MIRA INFORM REPORT

Report Date :

14.04.2011

IDENTIFICATION DETAILS

Name :	MMD SINGAPORE PTE. LTD.
Registered Office :	620a Lorong 1 Toa Payoh, Singapore 319762
Country :	Singapore
Financials (as on) :	31.12.2009
Date of Incorporation :	01.12.2008
Com. Reg. No.:	200822460K
Legal Form :	Pte Ltd
Line of Business :	Sales of computer monitors and displays and related activities

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

Maximum Credit Limit :	USD180,000
Status :	Satisfactory
Payment Behaviour :	Unknown
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List – December 31, 2010

Country Name	Previous Rating (30.09.2010)	Current Rating (31.12.2010)
Singapore	a1	a1

Risk Category	ECGC Classification
Insignificant	A1
Low	A2
Moderate	B1
High	B2
Very High	C1
Restricted	C2
Off-credit	D

Subject Company

MMD SINGAPORE PTE. LTD.

Line Of Business 

 
SALES OF COMPUTER MONITORS AND DISPLAYS AND RELATED ACTIVYIES 

Parent Company

MMD-MONITORS & DISPLAYS HOLDINGS B.V.

PERCENTAGE OF SHAREHOLDING: 100%)

Financial Elements

FY 2009

COMPANY

Sales : US$49,649,326

Networth : US$1,199,419

Paid-Up Capital : US$20,000

Net result : US$1,179,419

Net Margin(%) : 2.38

Return on Equity(%): 98.33

Leverage Ratio : 14.59

Rating

Credit Opinion : CREDIT LINE TO A MAXIMUM OF USD180,000 CAN BE CONSIDERED

COMPANY IDENTIFICATION

Subject Company :	MMD SINGAPORE PTE. LTD.
Business Address:	620A LORONG 1 TOA PAYOH
Town:	SINGAPORE
Postcode:	319762
Country:	Singapore
Telephone:	6594 0776
Fax:	6594 0778
ROC Number:	200822460K
Easy Number company:	00005748457626

SUMMARY

Legal Form:	Pte Ltd
Date Inc.:	01/12/2008
Summary year :	31/12/2009
All amounts in this report are in :	USD
Sales:	49,649,326
Networth :	1,199,419
Capital:
Paid-Up Capital:	20,000
Employees:	11
Net result :	1,179,419
Share value:

AUDITOR

 
PRICEWATERHOUSECOOPERS LLP 
 
BASED ON ACRA'S RECORD 
  NO OF SHARES  CURRENCY  AMOUNT  
ISSUED ORDINARY  20,000  USD  20,000.00
PAID-UP ORDINARY  -  USD  20,000.00

REFERENCES

Credit Opinion:

CREDIT LINE TO A MAXIMUM OF USD180,000 CAN BE CONSIDERED

Litigation:	No
Company status :	TRADING
Started :	01/12/2008

PRINCIPAL(S)

WONG KUM WING

S1660991I

Director

DIRECTOR(S)

CHIANG CHAI FOONG	S2608154H	Company Secretary
Appointed on :	01/02/2009
Street :	244 TAMPINES STREET 21 #09-369
Town:	SINGAPORE
Postcode:	521244
Country:	Singapore

SUNG CHIANG	131820022	Director
Appointed on :	01/06/2009
Street :	5F 653 MINGSHUI ROAD
Town:	TAIPEI
Postcode:	104
Country:	Taiwan, Province of China

WONG KUM WING	S1660991I	Director
Appointed on :	30/04/2009
Street :	222 BISHAN STREET 23 #10-161
Town:	SINGAPORE
Postcode:	570222
Country:	Singapore

ZHUO CHUNLEI	G30050193	Director
Appointed on :	01/06/2009
Street :	BLK 43, 4-501 LONGZEYUAN HUILONGGUAN TOWN CHANG PING DISTRICT
Town:	BEIJING
Country:	China

ACTIVITY(IES)

Activity Code:

11760

IMPORTERS And EXPORTERS

BASED ON ACRA'S RECORD 
1) GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)

SHAREHOLDERS(S)

MMD-MONITORS & DISPLAYS HOLDINGS B.V.

20,000

Company

Street :	EURO CENTER BARBARA STROZZILAAN 386, 12TH FLOOR
Town:	HN AMSTERDAM
Postcode:	1083
Country:	Netherlands

HOLDING COMPANY

MMD-MONITORS & DISPLAYS HOLDINGS B.V.

T09UF1330E

100%

PAYMENT HISTORY AND EXPERIENCES

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

FINANCIAL ELEMENTS

All amounts in this report are in :

USD

Audit Qualification:	UNQUALIFIED (CLEAN) OPINION
Date Account Lodged:	30/09/2010
Balance Sheet Date:	31/12/2009
Number of weeks:	56
Consolidation Code:	COMPANY

ASSETS
Preliminary Exp	255,768
Intangible Fixed Assets:	0
Total Fixed Assets:	255,768
Inventories:	1,646,450
Receivables:	13,117,823
Cash,Banks, Securitis:	3,099,545
Other current assets:	584,735
Total Current Assets:	18,448,553
TOTAL ASSETS:	18,704,321
LIABILITIES
Equity capital:	20,000
Profit & lost Account:	1,179,419
Total Equity:	1,199,419
Trade Creditors:	14,129,650
Prepay. & Def. charges:	1,788,252
Provisions:	464,409
Other Short term Liab.:	1,122,591
Total short term Liab.:	17,504,902
TOTAL LIABILITIES:	17,504,902
PROFIT & LOSS ACCOUNT
Net Sales	49,649,326
Purchases,Sces & Other Goods:	46,708,378
Gross Profit:	2,940,948
NET RESULT BEFORE TAX:	1,388,060
Tax :	208,641
Net income/loss year:	1,179,419
Interest Paid:	19,606
Directors Emoluments:	158,806
Wages and Salaries:	233,433

RATIOS

Date Account Lodged:	31/12/2009
Turnover per employee:	4513575.09
Net result / Turnover(%):	0.02
Fin. Charges / Turnover(%):	0
Stock / Turnover(%):	0.03
Net Margin(%):	2.38
Return on Equity(%):	98.33
Return on Assets(%):	6.31
Net Working capital:	943651
Cash Ratio:	0.18
Quick Ratio:	0.93
Current ratio:	1.05
Receivables Turnover:	95.12
Leverage Ratio:	14.59

 
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)

BACKGROUND/OPERATION

THE COMPANY WAS INCORPORATED IN THE REPUBLIC OF SINGAPORE ON 
01/12/2008 AS A LIMITED PRIVATE COMPANY AND IS TRADING UNDER ITS 
PRESENT NAMESTYLE AS "MMD SINGAPORE PTE. LTD.". 
  
AS AT 13/04/2011, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF
20,000 SHARES, OF A VALUE OF US$20,000. 
 
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) 
 
DURING THE FINANCIAL YEAR(S), UNDER REVIEW, SUBJECT'S PRINCIPAL 
ACTIVITIES IS TO CARRY THE SALES OF COMPUTER MONITORS AND DISPLAYS AND
RELATED ACTIVYIES.
  
THE COMPANY IS LISTED IN THE SINGAPORE LOCAL DIRECTORIES UNDER THE 
CLASSIFICATION OF: TRADING COMPANIES. 
 
BACKGROUND:  
MMD IS A WHOLLY OWNED COMPANY OF TPV ESTABLISHED IN 2009 THROUGH A
BRAND LICENSE AGREEMENT WITH PHILIPS. MMD EXCLUSIVELY MARKETS AND 
SELLS PHILIPS BRANDED LCD MONITORS AND PUBLIC SIGNAGE DISPLAYS 
WORLDWIDE. IT IS A COMPANY OF 300 PEOPLE FOCUSED ON WORLD CLASS 
PRODUCT CREATION, MARKETING, DISTRIBUTION AND SALES TO ALL COUNTRIES 
IN THE WORLD WITH OFFICES IN TAIWAN, CHINA, SINGAPORE, THE
NETHERLANDS, CZECH REPUBLIC AND BRAZIL.  
 
PRODUCTS: 
* LCD PANEL
* SIGNAGE DISPLAY
 
EXPORT COUNTRIES: 
* AUSTRALIA  
* ISRAEL
* SOUTH AFRICA 
* BANGLADESH 
* MALAYSIA 
* TAIWAN  
* CANADA
* MIDDLE EAST 
* THAILAND 
* HONG KONG  
* NEW ZEALAND 
* USA
* INDIA 
* VIETNAM 
* INDONESIA  
* PHILIPPINES
 
FROM THE TELE-INTERVIEW CONDUCTED WITH MS JULIE FROM SCM 
DEPARTMENT, 
 
ACTIVITIES: 
* TRADING IN MONITORS
 

 
IMPORT COUNTRY: 
* CHINA  
 
EXPORT COUNTRIES:
* INDIA 
* INDONESIA  
* MALAYSIA 
 
NUMBER OF EMPLOYEES:
* 2010: 10 TO 11  
 
FROM THE TELE-INTERVIEW CONDUCTED WITH MR NELSON 
 
ACITITIVES:
* TRADING IN PHILIPS LCD DISPLAY PANEL/MONITORS  
 
SUBJECT VERIFIED THE WEBSITE OF THE COMPANY, BUT THERE WILL BE A 
CHANGE OF WEB ADDRESS IN NEAR FUTURE.
 
SEVERAL ATTEMPTS HAVE BEEN MADE TO CONTACT THE SUBJECT FOR A TELE- 
INTERVIEW. HOWEVER, THE CALL WAS NOT ANSWERED. 
 
NO OTHER TRADE INFORMATION WAS AVAILABLE 
  
THE COMPANY'S IMMEDIATE HOLDING CORPORATION IS MMD-MONITORS & DISPLAYS
HOLDINGS B.V., INCORPORATED IN BRITISH VIRGIN ISLANDS. THE COMPANY;S 
ULTIMATE HOLDING COMPANY IS TPV TECHNOLOGY LIMITED, INCORPORATED IN
BERMUDA.  
 
REGISTERED AND BUSINESS ADDRESS: 
620A LORONG 1 TOA PAYOH 
SINGAPORE 319762
DATE OF CHANGE OF ADDRESS: 01/12/2008 
- RENTED PREMISE 
- PREMISE OWNED BY: PHILIPS ELECTRONICS SINGAPORE PTE LTD 
  
WEBSITE:  http://www.mmd-p.com/default.html
  https://brilliancelcd.com 
EMAIL :  contact-Singapore@mmd-p.com

MANAGEMENT

THE DIRECTORS AT THE TIME OF THIS REPORT ARE:  
 
1) SUNG CHIANG, A TAIWANESE 
 - BASED IN TAIWAN.
 
2) ZHUO CHUNLEI, A CHINESE 
 - BASED IN CHINA. 
 
3) WONG KUM WING, A SINGAPOREAN 
 - HOLDS NO OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE.

ADVERSE ON DIRECTORS

DIRECTOR'S NAME : WONG KUM WING 
ADVERSE REPORT AGAINST DIRECTOR : NOT AVAILABLE FROM OUR DATABASE 
PROPERTY OWNERSHIP  : 1 
ANNUAL VALUE  : S$ 9,000 
CO-OWNER (S)  : MISS CHANG LEE LING
 
* ANNUAL VALUE IS THE ESTIMATED ANNUAL RENT THE PROPERTY CAN FETCH IF 
IT WERE RENTED OUT. THE ANNUAL VALUE IS DETERMINED IN THE SAME MANNER 
REGARDLESS OF WHETHER THE PROPERTY IS LET-OUT, OWNER-OCCUPIED OR 
VACANT.

Singapore’s Country Rating 2010

Investment Grade

THE SINGAPORE ECONOMY WAS SIGNIFICANTLY AFFECTED BY THE CRISIS DUE TO THE CONTRACTION OF EXPORTS, WHICH REPRESENT 210% OF GDP. SALES ABROAD OF MANUFACTURED PRODUCTS (ELECTRONICS, ENGINEERING, PHARMACEUTICALS, PETROCHEMICALS) AND SERVICES (FINANCIAL SERVICES, TOURISM, TRANSPORT) WERE AFFECTED BY THE WEAK PERFORMANCE OF THE MAIN TRADING PARTNERS (MALAYSIA, UNITED STATES, CHINA, JAPAN). WITH THE ECONOMY'S SLIDE INTO RECESSION, THE CENTRAL BANK REDUCED INTEREST RATES SEVERAL TIMES AND A STIMULUS PROGRAMME REPRESENTING 8% OF GDP WAS IMPLEMENTED IN JANUARY LAST YEAR. ALTHOUGH INCREASED PUBLIC SPENDING ON INFRASTRUCTURE, TRANSPORT, HEALTH AND EDUCATION ENABLED THE AUTHORITIES TO LIMIT THE CONTRACTION OF INVESTMENT, THAT DID NOT SUFFICE TO OFFSET THE DROP IN PRIVATE INVESTMENT. THE GOVERNMENT MOREOVER GRANTED DEFAULT GUARANTEES OF UP TO 80% ON NEW LOANS. AND HOUSEHOLD CONSUMPTION WAS SUPPORTED BY A REDUCTION OF INCOME TAX AND MEASURES TO FOSTER EMPLOYMENT. 

IN Q1 2010, GROWTH REBOUNDED SIGNIFICANTLY (15.5% Y/Y). FOR THE ENTIRE YEAR, GROWTH IS EXPECTED TO REMAIN HIGH (8.9%) THANKS TO THE POSITIVE IMPACT ON DOMESTIC DEMAND OF THESE EXPANSIONARY MONETARY AND FISCAL POLICIES AND THE GRADUAL RECOVERY OF THE WORLD ECONOMY. INVESTMENT, CONSUMPTION, AND NET EXPORTS ARE AGAIN EXPECTED TO CONTRIBUTE POSITIVELY TO GROWTH. ON THE SUPPLY SIDE, THE CONSTRUCTION SECTOR WILL BENEFIT AGAIN THIS YEAR FROM INCREASED PUBLIC SPENDING WHILE ELECTRONICS, PHARMACEUTICALS, PETROCHEMICALS, FINANCIAL SERVICES, AND TOURISM WILL GRADUALLY RECOVER. THE COFACE PAYMENT MONITORING ARE THUS EXPECTED TO REFLECT THIS FAVOURABLE TREND. SINGAPORE BOASTS THE BEST GOVERNANCE IN ASIA UNDERPINNED BY AN EFFECTIVE LEGAL SYSTEM THAT FACILITATES CLAIM COLLECTION AND A HIGH LEVEL OF FINANCIAL TRANSPARENCY.

STRONG FINANCIAL POSITION

DESPITE IMPLEMENTATION OF A BROAD STIMULUS PROGRAMME, THE COUNTRY CONTINUED TO RUN A SLIGHT FISCAL SURPLUS IN 2009, WHICH IS EXPECTED TO GROW IN 2010. PUBLIC SECTOR FINANCES HAVE THUS REMAINED SOLID.

DESPITE THE CONTRACTION OF THE CURRENT ACCOUNT SURPLUS, EXTERNAL ACCOUNTS ALSO REMAINED LARGELY IN SURPLUS LAST YEAR. IN 2010, THE CURRENT ACCOUNT SURPLUS WILL LIKELY REMAIN STABLE AS RESULT OF THE MORE RAPID RECOVERY OF IMPORTS COMPARED TO EXPORTS, ASSOCIATED WITH THE RISE OF RAW MATERIAL PRICES AND THE REBOUND OF DOMESTIC DEMAND. BESIDES, THE VOLATILITY OF PORTFOLIO INVESTMENT FLOWS THAT DEVELOPED AFTER THE LEHMAN BROTHERS BANKRUPTCY EASED IN 2009. IN 2010, THE HIGH LEVEL OF FOREIGN EXCHANGE RESERVES IS EXPECTED TO CONTINUE TO ENDOW THE COUNTRY WITH GOOD CAPACITY TO WITHSTAND SUDDEN CAPITAL.

MOREOVER, DESPITE THE INTERNATIONAL FINANCIAL TURMOIL AND THE EXPOSURE OF SOME BANKS TO SUBPRIMES AND LEHMAN BROTHERS, THE BANKING SYSTEM IS STILL SOLID THANKS TO SATISFACTORY RISK MANAGEMENT, EFFECTIVE OVERSIGHT, AND HIGH SOLVENCY AND LIQUIDITY RATIOS. 

ASSETS

* VERY HIGH QUALITY-COMPETITIVENESS

* DEVELOPMENT OF HIGH VALUE-ADDED SECTORS (CHEMICALS, PHARMACEUTICALS, FINANCE)

* STRONG FDI INFLOWS THANKS TO AN ADVANTAGEOUS TAX REGIME, POLITICAL STABILITY AND AN EXCELLENT BUSINESS ENVIRONMENT

* MAJOR EXPORTER OF CAPITAL IN ASIA VIA THE PUBLIC HOLDING COMPANY TEMASEK

WEAKNESSES

* ECONOMY DEPENDENT ON FOREIGN DEMAND

* SHORTAGES OF SKILLED LABOUR

* AGEING POPULATION

* LATENT SOCIAL TENSIONS IN A CONTEXT OF INCREASING INEQUALITY AND GROWING DURABLE UNEMPLOYMENT AMONG THE LEAST SKILLED

WHOLESALE AND RETAIL TRADE SECTOR

PAST PERFORMANCE

THE WHOLESALE AND RETAIL TRADE SECTOR GREW BY 18.0 IN 1Q 2010, FOLLOWING THE 1.5% GAIN IN 4Q 2009. IT IS ATTRIBUTED TO IMPROVEMENTS IN GLOBAL TRADE FLOWS.

DOMESTIC WHOLESALE TRADE INDEX

THE DOMESTIC WHOLESALE TRADE (SEASONALLY ADJUSTED) ROSE BY 1.8% IN 1Q 2010 OVER 4Q 2009, WITH IMPROVING SALES IN INDUSTRIAL AND CONSTRUCTION MACHINERY, GENERAL WHOLESALE TRADE AND CHEMICALS AND CHEMICAL PRODUCTS SECTORS, BUT PETROLEUM AND PETROLEUM PRODUCTS REGISTERED LOWER SALES. EXCLUDING PETROLEUM, OVERALL DOMESTIC SALES GREW BY 9.7%.

COMPARED TO THE SAME PERIOD A YEAR AGO, DOMESTIC WHOLESALE TRADE IN 1Q 2010 ROSE BY 37.1%, WITH HIGHER SALES REPORTED BY ALL WHOLESALE SECTORS. EXCLUDING PETROLEUM, DOMESTIC WHOLESALE TRADE GREW BY 26.9%.

AFTER REMOVING PRICE EFFECT, DOMESTIC WHOLESALE TRADE VOLUME SHOWED A RELATIVELY SMALLER YEAR-0N-YEAR INCREASE OF 9.4%. EXCLUDING PETROLEUM, DOMESTIC WHOLESALE TRADE GREW BY 17.9%.

ALL WHOLESALE SECTORS, EXCEPT PETROLEUM AND PETROLEUM PRODUCTS AND TIMBER, PAINTS AND CONSTRUCTION MATERIALS, REGISTERED POSITIVE GROWTHS IN DOMESTIC WHOLESALE TRADE IN 1Q 2010 COMPARED TO 4Q 2009 (AFTER SEASONAL ADJUSTMENT).

SECTORS THAT REGISTERED DOUBLE-DIGIT QUARTER-ON-QUARTER GROWTHS INCLUDED INDUSTRIAL AND CONSTRUCTION MACHINERY (25.7%), GENERAL WHOLESALE TRADE (24.5%) AND CHEMICALS AND CHEMICAL PRODUCTS (16.7%).

OTHER SECTORS SUCH AS TELECOMMUNICATIONS AND COMPUTERS, ELECTRONIC COMPONENTS, SHIP CHANDLERS AND BUNKERING, FOOD, BEVERAGES AND TOBACCO AS WELL AS HOUSEHOLD EQUIPMENT AND FURNITURE RECORDED INCREASES OF BETWEEN 1.0% AND 5.7%.

PETROLEUM AND PETROLEUM PRODUCTS AND TIMBER, PAINTS AND CONSTRUCTION MATERIALS SECTORS REGISTERED DECLINES OF 3.0% AND 1.6% RESPECTIVELY IN DOMESTIC WHOLESALE TRADE OVER 4Q 2009.

ALL WHOLESALE SECTORS REGISTERED YEAR-ON-YEAR GROWTHS IN DOMESTIC WHOLESALE TRADE IN 1Q 2010.

DOMESTIC SALES OF GENERAL WHOLESALE TRADE, CHEMICALS AND CHEMICAL PRODUCTS AS WELL AS PETROLEUM AND PETROLEUM PRODUCTS SECTORS ROSE BY BETWEEN 54.6% AND 96.5% OVER THE SAME PERIOD A YEAR AGO. AFTER REMOVING PRICE EFFECT, THE SALES VOLUME OF GENERAL WHOLESALE TRADE AND CHEMICALS AND CHEMICAL PRODUCTS GREW BY 75.7% AND 25.2% RESPECTIVELY WHILE THAT OF PETROLEUM AND PETROLEUM PRODUCTS FELL BY 1.1%.

OTHER SECTORS THAT RECORDED DOUBLE-DIGIT YEAR-ON-YEAR GROWTHS IN DOMESTIC WHOLESALE TRADE INCLUDED ELECTRONIC COMPONENTS (33.1%), TELECOMMUNICATIONS AND COMPUTERS (26.4%), TRANSPORT EQUIPMENT (19.6%), HOUSEHOLD EQUIPMENT AND FURNITURE (17.3%), INDUSTRIAL AND CONSTRUCTION MACHINERY (16.0%), SHIP CHANDLERS AND BUNKERING (15.6%) AND TIMBER, PAINTS AND CONSTRUCTION MATERIALS (11.2%).

FOREIGN WHOLESALE TRADE INDEX

FOREIGN WHOLESALE TRADE (SEASONALLY ADJUSTED) ROSE BY 9.8% IN 1Q 2010 OVER 4Q 2009, WITH IMPROVEMENT IN SALES IN MOST OF THE WHOLESALE SECTORS. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE ROSE BY 7.4% OVER THE PREVIOUS QUARTER.

ON A YEAR-ON-YEAR BASIS, FOREIGN WHOLESALE TRADE GREW BY 37.8%, WITH STRONG GROWTHS IN MOST WHOLESALE SECTORS. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE ROSE BY 23.0%.

AFTER ADJUSTING FOR PRICE CHANGES, FOREIGN WHOLESALE TRADE VOLUME ROSE BY 9.8% FROM A YEAR AGO. EXCLUDING PETROLEUM, FOREIGN WHOLESALE TRADE VOLUME GREW BY 17.4%.

AFTER SEASONAL ADJUSTMENT, ALL WHOLESALE SECTORS REGISTERED POSITIVE QUARTER-ON-QUARTER GROWTHS IN FOREIGN WHOLESALE TRADE IN 1Q 2010, EXCEPT TIMBER, PAINT AND CONSTRUCTION MATERIALS, FOOD, BEVERAGES AND TOBACCO AND TELECOMMUNICATIONS AND COMPUTERS.

GENERAL WHOLESALE TRADE AND INDUSTRIAL AND CONSTRUCTION MACHINERY SECTORS REGISTERED DOUBLE-DIGIT INCREASES OF 15.5% AND 11.9% RESPECTIVELY IN FOREIGN WHOLESALE TRADE. SHIP CHANDLERS AND BUNKERING, HOUSEHOLD EQUIPMENT AND FURNITURE, PETROLEUM AND PETROLEUM PRODUCTS, CHEMICALS AND CHEMICAL PRODUCTS AND ELECTRONIC COMPONENTS SECTORS ALSO GREW BETWEEN 1.5% AND 5.4%.

FOREIGN SALES OF TIMBER, PAINTS AND CONSTRUCTION MATERIALS AND FOOD, BEVERAGES AND TOBACCO FELL BY 7.6% AND 4.8% RESPECTIVELY IN 1Q 2010.

OTHER THAN THE FOOD, BEVERAGES AND TOBACCO SECTOR WHICH REGISTERED A MARGINAL DROP OF 1.5%, ALL WHOLESALE SECTORS REGISTERED DOUBLE-DIGIT YEAR-ON-YEAR GROWTHS IN FOREIGN WHOLESALE TRADE.

PETROLEUM AND PETROLEUM PRODUCTS, SHIP CHANDLERS AND BUNKERING, CHEMICALS AND CHEMICAL PRODUCTS SECTORS REGISTERED HIGHER FOREIGN SALES OF BETWEEN 30.0% AND 60.6%. AFTER ADJUSTING FOR PRICE CHANGES, FOREIGN WHOLESALE TRADE VOLUME OF PETROLEUM AND PETROLEUM PRODUCTS AND CHEMICALS AND CHEMICAL PRODUCTS ROSE BY A SMALLER 1.8% AND 3.6% RESPECTIVELY WHILE THAT OF SHIP CHANDLERS AND BUNKERING FELL BY 0.1%.

OTHER SECTORS THAT REPORTED STRONG YEAR-ON-YEAR GROWTHS IN FOREIGN SALES INCLUDED HOUSEHOLD EQUIPMENT AND FURNITURE (48.4%), GENERAL WHOLESALE TRADE (41.6%), TRANSPORT EQUIPMENT (37.5%) AND TIMBER, PAINTS AND CONSTRUCTION MATERIALS (36.4%).

RETAIL SALES

RETAIL SALES VOLUME ROSE FOR THE FIRST TIME SINCE 3Q 2008 TO REACH 1.1%, REVERSING THE 4.1% DECLINE REGISTERED IN 4Q 2010. EXCLUDING MOTOR VEHICLE SALES, THE GROWTH WAS HIGHER AT 7.0%.

ALTHOUGH WEIGHED DOWN BY THE DECLINE OF MOTOR VEHICLE SALES (-13.0%), OTHER MAJOR RETAIL SEGMENTS, SUCH AS WATCHES AND JEWELLERY (14.0%), FURNITURE AND HOUSEHOLD EQUIPMENT (14.0%), WEARING APPAREL AND FOOTWEAR (10.0%), AND DEPARTMENT STORES (8.1%) POSTED STRONG GROWTH IN THE FIRST QUARTER OF 2010.

NEWS

MOTOR INDUSTRY SHAKE-UP

THE MOTOR INDUSTRY IS BRACING ITSELF FOR A SHAKE-UP. THIS IS BECAUSE NEW VEHICLE SALES COULD SINK BELOW 55,000 CARS THIS YEAR – LESS THAN HALF THE AVERAGE 117,000 IT MOVED OOUT OF SHOWROOMS IN EACH OF THE “FEAST” YEARS OF THE LAST DECADE.

RETRENCHEMENTS AND RESTRUCTURING ARE ON THE INDUSTRY’S HORIZON, IN RESPONSE TO THE NEW MARKET SIZE BROUGHT ON BY A SHARP CUT IN THE CERTIFICATE OF ENTITLEMENT (COE) SUPPLY, WHICH KICKED IN LAST MONTH.

MOTOR COMPANIES THAT HAVE BUILT NEW SHOWROOMS OR EXPANDED EXISTING ONES AND HIRED MORE SALES STAFF NOW FIND THEY HAVE TO SCALE BACK.

MR CHEAH KIM TECK, JARDINE CYCLE & CARRIAGE’S CHIEF EXECUTIVE FOR MOTOR OPERATIONS, SAID: “A SAD FACT OF THE TRADE IS WHEN THE MARKET WAS HOVERING AROUND 100,000 UNITS A YEAR, YOU HAD TO HAVE THE SALES PEOPLE. NOW YOU HAVE TO CUT.”

EVEN AS MOTOR FIRMS ARE LOOKING AT TRIMMING THEIR HEADCOUNTS, SOME SALES STAFF ARE ALREADY LEAVING FOR OTHER INDUSTRIES THAT ARE FARING WELL, SUCH AS THE REAL ESTATE, HOSPITALITY AND FINANCIAL SECTORS, SAID MR JESLIN TEO, CHIEF EXECUTIVE OF FIAT AGENT TTS EUROCARS.

THOSE WHO STAY ON IN SALES MAY WELL TAKE HOME SMALLER COMMISSIONS.

BMW AGENT PERFOMANCE MOTORS AND THE SINGAPORE MANUAL & MERCANTILE WORKERS’ UNION, FOR INSTANCE, RECENTLY AGREED ON A NEW COMMISSION PLAN.

A SENIOR SPOKESMAN FOR BORNEO MOTORS, WHICH DISTRIBUTES THE TOP-SELLING TOYOTA BRAND, SAID THE COE SQUEEZE WOULD HIT VOLUME-SELLES HARDER, BECAUSE “ A 40.0% DROP TO A FIRM

THAT SELLS 150 CARS A YEAR MEANS 60 CARS. BUT TO ONE THAT SELLS 10,000 CARS, IT’S 4,000”.

EVEN MR KARSONO KWEE, THE EXECUTIVE CHAIRMAN OF EUROKARS GROUP AND ONE OF THE MOST BULLISH MOTOR TRADERS IN SINGAPORE, SAID HE WILL ASSESS WHETHER THE GROUP NEEDS ALL THE SEVEN SHOWROOMS IT NOW HAS.

EUROKARS HOLDS THE ROLLS-ROYCE, MINI, PORSCHE, OPEL AND SAAB FRANCHISES.

BUT HE SAID HE WILL CONDUCT THE REVIEW ONLY IN 22 MONTHS, AFTE A MAJOR PROJECT TO HOUSE ROLLS=ROYCE AND PORSCHE IN A CITY SHOWROOM IS COMPLETED,”BECAUSS WE STILL NEED THE SPACE WHEN CONSTRUCTION IS GOING ON”.

THE GROUP HAS ALREADY RENTED OUT ITS FORMER OPEL SHOWROOM IN KAMPUNG UBI AND MOVED THE BRAND TO ONE OF ITS TOWN PREMISES.

BESIDES DOING A STOCK-TAKE ON THEIR INFRASTRUCTURE, MOTOR COMPANIES ARE ALSO REDEFINING THE SCOPE OF THEIR BUSINESS.

THE STRAITS TIMES UNDERSTANDS THAT BORNEO MOTORS, WHICH HAS SHUNNED THE USED-CAR TRADE SINCE 1998, WILL REVISIT THE SEGMENT SOON.

PARALLEL IMPORTERS, MANY OF WHOM WERE USED-CAR DEALERS BEFORE THE 1990S, ARE ALSO RETURNING TO THEIR FORMER TRADE NOW THAT THE COE SUPPLY IS DOWN.

MR RAYMOND TANG, THE SECRETARY OF THE SINGAPORE VEHICLE TRADERS ASSOCIATION, SAID: “THOSE WHO ARE STILL DOING PARALLEL IMPORTING HAVE SHIFTED THEIR FOCUS TO BIGGER CARS AND EUROPEAN BRANDS. THESE GIVE THEM BETTER MARGINS FOR COE BIDDING.”

THE BORNEO MOTORS SPOKESMAN NOTED THAT THE INDUSTRY SHAKE-UP WOULD ALSO HAVE A RIPPLE EFFECT ON BUSINESSES IN SUPPORTING INDSUTRIES – THOSE SUPPLYING CAR ACCESSORIES, LEATHER UPHOLSTERY AND THOSE THAT PROVIDE PRE-DELIVERY INSPECTIONS.

MR DAVID SIEW, THE PROPRIETOR OD TOMO-CSE, A LEADING SUPPLIER OF LEATHER UPHOLSTERY, SAID HE EXPECTS HIS BUSINESS HERE TO SHRINK BY AT LEAST 30.0% OVER THE NEXT SIX MONTHS.

MOTOR TRADERS FEEL THE COE SUPPLY COULD HAVE BEEN CUT MORE GRADUALLY.

MR MICHAEL WONG, THE VICE-PRESIDENT OF THE MOTOR TRADERS ASSOCIATION, SAID:”IN PREVIOUS IMPLEMENTATIONS OF POLICIES AND RULES, CHANGES WERE SPREAD OUT OVER TIME, SO IT WAS MORE GRADUAL.”

MR CHEAH AGREED, SAYING THE COE CUT MADE FOR A FAMINE AFTER THE FEAST.

HE SAID HE EXPECTED THE COE SUPPLY TO RETURN TO “SIZEABLE LEVELS BY 2013, BUT GETTING THROUGH THE NEXT THREE YEARS “WILL NOT BE EASY, ESPECIALLY FOR THE MARGINAL PLAYERS”.

OUTLOOK

A NET WEIGHTED BALANCE OF 44% OF WHOLESALERS EXPECT POSITIVE BUSINESS SENTIMENTS FOR THE PERIOD ENDING SEP 2010. IN PARTICULAR, THOSE DEALING WITH FOOD AND BEVERAGES, CHEMICALS AND CHEMICAL PRODUCTS, NON-AGRICULTURAL INTERMEDIATE PRODUCTS, INDUSTRIAL MACHINERY AND EQUIPMENT, AND COMPUTERS AND ACCESSORIES.

RETAILERS FORECAST LESS UPBEAT BUSINESS CONDITIONS FOR THE COMING MONTHS. A NET WEIGHTED BALANCE OF 18% OF RETAILERS FORECAST LESS FAVOURABLE BUSINESS PROSPECTS FOR THE PERIOD ENDING SEP 2010. THIS APPLIES TO DEPARTMENT STORES, SUPEMARKETS, RETAILERS OF MOTOR VEHICLES, COSMETICS AND TOILETRIES AND WEARING APPAREL AND FOOTWEAR.

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.44.48
UK Pound	1	Rs.72.37
Euro	1	Rs.64.42

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	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

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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