To: stock bull who wrote (72801 ) 10/18/1998 1:16:00 PM From: Mohan Marette Read Replies (1) | Respond to of 176387
<Asian Economy > What's happening in and around Asia. stock bull: Some interesting developments in Asia worth noting as it might have direct implications on our economy here and Dell most definitely. ================================================Source:FEE Review October 15, 1998WORLD BANK South Asia is the fastest-growing region in the world for the first time "in recorded history," according to the World Bank. The region is expected to grow 4.6% this year. ------------------------------------------------------------------------- IMF The fund cut its forecast for the growth of global output to 2% from 3.1% for this year and to 2.5% from 3.7% for 1999. The combined output of Indonesia, Thailand, Malaysia and the Philippines is expected to contract 10.4% this year and 0.1% in 1999. -------------------------------------------------------------------------------- MALAYSIA In a bid to boost lending and revive the economy, the central bank cut the three-month intervention rate--the rate at which it lends to financial institutions--by 50 basis points to 7.5%. The move follows a reduction in the rate to 8% from 9.5% on September 3. -------------------------------------------------------------------------------- CHINA The government will invest $120 million a day in highway construction for the rest of the year in an attempt to boost growth. It said it had completed only half the 33,000 kilometres of highways it plans to build this year. -------------------------------------------------------------------------------- PHILIPPINES Exports rose 18% in August from the year before to $2.65 billion. Electronics and components were the top dollar earner, accounting for 51% of total receipts. -------------------------------------------------------------------------------- PHILIPPINES Foreign direct investment rose 30% to $506 million in the seven months to July, up from $389 million a year earlier. -------------------------------------------------------------------------------- THAILAND BMW will build a 1 billion baht ($25 million) plant in the southeast. The plant will start production in early 2000. It will produce the smaller BMW range, Rover and Land Rover vehicles mainly for export in Southeast Asia. -------------------------------------------------------------------------------- THAILAND The current-account surplus rose to $1.2 billion in July from $853 million in June, the Bank of Thailand said. The trade surplus rose in July to $971 million from $928 million. -------------------------------------------------------------------------------- THAILAND The central bank plans to complete the sale of Siam City Bank and Bangkok Metropolitan Bank by the end of the year through an open auction. The two commercial banks were nationalized earlier this year. -------------------------------------------------------------------------------- JAPAN The unemployment rate returned to a record high 4.3% in August as a result of corporate restructuring and bankruptcies. The workforce shrank by 440,000 jobs from a year earlier, to 65 million. -------------------------------------------------------------------------------- JAPAN Citibank arranged a $600 million syndicated line of credit for Sumitomo Corp. in the biggest deal of its kind by a foreign institution in Japan. The line of credit is available to the huge trading company any time it needs short-term financing. -------------------------------------------------------------------------------- JAPAN Dai-Ichi Kangyo Bank and J.P. Morgan & Co. will form a 50-50 joint venture to develop and manage investment-trust products. Sakura Bank also entered talks with Deutsche Bank and Kokusai Securities to form a joint venture to develop such products. Banks will be allowed to sell investment trusts to individuals in Japan from December 1. -------------------------------------------------------------------------------- JAPAN Fuji Bank plans to slash the number of its overseas bases to 31 from 62 by the end of March 2000. It will concentrate its offshore activities on New York and London. -------------------------------------------------------------------------------- JAPAN Vehicle sales declined 8.2% in September from a year earlier, marking the 18th consecutive monthly drop. Vehicle sales were down 14% for the first nine months of the year. -------------------------------------------------------------------------------- JAPAN The Economic Planning Agency said GDP will contract 1.8% in the year to March 31, 1999, a sharp decline from its previous prediction of 1.9% growth. The government began considering new steps to boost the economy. --------------------------------------------------------------------------------INDONESIA The economy contracted 17.4% in the third quarter and annualized inflation topped 82% in September, up from 78% in August. GDP shrank 13.6% in the first nine months of 1998 compared with the same period a year earlier. -------------------------------------------------------------------------------- INDONESIA The government merged four state banks--Bank Export Import Indonesia, Bank Dagang Negara, Bank Bumi Daya and Bank Pembangunan Indonesia--into a single new institution, Bank Mandiri. -------------------------------------------------------------------------------- SINGAPORE Philips Electronics, Taiwan Semiconductor Manufacturing, and the government's Economic Development Board will build a $1.2 billion semiconductor plant. The facility is expected to begin production in 2000 and employ 900 people when fully operational in 2003. -------------------------------------------------------------------------------- THAILAND The government would allow greater foreign ownership in six more business categories under the proposed Foreign Business Bill, which will replace the Alien Business Law. The categories are: printing, freight transport, medicine, animal feed, vegetable oil and tour agencies. -------------------------------------------------------------------------------- THAILAND Thai Telephone & Telecommunications suspended most payments on outstanding loans of more than $470 million. The company is seeking an agreement with creditors to restructure its debts. -------------------------------------------------------------------------------- TAIWAN Chief Economic Planner P.K. Chiang told parliament the government was no longer encouraging private industry to invest in Southeast Asia. The government's "go south" policy began 10 years ago as a way of encouraging investors to avoid mainland China. -------------------------------------------------------------------------------- TAIWAN Unipac Optoelectronics' shareholders approved a stock sale to raise NT$8 billion ($230 million). The money will be used to equip a plant to produce liquid-crystal displays. Unipac is one of at least six Taiwanese companies planning to enter the LCD market. -------------------------------------------------------------------------------- TAIWAN Winbond Electronics, the island's third-largest maker of integrated circuits, agreed to develop flash-memory technology with Lucent Technologies of the U.S. The companies will work on producing 0.35-micron and 0.25-micron flash-memory chips. --------------------------------------------------------------------------------