MIRA INFORM REPORT

Report Date :

06.02.2008

IDENTIFICATION DETAILS

Name :	BUNGE AGRIBUSINESS SINGAPORE PTE LTD

Registered Office :	^{77 Robinson Road} ^#28-00 ^{Sia Building}

Country :	Singapore

Financials (as on) :	31.12.2006

Date of Incorporation :	^11.12.1997

Com. Reg. No.:	^199708376W

Legal Form :	^{Pte Ltd}

Line of Business :	Providing Agricultural Commodity Marketing Services for Group Companies, Trading In Commodities and Investment Holding

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
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

Status :	Good

Payment Behaviour :	Regular

Litigation :	Clear

Subject Company

BUNGE AGRIBUSINESS SINGAPORE PTE LTD

Line Of Business

PROVIDING AGRICULTURAL COMMODITY MARKETING SERVICES FOR GROUP

COMPANIES, TRADING IN COMMODITIES AND INVESTMENT HOLDING

Parent Company

BUNGE LIMITED

(PERCENTAGE OF SHAREHOLDINGS: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : US$ 3,659,086,947

Networth : US$ 7,125,685

Paid-Up Capital : US$ 576,999

Net result : US$ 7,164,326

Net Margin(%) : 0.20

Return on Equity(%) : 100.54

Leverage Ratio : 40.32

COMPANY IDENTIFICATION

^{Subject
Company :
BUNGE AGRIBUSINESS SINGAPORE PTE LTD}

^{Former
Name : -}

^{Business
Address :
77 ROBINSON ROAD}

^#28-00

^SIA
BUILDING

^{Town :
SINGAPORE}

^{Postcode :
068896}

^{Country :
Singapore}

^{Telephone :
6227 0090}

^{Fax : 6225 0132/6227 7335}

^{ROC
Number :
199708376W}

^{Reg.
Town : -}

SUMMARY

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

^{Legal
Form :}^{Pte Ltd}

^{Date
Inc. :
11/12/1997}

^{Previous
Legal Form :
-}

^{Summary
year :
31/12/2006}

^{Sales :
3,659,086,947}

^{Networth
:
7,125,685}

^{Capital :
-}

^{Paid-Up
Capital :
576,999}

^{Employees :
50}

^{Net
result :
7,164,326}

^{Share
value :
1}

^{Auditor :
DELOITTE & TOUCHE}

^{BASED
ON ACRA'S RECORD}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED
ORDINARY 1,000,000 SGD
1,000,000.00}

^{PAID-UP
ORDINARY - SGD 1,000,000.00}

REFERENCES

^{Litigation: No}

^{Company
status : TRADING}

^{Started
: 11/12/1997}

PRINCIPAL(S)

^{CHRISTOPHER
SILVA WHITE
G5704709M Director}

DIRECTOR(S)

^{ARCHIBALD
LLEWLLYN GWATHMEY 024620294 Managing Director}

^{Appointed
on : 15/11/1999}

^{Street
: 11
HEMLOCK ROAD BRONXVILLE}

^{Town: NEW YORK}

^{Postcode: 10708}

^{Country: United States}

^{ARCHIBALD
LLEWLLYN GWATHMEY 024620294 Director}

^{Appointed
on : 15/07/1999}

^{Street
: 11 HEMLOCK ROAD
BRONXVILLE}

^{Town: NEW YORK}

^{Postcode: 10708}

^{Country: United
States}

^{CHRISTOPHER
SILVA WHITE G5704709M Director}

^{Appointed
on : 06/06/2003}

^{Street
: 79 ANSON ROAD}

^#05-02

^{PHEONIX TOWER}

^{Town: SINGAPORE}

^{Postcode: 079906}

^{Country: Singapore}

^{CHEW
CHEN YEAN
S1295815C Company Secretary}

^{Appointed
on : 01/07/2003}

^{Street
: 133 SERANGOON AVENUE 3}

^#08-11

^{CHILTERN PARK CONDOMINIUM}

^{Town: SINGAPORE}

^{Postcode: 556113}

^{Country: Singapore}

^{CHOONG
MOH HUAT
S2599756E Director}

^{Appointed
on : 13/06/2007}

^{Street
: 119 SUNSET WAY}

^#05-03

^{CLEMENTI PARK}

^{Town: SINGAPORE}

^{Postcode: 597151}

^{Country: Singapore}

FORMER DIRECTOR(S)

^{LEENDERT
TAMEERIS S2700847Z}

^{TAN
CHENG SIEW @ NUR FARAH TAN
S6920790A}

^{PETER
CLARK MC CALLUM 025337285}

^{DAVID
ANTHONY DUER 073941404}

ACTIVITY(IES)

^{AGRICULTURAL
MARKETING
Code:370}

^{HOLDING
COMPANIES
Code:11320}

^{COMMODITY
TRADERS
Code:5010}

^{BASED
ON ACRA'S RECORD}

^{1)
COMMODITY BROKERS AND DEALERS; PROVIDING AGRICULTURAL COMMODITY}

^{MARKETING
SERVICES AND TRADING IN COMMODITIES}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{DEUTSCHE BANK AG}

SHAREHOLDERS(S)

^{BUNGE
LIMITED
1,000,000 Company}

^{Street
: CLARENDON HSE CHURCH ST
HAMILTON}

^BERMUDA

^{Town: -}

^{Postcode: -}

^{Country: Bermuda}

HOLDING COMPANY

^{BUNGE
LIMITED
UF27987Z % : 100}

SUBSIDIARY(IES)

^{BUNGE
AGRIBUSINESS (M) SDN BHD}

^{BUNGE
INTERNATIONAL TRADING (SHANGHAI) CO., LTD}

^{P.T.
BUNGE AGRIBUSINESS INDONESIA}

^{BUNGE
GLOBAL MARKETS AUSTRALIA} ^{PTY LTD}

^{BUNGE
AGRIBUSINESS PHILIPPINES, INC}

^{BUNGE
(THAILAND) LTD}

PAYMENT HISTORY AND EXPERIENCES

^{Trade
Morality :
AVERAGE}

^{Liquidity
:
SUFFICIENT}

^{Payments
: REGULAR}

^{Trend
:
UPWARD}

^{Financial
Situation : AVERAGE}

FINANCIAL ELEMENTS

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

^{Date
Account Lodged:
28/12/2007}

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

^{Number
of weeks:
52
52}

^{Consolidation
Code: COMPANY COMPANY}

^{--- ASSETS} ^---

^{Preliminary
Exp 2,613,134 12,977,528}

^{Tangible
Fixed Assets:
365,697 524,273}

^{Investments 523,388 523,388}

^{Total Fixed Assets: 3,502,219 14,025,189}

^{Inventories: 59,789,459
33,842,947}

^{Receivables: 172,254,828 196,940,103}

^{Cash,Banks,
Securitis: 1,007,751 131,254}

^{Other
current assets:
57,910,951
3,532,667}

^{Total Current Assets: 290,962,989 234,446,971}

^{TOTAL ASSETS: 294,465,208 248,472,160}

^{--- LIABILITIES} ^---

^{Equity
capital:
576,999
576,999}

^{Profit
& lost Account: 6,548,686 -615,640}

^{Total Equity: 7,125,685 -38,641}

^{Trade
Creditors:
233,650,673
238,530,566}

^{Due
to Bank: 224,952 -}

^{Provisions: 880,808 -}

^{Other
Short term Liab.:
48,591,980
8,628,617}

^{Prepay. & Def. charges: 3,991,110 1,351,618}

^{Total short term Liab.: 287,339,523 248,510,801}

^{TOTAL LIABILITIES: 287,339,523 248,510,801}

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

^{Net
Sales
3,659,086,947
2,405,819,255}

^{Purchases,Sces & Other Goods: 3,626,905,114 2,390,433,880}

^{Gross
Profit:
32,181,833
15,385,375}

^{NET
RESULT BEFORE TAX:
8,348,034
-3,880,365}

^{Tax
: 1,183,708 -25,540}

^{Net
income/loss year:
7,164,326
-3,854,825}

^{Interest
Paid:
6,503,667
4,182,921}

^{Depreciation: 229,826 204,380}

^{Directors
Emoluments:
700,482
588,400}

^{Wages
and Salaries:
10,827,331 6,837,322}

^{Financial
Income:
3,586,231
1,127,727}

RATIOS

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

^{Turnover
per employee: 73181738.94 48116385.10}

^{Net
result / Turnover(%): 0.00 -0.00}

^{Stock
/ Turnover(%): 0.02 0.01}

^{Net
Margin(%): 0.20 -0.16}

^{Return
on Equity(%): 100.54 9976.00}

^{Return
on Assets(%): 2.43 -1.55}

^{Net
Working capital: 3623466.00 -14063830.00}

^{Cash
Ratio: 0.00 0.00}

^{Quick
Ratio: 0.60 0.79}

^{Current
ratio: 1.01 0.94}

^{Receivables
Turnover: 16.95 29.47}

^{Leverage
Ratio: 40.32 -6431.27}

^{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)/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 DEEMED TO BE FAIR IN} ^{VIEW OF THE
FOLLOWING:}

^{NET WORTH:}

^{THE
BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH OF} ^{US$7,125,685
(2005: US$-38,641). THIS WAS ATTRIBUTED TO ACCUMULATED} ^PROFITS ^{BROUGHT FORWARD OF US$6,548,686 (2005: US$615,640).}

^LEVERAGE:

^{IN
THE SHORT-TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS} ^{WHICH MADE
UP 81.32% (2005: 95.98%) OF THE TOTAL CURRENT LIABILITIES} ^{AND
AMOUNTED TO US$233,650,673 (2005: US$238,530,566). THE BREAKDOWN} ^{WAS
AS FOLLOWS:}

^{*TRADE
CREDITORS - 2006: US$34,882,665 (2005: US$23,145,370)}

^{*RELATED
COMPANIES - 2006: US$198,567,103 (2005: US$215,211,918)}

^{*SUBSIDIARY
- 2006: US$200,905 (2005: US$173,278)}

^{IN
ALL, LEVERAGE RATIO INCREASED FROM -6431.27 TIMES TO 40.32 TIMES AS} ^{A RESULT} ^{OF A RISE IN TOTAL LIABILITIES.}

^LIQUIDITY:

^{THE OVERALL
LIQUIDITY OF THE COMPANY WAS CONSIDERED PASSABLE WITH NET} ^{WORKING
CAPITAL IMPROVED BY 1.26 TIMES TO US$3,623,466 (2005: US$-} ^{14,063,830).
BOTH THE QUICK AND CURRENT RATIOS WERE REGISTERED AT 0.60} ^{TIMES
(2005: 0.79 TIMES) AND} ^{1.01 TIMES (2005: 0.94 TIMES) RESPECTIVELY.}

^{PROFITABILITY:}

^{REVENUE FOR FY
2006 INCREASED BY 52.09% AMOUNTING TO US$3,659,086,947} ^{(2005:
US$2,405,819,255). THERE WAS NET PROFIT OF US$7,164,326 (2005:} ^{US$-3,854,825),
AN IMPROVEMENT OF 2.86 TIMES FROM THE PRIOR FINANCIAL} ^{YEAR. HENCE,
NET MARGIN IMPROVED TO 0.20% (2005: -0.16%).}

^{REVENUE
COMPRISED OF:}

^{*SALES
- 2006: US$3,658,577,074 (2005: US$2,402,777,070)}

^{*COMMISSION
INCOME - 2006: US$509,873 (2005: US$3,042,185)}

^{DEBT SERVICING:}

^{DEBT
SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS} ^{CAN BE
MAINTAINED AND PAYMENTS BY TRADE DEBTORS ARE FORTHCOMING.}

^{THE
AVERAGE COLLECTION PERIOD HAS SHORTENED TO 17 DAYS (2005: 29} ^DAYS).

^{NON-CURRENT
ASSETS:}

^{THIS
ITEM IS CLASSIFIED AS PRELIMINARY:}

^{*TRADE
RECEIVABLES - 2006: US$2,613,134 (2005: US$12,977,528)}

^{NOTES
TO THE FINANCIAL STATEMENTS:}

^{BANK
OVERDRAFT}

^{*BANK
OVERDRAFT - 2006: US$224,952 (2005: NIL)}

^{THE
BANK OVERDRAFT IS UNSECURED AND REPAYABLE ON DEMAND.}

^{THE
AVERAGE EFFECTIVE INTEREST RATE ON BANK OVERDRAFTS APPROXIMATED 6%}

^{(2005:
NIL) PER ANNUM.}

^{CONTINGENT
LIABILITIES (UNSECURED)}

^{*GUARANTEES
- 2006: US$300,000 (2005: US$400,000)}

^{*LETTER
OF CREDITS - 2006: US$24,180,150 (2005: US$7,314,499)}

BACKGROUND/OPERATION

^{THE SUBJECT WAS
INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{11/12/1997
AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS} ^{PRESENT
NAMESTYLE AS "BUNGE AGRIBUSINESS SINGAPORE PTE LTD".}

^{SUBJECT HAS AN
ISSUED AND PAID-UP CAPITAL OF} ^{1,000,000 SHARES OF A VALUE OF S$1,000,000.}

^{PRINCIPAL
ACTIVITIES:}

^{SUBJECT
IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY}

^{AUTHORITY
(ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:}

^{1)
COMMODITY BROKERS AND DEALERS; PROVIDING AGRICULTURAL COMMODITY}

^{MARKETING
SERVICES AND TRADING IN COMMODITIES}

^{2)
OTHER INVESTMENT HOLDING COMPANIES; INVESTMENT HOLDING COMPANY}

^{THE
COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORY UNDER THE} ^{CLASSIFICATION
OF: AGRICULTURAL MARKETING.}

^{DURING
THE FINANCIAL YEAR(S), UNDER REVIEW, THE PRINCIPAL ACTIVITIES} ^{OF THE
COMPANY ARE PROVIDING AGRICULTURAL COMMODITY MARKETING} ^{SERVICES FOR
GROUP COMPANIES, TRADING IN COMMODITIES AND INVESTMENT} ^HOLDING.

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

^{SUBJECT
ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{*
IMPORT AND WHOLESALE OF PALMOLEIN CRUDE PALM OIL AND OTHER PALM OIL}

^{DERIVATIVES
AS ALSO SOYABEAN OIL, SUNFLOWER OIL, RAPESEED OIL AND}

^EDIBLE
OILS

^{*
GRAIN MERCHANDISING, OILSEED PROCESSING AND VEGETABLE OILS TRADING}

^AND
REFINING

^{*
IMPORT AND WHOLESALE OF PALMOLEIN CRUDE PALM OIL AND OTHER PALM OIL}

^{DERIVATIVES
AS ALSO SOYABEAN OIL, SUNFLOWER OIL, RAPESEED OIL AND}

^EDIBLE
OILS

^{BUSINESS
RELATIONSHIP WITH:}

^{*
GOOD HEALTH GROUP LTD (INDIA)}

^{IMPORT
COUNTRY:}

^*
INDONESIA

^{EXPORT
COUNTRIES:}

^*
INDIA

^*
MALAYSIA

^*
VIETNAM

^{FROM
THE TELE-INTERVIEW CONDUCTED THE FOLLOWING WAS}

^GATHERED:

^{SUBJECT
ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{*
COMMODITIES TRADING}

^{EXPORT
COUNTRIES:}

^{*
ASIAN COUNTRIES (MAINLY)}

^{NUMBER
OF EMPLOYEES:}

^{*
ABOUT 50}

^{TERMS
OF PAYMENT:}

^{*
CUSTOMERS AND SUPPLIERS: T/T, LETTERS OF CREDIT ETC}

^{NO
OTHER TRADE INFORMATION WAS AVAILABLE ON 06/02/2008.}

^{THE
COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF BUNGE LIMITED,} ^{INCORPORATED
IN BERMUDA, WHICH IS ALSO THE COMPANY'S ULTIMATE} ^{HOLDING COMPANY.}

^{REGISTERED
AND BUSINESS ADDRESS:}

^{77
ROBINSON ROAD}

^#28-00

^SIA
BUILDING

^{SINGAPORE
068896}

^{DATE
OF CHANGE OF ADDRESS: 19/07/2004}

^WEBSITE:

^{www.bunge.com
(HOLDING COMPANY'S)}

^EMAIL:

^{bunge@singnet.com.sg}

MANAGEMENT

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

^{1)
ARCHIBALD LLEWELLYN GWATHMEY, AN AMERICAN}

^{-
BASED IN THE UNITED STATES OF AMERICA.}

^{2)
CHRISTOPHER SILVA WHITE, AN AMERICAN}

^{-
BASED IN SINGAPORE.}

^{3)
CHOONG MOH HUAT, A SINGAPORE PERMANENT RESIDENT}

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

^{SEAGRAM
ASIA PACIFIC (SINGAPORE) 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 8.9% IN 3Q 2007, FOLLOWING 8.7% GROWTH IN 2Q 2007. GROW MOMENTUM (ON AN ANNUALISED QUARTER-ON-QUARTER BASIS) WAS 4.3%, COMPARED WITH 14.5% IN THE SECOND QUARTER.

THE FINANCIAL SERVICES SECTOR ROSE SIGNIFICANTLY BY 20% IN 3Q 2007, FOLLOWING A 17% GROWTH IN THE PREVIOUS QUARTER. HOWEVER, ON A SEASONALLY-ADJUSTED QUARTER-ON-QUARTER BASIS, THE SECTOR FELL BY 8.6%, IN CONTRAST TO THE 39% GROWTH IN THE SECOND QUARTER. THE DECLINE STEMS FROM THE IMPACT FROM THE TURMOIL IN GLOBAL FINANCIAL MARKETS.

THE CONSTRUCTION SECTOR REGISTERED A STRONG GROWTH. THE SECTOR GREW BY 18%, FOLLOWING 19% GAIN IN 2Q 2007. GROWTH MOMENTUM MODERATED FROM 15% IN 2Q 2007 TO 6% IN 3Q 2007.

MANUFACTURING SECTOR ROSE BY 10% IN 3Q 2007, UP FROM 8.3% IN 2Q 2007. THE HIGHEST GROWTH WAS REGISTERED IN THE BIOMEDICAL MANUFACTURING CLUSTER, FOLLOWED BY TRANSPORT ENGINEERING, ELECTRONICS AND CHEMICALS

CLUSTERS. PRECISION ENGINEERING SECTOR CONTINUED TO SEE LOWER PRODUCTION.

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.6% IN 3Q 2007, SLOWER THAN THE 8.4% GROWTH IN 2Q 2007. ALTHOUGH NON-OIL RE-EXPORTS STRENGTHENED IN THE QUARTER, RETAIL SALES SAW WEAKER GROWTH.

THE TRANSPORT AND STORAGE SECTOR MOEDERATED TO 4.8% IN 3Q 2007, FROM 5.3% IN 2Q 2007. HIGHER GROWTH IN THE AIR TRANSPORT SEGMENT WAS OFFSET BY SLOWER GROWTH IN THE WATER TRANSPORT SEGEMENT AFTER LAST QUARTER’S STRONG GROWTH.

THE HOTELS AND RESTAURANTS SECTOR GREW BY 4.5% FROM 5.3% IN 2Q 2007.

THE AVERAGE OCCUPANCY RATE OF HOTELS CLIMBED TO 89%, A 2.1% RISE OVER 3Q 2006. THE AVERAGE ROOM RATE ALSO GREW BY 22% TO S$204. CONSEQUENTLY, TOTAL HOTEL ROOM REVENUE OF GAZETTED HOTELS ROSE BY 20% IN 3Q 2007 TO AN ESTIMATED S$478 MILLION.

THE INFORMATION AND COMMUNICATIONS SECTOR ROSE 6.9% IN 3Q 2007, HIGHER THAN THE 6.5% IN 2Q 2007. THE TELECOMMUNICATIONS SEGMENT CONTINUED TO ACCOUNT FOR MUCH OF THE GROWTH IN THE SECTOR. IT SERVICES MAINTAINED ITS MODERATE GROWTH LEVEL FROM 2Q 2007.

IN THE TELECOMMUNICATIONS SEGMENT, THE GROWTH OF MOBILE SUBSCRIBERS CONTINUED TO RISE, RISING BY 20%, UP FROM 18% IN 2Q 2007. INTERNATIONAL TELEPHONE CALL DURATION GREW TO 27%, UP FROM 24% IN 2Q 2007.

THE BUSINESS SERVICES SECTOR EXPANDED BY 7.1%, SIMILAR TO THE 7.2% GAIN IN 2Q 2007. GROWTH WAS HEALTHY ACROSS ALL SEGMENTS, WITH GOOD PERFORMANCES IN THE BUSINESS REPRESENTATIVE OFFICES, REAL ESTATE AND PROFESSIONAL SERVICES SEGMENTS.

NEWS

SINGAPORE GROWTH SLOWS TO 6% IN 4Q 2007

THE SINGAPORE ECONOMY GREW AT A SLOWER-THAN-EXPECTED 6% GROWTH IN 4Q 2007, WEIGHED DOWN BY DECLINING MANUFACTURING OUTPUT.

ECONOMISTS HAD ANTICIPATED GROWTH OF 7.0-8.5% FOR 4Q 2007.

THE ESTIMATE FOR REAL GROSS DOMESTIC PRODUCT (GDP) GROWTH, COMPARED WITH 4Q 2006, MEANT THE GROWTH HAD MODERATED FROM THE REVISED GROWTH FIGURE OF 9% SEEN IN 3Q 2006, THE MINISTRY OF TRADE AND INDUSTRY SAID.

ON A QUARTER-ON-QUARTER SEASONALLY ADJUSTED ANNUALISED BASIS, REAL GDP FELL BY 3.2% IN 4Q 2007 COMPARED WITH A 4.4% GAIN IN 3Q 2007, CAUSED BY A SLOWDOWN IN MANFACTURING OUTPUT.

THE FIGURE MARKS THE FIRST QUARTER-ON-QUARTER DECLINE SINCE 1Q 2005, ACCORDING TO DATA.

GROWTH IN THE MANUFACTURING SECTOR IS FORECASTED TO HAVE SLOWED FROM 10.3% IN 3Q 2007 TO 0.5% IN 4Q 2007. IT WAS LARGELY ATTRIBUTED TO A DECLINE IN THE BIOMEDICAL MANUFACTURING CLUSTER AS SOME ACTIVE PHARMACEUTICAL INGREDIENTS WERE NOT PRODUCED.

TRANSPORT ENGINEERING, WHICH INCLUDES OIL RIG MANUFACTURING AND SHIP REPAIR, CONTINUED TO SHOW DOUBLE-DIGIT GROWTH, WHILE THE CONSTRUCTION SECTOR IS PREDICTED TO HAVE GROW STRONGLY BY 24.4% IN 4Q 2007, UP FROM 19.2% IN 3Q 2007.

GROWTH IN THE SERVICE SECTOR WAS STEADY AT 8.3%.

SINGAPORE’S ECONOMY GREW BY 7.5% IN 2007, MARKING THE FOURTH STRAIGHT YEARS OF STRONG GROWTH, PRIME MINISTER LEE HSIEN LOONG SAID IN HIS NEW YEAR MESSAGE.

THE FIGURE FOR 2007 ECONOMIC EXPANSION WAS AT THE LOWER END OF THE GOVERNMENT’S UPGRADED FULL-YEAR GROWTH TARGET OF 7.5-8.0%, AND WAS BELOW THE 7.9% GROWTH REGISTERED FOR 2006.

MR LEE FORECAST GROWTH OF 4.5-6.5% FOR SINGAPORE IN 2008.

OUTLOOK

FOR 2008, EXTERNAL ECONOMIC CONDITIONS ARE EXPECTED TO WEAKEN SLIGHTLY COMPARED TO 2007. THE LINGERING EFFECTS OF THE SUB-PRIME PROBLEMS AND AN OVERALL WEAKENING OF THE HOUSING MARKET WILL DAMPEN US CONSUMPTION. EU GROWTH IS ALSO EXPECTED TO BE LOWER AS A STRONG CURRENCY ERODES EXPORT COMPETITIVENESS. HOWEVER, THE FORECAST FOR ASIAN ECONOMIES REMAIN POSITIVE, WITH CHINA EXPECTED TO SUBSTAIN DOUBLE-DIGIT GROWTH.

WITH THESE FACTORS IN MIND, THE MINISTRY OF TRADE AND INDUSTRY PREDICTS THS SINGAPORE ECONOMY TO GROW BY 4.5-6.5% IN 2008. THIS REPRESENTS A MODERATION IN GROWTH TOWARDS THE ECONOMY’S POTENTIAL RATE OF GROWTH, AFTER FOUR YEARS OF ABOVE-TREND GROWTH.

THERE ARE SOME DOWNSIDE RISKS. IF THE SUB-PRIME PROBLEMS WORSEN THAN EXPECTED, OR OIL PRICES RISE FURTHER IN 2008, THIS COULD BRING A GREATER-THAN-EXPECTED SLOWDOWN IN US, WHICH WOULD AFFECT THE SINGAPORE ECONOMY.

IN THE FINANCIAL SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 17% OF FIRMS, ESPECIALLY INSURANCE COMPANIES, REMAINS POSITIVE ABOUT THE BUSINESS OUTLOOK IN THE MONTHS AHEAD.

FIRMS IN THE REAL ESTATE INDUSTRY EXPECT BUSINESS TO BE BRISK FOR THE

COMING MONTHS, IN PARTICULAR THE REAL ESTATE DEVELOPERS.

MANUFACTURING FIRMS REMAIN OPTIMISTIC FOR THE PERIOD ENDING MARCH 2008. A NET WEIGHTED BALANCE OF 25% OF MANUFACTURERS FORECAST BETTER BUSINESS, SLIGHTLY HIGHER THAN THE 22% REGISTERED BOTH IN THE PREVIOUS QUARTER AND THE SAME PERIOD IN THE PREVIOUS YEAR.

WHOLESALERS GENERALLY REMAIN POSITIVE ABOUT THEIR BUSINESS CONDITIONS, WITH A NET WEIGHTED BALANCE OF 24% OF FIRMS BEING OPTIMISTIC FOR THE COMING MONTHS. SEGMENTS THAT ARE EXPECTED TO PERFORM BETTER INCLUDE WHOLESALING OF FOOD AND BEVERAGES, WEARING APPAREL AND FOOTWEAR, COSMETICS AND TOILETRIES, AND HOUSEHOLD ELECTRICAL APPLIANCES.

RETAILERS ANTICIPATES BETTER BUSINESS IN THE COMING MONTHS DUE TO YEAR-END FESTIVE SHOPPING, WITH A NET WEIGHTED BALANCE OF 31% BEING POSITIVE. THE SEGMENTS THAT ARE FORECASTING BRISK BUSINESS IN THE COMING MONTHS INCLUDE DEPARTMENT STORE AND SUPERMARKET OWNERS, WEARING APPAREL AND FOOTWEAR, FURNITURE AND FURNISHINGS, AND JEWELLERY AND WATCHES.

IN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 18% OF FIRMS FORECASTS FAVOURABLE BUSINESS CONDITIONS FOR THE COMING MONTHS.

HOTELIERS FORESEES A FAVOURABLE BUSINESS OUTLOOK, WITH A NET WEIGHTED BALANCE OF 79% OF FIRMS EXPECTING THEIR BUSINESSES TO RISE IN ANTICIPATION OF HIGHER BANQUET SALES AND INCREASE IN ROOM REVENUE IN VIEW OF THE POSITIVE DEVELOPMENT IN THE TOURISM INDUSTRY. FIRMS IN THE CATERING TRADE INDUSTRY ALSO FORESEES BETTER BUSINESS CONDITIONS.

FIRMS IN THE INFORMATION AND COMMUNICATIONS INDUSTRY PREDICTS A HIGHER DEMAND FOR THEIR SERVICES, WITH A NET WEIGHTED BALANCE OF 5%.

IN THE BUSINESS SERVICES INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 33% OF FIRMS EXPECTS POSITIVE SENTIMENTS. THESE INCLUDE ACCOUNTING, BOOK-KEEPING AND AUDITING, ENGINEERING AND SPECIALISED DESIGN SERVICES AS WELL AS TRAVEL AGENCIES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

CHANNEL NEWS 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%)

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