DoCoMo spreads its wings - Update: the latest trends and controversies - various news items from around Asia - Brief Article

Business Asia, Oct, 2001

TOKYO-BASED DOCOMO Inc, the largest mobile-phone operator, plans to release 3G services in Europe via Hutchison 3G UK Holdings Ltd next year. DoCoMo owns 20 per cent of Hutchison 3G, its second-largest European investment. Considerable investment has been made by DoCoMo in technology to spread its services worldwide -- 600 billion yen ($10 billion) has been spent for stakes in European cellular-phone companies. DoCoMo began offering its new high-speed services in Tokyo earlier this month, and will eventually allow users wireless access to the internet at speeds 40 times faster than current phones. After Japan, the next market to have the services introduced will be Europe, followed by the USA in 2003.

* AUSTRALIA

Successful environmental technologies on both water and land are showcased in a documentary entitled "A Green Tour of Australia", which was shown in China at an Asia Pacific Economic Cooperation environment summit last month. The three-part documentary produced by Hebei Provincial Television Station was shown to introduce Australian environmental businesses to the Chinese, who are reported as becoming more aware of its own environmental issues due to its successful bid for the 2008 Olympics and upcoming entry into the WTO.

* CHINA

Shanghai could be home to the world's tallest building by the time the Beijing Olympics begin in 2008. Plans to construct the Shanghai World Financial Center, ironically designed by a New York-based firm, are to be revived, after they were put on hold in 1997 due to disagreements over design and lack of funding. The 94-floor, 460 metre building will be in the new financial centre, Pudong, where about 2000 steel beams have been sitting in the ground for four years. Those in charge of the construction are reported as being unconcerned about the possibility of terrorist attacks similar to the one suffered by the USA's World Trade Center. Construction is hoped to commence at the end of 2002, and is expected to take four years to complete.

* INDONESIA

Former President Suharto's son has been cleared of corruption charges that first saw him in court in 1997 for an illegal land swap, followed by an 18 month prison sentence that was never served and a 36 billion rupiah ($7.3 million) fine for a fraud that cost the state 95 billion rupiah.

Hutomo "Tommy" Mandala Putra's case has created controversy in Indonesia, as some believe it is an example of corruption within the judicial system. President Megawati Soekarnoputri has accepted the Supreme Court ruling after earlier asking for a enquiry into the court ruling. Traders have attributed the ruling as a contributing factor to lower investor confidence, driving the rupiah down to the lowest since Megawati took power.

* KOREA

Korean employers are trimming their workforces as a result of flagging economic growth, both domestically and globally. During the month of August, 236,000 people lost their jobs, mainly from the manufacturing industry, which is suffering from a situation of falling exports which have been going down since March. Manufacturers cut 79,000 staff over one month, while retailers and the hospitality trade let go 60,000 workers. Private businesses and builders also experienced major cutbacks in staff.

* PHILIPPINES

In an effort to bring modern agricultural practices to the Philippines, the country's Government is proposing to spend US$368 million ($749 million) on irrigation, post-harvest facilities, infrastructure and agricultural research. The hoped-for effect of this work is an increase in rice production in order to cut down on rice importation. The Government's efforts are being bolstered by a CE Casecnan Water and Energy Company US$650 million ($1.3 billion) project to improve irrigation and power systems. The cooperation between the US-owned private sector company and the Government is a working example of the focus on foreign investment encouraged by President Gloria Macapagal-Arroyo.

* TAIWAN

Unemployment is increasing in Taiwan, were the jobless rate rose to 5.2 per cent in August, leaving about 512,000 people out of work. The country is attributing the unemployment to falling demand for computers and mobile phones from overseas buyers, as well as lower costs in China drawing manufacturers away. The recent Typhoon Nari, which killed 93 people, combined with the affects of the terrorist attacks on Taiwan's biggest market (the USA) are certain to delay recovery.

* VIETNAM

Reconciliation between the two formerly warring nations has been furthered by a trade agreement between Vietnam and the USA. The agreement has the USA normalising trade relations, reducing import tariffs on food, footwear and electronic goods, while Vietnam will lower barriers to USA goods, services and investment and work to adopt trade and investment standards endorsed by the World Trade Organisation. Textiles and apparels are excluded from the agreement at this stage, but shoes and agricultural goods will be made accessible to the Vietnamese.