On-line use to increase - Brief Article

Business Asia, August, 2001

NTERNET USAGE in the Asia-Pacific region will more than double by 2003 and triple by 2005 as on-line access fees decline, a recent study said. According to the Dataquest study, the number of internet subscribers will grow to 183.3 million people by 2003 and 248 million by 2005, from 78 million last year. India, the second-largest country by population, will have the highest growth rate of new subscribers. By 2005, India will have 21.3 million subscribers, trailing China, Japan and South Korea in the region. Falling prices and improved infrastructure, especially in countries with big populations like China and India, is a recipe for encouraging large numbers of new subscribers, Dataquest said.

* AUSTRALIA

Australia will launch a new Asia-Pacific television service to promote the country's voice in the region. The Department of Foreign Affairs and Trade and the Australian Broadcasting Corporation (ABC) have signed a five-year $90 million contract for the new service, to boost Australia's profile in the region. The new service will go to air later this year, and will include four new programs produced for the ABC Asia-Pacific: two news programs, a studio-based interview style program and an education program.

* CHINA

Bank of China said half of its 12,000 staff in Hong Kong and Macau may be moved or fired as it combines its 12 local commercial banking units, streamlining its operations to challenge its Hong Kong rivals. According to the bank's spokeswoman, half of the local staff working within the branch network, computer centres, and credit card operations, will keep their jobs. The other 6000 will join the relocation process. The cuts come amid increasing competition in Hong Kong.

* HONG KONG

It appears job loss and not pollution is the top concern for Hong Kong residents. According to a new survey, undertaken by the marketing firm Taylor Nelson Sofres, around 73 per cent of the 1000 respondents see the potential for a recession and unemployment as the most serious issue facing the territory. In contrast, only eight per cent said environmental issues were urgent. After unemployment, respondents stated they were most concerned with the availability of housing, the quality of education and the high cost of living in Hong Kong.

* INDONESIA

Australia and the World Bank will undertake a joint study into the make up and management of Indonesia's foreign debt to see whether the international community could ease the massive burden. The proposed study will investigate how much in loans was pilfered by corrupt officials and see whether adjustments to payment schedules -- over and above those already agreed to by another one of Indonesia's creditors, the Paris Club -- can ease the burden on the new Indonesian President Megawati Sukarnoputri.

* Japan

Sumitomo Mitsui Banking Corporation will almost double branch closings and increase job cuts over three years, as Japan's most efficient big bank seeks to cope with rising bad loans and slumping business. Sumitomo Mitsui will close 180 of its 578 branches, 80 more than earlier planned, and reduce its workforce, by 18 per cent, or 4900 jobs, by March 2004. The cuts will save the bank around 100 billion yen ($1.56 billion) annually, double the amount projected under the bank's earlier restructuring plans.

* Malaysia

Tax sweeteners and fill ownership rights will be offered to foreign investors in Malaysia's emerging silicon wafer fabricator industry in order to compete with established rivals in Singapore and Taiwan, the Malaysian Prime Minister Mahathir said. Speaking at the opening of the US$1.45 billion ($2.809 billion) Wafer Fab Silterra, the Prime Minister said the Government would be willing to help investors in terms of tax incentives, as well as allow 100 per cent ownership.

* Philippines

NEC plans to increase output at its four plants in the Philippines as part of its expansion in data communications equipment, helping to boost one of Asia's weakest economies. The pledge by NEC, the third-biggest chipmaker, might help boost Philippine exports at a time when shipments abroad have been declining. Exports, which account for at least 40 per cent of gross domestic product, plunged 25 per cent in June from a year earlier to US$2.6 billion ($5 billion), their biggest decline in at least 20 years. NEC, whose investment in the Philippines totals US$354 million, has almost 6000 employees at four assembly plants in the country. Exports from those plants last year were valued at US$742 million.

* South Korea

Korea plans to make its Jeju Island, a popular tourist destination in the south-west, a tax-free zone to attract visitors and investment. The Government said its plans to expand tourism by dropping visa requirements for Cuba, the Philippines, Nepal and 12 other nations. The Government will also require more widespread use of English on the island and allow schools for foreigners. A final plan for the island is expected to be adopted later this month.