In Wednesday's Asia papers

17 July 2002 03:24  [Source: ICIS news]

A summary of political, economic, trade, business and product news affecting the chemical and related industries.

International Economics & Politics

Bush unveils new homeland security plan
US President George W. Bush proposed on Tuesday (16 July) tougher counter-terrorism measures as part a national strategy to prevent a new wave of terrorism on US soil, the administration said. Under the National Homeland Security Plan, the administration would provide funding in the fiscal 2004 budget to deploy better sensors and procedures to prevent attackers from using nuclear weapons. The government would also develop vaccines, anti-microbials and antidotes to protect Americans from deadly germ agents, while boosting the analytical capabilities of the Federal Bureau of Investigation and expanding security at cargo ports. The administration estimated current spending on homeland security at $100bn (Euro98bn)/year.

Business Day, Thailand (online edition)

Straits Times, Singapore (online edition)

China Daily (online edition)

Greenspan: US on road to full recovery

Federal Reserve chairman Alan Greenspan told Congress on 16 July that the US economy was on the road to full recovery, but that it would continue to feel the effects of 2001's recession. Corporate executives should be held accountable to accurately state the financial condition of their companies, he said. He noted that the US economy had held up against corporate accounting scandals that have hammered the stock market but that these and other wounds may take time to heal, suggesting rates would stay on hold until that happens. On Wall Street, stocks fell in early trading after Greenspan said 'additional revelations of corporate malfeasance' threatened a recovery.

Business Times, Singapore (online edition)

Business Day, Thailand (online edition)

China Daily (online edition)

 

Weak $ poses threat to Japanese automakers
The decline in the US dollar and a contraction in the US market are threatening the fortunes of the Japanese car industry, whose profits are almost entirely made in America, industry experts said Tuesday (16 July). Helped by the weakness of the yen and booming sales in the US, the Japanese motor industry had a year of record profits in the fiscal year to March. But the dollar's subsequent fall to near Yen115 and the uncertainty over the health of the US economy are storm clouds on the horizon, said Graeme Maxton, director of auto industry consultancy, autoPolis at an annual Tokyo seminar on the sector organised by The Economist.

Business Day, Thailand (online edition)

Nihon Keizai Shimbun, Japan (online edition)

 

A retreat that will chart China's future

Beidaihe, the seaside resort about 300 km north-east of Beijing, will be the focus of international attention again this year as China's top leaders gather there next week for their annual retreat. This year's meeting takes on added importance as it will determine the new leadership line-up for the world's most populous country. The gathering is an important consensus-building process within the ruling Chinese Communist Party (CCP). There is no fixed agenda, no time limit for discussion and no standing order of meetings, thus allowing maximum flexibility to develop a consensus. The retreat is expected to finalise the new leadership structure which will be presented for formal adoption at the CCP's 16th National Congress later this year.

Straits Times, Singapore (online edition)

China Daily (online edition)

 

Elite force to fight hijackers
Police in Shanghai have created an elite task force against hijackers as part of a nationwide effort to fight terrorism by land, air and sea. A spokesperson for the Shanghai Armed Police Force said the force was undergoing comprehensive military training and would be sent to Beijing later this year for further education. The troops would be responsible for aviation security in the eastern part of the country, including Shanghai and the neighbouring provinces of Jiangsu, Zhejiang and Anhui, officials said. The number of troops on the force and the kind of equipment they are using have not been released for security reasons, officials said.

China Daily (online edition)

South China Morning Post, Hong Kong (online edition)

 

Arroyo takes over foreign affairs post
Philippine President Gloria Arroyo on 16 July formally took over as secretary of foreign affairs, succeeding her vice-president Teofisto Guingona who was relieved of the post over a row on the deployment of US troops in the southern Philippines. At a meeting with officials of the foreign office, Arroyo said her main priority was the welfare of 5m Filipinos working overseas and their families. Arroyo ordered the agency to be more service-oriented, possibly by establishing a 24-hour, toll-free line where Filipinos could inquire about their relatives during disasters and emergencies overseas.

Business Day, Thailand (online edition)

Manila Times, Philippines (online edition)

 

Biotechnology

Taiwan's biotech sector gets seed capital

Taiwanese government officials hope to build a biotechnology industry with a production value of NT$150.0bn ($4.5bn/Euro4.4bn) by 2006 -- triple the current value. Biotechnology is seen as an important part of an overall plan to develop industries meant to replaceinformation technology manufacturing companies which are migrating to China. The local biotechnology sector will have to grow by NT$50bn every two years to meet the government's goal. The sector earned NT$49.5bn for Taiwan last year, with products ranging from bio-chips and protein drugs to medical equipment, according to Alex Fang, program manager of the Biotechnology and Pharmaceutical Program Office, Ministry of Economic Affairs.

Taipei Times, Taiwan (online edition)

 

Health & Environment

Praise for Singapore's reclaimed water

Singapore's water reclamation plant which produces water that is cleaner than tap water uses the best technology in the world, according to a world-renowned water quality expert. Professor Joan Rose, an expert in water-pollution microbiology from the University of South Florida, said the Singapore plant was better than the best of seven similar plants in the US as it used a unique combination of three of the most advanced water purification techniques. In the US, where water reclamation has been carried out for more than 20 years, only one or two methods may be used, said Professor Rose. Singapore's Public Utilities Board uses three key treatment processes to turn treated water to drinking water -- microfiltration, reverse osmosis and ultraviolet radiation.

Straits Times, Singapore (online edition)

 

Thai study calls for tax on lubricants
Results from a preliminary environmental and waste disposal study given to Thailand's Finance Ministry's permanent secretary on 16 July recommend that lubricants and packaging products be subject to a special environmental tax, a source in the ministry said. The study, which was funded by environmental group Danish Corporation for Environment & Development, concluded that Thailand's environmental problems were worsening, with the government having to spend more on dealing with the problem. In the past five years, the country's waste increased by more than 13m tonnes annually. The short-term measure to deal with the problem was to collect tax from industrial products that caused environmental degradation.The study suggested a tax of Baht1/litre of lubricant sold would already raise the Baht400.0m ($10.0m/Euro9.8m) the government spends every year dealing with the disposal of lubricants.

Business Day, Thailand (online edition)

 

Oil & Gas

Japan's crude oil imports plummets

Japan's imports of crude oil are likely to fall to their lowest level in 12 years in H1 of 2002, totaling 110-120m kilolitres, or less than 4m bbl/day. The decline is attributed to a growing trend by power firms to shift to cheaper fuels such as coal, since oil prices have remained high after the Organisation of Petroleum Exporting Countries cut output at the beginning of the year. Sluggish demand for industrial fuel amid the economic slowdown was also a factor behind the drop. Crude oil imports for January-May slid 10% year on year to 98.2m kilolitres, according to the Finance Ministry's trade statistics.

Nihon Keizai Shimbun, Japan (online edition)

 

Pharmaceuticals

New drug to battle a top killer in S'pore

Up to 1000 lives could be saved in Singapore every year once a new drug is approved for use against sepsis. Sepsis is severe reaction to an infection -- be it pneumonia, meningitis or the common cold -- which leads to organ failure and possibly death. It affects one in 50 people who are admitted to hospital. The new drug, Xigris, is the first treatment that has been developed specifically to tackle sepsis. But it comes with a hefty price tag - S$10 000 ($5888/Euro5764) to S$12 000 a person, depending on the weight of the patient. It has been approved for use in the US, the European Union, Switzerland and Australia. Xigris took pharmaceutical giant Eli Lilly almost 20 years to develop.

Straits Times, Singapore (online edition)

 

Technology

Made in China: 'Super DVD' 

China is calling it a technological breakthrough -- the development of Enhanced Video Discs (EVD) which promise five times the clarity of the conventional Digital Video Discs and enhanced sound quality. This 'super DVD' product is expected to allow China to save at least Rmb1bn ($127m/Euro125m) in annual royalties for foreign-owned DVD technology. Patent fees for the new system are also only one-third of those for DVDs. The new discs were developed by Beijing E-World Technology with strong backing from the State Economic and Trade Commission and the Ministry of Information Industry. The Shanghai-based firm intends to produce EVDs by year-end.

Straits Times, Singapore (online edition)

 

Company News & Results

M'bishi Chem tops pretax prft forecast

Mitsubishi Chemical expects group pretax profit to jump by 675.8% in fiscal 2002, putting it at the top of a ranking of projected profit growth by 405 non-listed companies compiled by Nihon Keizai Shimbun. Many firms that have largely finished restructuring their operations and cutting jobs ranked high. Mitsubishi Chemical expects Mitsubishi Pharma, which it turned into a subsidiary last fiscal year, to fully contribute to earnings in fiscal 2002, and sees its pharmaceutical business making half the consolidated pretax profit.

Nihon Keizai Shimbun, Japan (online edition)

 

Taiwan Fertiliser to invest in 3G Mobile

Taiwan's state-run Taiwan Fertiliser has agreed to acquire a 10% stake in Taiwan 3G Mobile Network, a third-generation cellular service operator, for NT$1.0bn ($29.4m/Euro28.8m). Taiwan 3G Mobile is trying to double its capitalisation to NT$6.7bn from the current NT$3.3bn.

Taiwan Economic News (online edition)

 

Bangchak Pet shows H1 profits

Bangchak Petroleum swung to a net profit of Baht639m ($16m/Euro15.6m) in H1, on revenue of Baht24bn, compared to a loss of Baht917m a year ago. Bangchak president Narong Boonsa-nguan attributed the growth to an increase in sales, improved management and more efficient cost-cutting. Narong said the oil refining company's retail and wholesale markets expanded over 5% during the period, especially lubricant sales which rose 40% in H1. Narong added that Bangchak's market share in the country ranked fourth, behind Petroleum Authority of Thailand, Shell and Esso.

Business Day, Thailand (online edition)

(Some stories may not appear in all editions of the cited news media.)

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