In Wednesday's Asia papers
06 October 2004 03:27 [Source: ICIS news]
A summary of political, economic, trade, business and product news affecting the chemical and related industries.
International Economics & Politics
Koizumi set for Asem in Hanoi
Japanese Prime Minister Junichiro Koizumi is set to leave on Wednesday evening for Hanoi to attend the fifth biennial summit of the Asia-Europe Meeting (Asem) where he will meet his French and Vietnamese counterparts, while having failed to arrange a meeting with the Chinese prime minister. During the three-day summit, Koizumi plans to seek Asian and European support for Japan's bid to get a permanent seat on the United Nations Security Council and give updates on the country's bilateral talks with North Korea on the abduction issue. He will also seek to reinvigorate the Asem process that has been mired in dispute between Asia and Europe over the accession of the military-ruled Myanmar, and address the issue of further enlargement, Foreign Ministry officials said. Asem, set up in 1996 by 10 Asian nations and the then 15 members of the European Union, will get its first enlargement at the upcoming summit, accepting the 10 new EU members and three relatively new members of the Association of Southeast Asian Nations.
Nihon Keizai Shimbun, Japan (online edition)
China's future G-7 meets undecided
The Group of Seven (G-7) nations have not yet decided whether to keep inviting China to their regular meetings, Japan's Finance Minister Sadakazu Tanigaki said at a regular press conference in Tokyo after the cabinet met. Tanigaki said the UK will host G-7 meetings next year so the issue is up to the decision of the UK and China. Finance ministers and central bankers from the US, Japan, Germany, the UK, France, Canada and Italy met in Washington on 1 October and invited their counterparts from China and the Middle East to discuss rising crude oil prices and Chinese economic policy. China's financial leaders attended a working dinner with the G-7 nations, an event held on the sideline of the main meeting. Tanigaki said it is favourable for the G-7 to keep meeting with China to discuss how the fast-growing economy should coordinate with developed economies. The G-7 finance ministers and central bankers concluded the meeting by combining the view that the world economy is "strong" with a plea for oil producers to help knock down oil prices by ensuring "adequate supplies". An economic slowdown of any size may mean fewer jobs and lower tax revenue, with European unemployment already at a 4 1/2 year high of 9%, Japan still battling deflation and the US facing a record budget deficit.
Business Day, Thailand (online edition)
Nihon Keizai Shimbun, Japan (online edition)
Taiwan's threats to China a bluff
Taiwan's threat in September that it could launch retaliatory missile strikes on mainland China if attacked by Beijing was a bluff, military analysts said. Despite striking a deal with the US to buy billions of dollars' worth of military hardware, without the nuclear warheads of its arch-rival Taiwan presents a minimal military threat, they said. Military analysts point out that Taiwan is dwarfed by China militarily, and that Taiwanese troops pose no real threat to the People's Liberation Army. Taiwan was forced by the US in the 1980s to scrap its plans to develop nuclear warheads and surface-to-surface missiles with a range of 1000 kilometres (600 miles). But it has never dropped its ambition to obtain a deterrent, such as ballistic and cruise missiles. Taipei's Apple Daily reported at the weekend (2-3 October) that the country planned to test fire before year-end a cruise missile that could hit the eastern Chinese city of Shanghai. But analysts said that conventional missiles, whatever their range, would be no match to a Chinese attack. China's military spending, which rose at rates in the double figures over the past decade, is estimated at $24.5bn (Euro19.8bn) in 2004, about three times higher than Taiwan's spending, according to Taiwan's defence ministry. Taiwan's government is to seek parliament's approval for a controversial $18bn special defence budget over a 15-year period from 2005
Channel News Asia, Singapore (online edition)
Channel News Asia, Singapore (online edition)
S Korea: End controversy on n-tests
South Korea has called for an early end to controversy over its secret nuclear experiments, saying that is hindering efforts to stop North Korea's nuclear weapons drive. Unification Minister Chung Dong-Young expressed the wish in a meeting with Mohamed ElBaradei, director general of the International Atomic Energy Agency (IAEA), Chung's office said. ElBaradei is in Seoul to attend an anti-nuclear weapons forum while his inspectors are investigating Seoul's unauthorised experiments to produce plutonium and enriched uranium, which are essential ingredients for atomic bombs. South Korea insists the lab experiments were purely for scientific purposes, not linked to nuclear weapons programs, but IAEA inspectors last month visited the country twice and are expected to visit again soon. ElBaradei has expressed serious concerns about South Korea's nuclear activities. The Vienna-based United Nations watchdog will hold a meeting of its board of directors in November to determine whether the matter ought to be referred to the UN Security Council. South Korea has the world's sixth-largest civilian nuclear industry, operating 19 power plants that produce 40% of the country's energy needs.
Channel News Asia, Singapore (online edition)
Korea Herald, South Korea (online edition)
Seoul has plans for North's collapse
South Korea has prepared secret plans to take control of North Korea and to accommodate at least 200 000 refugees in the event of the sudden collapse of the communist regime, a press report said. The JoongAng Ilbo, a major Seoul daily, said that under the secret plans disclosed at a parliamentary audit on Monday (4 October) Seoul's unification minister would take over as ruler of post-collapse North Korea. South Korea has also designated public facilities nationwide to house more than 200 000 North Koreans expected to flood towards the south if the communist regime lurched towards collapse, the JoongAng report said. South Korea's military has also set up 10 refugee camps to house North Korean defectors near the inter-Korean border, it said. The newspaper said the contingency plans concerning the collapse of North Korea were initially drawn up in 1994 when the founder of the Stalinist state, Kim Il-Sung, died. They have since been updated. Many officials and experts predicted the imminent collapse of North Korea at the time. However, fears eased with the successful transfer of power from Kim to his son, Kim Jong-Il, and North Korea has since survived serious famine and natural disasters in the mid-1990s and a deepening standoff with the outside world over its nuclear weapons ambitions.
South Korea has prepared secret plans to take control of North Korea and to accommodate at least 200 000 refugees in the event of the sudden collapse of the communist regime, a press report said. The JoongAng Ilbo, a major Seoul daily, said that under the secret plans disclosed at a parliamentary audit on Monday (4 October) Seoul's unification minister would take over as ruler of post-collapse North Korea. South Korea has also designated public facilities nationwide to house more than 200 000 North Koreans expected to flood towards the south if the communist regime lurched towards collapse, the JoongAng report said. South Korea's military has also set up 10 refugee camps to house North Korean defectors near the inter-Korean border, it said. The newspaper said the contingency plans concerning the collapse of North Korea were initially drawn up in 1994 when the founder of the Stalinist state, Kim Il-Sung, died. They have since been updated. Many officials and experts predicted the imminent collapse of North Korea at the time. However, fears eased with the successful transfer of power from Kim to his son, Kim Jong-Il, and North Korea has since survived serious famine and natural disasters in the mid-1990s and a deepening standoff with the outside world over its nuclear weapons ambitions.
Channel News Asia, Singapore (online edition)
Korea Herald, South Korea (online edition)
Pakistan's Musharraf to keep grip on army
President Pervez Musharraf's reshuffle of Pakistan's army top brass and appointment of a new spy chief suggests he will reverse a promise to step down as army chief by year's end, according to analysts. Musharraf, the army chief-cum-president who seized power in a bloodless coup in October 1999, looks more determined than ever to retain his dual posts, in the face of opposition outrage, to push through his agenda of stamping out Islamic militancy and pursuing peace with India, they said. For months Musharraf has been hinting that he may abandon a pledge to shed his uniform by 31 December, a promise made late last year in a deal to win the support of Islamist parties. He said Pakistan needs him in the strong position that leadership of the army gives him because he has to tackle sensitive issues such as resolving the 56-year-old dispute with India over Kashmir, crushing Islamic extremism and weeding out Al-Qaeda militants. The deal he struck with opposition lawmakers last year would allow him to remain civilian president until 2007. The top-level military changes came a day after Pakistan's main fundamentalist party Jamaat-i-Islami warned it would launch a protest campaign to dislodge Musharraf if he did not abdicate as army chief. Musharraf draws most of his power from the army, and analysts said that without the army behind him he would rapidly lose legitimacy as he was never elected to the presidency.
Channel News Asia, Singapore (online edition)
Malaysia urges Asia to protect waterways
Asian countries still needed to improve security in some of the world's busiest commercial waterways amid increased fears of piracy and maritime terrorism, a conference heard on Monday (4 October). Malaysia's transport minister Chan Kong Choy told the two-day meeting on maritime security that some shipping lanes would remain vulnerable unless they were protected vigilantly. Singapore and Malaysia are already discussing the possibility of providing security on ships plying the Malacca Strait to guard against terrorist attacks, Singapore's Deputy Prime Minister Tony Tan said in August. Chan did not identify any Asian country that needs to step up security, but Noel Choong, regional manager with the International Maritime Bureau in Kuala Lumpur said that neighbouring Indonesia still lagged behind. Malaysia has ruled out the idea of US marines helping to patrol the waterway, saying such a move would merely provoke Islamic militants. Asia, which accounts for the largest concentration of shipping lines in the world generates more than 48% of the world's container throughput. Among the important waterways in the region are the Malacca Strait, South China Sea, Sunda Strait, Lombok Strait, Straits of Makassar, Sulawesi Sea, Philippines Sea and the Bay of Bengal.
Malaysia urges Asia to protect waterways
Asian countries still needed to improve security in some of the world's busiest commercial waterways amid increased fears of piracy and maritime terrorism, a conference heard on Monday (4 October). Malaysia's transport minister Chan Kong Choy told the two-day meeting on maritime security that some shipping lanes would remain vulnerable unless they were protected vigilantly. Singapore and Malaysia are already discussing the possibility of providing security on ships plying the Malacca Strait to guard against terrorist attacks, Singapore's Deputy Prime Minister Tony Tan said in August. Chan did not identify any Asian country that needs to step up security, but Noel Choong, regional manager with the International Maritime Bureau in Kuala Lumpur said that neighbouring Indonesia still lagged behind. Malaysia has ruled out the idea of US marines helping to patrol the waterway, saying such a move would merely provoke Islamic militants. Asia, which accounts for the largest concentration of shipping lines in the world generates more than 48% of the world's container throughput. Among the important waterways in the region are the Malacca Strait, South China Sea, Sunda Strait, Lombok Strait, Straits of Makassar, Sulawesi Sea, Philippines Sea and the Bay of Bengal.
Channel News Asia, Singapore (online edition)
M'sian PM voted best finance minister
The Emerging Markets magazine has voted Malaysia's Prime Minister and Finance Minister Abdullah Ahmad Badawi and Second Finance Minister Nor Mohamed Yakcop as best finance ministers in Asia for this year. The international financial magazine gave them the award for turning Malaysia's economy into one of Asia's star performers. The magazine said the award was based on nominations from investment banks and analysts. The magazine said the country, once criticised for its controversial stance towards foreign investment, is now one of Asia's star performers. In the Q2, Malaysia's economy grew by 8%, its fastest since 2000, it added. Nor Mohamed said the magazine gave the award because Malaysia had a very prudent economic policy and management. Malaysia reduced its fiscal deficit to 5.6% in 2002, to 5.3% last year, this year to 4.5% and next year its target is 3.8%. When Abdullah took over as prime minister, he continued Vision 2020, the country's blueprint to achieve industrialised nation status by 2020, Nor Mohamed said. The government is still pro-business and pro-trade and liberalisation is still ongoing, he added.
Straits Times, Singapore (online edition)
S'pore, KL ink pact to avoid double taxSingapore and Malaysia on Tuesday (5 October) signed a new agreement to avoid double taxation and prevent people from evading income taxes. The agreement was signed by Singapore's Prime Minister Lee Hsien Loong and his Malaysian counterpart, Abdullah Badawi. Both sides also said they plan to boost cooperation in tourism and transportation, and to encourage companies to jointly seek investment opportunities. Relations between Singapore and Malaysia have improved over the last 12 to 18 months. Lee believes that both sides need to build on thats, and develop more momentum and cooperation. Both leaders also urged the private sectors of their countries to work closely to tap the economic opportunities in Singapore and Malaysia and also in third countries. The agreement for the Avoidance of Double Taxation ensures that income earned in one country by a resident of the other country is not taxed twice. It also sets up a framework that will prevent individuals from evading income taxes. The new agreement will come into force after ratification by both countries. It will replace an existing agreement signed in December 1968.
Channel News Asia, Singapore (online edition)
Thaksin hints at Feb '05 general election
Thailand's Prime Minister Thaksin Shinawatra confirmed on Monday (4 October) that he was planning a general election in early 2005, possibly in February, according to a Thai News Agency report on Tuesday (5 October). He was addressing provincial officials at a seminar on political, social, economic and technology changes. Hotly denying that the government had any reason to dissolve Parliament before its time in office had expired, he reiterated his intentions to remain in political office. He also accused past administrations of "administrating without administration, without strategies, without plans, without assessing results". That, he said, had led to national stagnation. Setting out his plans for the next four years, he said that the government would concentrate on flooding and drought, education, a comprehensive public health system, and the extension of Bangkok's electric rail network to the suburbs. Last week, Thailand's Election Commission set 13 February as the tentative date for the next general election, based on the assumption that the government won't dissolve Parliament before its term expires on 5 January. Under the constitution, elections must be held within 45 days from the date of expiration of the government's term.
Channel News Asia, Singapore (online edition)
Business Day, Thailand (online edition)
Aussie govt to set up Asia-Pac spy school
The Australian government threw the pre-election spotlight onto national security on Tuesday (5 October) with an unusual plan to create an Asia-Pacific spy school as polls showed it led opposition Labor before Saturday's vote. Prime Minister John Howard also promised additional counter-terrorism exercises to prepare Australia for attacks on its electricity grid, food chain, transport and offshore oil rigs, the hijacking of an aircraft and a bio-terrorist attack. Australia's robust economy has been the main issue during the campaign but health, education and the environment have also been concerns for voters, along with national security and the war on Iraq. Howard said he would strengthen the capacity of the chief spy agency, the Australian Security Intelligence Organisation, to check people wanting to enter the country. The A$20m ($14m/Euro11m) Centre for Counter-Terrorism Cooperation and Joint Intelligence Training will oversee the deployment of Australian spies to work with their counterparts in the region and also play host to foreign intelligence agents.
Straits Times, Singapore (online edition)
Energy
China: 5 regions warned of power cuts
At least four provinces are in for a harsh winter because of probable power shortages, a senior official working in the power grid has confirmed. Jiangsu, Zhejiang, Anhui and Fujian provinces, and Shanghai Municipality, are likely to be hit, said Cheng Guangjie, vice-president of the East China Power Grid. He said the situation in the areas would remain tense for winter and spring. The gap between supply and demand will reach as much as 17m kilowatts in the winter, Cheng said. Zhejiang would suffer the most severe power shortage, where the gap could reach 8.8m kilowatts, Cheng said. In Anhui, supply is expected to just about meet demand. As the weather cools, people are using their air conditioners less and the pressure on power grids is beginning to ease. But as facilities shut down for maintenance, the capacity to generate power has fallen in turn. Winter will add pressure on the supply as the need for heating grows in East China.
China Daily, China (online edition)
Oil & Gas
China's largest offshore oil base built
Shengli Oilfield, one of China's key crude and gas producers, has built the biggest offshore oil production centre in China, spokesman for the oilfield said. The centre is located on Bohai Sea and can produce 2m tonnes of crude oil and gas annually. Shengli Oilfield, based in Dongying City, East China's Shandong Province, set up its marine petroleum development arm in 1994, with six shabby marine platforms for oil drilling and several refitted oil tankers. Up to now, the centre is constructed with more than 80 platforms for sea drilling and with 100 kilometre (62 miles)-long seabed pipelines for oil and gas transport. It has altogether produced 16m tonnes crude and gas. With 100 000 employees, Shengli Oilfield turned out 26.58m tonnes of crude oil and 810m cubic metres of gas last year. It is striving to produce 30m tonnes of crude oil annually, said the spokesman.
China Daily, China (online edition)
Shell: M'sian oil, gas output to increase
Royal Dutch/Shell Group, Europe's second-largest oil and natural gas producer, said it may increase output in Malaysia by more than 5% this year and next as demand increases in Japan and South Korea. Shell, which helped to turn Malaysia into the world's third biggest liquefied natural gas producer, expects oil and gas output in Malaysia to equal 767 000 barrels/day of oil this year, said Jonathan Chadwick, chairman of Shell Refining, the group's publicly traded Malaysian refining unit. Shell increased production in East Malaysia and started production from two new fields, he said. Global LNG demand is accelerating as China and the US switch to the fuel to overcome domestic shortages of pipeline gas. The newer markets are adding to increased demand from traditional buyers such as Japan, South Korea and Taiwan, prompting investment in new exports plants in countries including Malaysia, Indonesia, Russia and Australia.
China Daily, China (online edition)
Science & Technology
China: Scientific projects propel growth
The National Key Technologies R&D Programme was initiated in 1982 and readjusted every five years, according to the Ministry of Science and Technology. The 6th five-year plan (1982-86) focused on agriculture, consumption commodity industry, energy-saving, machinery and electronic equipment, transportation, new technologies and social development. The 7th five-year plan of the programme (1986-1990) marked the official start of the country's scientific system reform, bringing China to the implementation of many significant scientific plans. The 8th five-year plan (1991-95) scored more than 60 000 scientific achievements, covering such fields as agriculture, transportation, energy resources, modern communication technology, technology to treat environmental pollution, remote-sensing technology, difficult diseases prevention and family planning. The 9th five-year plan (1996-2000) focused efforts on agricultural development. Now the ministry is heading for the 10th five-year plan (2001-2005), aiming to further upgrade the country's scientific power by 2005. From 2001 to 2002, 87 projects had been implemented including IT, new materials, energy, transportation, agriculture, biological medicine, natural resources development and environmental protection. China Daily, China (online edition) SMEs gain leverage from A*Star R&D Singapore innovations such as contact lenses that can dispense medicine and Web search programs that make information gathering simpler are making their way to market sooner. By tapping on the technology available at any one of the 12 research institutes under the Agency for Science, Technology and Research (A*Star), such firms, mostly small and medium enterprises (SMEs), can enhance their own products, which can then be packaged quickly and sold. Such speed is possible through A*Star's commercialisation arm Exploit Technologies, which since its start in 2002, has licensed 50 home-grown technologies to mostly SMEs in 35 deals. Those companies expect more than S$330m ($194m/Euro157m) in revenue through sales of products that have such technologies, while A*Star has received more than S$1.4m through the licensing deals. By year end, about 20 projects, with 11 identified so far, are likely to receive fundings totalling S$5m, to help them develop their products. Straits Times, Singapore (online edition)
The National Key Technologies R&D Programme was initiated in 1982 and readjusted every five years, according to the Ministry of Science and Technology. The 6th five-year plan (1982-86) focused on agriculture, consumption commodity industry, energy-saving, machinery and electronic equipment, transportation, new technologies and social development. The 7th five-year plan of the programme (1986-1990) marked the official start of the country's scientific system reform, bringing China to the implementation of many significant scientific plans. The 8th five-year plan (1991-95) scored more than 60 000 scientific achievements, covering such fields as agriculture, transportation, energy resources, modern communication technology, technology to treat environmental pollution, remote-sensing technology, difficult diseases prevention and family planning. The 9th five-year plan (1996-2000) focused efforts on agricultural development. Now the ministry is heading for the 10th five-year plan (2001-2005), aiming to further upgrade the country's scientific power by 2005. From 2001 to 2002, 87 projects had been implemented including IT, new materials, energy, transportation, agriculture, biological medicine, natural resources development and environmental protection. China Daily, China (online edition) SMEs gain leverage from A*Star R&D Singapore innovations such as contact lenses that can dispense medicine and Web search programs that make information gathering simpler are making their way to market sooner. By tapping on the technology available at any one of the 12 research institutes under the Agency for Science, Technology and Research (A*Star), such firms, mostly small and medium enterprises (SMEs), can enhance their own products, which can then be packaged quickly and sold. Such speed is possible through A*Star's commercialisation arm Exploit Technologies, which since its start in 2002, has licensed 50 home-grown technologies to mostly SMEs in 35 deals. Those companies expect more than S$330m ($194m/Euro157m) in revenue through sales of products that have such technologies, while A*Star has received more than S$1.4m through the licensing deals. By year end, about 20 projects, with 11 identified so far, are likely to receive fundings totalling S$5m, to help them develop their products. Straits Times, Singapore (online edition)
Company News
Daikin buys big US fluorocarbon rubber maker
Daikin of Japan has acquired Cri-Tech Technologies, a major US fluorocarbon-rubber-processing company, for an undisclosed price. With the reinforcement of emissions regulations, the demand for automotive fluorocarbon rubber will likely grow. Daikin currently holds a 2-3% share of the market in the US, and aims through that acquisition to expand its share to 30% in four years. Daikin acquired the company through its US unit Daikin America. The new firm, Cri-Tech, has become the unit's wholly owned subsidiary. The manufaacturer is the biggest US firm that processes fluorocarbon rubber with value-added materials into compounds. The company boasts 40% of US demand for processing, which is estimated at 1700 tonnes annually. Its sales stood at about Yen3bn ($27m/Euro21m) in 2003. Fluorocarbon rubber, which is resistant to chemicals, gasoline and heat, is used as a sealing material for automotive fuel hoses, semiconductor-manufacturing equipment and chemical equipment.
Nihon Keizai Shimbun, Japan (online edition)
Korean credit card firms on road to recovery
South Korean credit card issuers, whose enormous losses have been a drag on the country's economy for two years, are turning around earlier than expected, according to a new report. The news immediately sent LG Card shares up 12.5%. LG Card, the nation's largest credit card issuer, moved back into the black in September for the first time in two years, reaping a Won10bn ($8.7m/Euro7.0m) net profit, Internet news service MoneyToday said. LG Card reduced its monthly loss, which had been hovering around Won100bn, to Won20bn each in July and August. As a result, the company has cut a widely expected loss of Won255bn for the three months to September to just Won30bn. Samsung Card, another major credit card issuer, also successfully reduced its losses from an average Won100bn over the first six months to Won20bn in July and Won16bn in August.
South Korean credit card issuers, whose enormous losses have been a drag on the country's economy for two years, are turning around earlier than expected, according to a new report. The news immediately sent LG Card shares up 12.5%. LG Card, the nation's largest credit card issuer, moved back into the black in September for the first time in two years, reaping a Won10bn ($8.7m/Euro7.0m) net profit, Internet news service MoneyToday said. LG Card reduced its monthly loss, which had been hovering around Won100bn, to Won20bn each in July and August. As a result, the company has cut a widely expected loss of Won255bn for the three months to September to just Won30bn. Samsung Card, another major credit card issuer, also successfully reduced its losses from an average Won100bn over the first six months to Won20bn in July and Won16bn in August.
Channel News Asia, Singapore (online edition)
Korea Herald, South Korea (online edition)
(Some stories may not appear in all editions of the cited news media.)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
| ICIS news FREE TRIAL |
| Get access to breaking chemical news as it happens. |
| ICIS Global Petrochemical Index (IPEX) |
| ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index |
Latest News
- 23 May 13 04:43 China’s preliminary PMI for May falls to seven-month low
- 23 May 13 04:09 S Korea's S-Oil runs No 2 aromatics unit at 100% after turnaround
- 23 May 13 03:11 China’s Sinochem Fuling to start up sulphuric acid unit in Q4 2013
- 23 May 13 00:18 LNG exports can benefit US but need limits and future guidelines
- 22 May 13 23:59 Europe May ethanolamine prices move down on feedstock fall