MIRA INFORM REPORT

Report Date :

27.01.2011

IDENTIFICATION DETAILS

Name :	PACIFIC FOREST PRODUCTS PTE LTD
Formerly Known As :	AIMS MERCHANDISING PTE LTD
Registered Office :	1 Sungei Kadut Crescent, Singapore 728684
Country :	Singapore
Date of Incorporation :	01.06.1988
Com. Reg. No.:	198801748D
Legal Form :	Exempt Pte Ltd
Line of Business :	Importer, Exporter, Stockist and Manufacturer of wood products

RATING & COMMENTS

MIRA’s Rating :

B

RATING		STATUS	PROPOSED CREDIT LINE
26-40	B	Capability to overcome financial difficulties seems comparatively below average.	Small

Maximum Credit Limit :
Status :	Moderate
Payment Behaviour :	Regular
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 – June 30, 2010

Country Name	Previous Rating (01.04.2010)	Current Rating (30.06.2010)
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

PACIFIC FOREST PRODUCTS PTE LTD

Line Of Business 

IMPORTER, EXPORTER, STOCKIST AND MANUFACTURER OF WOOD PRODUCTS

Parent Company

----

Financial Elements

Sales : NA

Networth : NA

Paid-Up Capital : S$500,000

Net result : NA

Net Margin(%) : NA

Return on Equity(%) : NA

Leverage Ratio : NA

COMPANY IDENTIFICATION

Subject Company :	PACIFIC FOREST PRODUCTS PTE LTD
Former Name :	AIMS MERCHANDISING PTE LTD DATE OF CHANGE : 27/08/1988
Business Address:	1 SUNGEI KADUT CRESCENT
Town:	SINGAPORE
Postcode:	728684
Country:	Singapore
Telephone:	6368 6675
Fax:	6368 7039
ROC Number:	198801748D
Easy Number company:	00004272418136

PREVIOUS IDENTIFICATION

AIMS MERCHANDISING PTE LTD DATE OF CHANGE : 27/08/1988

SUMMARY

Legal Form:	Exempt Pte Ltd
Date Inc.:	01/06/1988
Summary year :
All amounts in this report are in :	SGD
Sales:
Capital:
Paid-Up Capital:	500,000
Net result :
Share value:

 
BASED ON ACRA'S RECORD 
 
  NO OF SHARES  CURRENCY  AMOUNT 
ISSUED ORDINARY  1,000,000  SGD  1,000,000.00
PAID-UP ORDINARY  -  SGD  1,000,000.00

REFERENCES

Credit Opinion:

Litigation:	No
Company status :	TRADING
Started :	01/06/1988

PRINCIPAL(S)

CHANG YONG LEONG

S0136153H

Director

DIRECTOR(S)

YANG CHIAH MING @ YENG CHIAH MING	S1170628B	Company Secretary
Appointed on :	15/12/1999
Street :	8A LORONG KISMIS UNIQUE GARDEN
Town:	SINGAPORE
Postcode:	598004
Country:	Singapore

CHANG YONG LEONG	S0136153H	Director
Appointed on :	01/06/1988
Street :	75 NERAM ROAD SELETAR HILLS ESTATE
Town:	SINGAPORE
Postcode:	807771
Country:	Singapore

TAN SIEW TOH	S1382902J	Director
Appointed on :	18/08/1988
Street :	75 NERAM ROAD SELETAR HILLS ESTATE
Town:	SINGAPORE
Postcode:	807771
Country:	Singapore

FORMER DIRECTOR(S)

TEO GEOK CHOO

S1624789H

ACTIVITY(IES)

Activity Code:	2920	BUILDING MATERIALS
Activity Code:	11760	IMPORTERS And EXPORTERS

 
BASED ON ACRA'S RECORD 
 
1) MANUFACTURE OF PREFABRICATED WOODEN BUILDING STRUCTURE (INCLUDING 
 PARQUET FLOORING); 
 MANUFACTURER OF WOOD PRODUCTS AND BUILDING MATERIAL PRODUCTS 
2) GENERAL CONTRACTORS (BUILDING CONSTRUCTION INCLUDING MAJOR
 UPGRADING WORKS);  
 GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)

CHARGES

	AVAILABLE
Date:	03/12/2007
Amount:	0
Comments :	CHARGE NO : C200710635 AMOUNT SECURED : ALL MONIES OWING CHARGEE(S) : OVERSEA-CHINESE BANKING CORPORATION LIMITED

	AVAILABLE
Date:	03/12/2005
Amount:	0
Comments :	CHARGE NO : C200507497 AMOUNT SECURED : ALL MONIES OWING CHARGEE(S) : STANDARD CHARTERED BANK

	AVAILABLE
Date:	26/08/2004
Amount:	0
Comments :	CHARGE NO : C200404229 AMOUNT SECURED : ALL MONIES OWING CHARGEE(S) : STANDARD CHARTERED BANK

	AVAILABLE
Date:	12/02/2010
Amount:	0
Comments :	CHARGE NO : C201001462 AMOUNT SECURED : ALL MONIES OWING CHARGEE(S) : THE BANK OF EAST ASIA LIMITED

PREMISES/PROPERTY INFORMATIONS

	AVAILABLE
Date:	26/01/2011
Site Address :	1 SUNGEI KADUT CRESCENT 728684 Singapore
Annual Value:	269,000

*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.

BANKERS

OVERSEA-CHINESE BANKING CORPORATION LIMITED

STANDARD CHARTERED BANK

THE BANK OF EAST ASIA LIMITED

SHAREHOLDERS(S)

CHANG YONG LEONG

900,000

Private Person

Street :	75 NERAM ROAD SELETAR HILLS ESTATE
Town:	SINGAPORE
Postcode:	807771
Country:	Singapore

TAN SIEW TOH

100,000

Private Person

Street :	75 NERAM ROAD SELETAR HILLS ESTATE
Town:	SINGAPORE
Postcode:	807771
Country:	Singapore

PAYMENT HISTORY AND EXPERIENCES

Trade Morality:	AVERAGE
Liquidity :	UNKNOWN
Payments :	REGULAR
Trend :	LEVEL
Financial Situation:	UNKNOWN

FINANCIAL COMMENTS

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 
01/06/1988 AS A LIMITED EXEMPT PRIVATE COMPANY AND IS TRADING UNDER 
ITS NAMESTYLE AS "AIMS MERCHANDISING PTE LTD".  
 
SUBSEQUENTLY ON 27/08/1988, SUBJECT CHANGED TO ITS PRESENT NAMESTYLE
OF "PACIFIC FOREST PRODUCTS PTE LTD". 
  
AS AT 26/01/2011, THE COMPANY HAS AN ISSUED AND PAID-UP CAPITAL OF 
1,000,000 SHARES, OF A VALUE OF S$1,000,000.
 
PRINCIPAL ACTIVITIES: 
SUBJECT IS REGISTERED WITH THE ACCOUNTING AND CORPORATE REGULATORY 
AUTHORITY (ACRA) TO BE PRINCIPALLY ENGAGED IN THE BUSINESS OF: 
1) MANUFACTURE OF PREFABRICATED WOODEN BUILDING STRUCTURE (INCLUDING 
 PARQUET FLOORING);
 MANUFACTURER OF WOOD PRODUCTS AND BUILDING MATERIAL PRODUCTS 
2) GENERAL CONTRACTORS (BUILDING CONSTRUCTION INCLUDING MAJOR 
 UPGRADING WORKS); 
 GENERAL WHOLESALE TRADE (INCLUDING GENERAL IMPORTERS & EXPORTERS)
 
FROM THE RESEARCH DONE, THE FOLLOWING INFORMATION WAS GATHERED: 
 
BACKGROUND: 
HEADQUARTERED IN SINGAPORE, THEIR BUSINESS HAS EXPANDED GREATLY FROM 
THEIR HUMBLE BEGINNINGS IN 1988 INTO A MULTI-FACETED ONE FOCUSED ON 3
MAIN ACTIVITIES: THE DESIGN AND BUILDING OF LIFESTYLE HOMES AND HOTEL 
RESORTS, PRODUCTS MANUFACTURING AND TRADING. 
  
TODAY, THEIR PORTFOLIO OF SUCCESSFUL PROJECTS SPEAKS FOR ITSELF. WITH 
PRESTIGIOUS PROJECTS SUCH AS THE FOUR SEASONS RESORT BORA BORA UNDER
THEIR BELT, YOU CAN BE ASSURED OF THEIR COMMITMENT TO DELIVERING THE 
BEST QUALITY. 
 
AND AS PART OF THEIR GAIA-FRIENDLY BELIEFS, THEY HAVE ALSO DELVED INTO
THE RESEARCH AND DEVELOPMENT FRONT TO PURSUE THE POSSIBILITIES OF
FINDING GREENER WOOD SUBSTITUTES IN THE FUTURE. 
 
SUBJECT ENGAGES IN THE FOLLOWING ACTIVITIES: 
* IMPORTER, EXPORTER, STOCKIST AND MANUFACTURER OF WOOD PRODUCTS 
* WHOLESALE OF LOGS, SAWN TIMBER, PLYWOOD AND RELATED PRODUCTS
 
PRODUCTS DEALING:  
* FLOORINGS - SOLID TIMBER 
* FLOORINGS - CLICK-LOCK MDF PANEL 
* FLOORINGS - LAMINATED
* LOUVRES - DOORS AND WINDOWS 
* DOORS - SOLID WOOD CRAFT 
* DOORS - FIRE SAFETY 
* DOORS - HOLLOW CORE 
* WINDOWS - WOODEN CASEMENT
* PANELS - PLYWOOD  
* PANELS - SIDING GROOVED 
* PANELS - MDF 
* PANELS - PARTICLE BOARDS  
* PANELS - FIBER CEMENT BOARDS
* PANELS - CEMENT BOARDS 
* PANELS - BLOCKBOARDS 
* WOOD MOULDING - CLADDINGS 
* WOOD MOULDING - DECKINGS 
* WOOD MOULDING - ROUND POLES
* SAWM LUMBER 
* SIKKENS TRANSLUCENT WOOD PROTECTION PRODUCTS 
  
PROJECTS: 
* FOUR SEASONS, BORA BORA
* LEGENDS RESORT, MOOREA 
* MAIVA BEACH RESORT  
* HYATT, KOH SAMUI 
* GRANDSTAND, SINGAPORE 
* ST REGIS
* GOUARO DEVA, NEW-CALEDONIA 
* CRUISE SHIP DECKINGS 
 
SUBJECT IS A MEMBER OF THE FOLLOWING ENTITIES: 
* THE SINGAPORE CONTRACTORS ASSOCIATION LTD.
 
ON 26/05/2009, ATTEMPTS HAVE BEEN MADE TO CONTACT THE SUBJECT FOR A 
TELE-INTERVIEW. HOWEVER, TELE-INTERVIEW WAS REJECTED BY SUBJECT'S 
PERSONNEL. HENCE, NO OTHER TRADE INFORMATION AT THE TIME OF THIS 
REPORT.
 
FROM THE TELE-INTERVIEW CONDUCTED, THE FOLLOWING WAS 
GATHERED:  
 
SUBJECT CONFIRMED ITS BUSINESS ADDRESS, EMAIL, WEBSITE AND FAX NUMBER.
 
NO OTHER TRADE INFORMATION IS AVAILABLE. 
 
REGISTERED AND BUSINESS ADDRESS: 
1 SUNGEI KADUT CRESCENT
SINGAPORE 728684  
DATE OF CHANGE OF ADDRESS: 13/10/2004 
- OWNED PREMISE 
 
WEBSITE: http://www.pacificforest.com.sg/ 
 
EMAIL: jason@pacificforest.com.sg 

MANAGEMENT

THE DIRECTORS AT THE TIME OF THIS REPORT ARE: 
  
1) CHANG YONG LEONG, A SINGAPOREAN 
 - HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE: 
 SCR BUILDING PRODUCTS PTE LTD
  
2) TAN SIEW TOH, A SINGAPOREAN 
 - HOLDS OTHER DIRECTORSHIPS AS RECORDED IN OUR DATABASE: 
 BUILTTEC INDTRADE PTE LTD

ADVERSE ON DIRECTORS

DIRECTOR'S NAME:  CHANG YONG LEONG 
ADVERSE REPORT AGAINST DIRECTOR:  NOT AVAILABLE FROM OUR DATABASE 
PROPERTY OWNERSHIP:  OWNS 1 
ANNUAL VALUE:  S$60,000  
CO-OWNER (S):  TAN SIEW TOH
 
DIRECTOR'S NAME:  TAN SIEW TOH 
ADVERSE REPORT AGAINST DIRECTOR:  NOT AVAILABLE FROM OUR DATABASE 
PROPERTY OWNERSHIP:  OWNS 1 
ANNUAL VALUE:  S$60,000
CO-OWNER (S):  CHANG YONG LEONG 
  
* 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 RECORDS 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

OVERVIEW OF SINGAPORE

PAST PERFORMANCE

IN 2Q 2010, The Singapore economy ROSE by 18.8%, after growing by 16.9% in 1q 2010. ALL MAJOR SECTORS EXPANDED, WITH manufacturing, wholesale and retail trade and financial services contributing mainly to growth.

ON A SEASONALLY ADJUSTED ANNUALISED QUARTER-ON-QUARTER BASIS, REAL GROSS DOMESTIC PRODUCT (GDP) rose BY 24.0%, FOLLOWING A 45.7% GROWTH IN 1Q 2010.

The manufacturinG Sector grew by 45.0%, COMPARED TO 2Q 2009.

the construction sector grew by 12.0%, SLOWER than the 13.7% in 1q 2010.

THE SERVICES PRODUCING INDUSTRIES AS A WHOLE ROSE BY 11.0%, SIMILAR TO THE GROWTH ACHIEVED IN 1Q 2010. IT IS LED BY STRONG EXPANSIONS IN THE WHOLESALE AND RETAIL TRADE SECTOR (19.0%) AND THE FINANCIAL SERVICES SECTOR (10.0%).

The financial services sector EXPANDED BY 10.2% IN 2Q 2010, SLOWER than the 18.1% GROWTH IN 1Q 2010.

THE WHOLESALE AND RETAIL TRADE SECTOR ROSE BY 18.9% IN 2Q 2010, GREATER THAN THE 17.7%% GROWTH IN 1Q 2010.

GROWTH IN THE TRANSPORT AND STORAGE SECTOR ROSE BY 7.6% IN 2Q 2010, SIMILAR TO THE GROWTH ACHIEVED IN 1Q 2010.

The hotels and restaurants sector ROSE BY 10.4% IN 2Q 2010, MUCH GREATER THAN THE 6.7% GROWTH IN 1Q 2010.

The information and communications sector rose by 2.8% in 2Q 2010, SLIGHTLY SLOWER than the 2.9% growth in 1Q 2010.

The business services sector expanded by 6.4% in 1Q 2010, GREATER THAN THE

6.1 % in 1Q 2010.

NEWS

GROWTH MAY SURPASS GOVT’S 15% FORECAST

SINGAPORE’S REBOUNDING ECONOMY MAY BURST THROUGH THE 15.0% GROWTH CEILING FORECASTED BY THE GOVERNMENT EARLIER THIS YEAR.

ACCORDING TO 20 ECONOMISTS AND ANALYSTS SURVEYED BY THE MONETARY AUTHORITY OF SINGAPORE (MAS), THE ECONOMY IS MOST LIKELY TO EXPAND BY BETWEEN 14.9% AND 15.9% THIS YEAR, RATHER THAN THE 13.0% TO 15.0% RANGE EXPECTED BY THE GOVERNMENT.

THEIR MEDIAN GROWTH FORECAST OF 14.9% - ANNOUNCED IN THE LATEST MAS SURVEY OF PROFESSIONAL FORECASTERS RELEASED YESTERDAY – IS A SIGNIFICANT LEAP FROM THE MEDIAN FORECAST OF 9.0% CONTAINED IN THE PREVIOUS SURVEY IN JUNE.

AND, IF ACHIEVED, IT WILL ENTER THE RECORD BOOKS AS SINGAPORE’S HIGHEST-EVER ANNUAL GROWTH RATE.

THE LAST RECORD WAS SET IN 1970, WHEN THE ECONOMY ADVANCED 13.8%.

ALONG WITH THE RECORD GROWTH, THE ECONOMISTS HAVE ALSO RAISED THEIR FORECASTS FOR THIS YEAR’S EXPORTS, INFLATION AND THE UNEMPLOYMENT RATE.

BUT THIS YEAR’S BIGGER OUTPUT JUMP COULD SPELL SLOWER GROWTH NEXT YEAR, BECAUSE 2011’S PERFORMANCE WILL BE MEASURED AGAINST THIS YEAR’S HIGHER BASE.

THE FORECASTERS ARE NOW ANTICIPATING 4.0% TO 4.9% EXPANSION FOR NEXT YEAR, DOWN FROM THEIR EARLIER FORECAST OF 5.0% TO 5.9%.

THE UPGRADED PROJECTION FOR THIS YEAR WAS DRIVEN MAINLY BY THE MANUFACTURING SECTOR, WHICH IS NOW THOUGHT TO HAVE PERFORMED BETTER FOR THE FULL YEAR.

EXPECTATIONS HAVE ALSO BEEN RAISED FOR THE FINANCIAL SERVICES AND WHOLESALE AND RETAIL TRADE INDUSTRIES.

THIS SHOULD SEE THE ECONOMY REGISTERING DOUBLE-DIGIT EXPANSIONS IN THE THIRD AND FOURTH QUARTERS, SAID THE ECONOMIST POLLED.

THEY ARE PREDICTING 11.6% GROWTH FOR THE THIRD QUARTER, UP FROM A PREVIOUS FORECAST OF 6.0%; ALTHOUGH IT IS DOWN ON THE 18.8% RISE IN THE SECOND QUARTER.

IN THE FOURTH QUARTER, GROWTH MAY ACCELERATE TO 12.6%, THE SURVEY SHOWED.

MOST ECONOMISTS BELIEVE THE ECONOMY PEAKED IN THE SECOND QUARTER AND WILL SLOW AS THE GLOBAL ECONOMY WAVERS IN THE SECOND HALF OF THE YEAR.

MR DAVID COHEN OF ACTION ECONOMICS FORECASTS 15.5% GROWTH THIS YEAR, EVEN AFTER TAKING INTO ACCOUNT A QUARTER-QUARTER CONTRACTION IN THE THIRD QUARTER AND SLIGHT GROWTH IN THE FOURTH QUARTER.

“I THINK THE SENSE IS THAT THE SECOND QUARTER GOT A LITTLE AHEAD OF ITSELF, AND MAY HAVE BEEN EXAGGERATED BY SOME SPECIAL FACTORS IN BIOMEDICAL MANUFACTURING,” HE SAID.

“THE PRODUCTION SCHEDULES TEND TO BOUNCE AROUND AND MAYBE WERE A LITTLE OVERSTATED IN THE SECOND QUARTER.”

ON TOP OF THAT, MR COHEN SAID”THERE IS A SENSE THAT THE GLOBAL ECONOMY IS SLIPPING FROM THE PACE OF REBOUND SEEN EARLIER THIS YEAR.

WHILE THE ASIAN ECONOMIES GENERALLY CONTINUED ROARING IN THE SECOND QUARTER, GROWTH IN BOTH JAPAN AND THE UNITED STATES SLOWED SHARPLY.

THE MAS SURVEY REPORTED YESTERDAY THAT THE SINGAPORE DOLLAR IS PROJECTED TO RISE TO $1.363 AGAINST THE US DOLLAR AT THE END OF THIS MONTH AND TO $1.35 BY YEAR-END.

OUTLOOK

THE COMPOSITE LEADING INDEX (CLI) FELL ON A QUARTER-ON-QUARTER BASIS FOR THE FIRST TIME SINCE 1Q 2009. THE CLI DECLINED BY 1.8% IN 2Q 2010, REVERSING THE 2.4% RISE IN 1Q 2010. OF THE NINE COMPONENTS WITHIN THE INDEX, SIX COMPONENTS – NAMELY, STOCK OF FINISHED GOODS, NON-OIL SEA CARGO HANDLED,

NEW COMPANIES FORMED, STOCK PRICES, NON-OIL RETAINED IMPORTS AND WHOLESALE TRADE – DECLINED COMPARED TO THE PRECEDING PERIOD.

THE ONLY INDICATOR THAT SHOWED AN INCREASE WAS US PURCHASING MANAGERS’ INDEX, WHILE THE DOMESTIC LIQUIDITY AND MONEY SUPPLY INDICATORS REMAINED STABLE IN 2Q 2010.

THE SINGAPORE ECONOMY ROSE STRONGLY AT A PACE OF 18.0% IN 1Q 2010, IN TANDEM WITH THE RECOVERY IN GLOBAL AND REGIONAL MARKETS. THIS RECOVERY WAS BROAD-BASED ACROSS ALL KEY SECTORS OF THE ECONOMY, PARTICULARLY MANUFACTURING, WHOLESALE AND RETAIL TRADE AND FINANCIAL SERVICES.

FOR THE REST OF THE YEAR, THE GLOBAL ECONOMY IS EXPECTED TO RECOVER AT A MODEST PACE. SIGNS OF A SLOWDOWN CAN ALREADY BE OBSERVED IN THE KEY EXTERNAL ECONOMIES. IN PARTICULAR, US GROWTH HAS SLOWED IN 2Q 2010, DUE TO A SMALLER RISE IN PRIVATE CONSUMPTION EXPENDITURE AND A LOWER BOOST FROM INVENTORY RESTOCKING EFFORTS. HOUSEHOLD SPENDING IS LIKELY TO BE DEPRESSED FOR SOME TIME AS THE LABOUR AND HOUSING MARKETS REMAIN WEAK. FORWARD-LOOKING INDICATORS SUCH AS CONSUMER AND BUSINESS CONFIDENCE INDICES HAVE ALSO DECLINED. IN THE EU, MARKET CONCERNS HAVE BEEN LIFTED TO SOME EXTENT BY THE POSITIVE RESULTS OF STRESS TESTS ON COMMERCIAL BANKS AND SECURED DEBT FINANCING IN GREECE. HOWEVER, THE SITUATION IN SEVERAL SOUTHERN EUROPEAN ECONOMIES REMAIN WEAK, AND ON THE WHOLE, FINAL DEMAND IN THE EU IS EXPECTED TO BE SLUGGISH. THE SLOWDOWN IN EXTERNAL DEMAND HAS ALSO AFFECTED ASIAN ECONOMIES. SPECIFICALLY, CHINA REPORTED A SLOWER PACE OF GROWTH IN THE SECOND QUARTER AS COMPARED TO THE PREVIOUS QUARTER.

IN LINE WITH THESE DEVELOPMENTS, THE STRONG GROWTH MOMENTUM IN SINGAPORE IN THE FIRST HALF OF THE YEAR MAY EASE IN THE LATTER HALF OF THIS YEAR, ALTHOUGH GROWTH RATES WILL REMAIN HEALTHY. INDUSTRY SPECIFIC FACTORS SUCH AS ANTICIPATED PLANT MAINTENANCE SHUTDOWNS IN THE BIOMEDICAL MANUFACTURING CLUSTER MAY ALSO DAMPEN OVERALL GROWTH.

TAKING THESE FACTORS INTO CONSIDERATION, THE MINISTRY OF TRADE AND INDUSTRY EXPECTS THE SINGAPORE ECONOMY TO GROW BY 13.0% TO 15.0% IN 2010.

IN THE FINANCIAL SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 70% OF FIRMS

FORECASTS FAVOURABLE BUSINESS CONDITIONS FOR THE MONTHS ENDING SEP 2010. IN PARTICULAR, BANKS AND FINANCE COMPANIES, STOCK, SHARE AND BOND BROKERS, FUND MANAGERS AND INSURANCE COMPANIES FORECAST A BETTER BUSINESS CLIMATE IN THE COMING MONTHS.

IN THE FINANCIAL SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 37% OF FIRMS

FORECASTS FAVOURABLE BUSINESS SENTIMENTS FOR THE MONTHS ENDING DEC 2010. IN PARTICULAR, BANKS AND FINANCE COMPANIES, FUND MANAGERS AND INSURANCE COMPANIES FORECAST A BETTER BUSINESS CLIMATE IN THE COMING MONTHS.

IN THE REAL ESTATE INDUSTRY, AN OVERALL NET WEIGHTED BALANCE OF 27% OF FIRMS PREDICTS BETTER BUSINESS CONDITIONS AHEAD.

OVERALL, THE SERVICES INDUSTRY ARE UPBEAT BUSINESS OUTLOOK FOR THE MONTHS ENDING DEC 2010. A OVERALL NET WEIGHTED BALANCE OF 33% OF FIRM FORECASTS BETTER BUSINESS CONDITIONS. THIS MAGNITUDE IS SMALLER THAN THE POSITIVE NET WEIGHTED BALANCE OF 36% REGISTERED FOR THE MONTHS ENDING SEP 2010. THE POSITIVE OUTLOOK IS ALSO IN CONTRAST TO THE SLIGHT NEGATIVE NET WEIGHTED BALANCE OF 3% RECORDED FOR THE MONTHS ENDING DEC 2009.

A NET WEIGHTED BALANCE OF 37% OF WHOLESALERS EXPECT POSITIVE BUSINESS SENTIMENTS FOR THE PERIOD ENDING DEC 2010. IN PARTICULAR, THOSE DEALING WITH

FOOD AND BEVERAGES, COSMETICS AND TOILETRIES, INDUSTRIAL MACHINERY AND EQUIPMENT, ELECTRONIC COMPONENTS, COMPUTERS AND ACCESSORIES, AND MOTOR VEHICLES.

RETAILERS FORECAST FAVOURABLE BUSINESS CONDITIONS FOR THE COMING MONTHS. A NET WEIGHTED BALANCE OF 29% OF RETAILERS FORECAST POSITIVE FAVOURABLE BUSINESS PROSPECTS FOR THE PERIOD ENDING DEC 2010. THIS APPLIES TO DEPARTMENT STORES, RETAILERS OF WEARING APPAREL AND FOOTWEAR, JEWELLERY AND WATCHES.

IN THE TRANSPORT AND STORAGE INDUSTRY, A NET WEIGHTED BALANCE OF 24% OF FIRMS FORECAST A BRISK BUSINESS CLIMATE FOR THE MONTHS ENDING DEC 2010. FIRMS IN SHIPPING LINES, PROVIDING AIR TRANSPORT SERVICES AND SUPPORTING SERVICES TO AIR TRANSPORT ARE OPTIMISTIC ABOUT BUSINESS CONDITIONS IN THE MONTHS AHEAD.

HOTELIERS ANTICIPATE BETTER BUSINESS CONDITIONS FOR THE PERIOD ENDING DEC 2010. SIMILARLY, A NET WEIGHTED BALANCE OF 47% OF FIRMS IN THE CATERING TRADE INDUSTRY FORECASTS POSITIVE OUTLOOK AHEAD. CONVENTIONAL RESTAURANTS, FAST FOOD RESTAURANTS AND FOOD CATERERS ARE AMONG THOSE THAT FORECAST HIGHER BUSINESS VOLUME DURING THAT PERIOD.

IN THE INFORMATION AND COMMUNICATIONS INDUSTRY, A NET WEIGHTED BALANCE OF 38% OF FIRMS PREDICTS BETTER BUSINESS CONDITIONS IN THE COMING MONTHS. IN PARTICULAR, FIRMS ENGAGED IN PUBLISHING, MOTION PICTURE AND VIDEO, RADIO AND TELEVISION, SOUND RECORDING AND BROADCASTING AND TELECOMMUNICATIONS ACTIVITIES FORECASTS BETTER BUSINESS CLIMATE IN THE MONTHS AHEAD.

IN THE BUSINESS SERVICES INDUSTRY, A NET WEIGHTED BALANCE OF 25% OF FIRMS PREDICTS POSITIVE SENTIMENTS. THESE INCLUDE FIRMS ENGAGED IN RENTING OF

CONSTRUCTION EQUIPMENT AND LEGAL ACTIVITIES AS WELL AS HEAD AND REGIONAL OFFICES, LABOUR RECRUITMENT FIRMS AND TRAVEL AGENCIES.

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.45.53
UK Pound	1	Rs.72.78
Euro	1	Rs.62.14

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%)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.