In Thursday’s Asia papers

Asahi Shimbun, Japan (online edition)

Front page

Foreign Ministry protests book about Princess Masako

The Foreign Ministry on Tuesday said it has lodged a formal protest against a book written by an Australian journalist that contains “unfounded and highly contemptuous descriptions” of the imperial family.

The book, “Princess Masako–Prisoner of the Chrysanthemum Throne,” was written by Ben Hills and was published last year.

Minshuto asks Asano to run in Tokyo gubernatorial election

Opposition Minshuto (Democratic Party of Japan) has approached Shiro Asano, the former reform-minded governor of Miyagi Prefecture, to run against incumbent Shintaro Ishihara in the Tokyo gubernatorial election, sources said.

Asano, 59, has not made clear if he will run in the election set for April. But the individual who approached Asano, now a professor of the Faculty of Policy Management at Keio University, said his response to the party’s offer was “good,” according to Minshuto sources.

Business & Industry

Cargo ship with history of accidents tied to sunken tuna boat

A shipping company said Wednesday one of its vessels was likely the one that sank a tuna boat and forced two crew members and a TV cameraman to drift for three days in a lifeboat.

A” Line Ferry Co. said it found large scratches on the bow of the 131-metre-long, 3,891-ton cargo ferry Takachiho on Tuesday.

Nikko to set up oversight division

Nikko Cordial Corp said Tuesday it will create a new division specializing in checking irregularities at group companies to prevent another accounting fraud.

The scandal-plagued securities house will also start procedures in damages suits against former executives as early as March after determining details, such as who will be held responsible for falsification of financial statements and how much to seek in compensation, President Shoji Kuwashima told a news conference.

China Daily, China (online edition)

Front page

Taiwan leader rapped for secessionist moves

Beijing yesterday condemned Taiwan leader Chen Shui-bian for dropping “China” from the names of government-run firms and introducing “distorted” history books.

Li Weiyi, spokesman of the Taiwan Affairs Office of the State Council, warned that the “flurry of de-sinification activities” was “deliberate political manipulation” and “secessionist moves” that will heighten cross-Straits tensions.

Talks herald new era of understanding

The foreign ministers of India, Russia and China said greater cooperation between the three countries would promote international peace yesterday.

The officials also reached a consensus on trilateral co-operation on several important sectors.

Business & Industry

China mulls basic medicine system to quell rising drug price

China is considering setting up a system that will ensure accessibility to a range of basic medicines and prevent manufacturers from circumventing existing price controls.

The system would include a catalogue of basic drugs that would be produced and distributed under government control and supervision, Mao Qun’an, a spokesman of the Ministry of Health, told a press briefing Monday.

Nation to standardize transfer of bad loans to foreign investors

China will adopt strict measures to standardize the transfer of bad loans of domestic financial institutions to foreign investors, so as to protect the legitimate rights and interests of investors and enhance smooth treatment of domestic bad loans.

The National Development and Reform Commission (NDRC) and the State Administration of Foreign Exchange (SAFE) have jointly issued a notice saying that the bad loan transfer will be included in the management of China’s foreign debts.

Taiwan News, Taiwan (online edition)

Front page

Former FSC officials indicted for graft

Former Financial Supervisory Commission spokesman Lin Chung-cheng and his secretary Su Chun-chi were indicted yesterday on corruption charges in connection with their alleged cover-up of China Development Financial Holding Co.’s controversial purchase of a local brokerage firm.

Taipei prosecutors recommended that Lin be sentenced to 16 years in jail and be fined New Taiwan dollar (NT$) 5m ($152,203), but asked the court to go lightly on Su, saying that Su had confessed to his crimes.

‘Five-noes’ not violated, president says

The proposed name rectification of state-run enterprises and institutes is different from advocating a change of the national title, President Chen Shui-bian said yesterday, adding that the effort did not violate the “five-noes” promise he made separately in his 2001 and 2004 presidential inaugurations, which include a vow not to declare independence for the country.

The government engaged in the name-change because many Taiwan-based state-owned companies and organizations have been confused with their Chinese counterparts, Chen said in a luncheon with reporters held by the Presidential Office.

Business & Industry

Hi-Tech’s Hsieh shuns Acer for ‘untold stories’

George Hsieh, manager of the world’s top technology fund, skipped a November briefing by MediaTek Inc, Taiwan’s 10th-largest company, to attend one by semiconductor designer Global Unichip before its share sale.

Global Unichip, now among Hsieh’s top five holdings, has more than quadrupled since trading began 3 November. Hsinchu-based MediaTek, 14 times larger by market value, is up 8.2%. More than 92% of Hsieh’s Hi-Tech Fund is in companies whose weighting in the Taiex Index is less than 1%.

Research shows increased IT spending

Government organizations within the Asia-Pacific region, excluding Japan, will continue to spend steadily on IT services and products with the highest levels of growth anticipated to continue in the emerging markets, the latest research published by Government Insights said.

Government’s IT spending in Indonesia is expected to grow at 16.4%, while spending in Vietnam, Australia and Singapore is expected to grow at 14.3%, 5% and 3.2% respectively, said the IDC company.

Korea Herald, South Korea (online edition)

Front page

Koreas to follow up nuke deal with aid talks

The two Koreas agreed yesterday to resume bilateral talks for the first time in seven months following the agreement in Beijing on steps toward the nuclear disarmament of North Korea.

The Unification Ministry said Seoul and Pyongyang will hold a working-level meeting today to discuss the resumption of bilateral ministerial talks which are expected to deal with food and fertilizer aid to the impoverished state.

Korea, US make headway in FTA talks

Korea and the United States have made enough progress in their talks over a free trade deal to meet their March deadline, despite no prospects of a breakthrough during the current round of talks in Washington, the chief US negotiator said.

“I’m very encouraged by the negotiations this week across the board,” Wendy Cutler said in an interview with Yonhap News. “This is by far the best round so far.”

Business & Industry

Gmarket aims to provide e-commerce infrastructure

For Ku Young-bae, outrunning global e-commerce giants Internet Auction and eBay in the home market is like a dream come true. But it does not mean he can kick up his legs and relax.

The president and chief executive officer of Gmarket Inc., Korea’s leading retail e-commerce marketplace, is rather at the beginning of building a mountain out of a molehill.

‘Economy faces real slowdown in H1’

The Korean economy is headed for a substantial slowdown in the first half of this year with an exceptionally strong won driving down the country’s exports, a Morgan Stanley economist here said yesterday.

The nation’s economic growth in the first six months of 2007 will remain at 3.7%, though a moderate rebound of 4.8% is expected in the second half, Park Chan-ik, the head of Korea research at Morgan Stanley told reporters.

Business Standard, India (online edition)

Front page

Vodafone offers hand to Essar

Three days after agreeing to acquire 67% in Hutchison Essar, Vodafone CEO Arun Sarin made strong overtures to the Essar Group, the 33% domestic partner in the joint venture.

“My first preference is Essar, my second preference is Essar and my third preference is Essar,” Sarin told reporters today at his first post-acquisition press conference in India.

Ruias may stay invested

The Ruias are veering round to the view of not selling their 33% equity stake in Hutchison-Essar.

The Essar family holds the key to the completion of Vodafone’s acquisition of 52% equity in Hutchison-Essar at an enterprise value of $18.8bn.

Economy & Policy

Price graph up despite duty cuts

Even as the government has banned export of wheat for the whole of 2007, it transpires that similar bans or duty free imports in the last several months have not always had the desired impact on prices.

Wheat prices, for instance, have risen by almost 20% in the last one year in spite of the government bringing down the duty on imports to zero in September 2006.

Stir-struck states blame Centre for inflation

As agitations over price rise threaten to erupt all over India, desperate state governments are meeting, trying to cajole trader organisations, seeking government intervention and even giving subsidies to keep the market stable.

As the last resort to save their governments, they are blaming the Centre for inflation.

Business Times, Singapore (print edition)

Front page

Govt raises 2007 growth to 4.5-6.5%

Market forecasts of Singapore’s 2007 economic growth are being jacked up, as economists take their cue from the government predictions of the economy growing by as much as 6.5% this year.

‘2006 was an outstanding year for the Singapore economy,’ said Ng Wai Choong, deputy secretary (industry) at Ministry of Trade and Industry, at a media briefing yesterday on the economy’s 2006 performance.

Budget statement today at 3.20pm

This year’s Budget statement is to be delivered in Parliament today at 3.20pm by Second Minister for Finance Tharman Shanmugaratnam, the Finance Ministry announced yesterday.

The Budget speech will be broadcast live on Channel News Asia, with Chinese translation in dual-sound mode, and on 93.8Live radio.

Business & Industry

CapitaLand joins billion-dollar profit club

CapitaLand has joined the ranks of the billion-dollar profit club – which currently includes the likes of Singapore Telecommunications, Singapore Airlines, DBS, UOB and OCBC.

Helped by a more than quadrupling in earnings for its fourth quarter, the group yesterday reported a 35.6% surge in full-year net profit to Singapore dollar (S$) 1.018bn ($663.5m), the first time a Singapore property company listed here has crossed the S$1bn mark in earnings. Earnings per share for the full year ended 31 December 2006, came to 36.8 Singapore cents, up from 28.3.

Deutsche appoints top private banking executives in S’pore

Deutsche Bank has become the latest to make top private banking appointments here, reflecting Singapore’s growing stature as a global wealth management hub.

The German bank announced yesterday the appointment of Ravi Raju as head of private wealth management for the Asia-Pacific region, effective 8 March. Mr Raju assumes the responsibilities of Rico Caduff, who has been appointed to the new role of chairman, private wealth management, Asia-Pacific. Mr Raju also joins Mr Caduff on the bank’s global private wealth management executive committee.

Bangkok Post, Thailand (online edition)

Front page

Thailand marks 120 years of Japan ties
Thailand’s Foreign Minister Nitya Pibulsonggram will visit Japan later this month to participate in the inauguration of a series of programmes marking the 120th anniversary of Japan and Thailand’s anniversary of diplomatic relations, Foreign Ministry spokesman Kiiti Wasinondh said Wednesday.
The ceremony will take place in Tokyo on 27 February, making the start of a number of events and activities to follow throughout the year.

Thailand to ‘unpatent’ 14 drugs: Report
Thailand is planning to break the foreign patents of 14 HIV/Aids, cancer and heart drugs, a move that may prompt companies to withhold new drugs from the Thai market, the Reuters news agency reported in a dispatch from Bangkok on Wednesday evening.
Ministry officials were not immediately available to comment.

Business & Industry

PTT blasts ministry over gas subsidies

PTT Plc will no longer subsidise the price of natural gas used to produce electricity unless the government pays the money back as promised, president Prasert Bunsumpun said yesterday.

Mr Prasert was reacting to remarks by Norkhun Sitthipong, the deputy permanent secretary of the Energy Ministry. Mr Norkhun had told the public that the fuel tariff (Ft) rate that figures into electricity costs wouldn’t decline in line with global oil prices because the government needed to pay back PTT for a six-billion-baht Ft subsidy in late 2005.

Government urged to wrap up FTA deal

Local trade associations have called on the military-appointed government to sign the Thailand-Japan free trade pact to increase the country’s competitive edge in Japan, a major export market, or it will lose out to rivals.

Sixteen associations, representing traders in various products from commodities to light industrial goods such as footwear and garments, expressed their concern through the Thailand Board of Trade yesterday. Their comments came one day ahead of the discussion on the Japan-Thailand Economic Partnership Agreement (JTEPA) to be held by the National Legislative Assembly today.