In Wednesday's Asia papers

16 May 2007 02:01  [Source: ICIS news]

Asahi Shimbun, Japan (online edition)

Front page

 

Extended duty in Iraq gets nod

The Lower House on Tuesday passed a bill to extend the deployment of the Self-Defense Forces in Iraq by two years.

The Upper House will now debate the bill, possibly as early as this weekend.

 

Run on tickets creates BIG headache for toto

A computer system glitch caused by a run on tickets for the country's biggest- ever lottery forced the operator to suspend sales for a second time on Tuesday.

Sales for the "BIG" soccer lottery, which offers a first prize of yen (Y) 600m ($5.0m), had resumed just the day before after similar problems caused a suspension last week.

 

Business & Industry

 

Financial report revisions surge under tighter rules

The adoption of tougher accounting rules has led to a tenfold increase in financial statement revisions by listed firms over the five years through fiscal 2006.

A survey by Tokyo-based Pronexus Inc., a firm that assists companies in preparing financial statements, found the number of corrections made by companies jumped from 210 in fiscal 2001 to 2,025 in fiscal 2006.

 

Current account surplus hits new high

Japan posted a record current account surplus for the fourth consecutive year in fiscal 2006, topping the Y20,000bn mark for the first time, the Finance Ministry said Monday.

According to preliminary statistics on the nation's balance of payments, the current account surplus climbed 11.1% from the previous year to Y21,250bn, a year-on-year increase for the fifth straight year.

 

China Daily, China (online edition)

Front page

 

Disputes high on Sino-US talks agenda

Next week's Sino-US Strategic Economic Dialogue comes at a critical time because the Bush administration is under increasing pressure from the Democratic Party-controlled Congress to sort out its trade disputes with China, a Chinese expert said yesterday.

"The Bush administration has been trying to ward off domestic pressure on trade disputes with China. But it seems to have stopped doing so recently in the face of mounting pressure from the Congress and the American people," Shi Yinhong, director of the Center for American Studies of the Renmin University of China, said.

 

Wasteful spending by govts criticized

Governments will step up the use of electronic governance and improve transparency to achieve efficiency and rein in soaring expenditure.

A report from the Legislative Affairs Office (LAO) of the State Council released yesterday shows that since the reform and opening up, administrative expenditure has risen at an annual average of 17.7%, 5.4 percentage points more than the 12.3% increase in total fiscal expenditure.

 

Business & Industry

 

Dow, Shenhua closer to clean coal plant

Domestic coal mining giant Shenhua Group and US-based Dow Chemical Company have signed a cooperation agreement and announced plans for a feasibility study, bringing the two a step closer to building a world-class coal-to-chemicals complex in Northwest China's Shaanxi Province.

The project will use "clean coal" technologies that convert coal to methanol to produce ethylene and propylene, the building blocks of various plastics and chemical products.

 

Taxes raised for resource products

China will impose tariffs on diammonium phosphate exports starting 1 June and raise the provisional export tax rate of phosphorus ore to 20% from 10%, indicating the government's adjustment in its foreign trade policy to reduce exports of products in the resource category and increase further-processed products exports.

The provisional export tax rate of diammonium phosphate will be 20% from 1 June to 30 September, and 10% from 1 October to 31 December. The move is to control chemical fertilizer exports and meet the demand of the domestic market first, according to experts.

 

Taiwan News, Taiwan (online edition)

Front page

 

Taiwan slams PRC plan to ink memo with WHO

China is planning to sign a second memorandum of understanding, or MOU, with the World Health Organization concerning Taiwan's participation in the health body, said the Chinese health minister in Geneva on Monday after Taiwan's first bid for full membership was handily defeated.

PRC Health Minister Gao Qiang promised that the second MOU will be more "extensive and comprehensive" than the first one in guaranteeing Taiwan's "meaningful participation" in the WHO.

 

Jets conduct freeway maneuvers

Half a dozen jet fighters inaugurated the four-day Hankuang No 23 military exercise yesterday morning by swooping down on a closed section of the Sun Yat-sen Freeway in Changhua County.

Defense Minister Lee Jye and chief of the general staff, General Hou Shou-yeh, were flown in by a S-70C transport helicopter to attend the exercise, which was aimed at improving the air force's ability to use major roads for emergency landings and takeoffs in the event of a Chinese attack crippling local air bases.

 

Business & Industry

 

Wolfowitz fights for job after damning report

The World Bank was scheduled to debate the future of its president Paul Wolfowitz yesterday after a scathing report accused him of breaking the rules by securing a generous pay deal for his girlfriend.

As the panel of bank executives warned of a crisis of leadership at the international lender, US President George W. Bush rushed to support Wolfowitz, 63, a former deputy defence secretary and an architect of the Iraq war.

 

Quanta to start 'One Laptop' project in fall

Quanta Computer Inc., the world's largest maker of portable computers, will start production of low-cost notebooks for the One Laptop per Child project in September after a nine-month delay, partly caused by a redesign.

Quanta will make 40,000 notebooks a month for the One Laptop project from 22 September, Michail Bletsas, a network design executive at the charity, said yesterday in Taipei. Taoyuan, Taiwan-based Quanta last month said changes to add memory and a faster chip delayed production, without giving a time frame.

 

Korea Herald, South Korea (online edition)

Front page

 

New battle looms for GNP rivals

Two Grand National Party presidential rivals are gearing up for a full-blown battle to win the party's candidacy following a party panel's approval yesterday of primary voting rules.

Front-runner Lee Myung-bak and his rival Park Geun-hye are likely to engage in a fresh tug-of-war over an array of issues, such as an in-house examination of candidates and detailed primary rules, stoking concerns among GNP members about a new disintegration crisis.

 

Seoul rules out FTA renegotiations with Washington

Korean negotiators are not going to give in to a possible request by US trade negotiators for renegotiations of their recently concluded bilateral free trade agreement, Korean officials and experts said yesterday.

However, experts conceded that too much could be put at stake in the name of implementing the new labour and environmental standards adopted by the US Congress.

 

Business & Industry

 

More households in high income bracket

The number of households raking in more than won (W) 6m ($6,500) reached a record 10.13% in the first quarter of the year, the National Statistical Office said yesterday.

On average, the high-income households, each consisting of 3.7 members, had a monthly income of W8.7m.

 

Samsung denies report on Vietnam plan

Samsung Electronics  yesterday denied local news reports that it is planning to build a mobile phone plant in Vietnam in a move to reduce labour costs and boost global competitiveness.

The Chosun Ilbo newspaper yesterday reported that Samsung, the world's third-largest handset maker, is planning to shift some of its handset manufacturing to Vietnam. Samsung has recently halted recruitment of new employees for its main plant in Gumi, North Gyeongsang Province, the report said.

 

Business Standard, India (online edition)

Front page

 

Sebi for listing of private debt

Proposal aimed at bringing in transparency, facilitating trading in such instruments.

The Securities & Exchange Board of India (Sebi) today said it was in favour of compulsory listing of privately-placed debt issues, which are corporate bonds issued to no more than 50 investors, as a means to bring in more transparency and facilitate trading in such instruments.

 

HDFC to buy out Chubb from insurance JV

Housing Development Finance Corporation (HDFC) plans to buy out Chubb Global Financial Services Corporation of the US (Chubb Global) from its general insurance joint venture and seek a new overseas partner.

HDFC had expressed its intention to end its joint venture with Chubb Corporation a year ago, following differences over the style of running business.

 

Economy & Policy

 

RIL to raise $2bn via 10-year loan

Reliance Industries, the country’s largest private sector company, is raising $2bn through a 10-year overseas syndicated loan for funding its oil and gas exploration in the D6 block of the Krishna-Godawari basin, according to Vineyesh Sawhney, the company’s vice-president, finance.

“We have been able to get a cheaper rate of Libor (London inter-bank offered rate) plus mid-60s basis points for the syndicated loan. This is cheaper than what we may have received if we had tapped the US bonds market,” Sawhney told Business Standard, on the sidelines of the IFR Conference here.

 

All firms may have to divulge business data

Companies that have been reluctant to share their production and sales data with the government for calculation of various indices will now be forced to do so.

According to the Collection of Statistics Bill, 2007, which was recently approved by the Cabinet and proposes to repeal the Collection of Statistics Act, 1957, the Central Statistical Organisation will be given more teeth to deal with the data inadequacy arising out of non-cooperation from companies.

 

Business Times, Singapore (print edition)

Front page

 

MAS outlines next big investment flow

Infrastructure and property finance is the next big area identified for the country by the Monetary Authority of Singapore (MAS).

A senior MAS official has told BT that Singapore can act as a conduit for regional and global investors to access opportunities throughout Asia. In response to the growing demands for infrastructure finance, the Singapore bond market is already developing project bonds - instruments backed by the underlying cash flows of infrastructure projects instead of by an entire corporate body.

 

Top level panel to oversee potential S'pore-KL cooperation on IDR

Singapore and Malaysia have agreed to set up a joint high-level ministerial committee to oversee possible cooperation in developing the multi-billion dollar Iskandar Development Region (IDR) in south Johor.

Prime Minister Lee Hsien Loong and Malaysian Prime Minister Abdullah Badawi announced this at a joint press conference on the resort island of Langkawi yesterday.

 

Business & Industry

 

S'pore rises as a major regional reinsurance centre

Along with the host of private banks setting up in Singapore, there is a less publicised influx of foreign insurers and reinsurers seeking a base to tap opportunities in Asia.

According to figures from the Monetary Authority of Singapore (MAS), Singapore is one of the largest reinsurance centres in the region, with the growth of the direct insurance business providing greater business opportunities for reinsurers based here.

 

More are taking bigger home loans from banks

Rising prices for homes lead inevitably to bigger borrowing - which is good news for the banks at least.

After three years of decline, when demand for new loans was tailing off, banks now see one of their biggest money-spinners - mortgages - on the verge of taking off.

 

Bangkok Post, Thailand (online edition)

Front page

 

OIC supports government on South

The secretary-general of the Organisation of the Islamic Conference tells members of the 57-nation group that he had urged Thai authorities to give local Muslims "greater responsibilities over their own affairs."

Ekmeleddin Ihsanoglu also told delegates at the opening of the alliance's foreign ministers' meeting here on Tuesday that the Thai government has a "constructive and promising" attitude toward Thai Muslims.

 

Cyclone weakens, but the deluge continues

More rain is expected over much of the country on Wednesday despite the weakening of a cyclone blamed for much of the wet weather.

The latest Meteorological Department bulletin said this morning that Cyclone 01B lost strength after making landfall in Burma. It had been downgraded to a tropical depression and was centred northeast of Rangoon.

 

Business & Industry

 

Thai Mobile chief facing TOT investigation

Thai Mobile chief Vasukree Klapairee will face an investigation by the board of TOT Plc over accumulated debts of about baht (Bt) 8bn ($242.2m) and the cellular venture's minuscule customer base of just 80,000. A source said that a board committee would propose the investigation when it meets on Friday.

But Mr Vasukree, also senior executive vice-president for regional sales and customer service at TOT, said he had already explained the company's difficulties to the committee at the request of Gen Saprang Kalayanamitr, a coup leader who serves as the TOT chairman.

 

Board shakeup at Shin as profit dips

Shin Corp, Thailand's largest telecommunication conglomerate, yesterday appointed Virach Aphimeteetamrong as chairman of the board of directors, replacing Pong Sarasin. The change came after the company reported worse-than-expected first-quarter earnings. Shin attributed its losses to the write-down of goodwill and the concession value of its subsidiaries.

Shin Corp, controlled by Singapore's Temasek Holdings, told the Stock Exchange of Thailand yesterday that Mr Pong had resigned effective on Monday.

By: Staff Reporter
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