MIRA INFORM REPORT

Report Date :

15.01.2008

IDENTIFICATION DETAILS

Name :	SINGULAR ID PTE LTD

Registered Office :	^{11 Biopolis Way} ^#04-08 ^{Helios Building}

Country :	Singapore

Financials (as on) :	31.03.2006

Date of Incorporation :	24.12.2004

Com. Reg. No.:	^200416616N

Legal Form :	Pte Ltd

Line of Business :	Research, Development and Manufacture of Electronic Systems for Secure Tracking and Authetication of Items

RATING & COMMENTS

MIRA’s Rating :

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Unfavourable & favourable factors carry similar weight in credit consideration. Capability to overcome financial difficulties seems comparatively below average.	Small

Status :	Moderate

Payment Behaviour :	Unknown

Litigation :	Clear

name of the Company

^{SINGULAR ID PTE. LTD.}

Line Of Business

RESEARCH, DEVELOPMENT AND MANUFACTURE OF ELECTRONIC SYSTEMS FOR SECURE TRACKING AND AUTHETICATION OF ITEMS.

Parent Company

Financial Elements

FY 2006

COMPANY

^{Sales :
S$}^46,695

^{Networth :
S$}^358,467

^{Paid-Up Capital
:
S$}^552,368

^{Net result :
S$}^-193,901

^{Net Margin(%) : -415.25}

^{Return on Equity(%) :
-54.09}

^{Leverage Ratio : 0.03}

COMPANY IDENTIFICATION

^{Subject Company : SINGULAR ID PTE. LTD.}

^{Business Address : 11 BIOPOLIS WAY}

^#04-08 ^{HELIOS BUILDING}

^{Tow : SINGAPROE}

^{Postcode : 138667}

^{Country : Singapore}

^{Telephone : 6777 3115}

^{Fax : 6777 3115}

^{ROC Number : 200416616N}

^{Reg. Town :}

SUMMARY

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

^{Legal Form : Pte Ltd}

^{Date Inc : 24/12/2004}

^{Summary year :
31/03/2006}

^{Sales :
46,695}

^{Networth : 358,467}

^{Capita :}

^{Paid-Up Capital :
552,368}

^{Employees :}

^{Net result : -193,901}

^{Share value:}

^{BASED ON ACRA'S RECORD
AS AT 10/01/2008}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 100,000 SGD 1,000.00}

^{ISSUED PREFERENCE 41,118 SGD 1,205,326.40}

^{ISSUED OTHERS 7,214 SGD 2,422,631.40}

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

^{PAID-UP PREFERENCE -
SGD 1,205,326.40}

^{PAID-UP OTHERS -
SGD 2,422,631.40}

^{AUDITOR: JM PARTNERS}

REFERENCES

^{Company
status : TRADING}

^{Started
:}^24/12/2004

PRINCIPAL(S)

^{ADRIAN PAUL BURDEN 706136696 Director}

DIRECTOR(S)

^{ADRIAN PAUL BURDEN 706136696 Director}

^{Appointed on : 28/04/2005}

^{Street : 370E
ALEXANDRA ROAD} ^#01-09

^{THE ANCHORAGE CONDOMINIUM}

^{Town :
SINGAPORE}

^{Postcode : 159958}

^{Country : Singapore}

^{ANTONIO GONCALVES
JR. 141922868
Director}

^{Appointed on : 24/07/2007}

^{Street : 72 OLD
DAIRY LANE}

^{Town : SHELTON}

^{Postcode : CT 06484}

^{Country : United
States}

^{PIETRO BUSNARDO D340728 Director}

^{Appointed on : 24/07/2007}

^{Street : VIA SAN
PIO X 3-35122}

^{Town : PADOVA}

^{Postcode :}

^{Country : Italy}

^{CHIA FEI LIN S7010538A Company Secretary}

^{Appointed on : 24/12/2004}

^{Street : 961
HOUGANG AVENUE 9} ^#07-572

^{Town :
SINGAPORE}

^{Postcode : 530961}

^{Country : Singapore}

^{PETER MALCOLM MORAN S7062279C Director}

^{Appointed on : 24/12/2004}

^{Street : 8 WEST
COAST VIEW}

^{WEST COAST VIEW}

^{Town :
SINGAPORE}

^{Postcode : 127182}

^{Country : Singapore}

ACTIVITY(IES)

^{ELECTRONICS RESEARCH And
DEVELOPMENT Code:7685}

^{COMPUTER EQUIPMENT -
INSTALLATION And/ OR SERVICE Code:5085}

^{BASED ON ACRA'S RECORD}

^{1) RESEARCH AND
EXPERIMENTAL DEVELOPMENT ON ELECTRONICS;}

^{DEVELOPMENT OF
ELECTRONICS SYSTEM FOR SECURE TRACKING AND}

^{DATABASE DEVELOPMENT AND
STORAGE SERVICE}

CHARGES

No Charges On Premises/Property In Our Database

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

SHAREHOLDERS(S)

^{ADRIAN PAUL BURDEN 46,079 Private Person}

^{Street : 370E
ALEXANDRA ROAD} ^#01-09

^{THE ANCHORAGE CONDOMINIUM}

^{Town :
SINGAPORE}

^{Postcode : 159958}

^{Country : Singapore}

^{EXPLOIT TECHNOLOGIES PTE
LTD 6,110 Company}

^{Street : 20
BIOPOLIS WAY} ^#07-01

^{Town :
SINGAPORE}

^{Postcode : 138668}

^{Country : Singapore}

^{BIOVENTURE CENTRE PTE
LTD 12,762 Company}

^{Street : 20
RAFFLES PLACE} ^#09-01

^{OCEAN TOWERS}

^{Town :
SINGAPORE}

^{Postcode : 048620}

^{Country : Singapore}

^{TIGRIS CAPITAL PTE.
LTD.
7,143 Company}

^{Street : 9
TEMASEK BOULEVARD} ^#08-02

^{SUNTEC TOWER TWO}

^{Town :
SINGAPORE}

^{Postcode : 038989}

^{Country : Singapore}

^{UPSTREAM PIONEER FUND
PTE LTD 3,101 Company}

^{Street : 15 QUEEN
STREET} ^#03-05

^{TAN CHONG TOWER}

^{Town :
SINGAPORE}

^{Postcode : 188537}

^{Country : Singapore}

^{ADVANCE NANOTECH
(SINGAPORE) PTE.
15,625 Company}

^{Street : 6 RAFFLES QUAY} ^#20-07

^{JOHN HANCOCK TOWER}

^{Town :
SINGAPORE}

^{Postcode :
048580}

^{Country : Singapore}

^{MATTHIAS PETER ANDERMATT
4,529 Private Person}

^{Street : 134A
HILLVIEW AVENUE} ^#05-03

^{HILLTOP GROVE}

^{Town :
SINGAPORE}

^{Postcode : 669620}

^{Country : Singapore}

^{PETER MALCOLM MORAN
46,079 Private Person}

^{Street : 8 WEST
COAST VIEW}

^{WEST COAST VIEW}

^{Town :
SINGAPORE}

^{Postcode : 127182}

^{Country : Singapore}

^{INSEED INVESTMENT
LIMITED
2,791 Company}

^{Street : CRAIGMUR
CHAMBERS}

^{ROAD TOWN}

^{Town : TORTOLA}

^{Postcode :}

^{Country : Virgin
Islands (British)}

^{INNOGEST SGR S.P.A. ON
BEHALF OF
34,113 Company}

^{Street : 11 PIAZZA
SOLFERINO TORINO (TO)}

^{Town :}

^{Postcode : 10121}

^{Country : Italy}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality :
AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : UNKNOWN}

^{Trend :
UNKNOWN}

^{Financial Situation : UNKNOWN}

FINANCIAL ELEMENTS

^{Audit
Qualification: UNQUALIFIED
(CLEAN)}

^{Date Account
Lodged: 19/07/2006}

^{Balance Sheet Date: 31/03/2006}

^{Number of weeks: 66}

^{Consolidation Code: COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed
Assets: 10,818}

^{Total Fixed Assets: 10,818}

^{Cash,Banks,
Securitis: 249,612}

^{Other current
assets: 108,250}

^{Total Current Assets:
357,862}

^{TOTAL ASSETS:
368,680}

^{--- LIABILITIES ---}

^{Equity capital: 552,368}

^{Profit &
lost Account: -193,901}

^{Total Equity: 358,467}

^{Trade
Creditors:
4,313}

^{Other Short term
Liab.: 5,900}

^{Total short term Liab.: 10,213}

^{TOTAL LIABILITIES:
10,213}

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

^{Net Sales 46,695}

^{NET RESULT BEFORE
TAX: -193,901}

^{Net income/loss
year: -193,901}

^{Depreciation: 1,854}

^{Wages and
Salaries: 222,628}

^{Financial
Income: 2,541}

RATIOS

^31/03/2006

^{Net result /
Turnover(%): -4.15}

^{Net Margin(%): -415.25}

^{Return on
Equity(%): -54.09}

^{Return on
Assets(%): -52.59}

^{Net Working
capital: 347649.00}

^{Cash Ratio: 24.44}

^{Quick Ratio: 24.44}

^{Current ratio: 35.04}

^{Leverage Ratio: 0.03}

^{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}

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

FINANCIAL COMMENTS

^{FIRST SET OF FINANCIAL}

^{THE FINANCIAL STATEMENTS FOR THE YEAR
ENDED COVERS THE PERIOD FROM} ^{24/12/2004 (DATE OF INCORPORATION) TO
31/12/2005, A TOTAL OF 66 WEEKS.}

^{AS THIS IS THE FIRST SET OF FINANCIAL
STATEMENTS SINCE THE DATE OF} ^{INCORPORATION,NO COMPARATIVE FIGURES ARE AVAILABLE.}

^{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 AMOUNT TO S} ^{$358,467. ACCUMULATED LOSSES FOR THE FINANCIAL YEAR AMOUNTES TO S} ^$193,901.

^LEVERAGE:

^{IN THE SHORT-TERM, SUBJECT WAS LARGELY
FINANCED BY OTHER SHORT-TERM} ^{LIABILITIES WHICH MADE UP 57.77% OF THE TOTAL CURRENT LIABILITIES} ^{AND AMOUNTED TO S$5,900.} ^{IN ALL LEVERAGE RATIO IS AT 0.03
TIMES.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S
LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM} ^{THE NET WORKING CAPITAL AND LIQUIDITY
RATIOS. CURRENT RATIO IS AT} ^{35.04 TIMES WHILE QUICK RATIO IS AT
24.44 TIMES}

^{NET WORKING CAPITAL
IMPROVED AMOUNTS TO S$347,649.}

^{PROFITABILITY:}

^{SUBJECT INCURRED NET
LOSSES OF S$-193,901.00, FOR THE FINANCIAL YEAR} ^{UNDER REVIEW. HENCE NET MARGIN IS AT
-415.25 TIMES.}

^{DEBT SERVICING:}

^{DEBT SERVICING PROBLEMS
MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS} ^{CAN BE MAINTAINED AND PAYMENT BY TRADE
DEBTORS ARE FORTHCOMING.} ^{HOWEVER IT IS NOTED THAT SUBJECT HAVE NET
LOSSES, WHICH NEED CAUTION.}

BACKGROUND/OPERATION

^{THE COMPANY WAS
INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{24/12/2004 AS A LIMITED PRIVATE COMPANY
AND IS TRADING UNDER ITS} ^{PRESENT NAMESTYLE AS "SINGULAR ID PTE.
LTD.".}

^{THE COMPANY HAS AN
ISSUED AND PAID-UP CAPITAL OF} ^{100,000 ORDINARY SHARES, OF A VALUE OF S$1,000. 41,118 PREFERENCE} ^{SHARES OF A VALUE OF S$1,205,326.40 AND 37,214 ISSUED OTHERS, OF A} ^{VALUE
OF S$2,422,631.40.}

^{PRINCIPAL ACTIVITIES:}

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

^{1) RESEARCH AND
EXPERIMENTAL DEVELOPMENT ON ELECTRONICS;}

^{DEVELOPMENT OF
ELECTRONICS SYSTEM FOR SECURE TRACKING AND}

^{AUTHENTICATION OF ITEMS}

^{2) OTHER IT AND RELATED
ACTIVITIES (EG DISASTER RECOVERY SERVICES);}

^{DATABASE DEVELOPMENT AND
STORAGE SERVICE}

^{DURING THE FINANCIAL
YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL} ^{ACTIVITIES ARE TO CARRY ON THE BUSINESS OF THE RESEARCH,
DEVELOPMENT}

^{AND MANUFACTURE OF
ELECTRONIC SYSTEMS FOR SECURE TRACKING AND}

^{AUTHETICATION OF ITEMS.}

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

^{BACKGROUND SUBJECT IS A
PRIVATE LIMITED COMPANY HEADQUARTERED IN THE} ^{REPUBLIC OF SINGAPORE, WITH A SUBSIDIARY
SINGULAR ID ITALIA BASED IN} ^{PADUA, ITALY. THE SINGULAR ID GROUP
OPERATES AS A HIGH TECHNOLOGY} ^{INTEGRATOR OF ANTI-COUNTERFEITING AND
BRAND SECURITY PRODUCTS AND} ^SERVICES.

^PRODUCTS:

^{* SECURE TAGS AND LABELS}

^{* SCANNERS}

^{* DATABASE}

^SERVICES:

^{* ENXURE SERVICE}

^{* CONSULTANCY}

^{* STRATEGIC ROADMAPPING}

^NEWS:

^{"BILCARE BUYS SINGULAR ID AS IT PLAYS
OUT ITS STRATEGY TO BECOME THE} ^{LEADING ANTI-COUNTERFEITING SOLUTION PROVIDER IN THE
PHARMACEUTICAL} ^INDUSTRY"

^{SINGAPORE, 7TH JANUARY 2008 - SINGULAR ID, THE
PROVIDER OF THE} ^{INTEGRATED
HIGH TECHNOLOGY ENTERPRISE BRAND SECURITY SYSTEM CALLED} ^{ENXURE,
ANNOUNCED TODAY THAT DURING DECEMBER 2007 IT WAS ACQUIRED BY} ^{BILCARE
SINGAPORE PTE LTD FOR SGD 19.58 MILLION.}

^{BILCARE SINGAPORE IS A WHOLLY OWNED
SUBSIDIARY OF BILCARE LIMITED, A} ^{LEADING PHARMACEUTICAL PACKAGING COMPANY OFFERING RESEARCH
SERVICES,} ^{CLINICAL SERVICES AND PACKAGING MATERIALS TO HUNDREDS OF
GLOBAL} ^{CUSTOMERS. BILCARE IS LISTED ON THE MUMBAI STOCK EXCHANGE IN
INDIA.} ^{SINGULAR ID SPUN OFF FROM THE INSTITUTE OF MATERIALS RESEARCH
AND} ^{ENGINEERING, SINGAPORE, IN JUNE 2005, AND WITH VENTURE CAPITAL
BACKING} ^{HAS GROWN TO OPERATE OUT OF SINGAPORE AND ITALY DELIVERING
AWARD} ^{WINNING TECHNOLOGY TO CUSTOMERS IN THE FASHION AND AUTOMOTIVE
SECTORS.}

^{FOLLOWING THE ACQUISITION, THE FOUNDING
DIRECTORS OF SINGULAR ID, DR} ^{ADRIAN BURDEN AND DR PETER MORAN, WILL CONTINUE TO HOLD POSITIONS
ON} ^{THE BOARD AND TO RUN THE COMPANY AS CHIEF EXECUTIVE OFFICER AND
CHIEFTECHNOLOGY OFFICER RESPECTIVELY.}

^{- SINGULAR ID'S WEBSITE: 07/01/2008}

^{NO OTHER TRADE
INFORMATION IS AVAILABLE AS TELE-INTERVIEW WAS NOT} ^{GRANTED BY SUBJECT'S PERSONNEL}

^{REGISTERED AND BUSINESS ADDRESS:}

^{11 BIOPOLIS WAY}

^{#04-08 HELIOS BUILDING}

^{SINGAPORE 138667}

^{DATE OF CHANGE OF
ADDRESS: 30/11/2007}

^{WEBSITE:
http://www.singular-id.com}

^{EMAIL:
info@singular-id.com}

MANAGEMENT

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

^{1) ANTONIO GONCALVES
JR., AN AMERICAN}

^{- BASED IN AMERICA}

^{2) ADRIAN PAUL BURDEN, A
BRITISH}

^{- BASED IN SINGAPORE}

^{3) PIETRO BUSNARDO, AN
ITALIAN}

^{- ITALY}

^{4) PETER MALCOME MORAN,
A SINGAPORE PERMANENT RESIDENT}

^{- HOLDS NO OTHER
DIRECTORSHIPS AS RECORDED IN OUR DATABASE.}

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.

Manufacturing sector

PAST PERFORMANCE

THE MANUFACTURING SECTOR GREW BY 18.8% COMPARED TO Q2 OF 2006, RIDING ON STRONG GROWTH FROM THE BIOMEDICAL MANUFACTURING AND TRANSPORT ENGINEERING CLUSTERS. TOTAL MANUFACTURING OUTPUT GREW BY 7.8% COMPARED TO OUTPUT IN THE SAME PERIOD LAST YEAR.

BIOMEDICAL MANUFACTURING CLUSTER REBOUNDED FROM ITS CONTRACTION IN MARCH. SPEARHEADING THE JUMP OF 98.5% IN APRIL’S OUTPUT OVER APRIL LAST YEAR WAS THE PHARMACEUTICALS SEGMENT. THE PRODUCTION OF ACTIVE PHARMACEUTICAL INGREDIENTS SHOT UP BY 120.5% THIS APRIL DUE TO THE VERY LOW OUTPUT LEVEL LAST APRIL. THE MEDICAL TECHNOLOGY SEGMENT CONTINUED TO EXPAND ITS OUTPUT OF MEDICAL DEVICES AND APPLIANCES BY 16.1%. THE GROWTH OF BOTH SEGMENTS PUSHED CUMULATIVE OUTPUT OF THE WHOLE CLUSTER UP BY 10.5% IN THE FIRST FOUR MONTHS OF THIS YEAR COMPARED TO THE SAME PERIOD IN 2006.

TRANSPORT ENGINEERING CLUSTER RECORDED ITS FOURTH CONSECUTIVE MONTHLY YEAR-ON-YEAR GROWTH IN 2007. Q2 GROWTH OF 24.4% WAS CONTRIBUTED BY ALL THREE SEGMENTS. THE MARINE & OFFSHORE SEGMENT GREW 32.0% AS SHIPYARDS QUICKENED THEIR PACE OF SHIPBUILDING, SHIP CONVERSION AND SHIP REPAIRING. THE AEROSPACE SEGMENT GREW 13.5% WITH MORE REPAIRS COMPLETED FOR COMMERCIAL AIRCRAFTS. THE LAND TRANSPORT SEGMENT GREW 38.0% WITH HIGHER PRODUCTION OF LAND VEHICLE EQUIPMENT TO MEET LOCAL AND OVERSEAS ORDERS. CUMULATIVELY, THE CLUSTER GREW 23.9% IN THE FIRST FOUR MONTHS OF 2007 COMPARED TO THE SAME PERIOD LAST YEAR.

THE ELECTRONICS CLUSTER’S OUTPUT IN Q2 INCREASED BY 7.4% COMPARED TO Q2 OF 2006, BOOSTED MAINLY BY THE 18.0% INCREASE IN THE PRODUCTION OF SEMICONDUCTORS. THE ELECTRONIC MODULES AND COMPONENTS SEGMENT GREW 5.5%. ON THE OTHER HAND, CONTRACTIONS WERE SEEN IN THE OUTPUT OF INFOCOMMS & CONSUMER ELECTRONICS (-10.1%), DATA STORAGE (-2.8%) AND COMPUTER PERIPHERALS (-0.2%). FOR THE FIRST FOUR MONTHS OF THIS YEAR, THE ELECTRONICS CLUSTER GREW CUMULATIVELY BY 3.9% COMPARED TO THE SAME PERIOD IN 2006.

THE CHEMICALS CLUSTER GREW 4.1% IN Q2 COMPARED TO LAST YEAR'S SECOND QUARTER. THE OUTPUT OF PETROLEUM ROSE 21.7% FROM A YEAR AGO WHEN OUTPUT WAS LOW ARISING FROM MAINTENANCE SHUTDOWNS IN SOME REFINERY PLANTS. THE PRODUCTION OF PETROCHEMICALS FELL SLIGHTLY BY 0.6%. THE OUTPUT OF SPECIALTY CHEMICALS SHRANK 9.6% ON ACCOUNT OF LESS OUTPUT OF EPOXY COMPOUNDS, MINERAL OIL ADDITIVES AND CHEMICAL CATALYSTS. THE CLUSTER RECORDED A CUMULATIVE GROWTH OF 1.8% IN THE FIRST FOUR MONTHS OF 2007 COMPARED TO THE SAME PERIOD LAST YEAR.

OUTPUT OF THE PRECISION ENGINEERING CLUSTER FELL BY 2.5% IN Q2 2007. THIS CAME FROM THE CONTRACTIONS OF 1.4% AND 3.2% FOR THE MACHINERY & SYSTEMS SEGMENT AND PRECISION MODULES & COMPONENTS SEGMENT RESPECTIVELY. CUMULATIVELY, THE FIRST FOUR MONTHS’ OUTPUT THIS YEAR WAS 0.9% LESS THAN THE OUTPUT IN THE SAME PERIOD OF 2006.

THE GENERAL MANUFACTURING INDUSTRIES GREW 11.3% YEAR-ON-YEAR IN Q2 2007. THE FOOD, BEVERAGES AND TOBACCO INDUSTRIES CONTRIBUTED LARGELY TO THE GROWTH WITH OUTPUT INCREASES OF 18.3%. THE MISCELLANEOUS INDUSTRIES ALSO GREW 14.9%. CUMULATIVE OUTPUT FOR THIS GROUP OF INDUSTRIES GREW 9.8% IN THE FIRST FOUR MONTHS OF THIS YEAR COMPARED TO THE SAME PERIOD IN 2006.

OUTLOOK

THE MANUFACTURING SECTOR IS MORE OPTIMISTIC IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007, COMPARED TO THE FIRST QUARTER OF THE YEAR. OVERALL, A WEIGHTED 30% OF MANUFACTURERS FORESEE AN IMPROVED OUTLOOK, WHILE 4% PREDICT DETERIORATION. THIS RESULTS IN A NET WEIGHTED BALANCE OF 26% OF MANUFACTURERS EXPECTING BUSINESS CONDITIONS TO IMPROVE, WHICH IS HIGHER THAN THE 7% RECORDED A QUARTER AGO. THE POSITIVE BUSINESS SENTIMENT IS LED BY THE ELECTRONICS CLUSTER.

BUSINESS OUTLOOK IN THE BIOMEDICAL MANUFACTURING CLUSTER REMAINS RELATIVELY STABLE FOR THE NEXT SIX MONTHS ENDING SEPTEMBER 2007, COMPARED TO THE FIRST QUARTER OF THE YEAR. IN BOTH THE PHARMACEUTICAL AND MEDICAL TECHNOLOGY SEGMENTS, OUTPUT FORECAST IS ANTICIPATED TO BE HIGHER IN THE SECOND QUARTER OF 2007, COMPARED TO THE FIRST QUARTER, IN PREPARATION FOR ORDERS AND DELIVERIES TO BE MADE IN THE SAME PERIOD.

THE TRANSPORT ENGINEERING CLUSTER REMAINS POSITIVE ABOUT BUSINESS PROSPECTS IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007, COMPARED TO LAST QUARTER. THE MARINE & OFFSHORE ENGINEERING SEGMENT REMAINS ROBUST, WITH THE MAJORITY OF SHIPYARDS ANTICIPATING HIGHER LEVELS OF REPAIRING AND CONVERSION ACTIVITIES IN SECOND QUARTER OF 2007, COMPARED WITH THE FIRST QUARTER OF THE YEAR. STRONGER PERFORMANCE IS ALSO ANTICIPATED IN THE AEROSPACE SEGMENT ON A QUARTER TO QUARTER BASIS, AS AIRCRAFT REPAIR AND SERVICING ACTIVITIES INCREASE IN LINE WITH MORE OVERSEAS ORDERS AND EXPORTS. OUTPUT IN THE LAND TRANSPORT SEGMENT IS ALSO EXPECTED TO RISE IN THE SECOND QUARTER OF THE YEAR, COMPARED WITH A QUARTER AGO, IN FULFILLMENT OF CONTRACTUAL ORDERS.

THE ELECTRONICS CLUSTER IS SIGNIFICANTLY MORE OPTIMISTIC COMPARED TO THE FIRST QUARTER OF THE YEAR. A NET WEIGHTED BALANCE OF 38% OF MANUFACTURERS EXPECTS BUSINESS CONDITIONS TO IMPROVE IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007, COMPARED TO A NET WEIGHTED BALANCE OF -1% RECORDED IN THE FIRST QUARTER. IN PARTICULAR, MANUFACTURERS IN THE COMPUTER PERIPHERALS AND INFOCOMMS AND CONSUMER ELECTRONICS SEGMENTS ARE MORE BULLISH DUE TO NEW PRODUCT INTRODUCTIONS AND AN EXPECTED PICK UP IN MARKET DEMAND FOLLOWING THE FIRST QUARTER SEASONAL LULL. CHIP MAKERS ALSO PREDICT SUSTAINED GLOBAL DEMAND OVER THE SECOND AND THIRD QUARTERS OF THE YEAR, AS EVIDENCED BY AN EXPECTED INCREASE IN EXPORT ORDERS AND SALES. PRODUCTION IN ALL SEGMENTS OF THE CLUSTER IS EXPECTED TO RISE IN THE SECOND QUARTER, OVER THE LOW LEVELS IN THE FIRST QUARTER OF 2007. IN TERMS OF EMPLOYMENT OUTLOOK, A NET WEIGHTED 24% OF THE ELECTRONICS CLUSTER IS EXPECTED TO HIRE MORE WORKERS IN THE SECOND QUARTER OF 2007, AS PRODUCTION AND SALES INCREASE.

IN THE CHEMICALS CLUSTER, A NET WEIGHTED 10% OF MANUFACTURERS EXPECT THE BUSINESS ENVIRONMENT IN THE SECTOR TO IMPROVE IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007. FIRMS IN THE SPECIALTIES AND OTHER CHEMICALS SEGMENTS ARE MORE OPTIMISTIC AS THE TREND OF SALES LEVEL DURING THE APRIL TO SEPTEMBER PERIOD IS EXPECTED TO RISE, FOLLOWING SEASONAL WEAKNESS IN THE FIRST THREE MONTHS OF 2007. OUTPUT IN ALL SEGMENTS OF THE CLUSTER IS PROJECTED TO INCREASE IN THE SECOND QUARTER OF THE YEAR, AS COMPARED TO THE FIRST. THE ONLY EXCEPTION IS IN THE PETROLEUM REFINERY SEGMENT, WHERE SOME MAINTENANCE DOWNTIME IS PLANNED DURING THIS PERIOD.

A NET WEIGHTED BALANCE OF 24% OF THE PRECISION ENGINEERING CLUSTER EXPECT AN IMPROVEMENT IN THE OPERATING ENVIRONMENT IN THE NEXT SIX MONTHS ENDING SEPTEMBER 2007, AS COMPARED TO ONLY 4% RECORDED A QUARTER AGO. ON THE PRODUCTION FRONT, A TURNAROUND FROM THE SEASONALLY WEAK FIRST QUARTER IS ALSO EXPECTED. THE MACHINERY & SYSTEMS SEGMENT FORECAST AN INCREASE IN THE OUTPUT OF INDUSTRIAL PROCESS CONTROL EQUIPMENT AND SEMICONDUCTOR ASSEMBLY AND TESTING EQUIPMENT, IN VIEW OF HIGHER ORDERS AND DELIVERIES ANTICIPATED IN THE SECOND QUARTER OF 2007. MANUFACTURERS IN THE PRECISION MODULES & COMPONENTS SEGMENT EXPECT AN INCREASE IN PRODUCTION DUE TO THE INTRODUCTION OF SOME NEW PRODUCT LINES, AND IN RESPONSE TO HIGHER ORDER LEVELS. MOREOVER, SINGAPORE'S PRECISION ENGINEERING SECTOR IS GROWING AND INCREASING ITS OUTPUT ANNUALLY AND IS EXPECTED TO GENERATE S$28 BILLION BY 2010.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

economic development board

CONTACT SINGAPORE

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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