEN GAMING EARNINGS FALL IN ITS CHIEF MARKETS IN THE US AND MACAU.

 

SAID FORECAST ECONOMIST VISHNU VARATHAN: “FROM THE OPERATORS’ POINT OF VIEW, THEY MAY BE FACING THEIR OWN FINANCIAL DIFFICULTIES. AND A SLOWING ECONOMY MEANS FEWER VISITORS, LESS SPENDING POWER.”

 

WHEN CONTACTED, MARINA BAY SANDS GENERAL MANAGER GEORGE TANASIJEVICH SAID THE GROUP “REMAINS 100% COMMITTED TO SINGAPORE AND TO HELPING SINGAPORE ACHIEVE ITS TOURISM GOALS”.

 

PRIME MINISTER LEE HSIEN LOONG REITERATED ON FRIDAY THAT SINGAPORE IS WELL-PLACED TO RIDE THROUGH THE “FINANCIAL STORM”, BUOYED BY THE MOMENTUM FROM PROJECTS SUCH AS THE RECENT SINGAPORE GRAND PRIX. SAID MR LEE:”OUR FINANCIAL SYSTEM IS SOUND, AND OUR ECONOMY REMAINS COMPETITIVE.

 

“OVER THE LAST FEW YEARS, WHEN CONDITIONS WERE GOOD, WE HAD CONSCIOUSLY DECIDED TO MAKE THE BEST OF THE GOOD TIMES AND PRESSED ON WITH UPGRADING AND DIVERSIFYING OUR ECONOMY. THIS WILL MEAN NEW AND BETTER JOBS, EVEN IF SOME OLD ONES ARE LOST.”

 

MR VARATHAN EXPECTS THE ECONOMY TO GROW 3.0% NEXT YEAR – MATCHING THE OFFICIAL FORECAST FOR GROWTH THIS YEAR.

 

UOB ECONOMIST HO WOEI CHEN FEELS THAT THE WORST IS YET TO COME.

 

SAID MD HO: “THE BANKS ARE THE ONES WHO HAVE BEEN HURT… WE WILL SEE THE CRISIS TRANSLATING INTO THE REAL SECTORS OF THE ECONOMY.”

 

MANUFACTURING WILL CONTINUE TO BE A DRAG ON THE ECONOMY, WITH THE RETAIL AND SERVICES INDUSTRY POISED FOR A HIT. BUT SINGAPORE, WHERE THE BANKING SCENE IS DOMINATED BY PRIVATE BANKING, WOULD LIKELY BE HURT LESS THAN ITS RIVAL HONG KONG, ASIA’S CENTRE FOR INVESTMENT BANKING, SAID MS HO.

 

MR VARATHAN EXPECTS INDUSTRIES DEALING IN ENERGY, FOOD AND WATER – WHICH ARE NOT KEY DRIVERS OF SINGAPORE’S ECONOMY – TO BE SHIELDED FROM THE DOWNTURN.

 

OUTLOOK

 

THE COMPOSITE LEADING INDEX (CLI) ROSE MARGINALLY BY 0.5% IN 2Q 2008, FOLLOWING THE 2.8% DECLINE IN 1Q 2008. OF THE NINE COMPONENTS WITHIN THE INDEX, THREE COMPONENTS RECORDED DECLINES WHILE THE REMAINING SIX COMPONENTS ROSE MARGINALLY. THE SIX INDICATORS THAT REGISTERED IMPROVEMENTS ARE THE MONEY SUPPLY, NON-OIL SEA CARGO HANDLED, STOCK PRICE, US PURCHASING MANAGER’S INDEX, STOCK OF FINISHED GOODS AND DOMESTIC LIQUIDITY.

 

OVERALL, THE SINGAPORE ECONOMY REMAINED RESILENT IN 1ST HALF OF 2008, DESPITE THE SLOWDOWNS IN MAJOR EXTERNAL ECONOMIES AND GLOBAL INFLATION CONCERNS. THE ECONOMY GREW BY 4.5% IN 1ST HALF OF 2008.

 

LOOKING AHEAD, THE GLOBAL ECONOMIC ENVIRONMENT WILL REMAIN WEAK FOR THE REST OF THE YEAR AND WELL INTO 2009. THE DEVELOPED ECONOMIES ARE EXPERIENCING A BROAD SLOWDOWN IN ECONOMIC ACTIVITY. SLUGGISH GROWTH IS EXPECTED OVER THE NEXT SIX TO TWELVE MONTHS, AS THE EFFECTS OF THE US FINANCIAL AND HOUSING SLUMPS RIPPLE ITS EFFECT THROUGHOUT THE WORLD. THESE WILL HAVE AN ADVERSE IMPACT ON EMPLOYMENT, BUSINESS CONFIDENCE, CONSUMER SPENDING AND OVERALL DEMAND. EMERGING ECONOMIES PARTICULARY THOSE IN ASIA, HAVE CONTINUED TO GROW, PROVIDING SOME SUPPORT TO GLOBAL DEMAND AND GROWTH. HOWEVER, THE US AND EUROPE SLOWDOWN WILL HAVE A DOWNSIDE IMPACT ON THE ASIAN ECONOMIES. AT THE SAME TIME, INFLATION CONTINUES TO PERSIST AND POSES A CHALLENGE FOR POLICY MAKERS IN COUNTRIES SUCH AS CHINA, INDIA, INDONESIA AND VIETNAM.

 

THE PACE OF GROWTH OF SINGAPORE’S ECONOMY HAS SLOWED DOWN, ATTRIBUTED MAINLY TO WEAKNESSES IN DOMESTIC AND EXTERNAL DEMAND. WHILE THE COMPOSITE LEADING INDICATOR POINTS TOWARDS A SLIGHT PICKUP, BUSINESS PERFORMANCE OF PERFORMANCE ACROSS THE SECTORS ARE MIXED.

 

IN VIEW OF THE OUTLOOK FOR THE MAJOR SECTORS AND A SLOWDOWN IN THE GLOBAL ECONOMIC ENVIRONMENT, THE MINISTRY OF TRADE AND INDUSTRY LOWERED THE 2008 GDP GROWTH FORECAST FROM 4.0-6.0% IN THE LAST QUARTER, TO 4.0-5.0%.

 

IN THE FINANCIAL SERVICES INDUSTRY, MAJORITY OF THE BANKS AND FINANCE COMPANIES FORECAST BUSINESS OUTLOOK TO REMAIN THE SAME FOR THE 2ND HALF OF 2008 OVER THE 1ST HALF OF 2008. BANKS AND FINANCE COMPANIES ARE MORE OPTIMISTIC WHILE STOCK, SHARE AND BOND BROKERS, FUND MANAGERS AND INSURANCE COMPANIES FORECAST SLOWER BUSINESS ACTIVITY IN THE COMING MONTHS, MAINLY DUE TO UNCERTAINTY IN THE INVESTMENT CLIMATE AND GLOBAL ECONOMY.

 

IN THE REAL ESTATE INDUSTRY, A NET WEIGHTED BALANCE OF 17% OF FIRMS PREDICTS

A SLOWER BUSINESS CLIMATE FOR THE COMING MONTHS.

 

IN THE SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 24% OF FIRMS, EXPECT BUSINESS TO BE BRISK FOR THE COMING MONTHS WHILE A WEIGHTED 22% OF FIRMS PROJECTS LESS FAVOURABLE BUSINESS CONDITIONS. MAJORITY OF THE FIRMS (A WEIGHTED 54%) EXPECT BUSINESS ACTIVITIES TO REMAIN STABLE FOR THE COMING MONTHS. THIS RESULTS IN A NET WEIGHTED BALANCE OF 2% OF FIRMS EXPECTING A POSITIVE BUSINESS OUTLOOK. THIS MAGNITUDE IS SMALLER THAN THE NET WEIGHTED BALANCE OF 28% REGISTERED IN THE SAME PERIOD FOR 2007 (IE JUL – DEC 2007) AND COMPARABLE TO THE NET WEIGHTED BALANCE OF 3% RECORDED FOR APR-SEP 2008 IN THE PREVIOUS QUARTER.

 

GENERALLY, THE MAJORITY OF WHOLESALERS, WITH A NET WEIGHTED BALANCE OF 55% OF FIRMS, FORECASTS BUSINESS ACTIVITIES IN THE COMING MONTHS, TO REMAIN AT SIMILAR LEVELS. FOR THE REMAINING WHOLESALE FIRMS, A WEIGHTED 22% OF THEM EXPECTS BETTER BUSINESS CONDITIONS TO IMPROVE. THESE FIRMS ARE MAINLY IN THE BUSINESS OF WHOLESALE TRADE OF INDUSTRIAL MACHINERY AND EQUIPMENT, ELECTRONIC COMPONENTS, AND COMPUTER AND ACCESSORIES. ON THE OTHER HAND, A WEIGHTED 23% OF WHOLESALERS, MAINLY FROM FOOD AND BEVERAGES, AND PETROLEUM AND PETROLEUM PRODUCTS, FORECAST BUSINESS CONDITIONS TO DETERIORATE IN THE COMING MONTHS. ON THE WHOLE, A NET WEIGHTED BALANCE OF 1% OF FIRMS EXPECTS GENERAL BUSINESS OUTLOOK TO REMAIN LESS FAVOURABLE.

 

A NET WEIGHTED BALANCE OF 20% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE PERIOD ENDING DECEMBER 2008. MOTOR VEHICLES RETAILERS, AND JEWWELLERY AND WATCHES CONTINUE TO PREDICT SLOWER SALES IN THE MONTHS AHEAD.

 

IN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 8% OF FIRMS FORECASTS BETTER FAVOURABLE BUSINESS CONDITIONS FOR THE COMING MONTHS. THE SEGMENTS EXPECTING HIGHER BUSINESS ACTIVITIES ARE LAND TRANSPORT AND SHIPPING LINES.

 

HOTELIERS REMAIN CONFIDENT ABOUT THE BUSINESS CLIMATE IN THE MONTHS AHEAD, WITH A NET WEIGHTED BALANCE OF 37% OF HOTELIERS EXPECTING THEIR BUSINESSES TO IMPROVE. IN THE CATERING TRADE INDUSTRY, BUSINESS CONDITIONS ARE EXPECTED TO BE LESS OPTIMISTIC. IN PARTICULAR, CONVENTIONAL RESTAURANTS AND FOOD CATERERS MENTIONED HIGH OPERATING COSTS AS THE REASON FOR THE LESS POSITIVE OUTLOOK.

 

IN THE INFORMATION AND COMMUNICATIONS INDUSTRY, A NET WEIGHTED BALANCE OF 12% OF FIRMS PREDICTS BETTER BUSINESS.

 

IN THE BUSINESS SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 17% OF FIRMS PREDICTS POSITIVE SENTIMENTS. THESE INCLUDE THOSE ENGAGED IN ENGINEERING, INDUSTRIAL DESIGN, TECHNICAL TESTING AND ANALYSIS, AND INVESTIGATION AND SECURITY ACTIVITIES.

 

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

                SINGAPORE DEPARTMENT OF STATISTICS

                TODAY

 

               

FOREIGN EXCHANGE RATES

 

Currency
Unit

Indian Rupees

US Dollar

1

Rs.49.69

UK Pound

1

Rs.72.96

Euro

1

Rs.63.46

 

 

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