Asian growth forecasts cut - Asian countries business and industry - Brief Article - Statistical Data Included

Business Asia, July, 2001

THE WORLD BANK said it would most likely lower its 2001 economic growth forecasts for Asian countries because of a sharper than expected slowdown in US and world growth. The bank, which plans to release its next official forecasts in September, already cut its growth estimates for almost every Asian country in March. It cited falling exports to the US and Japan, weak investor confidence, and slow progress in reviving ailing banks and companies. Asia's economies may, however, rebound next year as US customers exhaust their stockpiles of computer chips, the World Bank said.

* AUSTRALIA

Singapore and Sydney have been chosen by business and leisure travellers as the world's best ail-round airports, according to a survey released by the global airline body IATA. The results of the annual survey, which sampled 90,000 regular travellers on international routes and included 48 airports, was based on ratings given for comfort, convenience and the services, such as signposting and restaurants. Singapore's Changi emerged as top for overall passenger satisfaction. Sydney's Kingsford Smith followed closely at second.

* CHINA

Chinese brokerages will be allowed to go public for the first time and will be encouraged to merge under new rules proposed by securities regulators. The changes come as China tries to improve the efficiency of its capital markets ahead of its entry into the WTO. Guotai Junan Securities Co, Shenyin and Wanguo Securities Co and Galaxy, formed from the combination of five brokerages and the nation's other 100 or more brokerages, will be able to raise money for themselves through initial public offerings or bond sales.

* HONG KONG

UAL Corp's United Airlines plans to end its New York-Hong Kong service at the end of August, just rive months after it started the daily non-stop flight, because of low demand and Hong Kong regulations that hurt sales. United will end the unprofitable flight from New York's John F Kennedy International Airport due to poor booking levels. The flight commenced on April 1. Sales for the flight also were hurt by Hong Kong restrictions which kept United from offering connecting services beyond Hong Kong to other Asian destinations.

* INDONESIA

President Abdurrahman Wahid has appointed Theo F Toemion as the new chief of the National Board of Investment in an attempt to win investments and spur economic recovery in Indonesia. Toemion, a member of parliament from the Indonesian Democratic Party for Struggle, will be in charge of improving the performance of the investment body, which has been without a chief for some time. The Indonesian Government hopes the appointment will help speed up the process of winning investments.

* JAPAN

Japan said its manufacturers will lose 67 billion yen ($1.03 billion) a year after China imposed 100 per cent tariffs on Japanese autos, mobile phones and air conditioners. China's tariffs, which have been implemented in response to Japan's duties on Chinese mushrooms, onions and straw to protect its domestic farmers, threaten to destabilise growing trade between the countries. Japan is China's largest trading partner, while China is Japan's number two partner after the US.

* MALAYSIA

Malaysia has removed taxes on mobile phones and other wireless telecommunication equipment because of increased smuggling. The Government will abolish a 20 per cent import duty and 10 per cent sales tax on cellular phones, cordless sets and other wireless equipment with immediate effect.

* PHILIPPINES

Philippines President Gloria Macapagal Arroyo is in favour of easing some of the strict provisions of the Securities Act to add more depth to the Philippine's local stock market. "Now that we have established an atmosphere of transparency and a level playing field, we can afford, I think, to be more developmental in the Securities Act," Arroyo said. Among the provisions which could be reviewed was one which prohibits brokers from trading on their own account. Rules which force investors to make an offer to all shareholders when buying more than 15 per cent of a listed company may also be examined.

* SINGAPORE

Singapore has asked authorities in the Philippines to ensure the safety of its nationals after a recent spate of kidnapping of its Philippine-based businessmen. Three incidents involving four men -- all of whom have been released -- are believed to be the first cases of Singaporeans kidnapped in the country. In the most recent case, Singapore businessman Roger Yeo was seized outside his Manila office and freed after his wife paid a ransom estimated at S$300,000 ($317,668).

* SOUTH KOREA

Korea will increase taxes on liquefied petroleum gas, diesel and kerosene by as much as 18 per cent as part of the Government's plans to curb fuel imports. Starting later this month, increased taxes will boost LGP prices 18 per cent to 455 won per litre. Diesel will rise 8.2 per cent to 735 won a litre, and kerosene will rise 5.2 per cent to 626 won. The Finance Ministry says it expects higher fuel taxes to raise consumer prices by 0.15 percentage points.