- IV.
International
. Asia’s companies lag behind their overseas
counterparts when it comes to reporting timely financial results,
and that gap needs to be addressed, according to a report by
investment bank JP Morgan.
. 172
of Asia’s largest and more liquid companies take 92 days to
produce consolidated annual reports after the end of their fiscal
years, a recent report said. The worst offenders are companies
from Indonesia, South Korea
and Taiwan.
. Asian
stocks fell, and US dollars softened last week on fears the
recovery of the world’s largest economy and Asia’s major
export market may e slower than expected after surprisingly weak
US economic data.
. Minsheng
Bank, China’s sole
privately-run lender, is to select Goldman
Sachs, Deutche Bank and Citigroup
to spearhead a $1 billion overseas sales, banking sources said.
. Oil
giant Royal Dutch/Shell
Group has completed financing for a $4.3 billion
petrochemicals venture with China National Offshore Oil Corp (NOOC) that is the biggest single
foreign investment project in China.
.
Space Corp and partner, Petro
China, announced the first production of 6,000 barrels per day
(bpd) at their Zhoo Dong block in Dagang, Bohai Bay, China. Production from 3 wells
in NE China is expected to reach a peak of 22,000 bpd by Q1 2004.
. Hongkong’s 8.6% unemployment rate, nearly 5 years
of deflation and plunging property prices, are putting pressure on
Hongkong’s competitive banking market, when loan books and
interest margins have eroded.
. Hang Seng, Hongkong’s
3rd
largest lender, reported net profit of HK$5.02 billion ($643
million) in the first half, down 3.8% from HK$5.22 billion aa year
ago.
.
Hongkong and Shanghai, HSBC’s main Asian arm, reported
first-half net profit of HK$12.42 billion, compared with $12.40
billion a year ago. The unit’s bad loan provisions were HK$2.41
billion, up from HK$1.28 billion a year ago.
. Japan’s bank regulation agency plans to order
15 banks, including the 3 biggest, to improve their finances. They
are expected to come up with plans to change their businesses in a
way that will make them profitable this year.
. Japanese
technology firms reported deteriorating quarterly results, e.g., NEC,
Hitachi, etc.
. Japanese
shares fell last week as foreign investors pull back at the start
of summer holidays, but other Asian stock markets were mixed and
the dollar steadied on inflows ahead of a large sale of US
Treasuries.
. Fujitsu and IBM Japan have developed supercomputers that will be sold at about
one-tenth the price of traditional models, the Nihon Kezai reported.
. The economic viability of South
Korean
ventures in the North, as well as the ups and downs of political
tension along the Cold War’s last frontier are likely to play
bigger roles in determining the outcome of the projects.
.
Dismantling of Hyundai Group,
South Korea’s 15th largest conglomerate, appears
inevitable with the suicide of the chaebol’s head, Chung
Mong-hun.
. The
western port city of Inchon has been designated Free Economic
Zone, as part of a government blueprint, to create a broad-based
international business center by 2020. Two other port cities in
the southern region, e.g., Pusan & Pyongyang, will soon follow
suit.
.
Hyundai Motor said
unionized worker ended their 3-month long strike that crippled
operation of South Korea’s largest automaker, after management
agreed to wage increases and a shorter work week.
.
Pioneer, a South Korean biotechnology firm, will move its US
headquarters from San Diego to Montgomery County’s biotech
incubator in Rockville, MD, said its County Executive.
. North Korea has agreed to multilateral talks on its suspected development of nuclear
weapons, a South Korean Foreign Ministry official said.
. The Arroyo administration in the
Philippines submitted
to the House of Representatives a proposed national budget of
P864.8 billion for 2004, an increase of 6.6% over this year’s
adjusted allocation of P811.5 billion.
. The
local IT outsourcing has not taken off due to lack of awareness of
its benefits coupled with the conservative culture.
. The National Price Coordinating Council (NPCC)
has announced price controls or basic goods and rime commodities
off the government’s declaration of a state of rebellion,
although prices and supplies have remained stable since the mutiny
last July 27.
. During the FBI’s initial efforts to investigate the
ambush of Americans in Indonesia, military
officials would not allow soldiers in Papua to be interviewed
without superiors present and would not allow the FBI to conduct
forensic tests on evidence; $400,000 in training funds from the US
for the Indonesian military may be in jeopardy.
. The
blind fanaticism of Muslim militants (Jemaah Islamiah) accused of
the Bali bombings resulted in a huge car bomb last week, killing
14 people and injuring 150. The explosion hit Indonesia’s
financial markets. The major stock index ended down 3%.
. Major
Gen. Adam Danieri was found guilty of crimes against humanity by
an Indonesian court last week over bloodshed during East Timor’s
independence clamor in 1999. He was the regional commander.
. The
Indonesian military has a well documented history of atrocities
against the population in East
Timor, Aceh province and Papua.
. Thai Airways International got a
government-approved loan of $1.4 billion to help it compete with
Asian rivals, such as Singapore
Airlines and Cathay
Pacific Airways.
. Local
automakers were asked by the Govt. to contribute to a fund that
will be set up to help promote efficiency & competitiveness of
local auto-parts producers.
.
An increase in the domestic postal rate of 3 baht
a letter has been approved but the date has not yet been
decided, according to information & communications technology
(ICT) minister.
. The US Senate ratified Free Trade Agreement with Singapore.
. Singapore’s
economy is projected to grow 1.7% this year with SARS the chief
culprit for slowing down the city-state’s recovery from a severe
recession, said Nanyang
Technological University.
. Singapore Telecommunications
and Ayala Corp (RP) may
still bid for Deutche
Telekom AG’s $443 million stake in Globe
Telecom Inc of RP, even if they let an option to buy the
shares lapse.
. Trading in Celcom
shares has been suspended since June 16 when Telecom Malaysia
owned
more than 90% of Celcom after offering RM2.75 per share in a
mandatory offer.
. Malaysian Airline System,
bhd (MAS) bore the brunt of the SARS outbreak in Q1 performance
when net losses more than doubled to RM164.51 million in 3 months
to June 30, 2003.
. KAF was given the approval by Bank
Negara Malaysia in January this year to start talking to Malaysian
International Shipping Corp for the purchase of 36.8% stake in
Affin Merchant.
. The PM of Sri Lanka is in China this week for a 5-day
official visit aimed at boosting bilateral trade and economic
cooperation.
.
The South Asian Print
Congress (SAPC) in Colombo from August 14-17 is expected to
boost Sri Lanka’s printing industry as many foreign agencies are
expected to attend.
.
Sri Lanka’s total exports in the gem & jewelry sector
recorded an increase of 17.85% during the firs half of this year,
compared with the corresponding period in 2002.
. The Executive
Committee of National Economic Council (Ecnec) of Pakistan
in its first quarterly meeting this week approved 99 projects
costing Rs 48.392 billion.
. The
business community has expressed concerns over restrictions that National
Savings Certificates would no longer be accepted as collateral
by commercial banks.
.
The US stands by Pakistan on economic reforms, security, political
and developmental fronts, said Asst. Secretary of Commerce William
Hash, III.
