MIRA INFORM REPORT

Report Date :

21.10.2008

IDENTIFICATION DETAILS

Name :	INTEGRA MARKETING PRIVATE LIMITED
Formerly Known As :	INTEGRA PRIVATE LIMITED
Registered Office :	2 Battery Road #28-01 Maybank Tower
Country :	Singapore
Financials (as on) :	31.12.2006
Date of Incorporation :	04.03.2002
Com. Reg. No.:	049907
Legal Form :	Pte Ltd
Line of Business :	Wholesale of Petrochemical Products; Trading in Products

RATING & COMMENTS

MIRA’s Rating :

Ba

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

INTEGRA MARKETING PRIVATE LIMITED

Line Of Business 

 
WHOLESALE OF PETROCHEMICAL PRODUCTS; TRADING IN PRODUCTS

Parent Company

INTEGRA HOLDINGS PRIVATE LIMITED

(PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2006

COMPANY

Sales : USD 777,188,119

Networth : USD 3,166,499

Paid-Up Capital : USD 1

Net result : USD 4,502,185

Net Margin(%) : 0.58

Return on Equity(%) : 142.18

Leverage Ratio : 29.80

COMPANY IDENTIFICATION

Subject Company :	INTEGRA MARKETING PRIVATE LIMITED
Former Name :	INTEGRA PRIVATE LIMITED DATE OF CHANGE OF NAME:18/12/2003
Business Address:	2 BATTERY ROAD #28-01 MAYBANK TOWER
Town:	SINGAPORE
Postcode:	049907
Country:	Singapore
Telephone:	6220 9895
Fax:	6220 2908
ROC Number:	200201693R

PREVIOUS IDENTIFICATION

INTEGRA PRIVATE LIMITED DATE OF CHANGE OF NAME: 18/12/2003

SUMMARY

Legal Form:	Pte Ltd
Date Inc.:	04/03/2002
Summary year :	31/12/2006
All amounts in this report are in :	USD
Sales:	777,188,119
Networth :	3,166,499
Capital:
Paid-Up Capital:	1
Employees:	25
Net result :	4,502,185
Share value:

 
AUDITOR: MOORE STEPHENS LLP
 
BASED ON ACRA'S RECORD 
 NO OF SHARE   CURRENCY AMOUNT
ISSUED ORDINARY  2  SGD  2.00
PAID-UP ORDINARY  -   SGD   2.00
 
BASED ON ACRA'S RECORD 
 NO OF SHARE CURRENCY  AMOUNT
ISSUED ORDINARY  2,000,002   SGD  2,000,002.00
PAID-UP ORDINARY   -  SGD   20,002.00
 

REFERENCES

Litigation:	No
Company status :	TRADING
Started :	04/03/2002

PRINCIPAL(S)

ROGER ARNOLD HANCOCK

S2670930Z

Director

DIRECTOR(S)

TAN SAN-JU	S1495769C	Company Secretary
Appointed on :	01/09/2004
Street :	37 MCNAIR ROAD TOWNERVILLE
Town:	SINGAPORE
Postcode:	328532
Country:	Singapore
PETER GEORGE COSTALAS	740181918	Director
Appointed on :	08/03/2004
Street :	THE POUND HOUSE CARR LANE SLAPTON
Town:	DEVON
Postcode:	TQ7 2PU
Country:	United Kingdom
ROGER ARNOLD HANCOCK	S2670930Z	Director
Appointed on :	08/03/2004
Street :	12 KEPPEL BAY DRIVE #02-15 CARIBBEAN AT KEPPEL BAY
Town:	SINGAPORE
Postcode:	098641
Country:	Singapore
GEORGINA CAMPBELL FYFFE	G5860125Q	Director
Appointed on :	04/03/2002
Street :	46 CORONATION ROAD WEST #08-04 ASTRID MEADOWS
Town:	SINGAPORE
Postcode:	269262
Country:	Singapore

FORMER DIRECTOR(S)

KENNETH RICHARD EYEARS	F5647439X
YEO ENG SENG	S0073038F

ACTIVITY(IES)

Activity Code:	13355	MANAGEMENT CONSULTANTS
Activity Code:	22190	TRADING COMPANIES
Activity Code:	16350	PETROLEUM PRODUCTS

 
BASED ON ACRA'S RECORD 
(1) WHOLESALE OF PETROCHEMICAL PRODUCTS;
TRADING IN PRODUCTS
 

CHARGES

	AVAILABLE
Date:	15/06/2005
Amount:	0
Comments :	CHARGE NO(S): C200503411/ C200503410/ C200503409 AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE(S): ING BELGIUM, RUSSELLS, GENEVA BRANCH

	AVAILABLE
Date:	19/01/2006
Amount:	0
Comments :	CHARGE NO: C200600505 AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE: BNP PARIBAS (SUISSE) SA

	NOT AVAILABLE
Amount:	0
Comments :	CHARGE NO: C2006004231 (DISCHARGED - 02/08/2006) AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE: BNP PARIBAS (SUISSE) SA

	AVAILABLE
Date:	02/03/2007
Amount:	0
Comments :	CHARGE NO: C200701705 AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE: HSH NORDBANK AG

	AVAILABLE
Date:	20/02/2008
Amount:	0
Comments :	CHARGE NO: C200801831, C200801829, C200801826 AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE: COOPERATIEVE CENTRALE RAFFEISEN-BOERENLEEBANK B.A.

	AVAILABLE
Date:	06/08/2007
Amount:	0
Comments :	CHARGE NO: C200706334 AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE: BNP PARIBAS

	AVAILABLE
Date:	13/04/2004
Amount:	0
Comments :	CHARGE NO: C200401834 AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE: FORTIS BANK (NEDERLAND) B.V.

	NOT AVAILABLE
Date:	04/04/2005
Amount:	0
Comments :	CHARGE NO: C200501934 (DISCHARGED - 03/05/2006) AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE: DBS BANK LTD

	AVAILABLE
Date:	23/03/2005
Amount:	0
Comments :	CHARGE NO: C200501670 AMOUNT SECURED: 0.00 AND ALL MONIES OWING CHARGEE: AUSTRALIA AND NEW ZEALAND BANKING GROUP LTD

BANKERS

FORTIS BANK (NETHERLAND) N.V SINGAPORE BRANCH

AUSTRALIA AND NEW ZEALAND BANKING GROUP LIMITED

DBS BANK LTD.

ING BELGIUM, RUSSELLS, GENEVA BRANCH

BNP PARIBAS (SUISSE) SA

HSH NORDBANK AG

BNP PARIBAS PRIVATE BANK NOMINEES SINGAPORE PTE LTD

COOPERATIEVE CENTRALE RAFFEISEN- BOERENLEENBANK

SHAREHOLDERS(S)

INTEGRA HOLDINGS PRIVATE LIMITED

2,000,002

Company

Street :	2 BATTERY ROAD #28-01 MAYBANK TOWER
Town:	SINGAPORE
Postcode:	049907
Country:	Singapore

FORMER SHAREHOLDER(S)

INTEGRA MARKETING LTD

2

HOLDING COMPANY

INTEGRA HOLDINGS PRIVATE LIMITED

200306319C

100%

PAYMENT HISTORY AND EXPERIENCES

Trade Morality:	AVERAGE
Liquidity :	SUFFICIANT
Payments :	REGULAR
Trend :	UPWARD
Financial Situation:	AVERAGE

FINANCIAL ELEMENTS

All amounts in this report are in :

USD

Audit Qualification:	UNQUALIFIED (CLEAN) OPINION	UNQUALIFIED (CLEAN) OPINION	UNQUALIFIED (CLEAN) OPINION
Date Account Lodged:	25/08/2007
Balance Sheet Date:	31/12/2006	31/12/2005	31/12/2004
Number of weeks:	52	52	52
Consolidation Code:	COMPANY	COMPANY	COMPANY

--- ASSETS
Tangible Fixed Assets:	28,065	45,753	98,028
Total Fixed Assets:	28,065	45,753	98,028
Inventories:	5,518,424	1,392,236	1,355,139
Receivables:	90,837,224	30,288,925	48,534,214
Cash,Banks, Securitis:	677,145	18,954,512	10,612,913
Other current assets:	462,384	1,022,695	664,560
Total Current Assets:	97,495,177	51,658,368	61,166,826
TOTAL ASSETS:	97,523,242	51,704,121	61,264,854
--- LIABILITIES
Equity capital:	1	1	1
Profit & lost Account:	3,166,498	2,664,313	2,951,813
Total Equity:	3,166,499	2,664,314	2,951,814
Trade Creditors:	76,935,301	28,784,837	51,026,775
Prepay. & Def. charges:	133,631	124,811	90,393
Due to Bank:	11,553,308	19,239,679	6,028,330
Provisions:	4,643,000		350,000
Other Short term Liab.:	1,091,503	890,480	817,542
Total short term Liab.:	94,356,743	49,039,807	58,313,040
TOTAL LIABILITIES:	94,356,743	49,039,807	58,313,040
--- PROFIT & LOSS ACCOUNT
Net Sales	777,188,119	591,923,068	357,598,254
Purchases,Sces & Other Goods:	766,076,000	585,609,723	351,336,697
Gross Profit:	11,112,119	6,313,345	6,261,557
NET RESULT BEFORE TAX:	5,145,185	-267,605	4,026,257
Tax :	643,000	19,895	350,000
Net income/loss year:	4,502,185	-287,500	3,676,257
Interest Paid:	585,147	760,385	83,232
Depreciation:	38,348	44,697	42,747
Wages and Salaries:	728,815	704,535	448,946
Financial Income:	149,623	188,863	20,549

RATIOS

Date Account Lodged:	31/12/2006	31/12/2005	31/12/2004
Turnover per employee:	31,087,524.76	23,676,922.72	14,303,930.16
Net result / Turnover(%):	0.01	-0	0.01
Fin. Charges / Turnover(%):	0	0	0
Stock / Turnover(%):	0.01	0	0
Net Margin(%):	0.58	-0.05	1.03
Return on Equity(%):	142.18	-10.79	124.54
Return on Assets(%):	4.62	-0.56	6
Net Working capital:	3,138,434	2,618,561	2,853,786
Cash Ratio:	0.01	0.39	0.18
Quick Ratio:	0.97	1	1.01
Current ratio:	1.03	1.05	1.05
Receivables Turnover:	42.08	18.42	48.86
Leverage Ratio:	29.80	18.41	19.75

 
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)/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 SEEN TO BE FAIR IN VIEW OF THE FOLLOWING:
 
NET WORTH:
THE BALANCE SHEET WAS CONSIDERED PASSABLE WITH NET WORTH IMPROVED BY 18.85% FROM US$2,664,314 IN 2005 TO US$3,166,499 IN 2006. THIS WAS DUE TO HIGHER RESERVES OF US$3,166,498 (2005: US$2,664,313); A RISE OF 18.85% FROM THE PRIOR YEAR.
 
 
LEVERAGE:
IN THE SHORT TERM, SUBJECT WAS LARGELY FINANCED BY TRADE CREDITORS WHICH MADE UP 81.54% (2005: 58.70%) OF THE TOTAL CURRENT LIABILITIES AND AMOUNTED TO US$76,935,301 (2005: US$28,784,837). THE BREAKDOWN IS
AS FOLLOWS:
* TRADE PAYABLES
- 2006: US$59,478,194 (2005: US$21,496,934)
* DUE TO IMMEDIATE HOLDING COMPANY
- 2006: US$2,886,586 (2005: NIL)
 
 
AMOUNT DUE TO BANKS OF US$11,553,308 (2005: US$19,239,679) COMPRISES OF:
* BANK OVERDRAFTS - 2006: US$5,603,308 (2005: US$19,239,679)
* SHORT-TERM LOANS - 2006: US$5,950,000 (2005: NIL)
 
IN ALL, LEVERAGE RATIO ROSE FROM 18.41% TO 29.80% AS A RESULT OF A GREATER RISE IN TOTAL LIABILITIES TO TOTAL EQUITY.
 
 
LIQUIDITY:
IN GENERAL, SUBJECT'S LIQUIDITY SITUATION WAS PASSABLE AS SEEN FROM THE RISE IN NET WORKING CAPITAL AND CHANGES IN LIQUIDITY RATIOS. CURRENT RATIO FELL TO 1.03 TIMES, DOWN FROM 1.05 TIMES AND QUICK RATIO FELL FROM 1.00 TIMES TO 0.97 TIMES. NET WORKING CAPITAL IMPROVED BY 19.85% FROM US$2,618,561 IN 2005 TO US$3,138,434 IN 2006.
 
 
PROFITABILITY:
REVENUE POSTED AN INCREASE OF 31.30% FROM US$591,923,068 IN 2005 TO US$777,188,119 IN 2006. THIS RESULTED IN THE RISE OF NET PROFIT OF 16.66 TIMES TO US$4,502,185 (2005: US$-287,500). HENCE, NET MARGIN ROSE TO 0.58% (2005: -0.05%).
 
 
DEBT SERVICING:
DEBT SERVICING PROBLEMS MIGHT NOT BE EXPECTED IF REVENUE AND EARNINGS CAN BE MAINTAINED AND PAYMENT BY TRADE DEBTORS ARE FORTHCOMING. IN ADDITION, ITS INTEREST COVERAGE WAS HEALTHY CONSIDERING THAT ITS INTEREST EXPENSES WERE LOW AT US$585,147 IN 2006 (2005: US$760,385).

BACKGROUND/OPERATION

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 04/03/2002 AS A LIMITED PRIVATE COMPANY UNDER THE NAMESTYLE OF "INTEGRA PRIVATE LIMITED".
 
SUBSEQUENTLY ON 18/12/2003, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE OF "INTEGRA MARKETING PRIVATE LIMITED".
 
THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 2,000,002 SHARES, OF A VALUE OF S$20,002.
 
 
PRINCIPAL ACTIVITIES:
SUBJECT IS REGISTERED WITH THE ACCOUNTING & CORPORATE REGULATORY
AUTHORITY (ACRA) BE PRINCIPALLY ENGAGED IN THE BUSINESS OF:
(1) WHOLESALE OF PETROCHEMICAL PRODUCTS
TRADING IN PRODUCTS
 
 
DURING THE FINANCIAL YEAR (S) UNDER REVIEW, THE PRINCIPAL ACTIVITIES OF THE COMPANY ARE THOSE OF TRADING OF PETROCHEMICALS.
 
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED:
 
ABOUT SUBJECT:
INTEGRA STARTED IN THE LATE 1980S AS A EUROPEAN OLEFINS TRADING HOUSE. TODAY, INTEGRA HAS GROWN TO BECOME A GLOBAL MARKET LEADER WITH MORE THAN 60 FULL TIME EMPLOYEES WORLDWIDE. IN 2007, INTEGRA SHIPPED MORE THAN 1.5M TONES OF PETROCHEMICALS AND REPORTED A TURNOVER IN EXCESS OF US$1 BILLION
 
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES:
* PETROCHEMICAL TRADING IN OLEFINS, AROMATICS, FEEDSTOCKS,
CHLOR-ALKALI, FUEL STOCKS, PLASTICS
 
PRODUCTS DEALINGS:
* OLEFINS
- ETHYLENE, PROPYLENE (REFINERY, CHEMICAL, POLYMER GRADE),
CRUDE C4S, BUTADIENE, BUTENE 1, RAFFINATE 1, RAFFINATE 2,
ISOPRENE (IPM)
* AROMATICS
- PYGAS (PYROLYSIS GASOLINE), BENZENE, STYRENE MONOMER,
TOLUENE, XYLENES
* FEEDSTOCKS
- LPG, CONDENSATES, NAPHTHAS GAS OIL
* CHLOR-ALKALI
- VCM (VINYL CHLORIDE MONOMER), EDC (ETHYLENE DICHLORIDE),
CAUSTIC SODA
* FUEL STOCKS
- MTBE, ETBE, BIOFUELS, ETHANOL, METHANOL, FUEL ADDITIVES
* OTHERS
- AO, EPI (EPICHLOROHYDRINE), MEG (MONOETHYLENE GLYCOL),
ALCOHOLS, NYLON FEEDSTOCKS AND GLYCERINE
* PLASTICS
- POLYETHYLENE (PE), POLYPROPYLENE (PP), POLYSTYRENE (PS), PVC
 
OVERSEAS OFFICES:
* BELGIUM
* ROMANIA
* UNITED STATES OF AMERICA
 
FROM THE TELE-INTERVIEW CONDUCTED THE FOLLOWING WAS GATHERED:
 
SUBJECT ENGAGES IN GLOBAL LINE PETROCHEMICAL TRADING ACTIVITIES. THEY WILL IMPORT THE PRODUCTS FROM OTHER COUNTRIES (EG CHINA) AND FROM THERE, EXPORT IT TO OTHER COUNTRIES (EG EUROPE). THE PRODUCTS PURCHASED ARE USUALLY IN BULKS AND THE COMPANY TENDS TO BUY AT A LOWER PRICE AND SELLS IT AT A HIGHER PRICE IN ORDER TO GAIN FROM THE TRANSACTION. THE ABOVE CAN TAKE PLACE EITHER VIA DIRECT SALES OR FROM THEIR AGENTS.
 
NUMBER OF EMPLOYEES (MARCH 08):
* 25 (BASED ON HEAD OFFICE-SINGAPORE ONLY)
 
NO OTHER TRADE INFORMATION WAS AVAILABLE 
 
ATTEMPTS HAVE BEEN MADE TO RECONFIRM THE ABOVE TRADE INFORMATION AND OBTAIN OTHER INFORMATION. HOWEVER THE PERSON IN CHARGE IS NOT IN.
 
THE COMPANY IS A SUBSIDIARY OF INTEGRA HOLDINGS PRIVATE LIMITED, A COMPANY INCORPORATED IN SINGAPORE. INTEGRA HOLDINGS PRIVATE LIMITED IS HELD 50:50 BY PELLONE LIMITED AND OCHIL DEVELOPEMENTS LTD, BOTH INCORPORATED IN THE ISLE OF MAN.
 
 
NUMBER OF EMPLOYEES: (31 DECEMBER)
- COMPANY - 2006: 4 (2005: 4 2004: 7; 2003: 7; 2002: 4)
 
 
REGISTERED AND BUSINESS ADDRESS:
2 BATTERY ROAD
#28-01 MAYBANK TOWER
SINGAPORE 049907
DATE OF CHANGE OF ADDRESS: 09/01/2004
 
WEBSITE: http://www.integra-global.com
 
 
EMAIL: -

MANAGEMENT

THE DIRECTORS AT THE TIME OF THIS REPORT ARE :
 
1) PETER GEORGE COSTALAS, A BRITISH
- BASED IN THE UNITED KINGDOM
 
2) GEORGINA CAMPBELL FYFFE, A BRITISH
- BASED IN SINGAPORE
 
3) ROGER ARNOLD HANCOCK, A SINGAPORE PERMANENT RESIDENT
- HOLDS OTHER DIRECTORSHIP(S) AS RECORDED IN OUR DATABASE:
OSPREY MARITIME LIMITED
ELLIPSE ENERGY PTE LTD

GENERAL COMMENTS

Singapore’s Country Rating 2008

 
INVESTMENT GRADE
 
IN SINGAPORE, THE POLITICAL AND ECONOMIC SITUATION IS VERY GOOD. A QUALITY
BUSINESS ENVIRONMENT HAS A POSITIVE INFLUENCE ON CORPORATE PAYMENT BEHAVIOUR.
CORPORATE DEFAULT PROBABILITY IS VERY LOW ON AVERAGE.
ECONOMIC GROWTH REMAINED STRONG IN 2007 AND IN Q1 2008 (6.7%) THANKS TO A SHARP
INCREASE IN CONSUMPTION SPURRED BY A BRIGHT EMPLOYMENT PICTURE, RISING REAL
WAGES, AND A POSITIVE WEALTH EFFECT PRODUCED BY RISING PROPERTY PRICES. IN THIS
CONTEXT, BANKRUPTCIES CONTINUE TO DECLINE, AS REFLECTED BY THE FAVOURABLE COFACE
PAYMENT INCIDENT INDEX TREND. SINGAPORE MOREOVER BOASTS THE BEST GOVERNANCE IN
ASIA THANKS TO AN EFFECTIVE LEGAL SYSTEM AND A GOOD LEVEL OF FINANCIAL
TRANSPARENCY.
HOWEVER, A GROWTH SLOWDOWN IS EXPECTED FOR 2008 (4.5%) AMID WEAKER DEMAND GROWTH
IN THE UNITED STATES, SINGAPORE'S NUMBER TWO TRADING PARTNER. THE FOREIGN TRADE
CONTRIBUTION TO GROWTH WILL THUS DECLINE ESPECIALLY WITH EXPORTS REPRESENTING
210 PER CENT OF GDP.
INFLATION ACCELERATED IN 2007 AND REACHED 7.5% IN MAY 2008 BECAUSE OF RISING RAW
MATERIAL PRICES. INDEED, SINGAPORE IMPORTS ALMOST ALL ITS ENERGY AND FOOD.
HOWEVER, FOR THE ENTIRE YEAR, INFLATION SHOULD MODERATE AND REACH 2.8%.
THE FINANCIAL SITUATION HAS REMAINED ROBUST AS THE EQUILIBRIUM OF PUBLIC SECTOR
FINANCES AND THE SOLIDITY OF A BANKING SYSTEM POISED TO ADOPT BASEL II
PRUDENTIAL STANDARDS ATTEST. EXTERNAL ACCOUNTS CONTINUE MOREOVER TO SHOW LARGE
SURPLUSES THANKS TO GOOD PERFORMANCE IN A RANGE OF SECTORS INCLUDING
ELECTRONICS, TRANSPORT, CONSTRUCTION, TOURISM, AND FINANCIAL SERVICES. THE
DECLINE EXPECTED IN THE CURRENT ACCOUNT SURPLUS IN 2008 SHOULD NOT JEOPARDISE
SINGAPORE'S EXCEPTIONAL FINANCIAL SOLIDITY.
UNDERPINNED BY SUBSTANTIAL FISCAL RESERVES AND A LARGE MAJORITY IN PARLIAMENT,
THE PEOPLE'S ACTION PARTY OF PRIME MINISTER LEE HSIEN LOONG HAS SOUGHT AT ONCE
TO MAKE THE CITY-STATE MORE ATTRACTIVE TO FOREIGN INVESTORS AND TO BOLSTER THE
SPECIALISATION IN HIGH-VALUE ADDED SECTORS TO MEET THE GROWING COMPETITION FROM
LOW-COST ASIAN ECONOMIES. BESIDES REDUCTIONS IN CORPORATE INCOME TAX AND TAX
INCENTIVES FOR COMPANIES SETTING UP OPERATIONS IN SINGAPORE, THE GOVERNMENT
CONTINUES TO PURSUE ITS INFRASTRUCTURE AND R&D INVESTMENT POLICY.
 
ASSETS
· THE COUNTRY HAS BEEN PURSUING AMBITIOUS DIVERSIFICATION STRATEGY,
ESPECIALLY TO HIGH VALUE-ADDED SECTORS LIKE CHEMICALS, PHARMACEUTICALS, AND
FINANCE.
· IT IS AMONG THE MOST ADVANCED COUNTRIES OF ASIA IN QUALITY COMPETITIVENESS TERMS.
· SINGAPORE HAS BECOME A MAJOR EXPORTER OF CAPITAL IN ASIA IN MANY ECONOMIC
SECTORS -SUCH AS FINANCE, TELECOMMUNICATIONS, TRANSPORT - NOTABLY VIA THE
STATE-OWNED TEMASEK HOLDING COMPANY
· THE ECONOMY HAS BENEFITED FROM THE COUNTRY'S POLITICAL STABILITY AND
EXCELLENT BUSINESS CLIMATE.
 
WEAKNESSES
· SKILLED LABOUR IS IN SHORT SUPPLY IN THE SECTORS THE COUNTRY WISHES TO
DEVELOP.
· THE AGEING POPULATION COULD ULTIMATELY UNDERMINE ECONOMIC PERFORMANCE.
· GROWING INEQUALITY AND THE EMERGENCE OF LONG-TERM UNEMPLOYMENT AMONG THE
LEAST SKILLED COULD GENERATE SOCIAL TENSIONS.
· THE VERY OPEN ECONOMY IS VULNERABLE TO A WORLD ECONOMIC DOWNTURN.
 
 

WHOLESALE AND RETAIL TRADE SECTOR

 
PAST PERFORMANCE
 
THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 6.0% IN 2Q 2008, HIGHER THAN THE
5.5% GROWTH IN 1Q 2008. NON-OIL RE-EXPORTS GREW BY 14.0% IN 2Q 2008, STRONGER
THAN THE 11.0% GROWTH IN 1Q 2008. RETAIL SALES FELL BY 2.9% IN 2Q 2008. HOWEVER,
THIS REPRESENTED A DECLINE OVER A RELATIVELY HIGHER BASE IN 2Q 2007(8.1%
GROWTH). EXCLUDING MOTOR VEHICLES, RETAIL SALES FELL BY 1.4% IN 2Q 2008, IN
CONTRAST TO THE 1.4% GROWTH IN 1Q 2008.
 
DOMESTIC WHOLESALE TRADE INDEX
THE OVERALL DOMESTIC WHOLESALE TRADE ROSE BY 11.1% IN 2Q 2008 OVER 1Q 2008.
EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 2.9%.
 
AFTER SEASONAL ADJUSTMENT, DOMESTIC SALES ROSE BY 4.5% IN 2Q 2008 OVER 1Q 2008.
EXCLUDING PETROLEUM, DOMESTIC SALES FELL BY 1.9%.
 
ON A YEAR-ON-YEAR BASIS, THE OVERALL DOMESTIC WHOLESALE TRADE GREW BY 25.4% OVER
THE PREVIOUS YEAR. EXCLUDING PETROLEUM, DOMESTIC SALES ROSE BY 4.7%. AFTER
REMOVING PRICE EFFECT, THE OVERALL DOMESTIC WHOLESALE TRADE FELL BY 2.0% IN 2Q
2008 OVER 2Q 2007.
 
ON A QUARTER-OVER-QUARTER BASIS, MOST WHOLESALE SECTORS REPORTED HIGHER DOMESTIC
SALES AFTER RECORDING SLOWER BUSINESS IN THE PREVIOUS QUARTER.
 
DOMESTIC SALES OF TIMBER, PAINTS AND CONSTRUCTION MATERIALS, AND INDUSTRIAL AND
CONSTRUCTION MACHINERY REGISTERED INCREASES OF 22.7% AND 21.1% IN 2Q 2008.
PETROLEUM AND PETROLEUM PRODUCTS, AND CHEMICALS AND CHEMICAL PRODUCTS ROSE BY
20.2% AND 12.6% RESPECTIVELY IN 2Q 2008 OVER 1Q 2008. AFTER ADJUSTING FOR PRICE
CHANGES, SALES REMAINED AT SIMILAR LEVELS AS 1Q 2008.
 
CONVERSELY, DOMESTIC GENERAL WHOLESALE TRADE FELL BY 15.2%. IT WAS FOLLOWED BY
DOMESTIC SALES OF FOOD, BEVERAGES AND TOBACCO, SHIP CHANDLERS AND BUNKERING, AND
HOUSEHOLD EQUIPMENT AND FURNITURE WHICH CONTRACTED BY 4.1% TO 6.9% OVER 1Q 2008.
 
ON A YEAR-ON-YEAR BASIS, THE WHOLESALE SECTORS RECORDED MIXED PERFORMANCE IN
DOMESTIC SALES IN 2008 OVER 2Q 2007.
 
THE DOMESTIC SALES OF PETROLEUM AND PETROLEUM PRODUCTS, SHIP CHANDLERS AND
BUNKERING, TIMBER, PAINTS AND CONSTRUCTION MATERIALS, AND CHEMICALS AND CHEMICAL
PRODUCTS ROSE BY 17.8% TO 54.7% IN 2Q 2008. SALES OF TIMBER, PAINTS AND
CONSTRUCTION MATERIALS ROSE BY 8.7% OVER 2Q 2007.
 
CONVERSELY, DOMESTIC GENERAL WHOLESALE TRADE FELL BY 24.6%. WHOLESALE TRADE OF
FOOD, BEVERAGES AND TOBACCO, HOUSEHOLD EQUIPMENT AND FURNITURE, AND TRANSPORT
EQUIPMENT FELL BY 7.7% TO 9.3%. DOMESTIC SALES OF ELECTRONIC COMPONENTS DECLINED
BY 4.3% IN 2Q 2008 WHILE TELECOMMUNICATIONS AND COMPUTERS REMAINED STABLE.
 
FOREIGN WHOLESALE TRADE INDEX
 
FOREIGN WHOLESALE TRADE SALES ROSE BY 11.8% IN 2Q 2008 OVER 1Q 2008. EXCLUDING
PETROLEUM, SALES ROSE BY 4.7%.
 
AFTER SEASONAL ADJUSTMENT, FOREIGN SALES ROSE BY 6.7% OVER 1Q 2008. EXCLUDING
PETROLEUM, SALES ROSE SLIGHTLY BY 1.0%.
 
ON A YEAR-ON-YEAR BASIS, FOREIGN WHOLESALE SALES ROSE BY 28.4% OVER 1Q 2008.
EXCLUDING PETROLEUM, SALES ROSE BY 15.3%. AFTER REMOVING PRICE EFFECT, OVERSEAS
SALES ROSE SLIGHTLY BY 1.1% OVER 2Q 2007.
 
COMPARED TO 1Q 2008, FOREIGN SALES ROSE IN THE MAJORITY OF WHOLESALE SECTORS IN
2Q 2008.
 
FOOD, BEVERAGES AND TOBACCO WHOLESALERS REPORTED HIGHER OVERSEAS SALES OF 21.9%
IN 2Q 2008 OVER 1Q 2008, THE LARGEST INCREASE AMONG ALL SECTORS. IT WAS FOLLOWED
BY PETROLEUM AND PETROLEUM PRODUCTS, AND HOUSEHOLD EQUIPMENT AND FURNITURE WITH
INCREASES OF 19.4$ AND 16.1% RESPECTIVELY. FOREIGN SALES OF SHIP CHANDLERS AND
BUNKERING ROSE BY 8.1% IN 2Q 2008 OVER 1Q 2008.TIMBER, PAINTS AND CONSTRUCTION
MATERIALS, CHEMICALS AND CHEMICAL PRODUCTS, AND INDSUTRIAL AND CONSTRUCTION
MACHINERY ALSO ROSE BY BETWEEN 5.8% TO 7.2%.
 
AFTER ADJUSTING FOR PRICE INCREASES, THE SALES VOLUME OF PETROLEUM AND PETROLEUM
PRODUCTS, CHEMICALS AND CHEMICAL PRODUCTS, SHIP CHANDLERS AND BUNKERING
CONTRACTED COMPARED TO 1Q 2008.
 
CONVERSELY, FOREIGN SALES OF TELECOMMUNICATIONS AND COMPUTERS, AND GENERAL
WHOLESALE TRADE FELL IN 2Q 2008 OVER 1Q 2008. SALES OF ELECTRONIC COMPONENTS
REMAINED STABLE AS COMPARED TO 1Q 2008.
 
COMPARED TO A YEAR AGO, MOST WHOLESALE SECTORS REPORTED DOUBLE-DIGIT GROWTHS IN
FOREIGN SALES IN 2Q 2008.
WHOLESALING OF FOOD, BEVERAGES AND TOBACCO CONTINUED TO RECORD HIGHER GROWTH
RATES IN FOREIGN SALES, WITH HIGHER TURNOVER OF 94.8% IN 2Q 2008 OVER A YEAR
AGO. AFTER ADJUSTING FOR PRICES, SALES VOLUME ROSE BY 77.3% OVER A YEAR AGO.
 
WITH HIGHER FUEL PRICES. WHOLESALE SECTORS OF PETROLEUM AND PETROLEUM PRODUCTS,
SHIP CHANDLERS AND BUNKERING REPORTED HIGHER FOREIGN SALES OF 43.7% AND 38.1%
RESPECTIVELY OVER A YEAR AGO. AFTER REMOVING PRICE EFFECT, THE SALES VOLUME OF
PETROLEUM AND PETROLEUM PRODUCTS FELL BY 10.7% WHILE SALES VOLUME OF SHIP
CHANDLERS AND BUNKERING DECLINED BY 13.6.
GENERAL WHOLESALE TRADE, CHEMICALS AND CHEMICAL PRODUCTS, TRANSPORT EQUIPMENT,
AND
HOUSEHOLD EQUIPMENT AND FURNITURE, AND INDUSTRIAL AND CONSTRUCTION MACHINERY
ALSO REGISTERED STRONG SALES GROWTH OF BETWEEN 5.8% TO 24.7%.
CONVERSELY, FOREIGN SALES OF ELECTRONIC COMPONENTS, TIMBER, PAINTS AND
CONSTRUCTION MATERIALS, AND TELECOMMUNICATIONS AND COMPUTERS FELL BY 4.9% TO
8.6%
IN 2Q 2008 COMPARED TO 2Q 2007.
 
NEWS
RETAIL SPENDING DOWN FOR THIRD STRAIGHT MONTH
RETAIL SPENDING FELL FOR THE THIRD STRAIGHT MONTH IN AUGUST AS DEMAND FOR CARS
AND RECREATIONAL GOODS DROPPED AMID THE COUNTRY'S FIRST RECESSION SINCE 2002.
WHILE SPENDING ROSE 4.2% FROM AUGUST LAST YEAR, IT WAS 5.8% FROM JULY THIS YEAR,
ACCORDING TO THE RETAIL SALES INDEX RELEASED BY THE DEPARTMENT OF STATISTICS
(DOS) YESTERDAY.
TOTAL RETAIL SALES IN AUGUST WERE ESTIMATED AT S$2.71 BILLION, DOWN FROM S$2.88
BILLION IN JULY.
THE SLOWDOWN IN SPENDING MEANT PEOPLE SPLASHED OUT LESS ON CARS, FURNITURE AND
HOUSEHOLD EQUIPMENT, PETROL, APPAREL, FOOTWEAR AND RECREATIONAL GOODS.
SALES FELL ACROSS THE BOARD FROM THEIR JULY TAKINGS, WITH DECLINES RANGING FROM
3.6% TO 20.4%.
BUT THERE WAS A DOUBLE-DIGIT RISE IN SALES OF BIG-TICKET LUXURY ITEMS.
TELECOMMUNICATIONS APPARATUS AND COMPUTER RETAILERS ENJOYED SALES GROWTH OF
19.5%, WHILE THE WATCH AND JEWELLERY SECTOR'S RECEIPTS ROSE BY 13.6% IN JULY.
A RECENT STRAITS TIMES SURVEY OF 62 TENANTS IN SIX ORCHARD ROAD MALLS FOUND
RETAIL REVENUES HAVE FALLEN BY AS MUCH AS 30.0% IN THE PAST THREE WEEKS,
COINCIDING WITH THE BANK FAILURES, STOCK MARKET ROUTS AND GROWING FEARS OVER THE
GLOBAL FINANICAL TURMOIL.
SEVERAL STORES HAVE ALSO LAUNCHED MID-SEASON SALES, AN EXERCISE UNUSUALLY
UNDERTAKEN ONLY IN PARTICULARY SLOW PERIODS.
THE AUGUST FIGURES WERE MORE ENCOURAGING, HOWEVER, WHEN COMPARED WITH THE SAME
PERIOD LAST YEAR. VIRTUALLY ALL SEGMENTS, FROM DEPARTMENT STORES TO
SUPERMARKETS, REPORTED DOUBLE-DIGIT GROWTHS OF 11.2 TO 29.6%. HOWEVER, MOTOR
VEHICLE SALES FELL 12.9% AND RECREATIONAL GOODS SALES CONTRACTED BY 6.8%.
INFLATION MAY HAVE PUSHED SALES FIGURES UP. AFTER REMOVING THE EFFECT OF HIGHER
PRICES, WHICH WOULD GIVE A HIGHER OVERALL SALES VALUE, RETAIL SALES ACTUALLY
REMAINED UNCHANGED FROM A YEAR AGO.
VALUE OF PETROL SALES IN MARCH SOARED 39%, AS A RESULT OF RISING CRUDE OIL
PRICES, EVEN THOUGH THE ACTUAL VOLUME WAS ONLY MARGINALLY HIGHER.
PETROL STATION SALES POSTED THE FASTEST GROWTH OF ALL RETAIL SEGMENTS IN MARCH,
ACCORDING TO FIGURES THE DEPARTMENT OF STATISTICS RELEASED YESTERDAY.
PETROL SALES ROSE 28.2% IN FEBRUARY.
 
MOST RETAIL SEGMENTS POSTED HIGHER GROWTH MARCH AFTER A WEAKER SHOWING IN
FEBRUARY FOR THE COMPUTERS, FURNITURE, OPTICAL GOODS AND BOOKS SEGMENTS. BUT
MOTOR VEHICLES FELL 8.1% FROM MARCH 2007 AS A RESULT OF THE ESCALATING PETROL
PRICES. CRUDE OIL HIT ALMOST US$127 A BARREL RECENTLY.
 
THE SUPERMARKET AND FOOD AND BEVERAGE SEGMENTS ALSO REPORTED LOWER SALES
ACTIVITY THAN IN FEBRUARY, WITH FALLS OF 4.7% AND 11.9%, RESPECTIVELY.
OVERALL RETAIL SALES ROSE BY 5.6% COMPARED TO MARCH 2007. EXCLUDING MOTOR
VEHICLES, SALES VOLUME ROSE BY 12.5%.
 
OCBC ECONOMIST SELENA LING NOTED THE RETAIL NUMBERS INDICATED RELATIVELY HEALTHY
CONSUMER SPENDING. "THIS IS A TESTIMONY TO THE FACT THAT THE SINGAPOREAN ECONOMY
IS STILL ENJOYING BROAD-BASED GROWTH DESPITE THE GLOBAL SLOWDOWN," SHE SAID.
THE TOTAL VALUE OF RETAIL SALES IN MARCH WAS ESTIMATED AT S$2.89 BILLION,
COMPARED WITH S$2.59 BILLION IN FEBRUARY.
 
OUTLOOK
 
GENERALLY, THE MAJORITY OF WHOLESALERS, WITH A NET WEIGHTED BALANCE OF 55% OF
FIRMS, FORECASTS BUSINESS ACTIVITIES IN THE COMING MONTHS, TO REMAIN AT SIMILAR
LEVELS. FOR THE REMAINING WHOLESALE FIRMS, A WEIGHTED 22% OF THEM EXPECTS BETTER
BUSINESS CONDITIONS TO IMPROVE. THESE FIRMS ARE MAINLY IN THE BUSINESS OF
WHOLESALE TRADE OF INDUSTRIAL MACHINERY AND EQUIPMENT, ELECTRONIC COMPONENTS,
AND COMPUTER AND ACCESSORIES. ON THE OTHER HAND, A WEIGHTED 23% OF WHOLESALERS,
MAINLY FROM FOOD AND BEVERAGES, AND PETROLEUM AND PETROLEUM PRODUCTS, FORECAST
BUSINESS CONDITIONS TO DETERIORATE IN THE COMING MONTHS. ON THE WHOLE, A NET
WEIGHTED BALANCE OF 1% OF FIRMS EXPECTS GENERAL BUSINESS OUTLOOK TO REMAIN LESS
FAVOURABLE.
A NET WEIGHTED BALANCE OF 20% OF RETAILERS PREDICTS LESS FAVOURABLE BUSINESS
CONDITIONS FOR THE PERIOD ENDING DECEMBER 2008. MOTOR VEHICLES RETAILERS, AND
JEWWELLERY AND WATCHES CONTINUE TO PREDICT SLOWER SALES IN THE MONTHS AHEAD.
 
EXTRACTED FROM: MINISTRY OF TRADE AND INDUSTRY, SINGAPORE
SINGAPORE DEPARTMENT OF STATISTICS
THE STRAITS TIMES

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	Rs.49.95
UK Pound	1	Rs.79.56
Euro	1	Rs.63.65

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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