Malaysia makes money for Y2K

Business Asia, August 2, 1999

* Kuala Lumpur -- Malaysia's central bank has printed more money to ensure banks can meet heavy withdrawals triggered by public worries over the Y2K computer bug. Central bank governor Ali Abul Hassan has assured Malaysians and foreigners that their money will be safe "despite any Y2K event".

- Bloomberg

* New Delhi -- The information technology industry in India registered a growth rate of 33 per cent at 239.55 billion rupees (US$5.55 billion) in the past fiscal year. According to a survey by Dataquest, the growth in the sector was fuelled by the domestic segment's growth performance of 21.8 per cent to touch 132.04 billion rupees and the export segment, which grew by about 50 per cent at 100 billion rupees in 1998-99.

- Asia Pulse

* Taipei -- Asustek Computer Inc, Taiwan's largest maker of motherboards, expects sales of notebook computers to quadruple to US$1 billion next year as global demand soars. Taiwan's share of world notebook computers sold, which is expected to jump to 18.3 million this year, is estimated to be 45 per cent in 1999 and 53 per cent in 2000.

- Bloomberg

* Seoul -- South Korea's shipyards have begun to readjust their business structures to expand to other sectors. Industry sources say shipyards will reduce their shipbuilding works in favour of expanding sectors such as marine structure, plants and navigational equipment.

- Asia Pulse

* Bangkok -- New car sales in Thailand in June were the highest in two years as recent tax and interest rate cuts lured buyers back to showrooms. A total of 19,900 new cars were sold in June, an increase of 87 per cent from the same month last year and 30 per cent more than May. The reduction of the value-added tax and year-long series of interest rate cuts are key parts of the governments US$3.5 billion plan to boost consumer spending.

- Bloomberg

* Singapore -- The World Bank is set to open a regional office in Singapore, part of its move to take on a more complex advisory role in Asia following two years of regional economic turmoil. The new office will liaise with growing World Bank operations across Asia as well as drawing on the financial expertise available in Singapore, one of Asia's prime regional banking centres.

* Jakarta -- ANZ Banking Group, Australia's fourth-largest bank, will by year end exercise its option to buy an additional 20 per cent of Indonesia's Bank Panin, raising its stake to about 25 per cent. ANZ spent US$3 million on its initial 4.9 per cent stake. Analysts estimate the bank will pay between US$15 million and US$20 million to buy the outstanding option.

- Bloomberg

* Beijing - China's government will not revoke its preferential tax treatment of foreign-invested enterprises in the foreseeable future, the China Daily Business Weekly reports. Lu Yun, the director from the State Administration of Taxation, said changes in the current tax regime for foreigners were unlikely before plans to unify the tax treatment of foreign and local companies were implemented.

- Bloomberg

* Seoul -- South Korea's economic growth rate for this year has been forecast at 7.5 per cent, a state-funded economic think-tank says. The Korea Development Institute said gross domestic product was expected to rise by 8.5 per cent during the second quarter, by 8.7 per cent in the third and by 8.3 per cent in the fourth quarter. That makes an annual growth rate of 7.5 per cent, up 3.2 percentage points from its original projection.