MIRA INFORM REPORT

Report Date :

29.05.2008

IDENTIFICATION DETAILS

Name :	FISH INTERNATIONAL SOURCING HOUSE PTE LTD
Registered Office :	^18 Boon Lay Way ^#10-155 ^Tradehub 21
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	^06.04.2004
Com. Reg. No.:	^200404146H
Legal Form :	^Exempt Pte Ltd
Line of Business :	^Import and Export of Seafood Products (Seafood Trading) ^Activities and as a Commission Agent.

RATING & COMMENTS

MIRA’s Rating :

B

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 :	Small Company
Payment Behaviour :	Unknown
Litigation :	Clear

Subject Company

FISH INTERNATIONAL SOURCING HOUSE PTE LTD

Line Of Business 

^{IMPORT AND EXPORT OF SEAFOOD PRODUCTS (SEAFOOD TRADING)}

^{ACTIVITIES AND AS A COMMISSION AGENT.}

Parent Company

N/A

Financial Elements

FY 2006

COMPANY

Sales : US$3,117,454

Networth : US$ 191,176

Paid-Up Capital : US$ 100,000

Net result : US$ 75,189

Net Margin(%) : 2.41

Return on Equity(%) : 39.33

Leverage Ratio : 3.10

COMPANY IDENTIFICATION

^{Subject Company : FISH INTERNATIONAL SOURCING HOUSE PTE. LTD.}

^{Former Name :}

^{Business Address: 18 BOON LAY WAY}

^#10-155

^{TRADEHUB 21}

^{Town : SINGAPORE}

^{Postcode : 609966}

^{County :}

^{Country : Singapore}

^{Telephone : 6316 8671}

^{Fax : 6491 5858}

^{ROC Number : 200404146H}

^{Reg. Town :}

SUMMARY

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

^{Legal Form : Exempt Pte Ltd}

^{Date Inc. : 06/04/2004}

^{Previous Legal Form : -}

^{Summary year : 31/12/2006}

^{Sales : 3,117,454}

^{Networth : 191,176}

^{Capital : -}

^{Paid-Up Capital : 100,000}

^{Employees : -}

^{Net result : 75,189}

^{Share value : -}

^{Auditor : S C MOHAN & ASSOCIATES}

^{BASED ON ACRA'S RECORD}

^{NO OF SHARE CURRENCY AMOUNT}

^{ISSUED ORDINARY 160,000 SGD 160,000.00}

^{PAID-UP ORDINARY - SGD 160,000.00}

REFERENCES

^{Litigation : No}

^{Company status : TRADING}

^{Started : 06/04/2004}

PRINCIPAL(S)

^{LOY GIN HUI S7738247Z Director}

DIRECTOR(S)

^{LOH CHUI MEI MARGARET S1554539I Company Secretary}

^{Appointed on : 27/04/2006}

^{Street : 10 ANSON ROAD}

^#21-07

^{INTERNATIONAL PLAZA}

^{Town: SINGAPORE}

^{Postcode: 079903}

^{Country: Singapore}

^{LOY GIN HUI S7738247Z Director}

^{Appointed on : 06/04/2004}

^{Street : 436 JURONG WEST AVENUE 1}

^#03-442

^{Town: SINGAPORE}

^{Postcode: 640436}

^{Country: Singapore}

^{WOON CHOI LING S7972924H Company Secretary}

^{Appointed on : 21/08/2007}

^{Street : 10 ANSON ROAD}

^#21-07

^{INTERNATIONAL PLAZA}

^{Town: SINGAPORE}

^{Postcode: 079903}

^{Country: Singapore}

ACTIVITY(IES)

^{FISH And SEAFOOD - RETAIL Code:9000}

^{TRADING COMPANIES Code:22190}

^{BASED ON ACRA'S RECORD}

^{1) ACTIVITIES NOT ADEQUATELY DEFINED;}

^{SEAFOOD TRADING}

CHARGES

^{Date: 21/12/2007}

^{Comments : CHARGE NO : C200711293}

^{AMOUNT SECURED : 0.00 AND ALL MONIES OWING}

^{CHARGEE(S) : OVERSEA-CHINESE BANKING CORPORATION LIMITED}

PREMISES/PROPERTY INFORMATIONS

No Premises/Property Information In Our Databases

BANKERS

^{OVERSEA-CHINESE BANKING CORPORATION LIMITED}

SHAREHOLDERS(S)

^{LOY GIN HUI 160,000 Private Person}

^{Street : 436 JURONG WEST AVENUE 1}

^#03-442

^{Town: SINGAPORE}

^{Postcode: 640436}

^{Country: Singapore}

SUBSIDIARY(IES)

No Participation In Our Database

PAYMENT HISTORY AND EXPERIENCES

^{Trade Morality : AVERAGE}

^{Liquidity : SUFFICIENT}

^{Payments : UNKNOWN}

^{Trend : UPWARD}

^{Financial Situation : AVERAGE}

FINANCIAL ELEMENTS

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

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

^{Date Account Lodged: 24/08/2007}

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

^{Number of weeks: 52 52}

^{Consolidation Code: COMPANY COMPANY}

^{--- ASSETS ---}

^{Tangible Fixed Assets: 4,290}

^{Total Fixed Assets: 4,290}

^{Receivables: 595,545}

^{Cash,Banks, Securitis: 184,934 20,987}

^{Total Current Assets: 780,479 20,987}

^{TOTAL ASSETS: 784,769 20,987}

^{--- LIABILITIES ---}

^{Equity capital: 100,000 1}

^{Profit & lost Account: 91,176 15,987}

^{Total Equity: 191,176 15,988}

^{Trade Creditors: 317,593}

^{Prepay. & Def. charges: 24,620}

^{Advanced payments: 241,413}

^{Provisions: 2,750}

^{Other Short term Liab.: 7,217 4,999}

^{Total short term Liab.: 593,593 4,999}

^{TOTAL LIABILITIES: 593,593 4,999}

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

^{Net Sales 3,117,454 418,636}

^{Result of ordinary operations 77,939 15,987}

^{NET RESULT BEFORE TAX: 77,939 15,987}

^{Tax : 2,750}

^{Net income/loss year: 75,189 15,987}

^{Depreciation: 2,145}

^{Directors Emoluments: 55,102 29,000}

^{Wages and Salaries: 74,181 29,000}

RATIOS

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

^{Net result / Turnover(%): 0.02 0.04 Net Margin(%): 2.41 3.82 Return on Equity(%): 39.33 99.99 Return on Assets(%): 9.58 76.18 Net Working capital: 186886.00 15988.00 Cash Ratio: 0.31 4.20 Quick Ratio: 1.31 4.20 Current ratio: 1.31 4.20 Receivables Turnover: 68.77 0.00 Leverage Ratio: 3.10 0.31}

^{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)}

^{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}

^{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 PASSABLE WITH NET WORTH IMPROVED SHARPLY BY 10.96 TIMES FROM US$15,988 IN 2005 TO US$191,176 IN 2006. THIS WAS DUE TO HIGHER RETAINED PROFITS AND HIGHER ISSUED SHARE CAPITAL. RETAINED PROFITS ROSE BY 4.70 TIMES TO US$91,176 (2005: US$15,987). ISSUED SHARE CAPITAL ROSE BY 99.99% TO US$100,000 (2005: US$1).}

^LEVERAGE:

^{IN THE SHORT TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 53.50% (2005: NIL) AND AMOUNTED TO US$317,593 (2005: NIL).}

^{SUBJECT DID NOT INCUR LONG TERM LIABILITIES FOR BOTH FINANCIAL YEARS.}

^{IN ALL, LEVERAGE ROSE FROM 0.31 TIMES TO 3.10 TIMES AS A RESULT OF A GREATER RISE IN TOTAL LIABILITIES TO TOTAL EQUITY.}

^LIQUIDITY:

^{IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE WITH THE RISE IN NET WORKING CAPITAL AND CHANGES IN LIQUIDITY RATIOS. CURRENT RATIO FELL TO 1.31 TIMES, DOWN FROM 4.20 TIMES AND QUICK RATIO FELL FROM 4.20 TIMES TO 1.31 TIMES. NET WORKING CAPITAL, ON THE OTHER HAND, IMPROVED BY 10.69 TIMES FROM US$15,988 IN 2005 TO US$186,886 IN 2006.}

^{CASH AND CASH EQUIVALENTS ROSE SHARPLY BY 7.81 TIMES FROM US$20,987 IN}

^{2005 TO US$184,934 IN 2006.}

^{PROFITABILITY:}

^{REVENUE POSTED AN INCREASE OF 6.45 TIMES FROM US$418,636 IN 2005 TO US$3,117,454 IN 2006. THIS RESULTED IN THE RISE OF NET PROFIT OF 3.70 TIMES TO US$75,189 (2005: US$15,987). HOWEVER, NET MARGIN FELL TO 2.41% (2005: 3.82%).}

^{DEBT SERVICING:}

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

^{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 06/04/2004 AS A LIMITED EXEMPT PRIVATE COMPANY LIMITED AND IS TRADING UNDER ITS PRESENT NAMESTYLE AS "FISH INTERNATIONAL SOURCING HOUSE PTE. LTD.".}

^{THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 160,000 SHARES, OF A VALUE OF S$160,000.}

^{PRINCIPAL ACTIVITIES:}

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

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

^{1) ACTIVITIES NOT ADEQUATELY DEFINED;}

^{SEAFOOD TRADING}

^{DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL}

^{ACTIVITIES ARE THOSE OF IMPORT AND EXPORT OF SEAFOOD PRODUCTS (SEAFOOD}

^{TRADING) ACTIVITIES AND AS A COMMISSION AGENT.}

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

^{SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:}

^{* IMPORTER OF SEAFOOD PRODUCTS}

^{* DISTRIBUTOR AND WHOLESALER}

^{PRODUCTS DEALINGS:}

^{* TUNA}

^{* OIL FISH}

^{* MARLIN}

^{* SWORDFISH}

^{* PANGASIUS}

^{* GROUPER}

^{* TILAPIA}

^{* SAILFISH}

^{* SKIPJACK}

^{* BLUE SHARK}

^{* MORO SHARK}

^{* SOFT SHELL CRAB}

^{* SHRIMP}

^{INDUSTRIES SERVED:}

^{* FOOD}

^{* DINING}

^{SUBJECT HAS COMPANIES IN:}

^{* INDONESIA}

^{* THAILAND}

^{* VIETNAM}

^{* CHINA}

^{MAIN MARKETS:}

^{* NORTH AMERICA}

^{* SOUTH AMERICA}

^{* WESTERN EUROPE}

^{* EASTERN EUROPE}

^{* EASTERN ASIA}

^{* SOUTHEAST ASIA}

^{* MID EAST}

^{* AFRICA}

^{* OCEANIA}

^{NO OTHER TRADE INFORMATION WAS AVAILABLE AS TELE-INTERVIEW WAS NOT}

^{GRANTED BY SUBJECT'S PERSONNEL}

^{REGISTERED AND BUSINESS ADDRESS:}

^{18 BOON LAY WAY}

^#10-155

^{TRADEHUB 21}

^{SINGAPORE 609966}

^{DATE OF CHANGE OF ADDRESS: 26/11/2007}

^{- PROPERTY RECORD WAS NOT AVAILABLE}

^{WEBSITE: http://www.fishsingapore.com/ (WEBSITE UNDER CONSTRUCTION)}

^{EMAIL : -}

MANAGEMENT

^{THE DIRECTOR AT TIME OF THIS REPORT IS:}

^{1) LOY GIN HUI, A SINGAPOREAN}

^{- 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.

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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