MIRA INFORM REPORT

Report Date :

18.06.2008

IDENTIFICATION DETAILS

Name :	GOLDEN AGRI INTERNATIONAL PTE LTD

Formerly Known As :	^{AFP AGRI-RESOURCES PTE LTD}

Registered Office :	^{3 Shenton Way} ^#17-03 ^{Shenton House} ⁰⁶⁸⁸⁰⁵

Country :	Singapore

Financials (as on) :	31.12.2006

Date of Incorporation :	^17.02.1998

Com. Reg. No.:	^199800781G

Legal Form :	^{Pte Ltd}

Line of Business :	^{Trading in Crude Palm Oil and its related Products.}

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 :	No Complaints

Litigation :	Exists

Subject Company

GOLDEN AGRI INTERNATIONAL PTE LTD

Line Of Business

^{TRADING IN CRUDE PALM
OIL AND ITS RELATED PRODUCTS.}

Parent Company

^{GOLDEN AGRI-RESOURCES LTD}

(PERCENTAGE OF SHAREHOLDING: 100.00%)

Financial Elements

FY 2006

COMPANY

Sales : N/A

Networth : US$ 8,849,349

Paid-Up Capital : US$ 292,912

Net result : US$-2,356,926

Net Margin(%) : N/A

Return on Equity(%) : -26.63

Leverage Ratio : 1.98

COMPANY IDENTIFICATION

^{Subject
Company : GOLDEN AGRI INTERNATIONAL PTE LTD}

^{Former
Name : AFP
AGRI-RESOURCES PTE LTD}

^{Business
Address : 3 SHENTON WAY}

^#17-03

^{SHENTON HOUSE}

^{Town : SINGAPORE}

^{Postcode : 068805}

^{County :}

^{Country : Singapore}

^{Telephone : 6325 5090}

^{Fax : 6224 7756}

^{ROC
Number :
199800781G}

^{Reg.
Town :}

PREVIOUS IDENTIFICATION

^{AFP
AGRI-RESOURCES PTE LTD DATE OF
CHANGE OF NAME: 22/07/1999 ALDEB}

SUMMARY

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

^{Legal Form :}^{Pte Ltd}

^{Date Inc. :}^17/02/1998

^{Previous Legal Form : -}

^{Summary year :}^31/12/2006

^{Sales :}^N/A

^{Networth :}^8,849,349

^{Capital :
-}

^{Paid-Up Capital :}^292,912

^{Employees :}¹⁰

^{Net result :}^-2,356,926

^{Share value : -}

^{Auditor :}^{MOORE STEPHENS}

^{BASED
ON ACRA'S RECORD}

^{NO OF SHARES CURRENCY AMOUNT}

^{ISSUED
ORDINARY 2,450,000 SGD 20,000,000.00}

^{PAID-UP
ORDINARY -
SGD 20,000,000.00}

REFERENCES

^{Litigation : YES}

^{Company
status : TRADING}

^{Started
:
17/02/1998}

PRINCIPAL(S)

^{CHEN
SAU HUA
S6972966E Director}

DIRECTOR(S)

^{OEI
JONG NIAN @ FRANKY OESMAN
S2173296F Director}

^{Appointed
on : 06/04/1999}

^{Street
: 9 RHU CROSS}

^#03-10

^{COSTA RHU}

^{Town: SINGAPORE}

^{Postcode: 437436}

^{Country: Singapore}

^{DJAFAR
WIDJAJA S2173297D Director}

^{Appointed
on : 06/04/1999}

^{Street
: 38 STEVENS ROAD}

^#02-02

^{Town: SINGAPORE}

^{Postcode: 257845}

^{Country: Singapore}

^{MILTON
SUBIANTO NG
S2567370J Director}

^{Appointed
on : 06/04/1999}

^{Street
: 9 RHU CROSS}

^#12-08

^{Town: SINGAPORE}

^{Postcode: 437436}

^{Country: Singapore}

^{LYE
CHOR MEI
S2590497D Company Secretary}

^{Appointed
on : 15/01/2003}

^{Street
: 851 TAMPINES STREET 83}

^#08-206

^{Town: SINGAPORE}

^{Postcode: 520851}

^{Country: Singapore}

^{CHEN
SAU HUA
S6972966E Director}

^{Appointed
on : 02/08/2002}

^{Street
: 19 SHELFORD ROAD}

^#01-39

^{Town: SINGAPORE}

^{Postcode: 288408}

^{Country: Singapore}

^{SIMON
LIM
N286738 Director}

^{Appointed
on : 02/08/2002}

^{Street
: JL.SUKARELA NO. 1 RT}

^{009/RW009 PENJARINGAN,}

^{Town: JAKARTA UTARA}

^Postcode:

^{Country: Indonesia}

^{RAFAEL
BUHAY CONCEPCION JR
ZZ131982 Director}

^{Appointed
on : 02/08/2002}

^{Street
: JENGGALA I NO. 5}

^{KEBAYORAN BARU}

^{Town: JAKARTA SELATAN}

^Postcode:

^{Country: Indonesia}

ACTIVITY(IES)

^{IMPORTERS
And EXPORTERS
Code:11760}

^{PALM
OIL Code:15870}

^{TRADING
COMPANIES Code:22190}

^{BASED
ON ACRA'S RECORD}

^{1)
GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS);}

^{TRADING
IN CRUDE PALM OIL AND ITS RELATED PRODUCTS}

CHARGES

^{Date: 01/07/2002}

^{Comments
: CHARGE NO.: 200202860 (DISCHARGED)}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE[S]:
AGRICULTURAL BANK OF CHINA}

^{Date: 20/02/2001}

^{Comments
: CHARGE NO.: 200100812 (DISCHARGED)}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE[S]:
RHB BANK BERHAD}

^{Date: 01/08/2000}

^{Comments
: CHARGE NO.: 200003537 (DISCHARGED)}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE[S]:
FLEET NATIONAL BANK}

^{Date: 11/04/2006}

^{Comments
: CHARGE NO.: C200602356,
C200602341, C200602336, C200602334}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE[S]:
WESTLB AG, SINGAPORE BRANCH}

^{Date: 11/04/2006}

^{Comments
: CHARGE NO.: C200602330,
C200602327, C200602326, C200602310}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE[S]:
WESTLB AG, SINGAPORE BRANCH}

^{Amount: 5,000,000}

^{Comments
: CHARGE NO.: 199900888 (DISCHARGED
- 21/07/1999)}

^{AMOUNT
SECURED: US$5,000,000.00}

^{CHARGEE[S]:
BANK BRUSSELS LAMBERT}

^{Comments
: CHARGE NO.: 199900887 (DISCHARGED
- 21/07/1999)}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE[S]:
BANK BRUSSELS LAMBERT}

^{Date: 31/07/2007}

^{Comments
: CHARGE NO.: C200706143}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE[S]:
THE BANK OF TOKYO-MITSUBISHI UFJ LTD - S'PORE BRANCH}

^{Date: 30/08/2007}

^{Comments
: CHARGE NO.: C200707118,
C200707120, C200707121}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE[S]:
PT BANK MANDIRI (PERSERO) TBK}

^{Date: 27/09/2007}

^{Comments
: CHARGE NO.: C200708066}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE[S]:
THE BANK OF TOKYO-MITSUBISHI UFJ LTD - S'PORE BRANCH}

^{Date: 27/11/2007}

^{Comments
: CHARGE NO.: C200710393}

^{AMOUNT
SECURED: 0.00 AND ALL MONIES OWING}

^{CHARGEE[S]:
FORTIS BANK S.A./N.V.}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{THE
AGRICULTURAL BANK OF CHINA}

^{RHB
BANK BHD}

^{FLEET
NATIONAL BANK}

^{FORTIS
BANK S.A./N.V.}

^{THE
BANK OF TOKYO-MITSUBISHI UFJ, LTD (THE BANK OF TOKYO-MITSUBISHI, LTD)}

^{PT
BANK MANDIRI (PERSERO) TBK}

SHAREHOLDERS(S)

^{GOLDEN
AGRI-RESOURCES LTD
2,450,000 Company}

^{Street
: 10, FRERE FELIX DE VALOIS
STREET}

^{Town: PORT LOUIS}

^Postcode:

^{Country: Mauritius}

HOLDING COMPANY

^{GOLDEN
AGRI-RESOURCES LTD
UF24045G % : 100}

SUBSIDIARY(IES)

^{GOLDEN
AGRI INTERNATIONAL LTD}

^{GOLDEN
AGRI INTERNATIONAL TRADING (MAURITIUS) LTD}

^{GOLDEN
AGRI INTERNATIONAL TRADING (CAYMAN) LTD}

^{GOLDEN
AGRI INTERNATIONAL (CAYMAN) LTD}

^{GOLDEN
AGRI INTERNATIONAL (MAURITIUS) LTD}

^{SINARKONEX
KOREA CO. LTD}

PAYMENT HISTORY AND EXPERIENCES

^{Trade
Morality :
AVERAGE}

^{Liquidity
:
SUFFICIENT}

^{Payments
: UNKNOWN}

^{Trend
:
UNKNOWN}

^{Financial
Situation : AVERAGE}

LITIGATION(S)

^{Type
Of Case: High Court - W/S P}

^{Case
Number: MHWS00738/2003}

Defendant GOLDEN AGRI INTERNATIONAL PTE LTD ROC # : 199800781G

FINANCIAL ELEMENTS

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

^{Audit Qualification: UNQUALIFIED (CLEAN) UNQUALIFIED (CLEAN)} ^{Date
Account Lodged:
23/07/2007}

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

^{Number of
weeks: 52 52}

^{Consolidation
Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed
Assets: 58,903}

^{Investments 411,058 2,718,456}

^{Total
Fixed Assets:
469,961
2,718,456}

^Receivables: ^{Cash,Banks, Securities: 112,908 115,465}

^{Other current
assets: 25,768,280 55,492,718}

^{Total
Current Assets:
25,881,188
55,608,183}

^{TOTAL
ASSETS:
26,351,149
58,326,639}

^{--- LIABILITIES ---}

^{Equity capital: 292,912 292,912}

^{Profit &
lost Account: 8,556,437 10,913,363}

^{Total
Equity:
8,849,349
11,206,275}

^{Long Term
Loans: 27,004,669}

^{Other long term
Liab.: 5,563,062 5,416,472}

^{Total
L/T Liabilities:
5,563,062 32,421,141}

^{Trade
Creditors:}

^{Prepay. & Def.
charges: 3,513 1,774,975}

^{Short term
liabilities: 5,728}

^{Advanced
payments:}

^{Due to Bank: 2,348,232}

^Provisions: ^{Other Short term Liab.: 11,929,497 10,576,016}

^{Total
short term Liab.:
11,938,738 14,699,223}

^{TOTAL
LIABILITIES:
17,501,800
47,120,364}

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

^{Net Sales}

^{Gross Profit:}

^{NET RESULT BEFORE
TAX: -2,356,926 1,646,617} ^{Tax :
93,939} ^{Net income/loss year: -2,356,926 1,552,678} ^{Interest Paid: 852,248 383,659} ^{Depreciation:} ^Directors

^Emoluments: ^{Wages and Salaries:} ^{Financial Income: 1,792 672} ^{Extraordinary Items:}

RATIOS

                             ^{31/12/2006                  31/12/2005}  ^{Return on Equity(%):       -26.63                     13.86}  ^{Return on Assets(%):
-8.94                      2.66}  ^{Net Working capital:
13942450.00
40908960.00}  ^{Cash Ratio:                0.01                       0.01}  ^{Quick Ratio:
0.01                       0.01}  ^{Current ratio:             2.17                       3.78}  ^{Leverage Ratio:                       1.98                                     4.20}

^{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

^{THE
FINANCIAL CONDITION OF THE COMPANY WAS SEEN TO BE FAIR IN VIEW} ^{OF THE
FOLLOWING:}

^{NET WORTH:}

^{THE
BALANCE SHEET WAS CONSIDERED PASSABLE ALTHOUGH NET WORTH DECREASED}

^{BY
21.03% FROM USD11,206,275 IN FY 2005 TO USD8,849,349 IN FY 2006.}

^{THIS
WAS ATTRIBUTED TO A DECREASED IN RETAINED EARNINGS AND AMOUNTED} ^{TO
USD8,556,437 (2005: USD10,913,363); A FALL OF 21.60% FROM THE PRIOR} ^{FINANCIAL
YEAR.}

^LEVERAGE:

^{IN
THE SHORT-TERM IN 2005, SUBJECT WAS LARGELY FINANCED BY OTHER} ^{SHORT TERM LIABILITIES
WHICH MADE UP 99.92% (2005: 71.95%) OF THE} ^{TOTAL CURRENT LIABILITIES
AND AMOUNTED TO USD11,929,497 (2005:} ^{USD10,576,016). THE BREAKDOWN
WAS AS FOLLOWS:}

^{* DUE TO HOLDING COMPANY - 2006: USD847,037
(2005: USD839,376)}

^{* RELATED COMPANIES - 2006: USD11,078,176
(2005: USD9,732,356)}

^{* LOAN FROM A RELATED COMPANIES 2006:
USD5,529,190 (2005: USD}

^5,416,472)

^{* OTHER CREDITORS - 2006: USD4,284 (2005:
USD4,284)}

^{THE BANK
BORROWINGS WERE FULLY REPAID DURING THE FINANCIAL YEAR.} ^{OVERALL, THE
LEVERAGE RATIO HAD IMPROVED TO 1.98 TIMES (2005: 4.20} ^{TIMES),
INDICATING THAT THE COMPANY'S TOTAL LIABILITIES WERE LESS} ^{SUBSTANTIAL
IN RELATION TO ITS TOTAL EQUITY.}

^LIQUIDITY:

^{IN
GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE ALTHOUGH NET} ^{WORKING
CAPITAL FELL BY 65.92% TO USD13,942,450 (2005: USD40,908,960).}

^{ON
THE OTHER HAND, CURRENT RATIO FELL TO 2.17 TIMES (2005: 3.78 TIMES)} ^{WHILE QUICK
RATIO REMAINED TO 0.01 TIMES (2005: 0.01 TIMES).}

^{SIMILARLY,
CASH AND CASH EQUIVALENTS FELL BY 2.21% TO USD112,908} ^{(2005: USD115,465).}

^{PROFITABILITY:}

^{THE
ANALYSIS WILL NOT BE CONDUCTED DUE TO THE LACK OF INFORMATION ON} ^{THE TURNOVER
FIGURE.}

^{DEBT SERVICING:}

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

^{NOTES
TO THE FINANCIAL STATEMENTS:}

^BORROWINGS:

^{THE
BORROWINGS BEARS INTEREST RANGING FROM 6.1% TO 7% (2005: 5.1% TO}

^{6.1%)
PER ANNUM AND HAD BEEN FULLY SETTLED DURING THE YEAR ENDED 31}

^{DECEMBER
2006.}

BACKGROUND/OPERATION

^{THE
COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON} ^{17/02/1998
AS A LIMITED PRIVATE COMPANY AND WAS TRADING UNDER THE} ^{NAMESTYLE OF
"ALDEBURGH PTE LTD".}

^{ON
27/06/1998, IT CHANGED TO THE NAMESTYLE OF "AFP AGRI-RESOURCES PTE
LTD".}

^{SUBSEQUENTLY
ON 22/07/1999, THE COMPANY CHANGED TO ITS PRESENT NAMESTYLE OF}

^{"GOLDEN
AGRI INTERNATIONAL PTE LTD".}

^{THE
COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF} ^{2,450,000
SHARES, OF A VALUE OF S$20,000,000.}

^{PRINCIPAL
ACTIVITIES:}

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

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

^{1)
GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS);}

^{TRADING
IN CRUDE PALM OIL AND ITS RELATED PRODUCTS}

^{2)
GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)}

^{THE
COMPANY WAS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE} ^{CLASSIFICATION
OF: TRADING COMPANIES}

^{DURING
THE FINANCIAL YEAR(S), UNDER REVIEW, THE COMPANY'S PRINCIPAL} ^{ACTIVITY IS
THAT OF TRADING IN CRUDE PALM OIL AND ITS RELATED} ^PRODUCTS.

^{FROM
OUR RESEARCH DONE, THE FOLLOWING INFORMATION HAS BEEN GATHERED:} ^ACTIVITIES:

^{* TRADING OF PALM OIL PRODUCTS}

^PRODUCTS:

^{* CRUDE PALM OIL}

^{* REFINED, BLEACHED & DEODORISED (RBD)
OLEIN}

^{* RBD PALM OIL}

^{* RBD STEARIN}

^{* PALM FATTY ACID DISTILLATE}

^{* CRUDE PALM KERNEL OIL}

^{* PALM KERNEL MEAL}

^{SUBJECT
IS A MEMBER OF THE FOLLOWING ENTITY:}

^{* THE PALM OIL REFINERS ASSOCIATION OF
MALAYSIA (PORAM)}

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

^{NUMBER
OF EMPLOYEES:}

^{* 10 - AS OF 2006}

^{THE
COMPANY IS A WHOLLY-OWNED SUBSIDIARY OF GOLDEN AGRI-RESOURCES LTD}

^{("GAR"),
A PUBLIC LIMITED COMPANY INCORPORATED IN MAURITIUS.}

^{THE INTERMEDIATE
HOLDING COMPANY WAS FORMERLY ASIA FOOD & PROPERTIES} ^{LIMITED
("AFP") INCORPORATED IN SINGAPORE. EFFECTIVCE ON 27 DECEMBER} ^{2006,
AFP HAS DISTRIBUTED IN SPECIE SUBSTANTIALLY ALL ITS SHARES HELD} ^{IN
THE SHARE CAPITAL OF GAR TO THE SHAREHOLDERS OF AFP ("THE} ^{DISTRIBUTION").
FOLLOWING THE DISTRIBUTION, GAR AND ITS SUBSIDIARIES} ^{CEASED TO BE
SUBSIDIARIES OF AFP. THE CONTROLLING SHAREHOLDERS OF THE} ^{COMPANY
COMPRISED CERTAIN MEMBERS OF THE WIDJAJA FAMILY.}

^{REGISTERED
AND BUSINESS ADDRESS:}

^{3
SHENTON WAY}

^#17-03

^{SHENTON
HOUSE}

^{SINGAPORE
068805}

^{DATE
OF CHANGE OF ADDRESS: 26/06/2001}

^{-
RENTED PREMISE}

^{-
OWNED BY: VESTWIN TRADING PTE LTD}

^{OTHER
BUSINESS ADDRESS:}

^{3
SHENTON WAY}

^#17-01

^{SHENTON
HOUSE}

^{SINGAPORE
068805}

^WEBSITE:
-

^{EMAIL : apdaniel@afp.com.sg}

MANAGEMENT

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

^{1)
SIMON LIM, AN INDONESIAN}

^{-
BASED IN INDONESIA}

^{2)
OEI JONG NIAN @ OESMAN WIDJAJA, A SINGAPORE PERMANENT RESIDENT}

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

^{ASIA
FOOD & PROPERTIES LIMITED}

^{3)
DJAFAR WIDJAJA, A SINGAPORE PERMANENT RESIDENT}

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

^{ASIA
FOOD & PROPERTIES LIMITED}

^{AFP
HILLVIEW PTE LTD}

^{4)
MILTON SUBIANTO NG, A SINGAPORE PERMANENT RESIDENT}

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

^{5)
CHEN SAU HUA, A SINGAPOREAN}

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

^{6)
RAFAEL BUHAY CONCEPCION JR, A FILIPINO}

^{-
BASED IN INDONESIA}

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

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.0% IN 4Q 2007, SLOWER THAN THE 6.8% GROWTH IN 3Q 2007. RETAIL SALES FELL BY 2.5%, FOLLOWING A 1.5% GROWTH IN 3Q 2007.

DOMESTIC WHOLESALE TRADE INDEX

THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 22.2% IN 4Q 2007 OVER 4Q 2006.

EXCLUDING PETROLEUM, DOMESTIC SALES GREW BY 4.8%.

THE RISE IN THE OVERALL INDEX WAS MAINLY DUE TO HIGHER SALES OF PETROLEUM AND PETROLEUM PRODUCTS (47.3%), TIMBER, PAINTS AND CONSTRUCTION MATERIALS (29.8%). OTHER WHOLESALE SEGMENTS THAT REPORTED DOUBLE-DIGIT GROWTH WERE WHOLESALING OF GENERAL WHOLESALE TRADE, HOUSEHOLD EQUIPMENT AND FURNITURE AND CHEMICALS AND CHEMICAL PRODUCTS.

ON THE OTHER HAND, WHOLESALE SEGMENT THAT REPORTED LOWER SALES WERE ELECTRONIC COMPONENTS (-35.8%).

AT CONSTANT PRICES, THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 1.6% IN 4Q 2007 OVER 4Q 2006. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE SLIGHTLY BY 0.2%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE IN 4Q 2007 ROSE BY 7.1% OVER 3Q 2007. EXCLUDING PETROLEUM, DOMESTIC SALES CONTRACTED BY 2.9%.

THE MAJORTIY OF THE WHOLESALE SECTORS RECORDED HIGHER DOMESTIC SALES IN 4Q 2007 OVER PREVIOUS QUARTER. PETROLEUM AND PETROLEUM PRODUCTS EXPANDED BY 20.0%. GENERAL WHOLESALE TRADE AND INDUSTRIAL AND CONSTRUCTION MACHINERY ALSO REGISTERED

DOUBLE-DIGIT GROWTH OVER PREVIOUS QUARTER.

ON THE OTHER HAND, SALES OF FOOD, BEVERAGES AND TOBACCO AND ELECTRONIC COMPONENTS FELL IN 4Q 2007 OVER 3Q 2007.

FOREIGN WHOLESALE TRADE INDEX

THE OVERALL FOREIGN WHOLESALE TRADE FOR 4Q 2007 ROSE BY 27.0%, IN COMPARISON TO 4Q 2006. EXCLUDING PETROLEUM, IT EXPANDED BY 15.3%

MOST OF THE SECTORS REPORTED HIGHER SALES. DOUBLE-DIGIT GROWTH RATES FOR OVERSEAS SALES WERE RECORDED BY FOOD, BEVERAGES AND TOBACCO (40.6%) PETROLEUM AND PETROLEUM PRODUCTS (39.9%) SHIP CHANDLERS AND BUNKERING (24.3%) INDUSTRIAL AND CONSTRUCTION MACHINERY (18.2%) CHEMICALS AND CHEMICAL PRODUCTS (16.4%) ELECTRONIC COMPONENTS (12.1%) TIMBER, PAINT AND CONSTRUCTION MATERIALS (11.1%).

ON THE OTHER HAND, OVERSEAS SALES OF TELECOMMUNICATIONS AND COMPUTERS FELL BY 2.8%

IN 4Q 2007 OVER 4Q 2006.

AT CONSTANT PRICES, THE OVERALL INDEX ROSE BY 11.5% IN 4Q 2007 OVER 4Q 2006.

EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE GREW BY 15.1%.

ON A QUARTER-OVER-QUARTER BASIS, THE OVERALL FOREIGN WHOLESALE TRADE IN 4Q 2007 ROSE BY 11.7% OVER 3Q 2007. EXCLUDING PETROLEUM, IT GREW BY 6.0%.

ALL WHOLESALE SECTORS RECORDED BETTER BUSINESS IN 4Q 2007 WITH THE EXCEPTION OF THE ELECTRONIC COMPONENTS SECTOR. THOSE SECTORS THAT REGISTERED DOUBLE-DIGIT GROWTH WERE WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS, TELECOMMUNICATIONS AND COMPUTERS, INDUSTRIAL AND CONSTRUCTION MACHINERY AND CHEMICALS AND CHEMICAL PRODUCTS.

RETAIL TRADE

THE OVERALL RETAIL SALES CONTRACTED BY 2.5%, IN CONTRAST TO THE 1.5% GROWTH IN 3Q 2007. THE SECTOR THAT RECORDED THE LARGEST DECLINE WERE MOTOR VEHICLES, FOLLOWED BY PROVISION AND SUNDRY SHOPS, FOOD AND BEVERAGES, WATCHES AND JEWELLERY AND MEDICAL GOODS AND TOILETRIES. EXCLUDING MOTOR VEHICLES, RETAIL SALES ROSE BY 5.2%, A DECLINE FROM THE 6.O% GROWTH IN 3Q 2007.

NEWS

SURPRISING DROP IN RETAIL SALES

RETAIL SALES FELL UNEXPECTEDLY IN FEBRUARY, THE FIRST TIME IN SEVEN MONTHS, AS INFLATION HIT 26 YEAR HIGHS AND WORRIES GREW ABOUT THE WORLD ECONOMY. SHOPS, SUPERMARKETS AND OTHER RETAILERS SAW REVENUES FELL 1.3% FROM A YEAR EARLIER, AS CAR SALES DECLINED 10.6% AND FOOD AND BEVERAGES SALES PLUNGED 21.8%.

THE OVERALL CONTRACTION BY THE SECTOR WOULD HAVE BEEN BIGGER IF NOT FOR MUCH HIGHER PRICES THIS YEAR. IN CONSTANT PRICES TERMS, SALES FELL 5.7%. THIS IS THE WORST READING SINCE THE 5.0% DECLINE IN MARCH 2007, IF ONE WERE TO IGNORE THE 2.0% CONTRACTION IN JULY THAT WAS DUE TO THE HIKE IN THE GOODS AND SERVICES TAX,” SAID HSBC ECONOMIST PRAKRITI SOFAT.

ANALYSTS SAID RISING LIVING COSTS AND UNCERTAINTY ABOUT THE ECONOMY WOULD AFFECT SINGAPORE CONSUMER’S SPENDING THIS YEAR. MANY, HOWEVER, REMAIN LARGELY OPTIMISTIC ABOUT THE DOMESTIC RETAIL SCENE, SAYING THE POOR FEBRUARY SHOWING COULD BE A STATISTICAL BLIP.

DOMESTIC DEMAND CONDITIONS REMAIN POSITIVE, HELPED BY THE GOVERNMENT WHICH IS GIVING CASH FROM LAST YEAR’S SURPLUS TO THE WHOLE POPULATION AND ISSUING FOOD VOUCHERS TO THE POOR. “LOW INTEREST RATES AND A HEALHY JOBS MARKET SHOULD KEEP SPENDING FIRM,” SAID HSBC’S MS SOFAT. SHE ADDED THAT FEBRUARY’S DECLINE WAS DUE LARGELY TO A HIGH BASE SET THE PREVIOUS YEAR AND PREDICTED THAT MARCH SALES WOULD BOUNCE BACK WITH A 15.0% SURGE. ALSO, IF COMPARED WITH JANUARY, FEBRUARY SALES ROSE 8.8% AFTER ADJUSTING FOR SEASONAL EFFECTS. THIS WAS THE STRONGEST PERFORMANCE IN FOUR YEARS, SHE SAID.

CIMB-GK ECONOMIST SONG SENG WUN SAID MUCH OF THE POOR PERFORMANCE CAME ON THE BACK OF WEAKER CAR SALES. EXCLUDING THOSE, RETAIL SALES WOULD HAVE RISEN 2.9%. CAR SALES HAVE BEEN HURT SINCE OCTOBER BY RISING CERTIFICATE OF ENTITLEMENT PRICES, CAUSED BY AN EXPECTED CUT IN QUOTAS FROM NEXT MONTH AND SURGING PUMP PRICES.

OUTLOOK

GENERALLY, WHOLESALERS ARE POSITIVE ABOUT THEIR BUSINESS PROSPECTS IN THE COMING MONTHS, WITH A NET WEIGHTED BALANCE OF 4% OF FIRMS EXPRESSING POSITIVE BUSINESS SENTIMENTS. THE MAJORITY OF WHOLESALERS OF PETROLEUM AND PETROLEUM PRODUCTS, CHEMICALS AND CHEMICAL PRODUCTS, INDUSTRIAL MACHINERY AND EQUIPMENT AND COMPUTERS AND ACCESSORIES FORECAST BUSINESS OUTLOOK TO REMAIN THE SAME IN THE FIRST SIX MONTHS OF 2008 COMPARED WITH THE LAST SIX MONTHS IN 2007.

A NET WEIGHTED BALANCE OF 12% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS CONDITIONS FOR THE PERIOD ENDING JUNE 2008. AS A RESULT OF THE REDUCED CERTIFICATE OF ENTITLEMENT (COE) QUOTA, MOTOR VEHICLES RETAILERS ARE ESPECIALLY CONCERNED WITH THE SALES.

EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE

SINGAPORE DEPARTMENT OF STATISTICS

THE STRAITS TIMES

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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