MIRA INFORM REPORT

Report Date :

11.12.2008

IDENTIFICATION DETAILS

Name :	ELECTRONICS FOR IMAGING SINGAPORE PTE LTD
Registered Office :	3 Church Street #08-01 049483
Country :	Singapore
Date of Incorporation :	01.11.1997
Com. Reg. No.:	199707488K
Legal Form :	Pte Ltd
Line of Business :	Dealing with Software and Hardware

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 :	Satisfactory
Payment Behaviour :	Regular
Litigation :	Clear

Subject Company

ELECTRONICS FOR IMAGING SINGAPORE PTE LTD

Line Of Business 

DEALING WITH SOFTWARE AND HARDWARE

Parent Company

ELECTRONICS FOR IMAGING INC

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2007

COMPANY

Sales : S$1,535,041

Networth : S432,663

Paid-Up Capital : S$2

Net result : S$76,321

Net Margin(%) : 4.97

Return on Equity(%) : 17.64

Leverage Ratio : 0.37

COMPANY IDENTIFICATION

Subject Company :	ELECTRONICS FOR IMAGING SINGAPORE PTE LTD
Business Address:	3 CHURCH STREET #08-01
Town:	SINGAPORE
Postcode:	049483
Country:	Singapore
Telephone:	6220 1355
Fax:	6226 2516
ROC Number:	199707488K
Easy Number company:	00004509708660

SUMMARY

Legal Form:	Pte Ltd
Date Inc.:	01/11/1997
Summary year :	31/12/2007
All amounts in this report are in :	SGD
Sales:	1,535,041
Networth :	432,663
Capital:
Paid-Up Capital:	2
Net result :	76,321
Share value:

BASED ON ACRA'S RECORD 
  NO OF SHARES CURRENCY  AMOUNT 
ISSUED ORDINARY  2  SGD  2.00  
PAID-UP ORDINARY   -  SGD   2.00
AUDITOR : LOKE LUM & PARTNERS

REFERENCES

Litigation:	No
Company status :	TRADING
Started :	01/11/1997

PRINCIPAL(S)

RAMIN KAZEMI

G6070034L

Director

DIRECTOR(S)

YEO POH NOI CAROLINE	S1340579D	Company Secretary
Appointed on :	01/05/2001
Street :	16 CHILTERN DRIVE BRADDELL HEIGHTS ESTATE
Town:	SINGAPORE
Postcode:	359735
Country:	Singapore
FRED STEVEN ROSENZWEIG	027208643	Director
Appointed on :	14/03/2008
Street :	303 VELOCITY WAY FOSTER CITY CA 94404
County:	CA
Country:	United States
RAMIN KAZEMI	G6070034L	Director
Appointed on :	26/03/2008
Street :	5 SHENTON WAY #21-12 UIC BUILDING
Town:	SINGAPORE
Postcode:	068808
Country:	Singapore

ACTIVITY(IES)

Activity Code:

16445

PHOTO COPY MACHINES And SUPPLIES

 
BASED ON ACRA'S RECORD 
1) MANUFACTURE OF PHOTOCOPYING EQUIPMENT; 
 TO MARKET AND SUPPORT THE ELECTRONIC OFFICE EQUIPMENT OF THE 
 HEAD OFFICE
 

SHAREHOLDERS(S)

ELECTRONICS FOR IMAGING INC.

2

Company

Street :	2855 CAMPUS DRIVE, CA 94403
Town:	SAN MATEO
County:	CA
Postcode:	94403
Country:	United States

HOLDING COMPANY

ELECTRONICS FOR IMAGING INC.

UF24414R

100%

PAYMENT HISTORY AND EXPERIENCES

Trade Morality:	AVERAGE
Liquidity :	SUFFICIANT
Payments :	REGULAR
Trend :	UPWARD
Financial Situation:	AVERAGE

FINANCIAL ELEMENTS

All amounts in this report are in :

SGD

Audit Qualification:	UNQUALIFIED (CLEAN) OPINION	UNQUALIFIED (CLEAN) OPINION
Date Account Lodged:	12/09/2008
Balance Sheet Date:	31/12/2007	31/12/2006
Number of weeks:	52	52
Consolidation Code:	COMPANY	COMPANY

--- ASSETS
Tangible Fixed Assets:	21,412	40,994
Total Fixed Assets:	21,412	40,994
Receivables:	387,419	312,790
Cash,Banks, Securitis:	170,748	133,892
Total Current Assets:	558,167	446,682
TOTAL ASSETS:	579,579	487,676
--- LIABILITIES
Equity capital:	2	2
Profit & lost Account:	432,661	356,340
Total Equity:	432,663	356,342
Provisions:	9,576	6,864
Other Short term Liab.:		15,175
Total short term Liab.:	146,916	131,334
Prepay. & Def. charges:	137,340	109,295
TOTAL LIABILITIES:	146,916	131,334
--- PROFIT & LOSS ACCOUNT
Net Sales	1,535,041	1,378,728
NET RESULT BEFORE TAX:	88,321	73,631
Tax :	12,000	6,086
Net income/loss year:	76,321	67,545
Depreciation:	25,870	29,212
Wages and Salaries:	731,924	654,502

RATIOS

Date Account Lodged:	31/12/2007	31/12/2006
Net result / Turnover(%):	0.05	0.05
Net Margin(%):	4.97	4.9
Return on Equity(%):	17.64	18.96
Return on Assets(%):	13.17	13.85
Net Working capital:	411251	315348
Cash Ratio:	1.16	1.02
Quick Ratio:	3.8	3.4
Current ratio:	3.8	3.4
Receivables Turnover:	90.86	81.67
Leverage Ratio:

 
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
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 21.42% FROM S$356,342 IN FY 2006 TO S$432,663 IN FY 2007. THIS WAS DUE TO HIGHER ACCUMULATED PROFIT OF S$432,661 (2006:S$356,340); A RISE OF 21.42% FROM THE PRIOR FINANCIAL YEAR. 
 
LEVERAGE:
IN THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY PREPAYEMENT AND DEFERRED CHARGES WHICH MADE UP 93.48% (2006: 83.22%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO S$137,340 (2006: S$109,295). 
 
IN ALL, LEVERAGE RATIO FELL FROM 0.37 TIMES TO 0.34 TIMES AS A RESULT OF A GREATER RELATIVE RISE IN TOTAL EQUITY THAN TOTAL LIABILITIES.  
 
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 3.80 TIMES, UP FROM 3.40 TIMES AND QUICK RATIO IMPROVED TO 3.80 TIMES FROM 3.40 TIMES IN FY 2006. 
 
SIMILARLY, NET WORKING CAPITAL IMPROVED BY 30.41% FROM S$315,348 IN FY 2006 TO S$411,251.
  
PROFITABILITY: 
REVENUE POSTED AN INCREASE OF 11.34% FROM S$1,378,728 IN FY 2006 TO S$1,535,041 AND NET PROFIT IMPROVED BY 12.99% TO S$76,321 (2006 S$67,545). HENCE, NET MARGIN ROSE TO 4.97% (2006: 4.90%).
 
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 81.67 DAYS TO 90.86 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.

BACKGROUND/OPERATION

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 01/11/1997 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "ELECTRONICS FOR IMAGING SINGAPORE PTE LTD" 
 
THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 2 SHARES, OF A VALUE OF S$2. 
 
PRINCIPAL ACTIVITIES: 
SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY  
AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:
1) MANUFACTURE OF PHOTOCOPYING EQUIPMENT; 
 TO MARKET AND SUPPORT THE ELECTRONIC OFFICE EQUIPMENT OF THE 
 HEAD OFFICE  
 
DURING THE FINANCIAL YEAR UNDER REVIEW,THE PRINCIPAL ACTIVITY OF THE
COMPANY CONSISTS OF THE PROVISION OF MARKETING SUPPORT SERVICES FOR 
ITS HOLDING AND RELATED CORPORATIONS. 
 
FROM THE RESEARCH CONDUCTED, THE FOLLOWING INFORMATION WAS GATHERED:
SUBJECT IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE  
CLASSIFICATION OF: DIGITAL IMAGING EQUIPMENT & SUPPLIES 
 
BACKGROUND OF THE SUBJECT'S PARENT COMPANY: 
HEADQUARTERED IN FOSTER CITY, CA, WITH 26 WORLDWIDE OFFICES, EFI™ IS A
LEADER IN DIGITAL PRINT. THE COMPANY LEADS THE PRINT INDUSTRY'S 
TRANSFORMATION FROM ANALOG TO DIGITAL COLOR THROUGH VALUE-ADDED 
COMBINATIONS OF HARDWARE, SOFTWARE AND CONSUMABLES. WE ALSO PROVIDE 
SERVICES AND SUPPORT TO HANDLE ALL BUSINESSES' PRINT NEEDS, WHETHER 
THEY ARE FORTUNE 500 COMPANIES OR MOM AND POP SHOPS.
 
EFI'S POWERFUL FIERY® PRINT SERVERS AND CONTROLLERS HAVE A PROVEN 
TRACK RECORD FOR INDUSTRY-LEADING SOLUTIONS. OUR HIGH-PERFORMANCE 
FIERY PRODUCTION PRINTING, GRAPHIC ARTS AND CORPORATE SOLUTIONS ARE 
KNOWN FOR SPEED, POWER AND PRECISION AND INTEGRATE INTO ANY BUSINESS' 
WORKFLOW.
 
EFI'S VUTEK® RELIABLE SUPERWIDE DIGITAL INKJET PRINTERS HAVE A 
REPUTATION FOR SPEED, HIGH PRODUCTIVITY AND EXCEPTIONAL COLOR QUALITY 
AND PRINT ON A VARIETY OF SUBSTRATES. ITS EXTENSIVE LINE OF HIGH- 
QUALITY INKS ARE KNOWN FOR PURITY, CONSISTENCY AND DURABILITY.
OUR GLOBALLY-OPTIMIZED PRINT MANAGEMENT INFORMATION SYSTEMS (PRINT 
MIS) MAKE COMPANIES RUN MORE EFFICIENTLY AND INCREASE REVENUE BY 
STREAMLINING BUSINESS PROCESSES, MAXIMIZING RESOURCES AND ELIMINATING 
REDUNDANT OPERATION.
 
EFI'S WEB-TO-PRINT TOOLS ADD SOPHISTICATED CAPABILITIES SUCH AS 
AUTOMATED SALES QUOTES, SCHEDULING, PERSONALIZED INFORMATION AND 
FULFILLMENT TO BUILD CUSTOMER LOYALTY, WHILE GENERATING GREATER 
PROFITS.
 
OUR PRODUCTION WORKFLOW SOLUTIONS IMPROVE YOUR PRODUCTIVITY ACROSS THE
PRINTING CYCLE, WHILE INTUITIVE USER INTERFACES REDUCE OPERATOR ERROR,
DECREASE TURNAROUND TIMES AND STREAMLINE THE JOB CYCLE. 
 
THE COMPANY'S CORPORATE SOLUTIONS ENABLE ANYONE IN THE OFFICE TO
PRODUCE, DISTRIBUTE AND MANAGE PROFESSIONAL-LOOKING DOCUMENTS. THEY 
ALSO REDUCE COSTS AND SAVE PRECIOUS TIME AND MONEY. IN ADDITION, THEY 
ALLOW BUSINESSES TO QUICKLY AND EASILY SCAN, ASSEMBLE AND EDIT 
DOCUMENTS USING COPIERS, SCANNERS AND OTHER MULTI-FUNCTIONAL DEVICES. 
EFI'S PROOFING SOLUTIONS SAVE BUSINESSES TIME, REDUCE COSTS AND
ACHIEVE HIGH COLOR QUALITY. THE PROOFING, PHOTO AND LARGE FORMAT 
SOLUTIONS ARE FLEXIBLE, AFFORDABLE AND PROVIDE ADVANCED COLOR 
MANAGEMENT PRODUCTION TOOLS. THEY ALSO WORK WITH OTHER ILLUSTRATION, 
PHOTO AND LAYOUT APPLICATIONS AND INTEGRATE WITH WINDOWS® AND 
MACINTOSH® ENVIRONMENTS.
  
EFI'S JETRION INDUSTRIAL INKJET SYSTEMS SPAN THE COMPLETE SPECTRUM OF 
INDUSTRIAL INKJET PRODUCTS, SERVICES AND CUSTOM HIGH-PERFORMANCE 
INTEGRATION SYSTEMS IN THE PRINTING, CONVERTING, PACKAGING AND DIRECT 
MAIL INDUSTRIES.
  
MARKET PRESENCE: 
* WORLDWIDE 
  
FROM THE TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS GATHERED: 
 
SUBJECT MAIN BUSINESS ACTIVITY IS DEALING WITH SOFTWARE AND HAREWARE. 
 
NO OTHER TRADE INFORMATION WAS MADE AVAILABLE 
 
THE IMMEDIATE AND HOLDING COMPANY IS ELECTRONICS FOR IMAGING INC, A 
COMPANY REGISTERED IN UNITED STATES OF AMERICA. 
 
REGISTERED ADDRESS:
3 CHURCH STREET 
#08-01 
SINGAPORE 049483 
DATE OF CHANGE OF ADDRESS: 18/12/2006
BUSINESS ADDRESS: 
5 SHENTON WAY 
#21-08A 11 & 12 
UIC BUILDING 
SINGAPORE 068808
  
WEBSITE: 
http://www.efi.com 
(PARENT COMPANY)
 
EMAIL: -

MANAGEMENT

THE DIRECTORS AT THE TIME OF THIS REPORT ARE: 
 
1) FRED STEVEN ROSENZWEIG, AN AMERICAN 
 - BASED IN UNITED STATES OF AMERICA
 
2) RAMIN KAZEMI, AN AMERICAN  
 - BASED IN SINGAPORE
 

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 CHALLENGES 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.48.52
UK Pound	1	Rs.72.62
Euro	1	Rs.63.76

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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