MIRA INFORM REPORT

Report Date :

09.01.2008

IDENTIFICATION DETAILS

Name :	LEONG KIANG TRACTOR & MACHINERY PTE LTD

Registered Office :	^{3 Pioneer Place}, ^{Singapore 627804}

Country :	Singapore

Financials (as on) :	30.06.2004

Date of Incorporation :	^04/06/1981

Com. Reg. No.:	^198102504K

Legal Form :	^{Exempt Pte Ltd}

Line of Business :	Trading of Machinery Spare Parts and Heavy Equipments

RATING & COMMENTS

MIRA’s Rating :

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

LEONG KIANG TRACTOR & MACHINERY PTE LTD

Line Of Business

TRADING OF MACHINERY SPARE PARTS AND HEAVY EQUIPMENTS

Parent Company

----

Financial Elements

FY 2004

COMPANY

Sales : S$37,534,731

Networth : S$4,926,164

Paid-Up Capital : S$1,200,000

Net result : S$429,910

Net Margin(%) : 1.15

Return on Equity(%) : 8.73

Leverage Ratio : 4.32

COMPANY IDENTIFICATION

^{Subject Company LEONG KIANG TRACTOR &
MACHINERY PTE LTD}

^{Former Name : -}

^{Business Address: 3 PIONEER PLACE}

^{Town: SINGAPORE}

^{Postcode: 627804}

^{County: -}

^{Country: Singapore}

^{Telephone: 6861 1121}

^{Fax: 6861 4562}

^{ROC Number: 198102504K}

^{Reg. Town: -}

SUMMARY

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

^{Legal Form: Exempt
Pte Ltd}

^{Date Inc.: 04/06/1981}

^{Previous Legal Form -}

^{Summary year : 30/06/2004}

^{Sales: 37,534,731}

^{Networth : 4,926,164}

^{Capital: -}

^{Paid-Up Capital: 1,200,000}

^{Employees: 8}

^{Net result : 429,910}

^{Share value: -}

^{Auditor: Onn Ping Lan
& Company}

REFERENCES

^{Litigation: No}

^{Company status: TRADING}

^{Started: 04/06/1981}

PRINCIPAL(S)

^{PHUA KAH TONG @ POH KAH
TONG S0398225D Director}

DIRECTOR(S)

^{PHUA KAH TONG @ POH KAH
TONG S0398225D Director}

^{Appointed on :04/06/1981}

^{Street :13 JALAN ANGGEREK}

^{Town :SINGAPORE}

^{Postcode :369448}

^{Country :Singapore}

^{POH CHIN HOCK S1304807Z
Director}

^{Appointed on : 04/06/1981}

^{Street : 28B LORONG 23 GEYLANG}

^{Town :
SINGAPORE}

^{Postcode : 388365}

^{Country : Singapore}

^{POH LEH GUAT
S1411987F Company Secretary}

^{Appointed on : 12/06/1982}

^{Street : 92 JALAN
KELICHAP}

^{Town : SINGAPORE}

^{Postcode :
534296}

^{Country : Singapore}

ACTIVITY(IES)

^{MACHINERY
Code:13260}

^{BASED ON ACRA'S RECORD}

^{1) MANUFACTURING OF
MACHINE TOOL ACCESSORIES (EG SMALL CUTTING/} ^{PRECISION MEASURING TOOLS)}

CHARGES

^{Date: 21/08/2006}

^{Comments : CHARGE
NO: C200605554, 5555, 5556, 5557}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE(S): UNITED
OVERSEAS BANK LIMITED}

^{Date: 11/05/2004}

^{Comments : CHARGE
NO: C200402291}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: STANDARD CHARTERED
BANK}

^{Date: 07/08/2003}

^{Comments : CHARGE
NO: C200303734}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE: CITIBANK N.A.}

^{Date: 25/06/1996}

^{Comments : CHARGE
NO: 9603552}

^{CHARGEE: FOUR SEAS BANK
LIMITED}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date: 02/07/1991}

^{Comments : CHARGE
NO: 9102581}

^{CHARGEE: ICB (2002) LIMITED}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date: 23/06/1984}

^{Amount: 100,000}

^{Comments : CHARGE
NO: 8402818}

^{CHARGEE: ICB (2002) LIMITED}

^{AMOUNT SECURED: 100,000.00 SINGAPORE DOLLAR}

^{Date: 01/07/1982}

^{Amount: 450,000}

^{Comments : CHARGE
NO: 8202564}

^{CHARGEE: ICB (2002) LTD}

^{AMOUNT SECURED: S$450,000.00}

^{Date: 21/09/1994}

^{Comments : CHARGE
NO: 9405429}

^{CHARGEE: CKB (2000) LIMITED}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date: 03/11/1994}

^{Comments : CHARGE
NO: 9406340}

^{CHARGEE: KTB LIMITED}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date: 27/08/1997}

^{Comments : CHARGE
NO: 199705227}

^{CHARGEE: THE DEVELOPMENT BANK
OF SINGAPORE LIMITED}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date: 12/06/2001}

^{Comments : CHARGE
NO: 200102601}

^{CHARGEE: THE KWANGTUNG
PROVINCIAL BANK}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

^{Date: 08/03/2002}

^{Comments : CHARGE
NO: 200201160}

^{CHARGEE: BANGKOK BANK PUBLIC
CO LTD}

^{AMOUNT SECURED: 0.00 AND ALL MONIES OWING}

PREMISES/PROPERTY INFORMATIONS

^{Date: 09/01/2008}

^{Tax rate: 10}

^{Site Address : 28B
LORONG 23 GEYLANG}

^{Town: SINGAPORE}

^{Postcode: 388365}

^{Country: Singapore}

^{Annual Value: 10,800}

^{Date: 09/01/2008}

^{Tax rate: 10}

^{Site Address : 26A
BENOI PLACE}

^{Town: SINGAPORE}

^{Postcode: 629943}

^{Country: Singapore}

^{Annual Value: 91,000}

^{Date: 09/01/2008}

^{Tax rate: 10}

^{Site Address : 28
LORONG 23 GEYLANG}

^{Town: SINGAPORE}

^{Postcode: 288365}

^{Country: Singapore}

^{Annual Value: 28,200}

*TAX RATE OF 4% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS OWNER OCCUPIED.

*TAX RATE OF 10% MEANS THE ADDRESS (I.E RESIDENTIAL PROPERTY) IS PARTIALLY OR FULLY

RENTED OUT BY THE OWNER/OWNED BY COMPANY.

*FOR PROPERTIES OTHER THAN RESIDENTIAL PROPERTIES REGARDLESS RENTED OUT OR NOT, THE

TAX RATE IS 10% (I.E INDUSTRIAL AND COMMERCIAL PROPERTY).

*ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED

OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE

PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT.

BANKERS

^{ICB (2002) LIMITED}

^{KEPPEL TATLEE BANK
LIMITED}

^{KWANGTUNG PROVINCIAL
BANK LTD}

^{DBS BANK LTD.}

^{UNITED OVERSEAS BANK
LIMITED}

^{STANDARD CHARTERED BANK}

^{FOUR SEAS BANK LTD}

^{CITIBANK N.A.}

SHAREHOLDERS(S)

^{PHUA KAH TONG @ POH KAH TONG 340,000 Private Person}

^{Street : 13 JALAN
ANGGEREK}

^{Town: SINGAPORE}

^{Postcode: 369448}

^{Country: Singapore}

^{TEO POH CHOO 210,000 Private Person}

^{Street : 13 JALAN
ANGGEREK}

^{Town: SINGAPORE}

^{Postcode: 369448}

^{Country: Singapore}

^{POH CHIN HOCK 390,000 Private Person}

^{Street : 28B LORONG
23 GEYLANG}

^{Town: SINGAPORE}

^{Postcode: 388365}

^{Country: Singapore}

^{POH CHIN GUAN 260,000 Private Person}

^{Street : 28B LORONG
23 GEYLANG}

^{Town: SINGAPORE}

^{Postcode: 388365}

^{Country: Singapore}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality: AVERAGE}

^{Liquidity : UNKNOWN}

^{Payments : REGULAR}

^{Trend : LEVEL}

^{Financial Situation:
UNKNOWN}

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 25/02/2005}

^{Balance Sheet Date: 30/06/2004 30/06/2003
30/06/2002}

^{Number of weeks: 52 52 52}

^{Consolidation Code: COMPANY COMPANY
COMPANY}

^{--- ASSETS} ^---

^{Tangible Fixed
Assets: 6,192,876 3,895,680 4,892,398}

^{Investments 198,119 198,119 198,119}

^{Total Fixed Assets}^{: 6,390,995 4,093,799
5,090,517}

^{Inventories: 7,787,800 7,453,287 8,860,140}

^{Receivables: 7,369,505 7,673,177 7,088,342}

^{Cash,Banks,
Securitis: 3,856,329 3,460,185 5,214,685}

^{Other current assets: 785,726 718,328
724,565}

^{Total Current Assets}^{: 19,799,360 19,304,977
21,887,732}

^{TOTAL ASSETS: 26,190,355
23,398,776 26,978,249}

^{--- LIABILITIES} ^---

^{Equity capital: 1,200,000 1,200,000 1,200,000}

^{Profit & loss
Account: 3,726,164 3,296,253 2,919,580}

^{Total Equity}^{: 4,926,164 4,496,253 4,119,580}

^{L/T deffered taxes: 210,265 210,265 210,265}

^{Other long term
Liab.: 1,790,777 116,819 842,591}

^{Total L/T Liabilities}^{: 2,001,042
327,084 1,052,856}

^{Trade Creditors: 1,968,980 1,369,289 998,397}

^{Short term
liabilities: 53,292 42,750 8,750}

^{Due to Bank: 15,661,433
16,017,010
20,281,421}

^{Provisions: 36,516 53,215 31,609}

^{Other Short term
Liab.: 1,542,928 1,093,175 485,636}

^{Total short term Liab.: 19,263,149 18,575,439
21,805,813}

^{TOTAL LIABILITIES: 21,264,191 18,902,523 22,858,669}

^{---
PROFIT & LOSS ACCOUNT}

^{Net Sales 37,534,731
36,668,276
36,962,983}

^{Gross Profit: 4,458,301 4,263,226 4,083,466}

^{Result of ordinary
operations 1,218,879 1,209,635 1,288,368}

^{NET RESULT BEFORE
TAX: 466,066 408,626 402,816}

^{Tax : 36,156 31,952 -129,037}

^{Net income/loss year: 429,910 376,674
531,853}

^{Interest Paid: 580,667 680,421 785,956}

^{Depreciation: 1,156,088 1,094,550 1,292,874}

^{Directors Emoluments: 120,000 120,000
120,000}

^{Financial Income: 18,497 32,426 67,488}

RATIOS

^{30/06/2004 30/06/2003 30/06/2002}

^{Turnover per employee: 4691841.38 4583534.50 4620372.88}

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

^{Fin. Charges / Turnover(%): 0.02 0.02 0.02}

^{Stock / Turnover(%):
0.21 0.20 0.24}

^{Net Margin(%): 1.15 1.03 1.44}

^{Return on Equity(%): 8.73 8.38 12.91}

^{Return on Assets(%):
1.64 1.61 1.97}

^{Net Working capital:
536211.00 729538.00 81919.00}

^{Cash Ratio: 0.20 0.19 0.24}

^{Quick Ratio: 0.58 0.60 0.56}

^{Current ratio: 1.03 1.04 1.00}

^{Receivables Turnover:
70.68 75.33 69.04}

^{Leverage Ratio: 4.32 4.20 5.55}

^{Net Margin :
(100*Net income loss year)/Net sales}

^{Return on Equity : (100*Net income loss
year)/Total equity}

^{Return on Assets : (100*Net income loss year)/Total
fixed assets}

^{Net Working capital : Total current assets - Total
short term liabilities}

^{Cash Ratio : Cash Bank
securities/Total short term liabilities}

^{Quick Ratio : (Cash Bank
securities+Receivables)/Total Short term liabilities}

^{Current ratio : Total current
assets/Total short term liabilities}

^{Inventory Turnover : (360*Inventories)/Net
sales}

^{Receivables Turnover : (Receivable*360)/Net sales}

^{Leverage Ratio : Total
liabilities/(Total equity-Intangible assets)}

FINANCIAL COMMENTS

^{THE FINANCIAL STATEMENTS
FOR THE YEAR 2004 IS OUTDATED.} ^{HENCE, AN ADVERSE CHECK ON THE DIRECTORS IS CONDUCTED.}

^{LIMITED EXEMPT PRIVATE COMPANY:}

^{WHERE THE SHARES OF A PRIVATE COMPANY ARE NOT
OWNED BY ANY CORPORATE} ^{BODY AND THERE ARE NO MORE THAN 20 MEMBERS, THE PRIVATE COMPANY IS
KNOWN AS AN EXEMPT PRIVATE COMPANY.}

^{AN EXEMPT PRIVATE COMPANY ENJOYS A GREATER
AMOUNT OF PRIVACY THAN A} ^{PRIVATE COMPANY. IT IS NOT REQUIRED TO FILE ACCOUNTS WITH THE
REGISTRAR IF IT CAN PRODUCE A CERTIFICATE SIGNED BY ONE OF ITS} ^{DIRECTORS,
SECRETARY AND AUDITOR CONFIRMING THE FOLLOWING POINTS:}

^{1. THE COMPANY IS AN
EXEMPT PRIVATE COMPANY.}

^{2. THE AUDITED ACCOUNTS
HAVE BEEN TABLED BEFORE THE SHAREHOLDERS} ^{AT THE ANNUAL GENERAL MEETING.}

^{3. THE COMPANY IS ABLE
TO MEET ITS LIABILITIES.}

^{THERE IS THEREFORE NO DISCLOSURE TO THE
PUBLIC OF THE ACCOUNTS} ^{OF THE COMPANY ALTHOUGH THE ACCOUNTS STILL HAVE TO BE AUDITED} ^{EVERY YEAR AND APPROVED AT AN ANNUAL GENERAL MEETING OF THE COMPANY.}

^{A PRIVATE COMPANY THAT
IS WHOLLY OWNED BY THE GOVERNMENT MAY} ^{BECOME AN EXEMPT PRIVATE COMPANY IF THE MINISTER FOR FINANCE, IN
THE NATIONAL INTEREST, DECLARES IT TO BE SUCH BY A GAZETTE NOTIFICATION.}

^{EXEMPT FROM AUDIT}

^{AN EXEMPT PRIVATE COMPANY IS EXEMPT FROM
AUDIT REQUIREMENTS IF THE} ^{STARTING DATE OF ITS FINANCIAL YEAR IS BETWEEN 15 MAY 2003 AND 31
MAY} ^{2004 AND ITS TURNOVER FOR THAT FINANCIAL YEAR DOES NOT EXCEED
$2.5} ^{MILLION. FOR FINANCIAL YEARS STARTING 1 JUNE 2004, THE AMOUNT
OF THE} ^{TURNOVER HAS BEEN RAISED TO $5 MILLION. THESE COMPANIES ARE
STILL}

^{REQUIRED TO MAINTAIN PROPER ACCOUNTING.}

BACKGROUND / OPERATION

^{THE COMPANY WAS
INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{04/06/1981 AS A LIMITED EXEMPT PRIVATE
COMPANY AND IS TRADING UNDER} ^{ITS PRESENT NAMESTYLE AS "LEONG
KIANG TRACTOR & MACHINERY PTE LTD".}

^{AS AT 04/01/2008, THE
COMPANY HAS ISSUED AND PAID-UP CAPITAL OF} ^{1,200,000 SHARES OF A VALUE OF S$1,200,000.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) MANUFACTURING OF
MACHINE TOOL ACCESSORIES (EG SMALL CUTTING/} ^{PRECISION MEASURING TOOLS);} ^{MANUFACTURE/REPAIR
NON-ELECTRICAL MACHINERY/EQUIPMENT}

^{2) MANUFACTURE OF GEARS,
GEARING AND DRIVING ELEMENTS}

^{DURING THE FINANCIAL YEAR
UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF} ^{THE COMPANY CONSIST OF TRADING OF MACHINERY SPARE PARTS AND HEAVY
EQUIPMENTS.}

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

^{SUBJECT ENGAGES IN THE
FOLLOWING ACTIVITIES:}

^{* SALES, RENTAL OF
HYDRAULIC MOBILE CRANES, TRACTOR, BULLDOZER,} ^{FORKLIFTS, EXCAVATOR AND SPARE PARTS}

^{PRODUCTS AND SERVICES:}

^{* BULLDOZER RENTAL
SERVICE}

^{* BULLDOZERS:
RECONDITIONED OR USED}

^{* CONSTRUCTION EQUIPMENT}

^{* CONSTRUCTION
EQUIPMENT: RECONDITIONED OR USED}

^{* CONTRACTORS' EQUIPMENT
& SUPPLIES}

^{* CRANE RENTAL SERVICE}

^{* CRANES}

^{* CRANES: TRUCK-MOUNTED}

^{* EXCAVATOR RENTAL
SERVICE}

^{* EXCAVATORS:
RECONDITIONED OR USED}

^{* HEAVY EQUIPMENT
BROKERS}

^{* RECONDITIONED OR USED
BULLDOZERS}

^{* TRACTOR PARTS}

^{* TRACTORS - DEALERS}

^{* TRACTORS: RECONDITIONED
OR USED}

^{* TRUCK-MOUNTED CRANES}

^{TRADE NAMES}

^{* HITACHI}

^{* KOMATSU}

^{* KOBELCO}

^{EXPORT COUNTRIES:}

^{* SOUTH AFRICA}

^{* MIDDLE EAST}

^{* ASIA}

^{IMPORT COUNTRIES:}

^{* JAPAN}

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

^{NUMBER OF EMPLOYEES:}

^{* 2008: 8}

^{NO OTHER TRADE
INFORMATION IS AVAILABLE.}

^{REGISTERED AND BUSINESS
ADDRESS:}

^{3 PIONEER PLACE}

^{SINGAPORE 627804}

^{- OWNED PREMISE}

^{- DATE OF CHANGE OF
ADDRESS: 16/07/2007}

^{YOUR PROVIDED CONTACT
NUMBER:}

^{FAX: 6565 1313}

^{- ASIAGROUP LEASING PTE
LTD (RELATED COMPANY)}

^WEBSITE:

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

^EMAIL:

^{info@asiacranes.com}

MANAGEMENT

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

^{1) PHUA KAH TONG @ POH
KAH TONG, A SINGAPOREAN}

^{- HOLDS NO OTHER DIRECTORSHIP IN OUR
DATABASE.}

^{2) POH CHIN HOCK, A
SINGAPOREAN}

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

^{ASIAGROUP LEASING PTE LTD}

ADVERSE ON DIRECTORS

^{DIRECTOR'S NAME: PHUA
KAH TONG @ POH KAH TONG}

^{ADVERSE REPORT AGAINST
DIRECTOR: NOT AVAILABLE FROM OUR DATABASE}

^{PROPERTY OWNERSHIP: OWNS
1}

^{ANNUAL VALUE: S$18,000}

^{CO-OWNER (S): NIL}

^{DIRECTOR'S NAME :
POH CHIN HOCK}

^{ADVERSE REPORT AGAINST
DIRECTOR: YES}

^{TYPE OF CASE: HIGH COURT
- W/S}

^{CASE NO :
HWS00176/2001}

^{PLAINTIFF :
SHOWA LEASING SINGAPORE PL}

^{DEFENDANT : POH CHIN HOCK}

^{DEFENDANT : LEE CHIN TIONG}

^{DEFENDANT : POH CHIN GUAN}

^{DEFENDANT : ASIAGROUP LEASING PTE LTD}

^{PROPERTY OWNERSHIP: NIL}

^{ANNUAL VALUE : N.A.}

^{CO-OWNER (S) : N.A.}

* ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF IT WERE RENTED OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER REGARDLESS OF WHETHER THE PROPERTY IS LET-OUT, OWNER-OCCUPIED OR VACANT.

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

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE DECLINED BY 7.5% IN Q1 2007. EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 7.4%. SECTORS OF ELECTRONIC COMPONENTS, SHIP CHANDLERS AND BUNKERING, INDUSTRIAL AND CONSTRUCTION MACHINERY REPORTED DECLINES OF 11.6% TO 23.8%.

HOWEVER, WHOLESALERS OF FOOD, BEVERAGES AND TOBACCO REGISTERED HIGHER TURNOVER OF 5.4%.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE IN QUARTER 1 2007 FELL BY 7.6%. EXCLUDING PETROLEUM, FOREIGN SALES DECLINED BY 8.0%. MOST WHOLESALE SECTORS REPORTED LOWER OVERSEAS RECEIPTS IN QUARTER 1 2007 COMPARED TO THE PREVIOUS QUARTER, EXCEPT HOUSEHOLD EQUIPMENT AND FURNITURE SECTOR. SHIP CHANDLERS & BUNKERING REPORTED THE LARGEST DECLINE OF 18.3% IN QUARTER 1 2007, FOLLOWED BY FOOD BEVERAGES & TOBACCO SECTOR OF 17.7%.

RETAIL TRADE

THE OVERALL RETAIL SALES ROSE MARGINALLY BY 0.7% IN QUARTER 2 2007, COMPARED TO QUARTER 2 2006. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.1%. SALES OF OPTICAL GOODS & BOOKS, FURNITURE & HOUSEHOLD EQUIPMENT AND SUPERMARKETS ENJOYED STRONG GROWTHS OVER A YEAR AGO. PROVISION & SUNDRY SHOPS, WATCHES AND JEWELLERY, DEPARTMENT STORES AND WEARING APPAREL & FOOTWEAR SECTORS ALSO REPORTED HIGHER SALES OF 4.35 TO 5.9% RESPECTIVELY.

HOWEVER, RETAILERS OF MOTOR VEHICLES, FOOD & BEVERAGES, TELECOMMUNICATIONS APPARATUS & COMPUTERS AND PETROL SERVICES STATIONS REPORTED LOWER SALES.

OUTLOOK

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

RETAIL TRADE FIRMS ANTICIPATE BUSINESS TO BE LESS BRISK FOR THE NEXT 6 MONTHS. IN PARTICULAR, DEPARTMENT STORES, SUPERMARKETS AND RETAILERS OF MOTOR VEHICLES EXPECT SLOWER BUSINESS IN THE COMING MONTHS.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

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