Macro outlook remains challenging


• Although demand for ICT products remained resilient in the fourth quarter to-date, SGX believe the financial crisis in the West is likely to spillover to Asia in 2009, affecting corporate IT budget. SGX discussions with industry contacts suggest that several major financial institutes in Asia have already started to hold back their IT spending.

• Nevertheless, SGX are optimistic that ECS, with its continuous effort to
improve operating efficiencies, and introduction of new brand and product agencies via its extensive distribution channel, could help cushion the general market weakness.

BUY; TP:S$0.38