Working against terrorism

Business Asia, Sept, 2001

MALAYSIA AND INDONESIA will work together to combat cross-border terrorism by Islamic extremists. Malaysia's Prime Minister Mahathir Mohamad and Indonesian President Megawati Soekarnoputri made the pledge after meeting in Malaysia's capital, Kuala Lumpur, the last stop on the Indonesian leader's tour of South East Asian nations. "Because of their Islamic content it is good if there is close cooperation," Malaysian Foreign Minister Syed Hamid Albar said. "Both leaders agreed that the security agencies of both countries must intensify exchanges of information so that preventive action may be taken." Separatists in Indonesia's province of Aceh, located across the Strait of Malacca from Malaysia, are fighting for an independent Islamic state. Aceh citizens living in Malaysia have been accused of gunrunning. Malaysian Islamic extremists were blamed for bomb attacks last month in Indonesia's capital, Jakarta.

* CHINA

China said it will increase cooperation with three South East Asian neighbours to combat the spread of illegal drugs from the "Golden Triangle" region. The Golden Triangle is a largely jungle area that straddles the border between those three countries. "80 per cent of China's drugs come from the Golden Triangle," Jia Chunwang, China's Minister for Public Security, was quoted as saying by the China Daily. "Anti-drug cooperation with the countries surrounding the region, therefore, bears special significance to China."

* INDONESIA

The International Monetary Fund (IMF) agreed today to unlock loans to Indonesia after a nine-month delay, with Jakarta committing to speed up bank asset sales as part of the pact, the country's top Economics Minister said. The agreement would help president Megawati Soekarnoputri to focus on economic reforms and lift investor confidence by avoiding debt default. The IMF and the Government had been in negotiations to resume payments on the fund's US$5 billion bailout package for Indonesia.

* JAPAN

Japan's banks must limit the value of their stakes in other companies to less than their tier-one capital after 2004, the Financial Services Agency (FSA) said. Banks have now been given until 2004 to cut their shareholdings to less than their tier one capital, which mainly comprises common equity, though the FSA will allow an extension of one to two years for banks whose shareholdings "surpass their tier-one capital by a significant amount", according to an FSA statement.

* MALAYSIA

US electronics companies in Malaysia said they expect sales to fall 12 per cent this year amid a global slowdown in semiconductor demand which they forecast will recover in the fourth quarter. Sales may decline to 38.7 billion ringgit ($18.8 million) this year, a survey by the Malaysian American Electronics Industry, or MAEI, found. The group's 18 members, which include units of Advanced Micro Devices Inc, Motorola Inc and other US firms, accounted for 12 per cent of Malaysia's exports last year.

* PHILIPPINES

Philippine Long Distance Telephone (PLDT) will fund and build centers to answer phone calls and inquiries by clients of TeleTech Holdings Inc, a US-based provider of customer service for other companies. PLDT said in a statement that TeleTech's first Manila-based center will open in the fourth quarter with 500 workstations, and may be expanded to 800 in three years. One workstation can house one worker at a time.

* SINGAPORE

Japan and Singapore may sign a free trade agreement by the end of this year, seeking to eliminate tariffs on non-farm products next spring, Nikkei English News said. Under the agreement, one country will accept safety certifications granted by the other on pharmaceutical, telecommunications and electrical products, Nikkei said. The countries expect to step up cross-border trades by removing double inspections. Tariffs on farm products will continue to be taxed as Japan wants to protect local producers. The pact would mark the first free trade agreement signed by Japan.

* SOUTH KOREA

Korea's current account surplus shrank by more than a half in July to its lowest in 16 months as overseas customers ordered fewer cars and electronics goods. The current account surplus, which measures the flow of goods, services and money in and out of Korea, narrowed 51 per cent to US$511.4 million ($965 million) from a revised $1.05 billion in June, the Bank of Korea said.

* TAIWAN

Taiwan businesses are getting gloomier about their prospects as the economy turns into its worst slump in 49 years, a recent survey by the Council for Economic Planning and Development shows. About 52 per cent of companies surveyed said they see no improvement in business conditions, up two percentage points from a June survey. However, the proportion of respondents who see deteriorating conditions dropped to 41 per cent from 43 per cent.

* THAILAND

Thai Airways International PcI, the state-controlled national carrier, is losing money as too many internal conflicts are resulting in the airline's inefficiency, Prime Minister Thaksin Shinawatra said. Thaksin's comment comes after a dispute between pilots and a flight manager caused a flight to Singapore in August to be delayed by more than three hours.